Question Period Note: CUSMA: Tariff Rate Quota Allocation Policies

Certain US stakeholders have expressed concerns regarding the recently published allocation policies for the CUSMA dairy Tariff Rate Quotas (TRQs).

• Canada's administration of its tariff rate quotas will be in full compliance with its commitments under the Agreement.
• Canada takes all of our trade obligations very seriously.

• Canada has a long history of fulfilling its market access commitments for dairy.

• Canada's dairy policies are not causing the challenges that U.S. dairy farmers are facing.
• Canada's dairy, poultry and egg farmers, their families and their communities can count on the full support of our Government.

Under the Canada-United States-Mexico Agreement (CUSMA), Canada has agreed to provide the United States with 16 new TRQs for supply-managed commodities: 14 for dairy products; 1 for chicken; and 1 for eggs. The TRQs will be phased in over a period of 10 to 19 years, depending on the commodity. These new TRQs represent the first significant increase in TRQ access for the U.S. in 25 years.

On June 15, Canada published its interim allocation policies for the CUSMA TRQs. Since then, Congress and U.S. dairy associations have sent multiple letters to the U.S. Administration, raising their concerns with Canada's dairy TRQ administration policies. This has included calls for USTR to initiate a case under the CUSMA dispute settlement mechanism should Canada not immediately change its allocation policies.

Some content was redacted in line with access to information and privacy exemptions.