Thank you for the question. It is a good question.
They are often referred to as caps. We do not refer to them as caps. They are not a cap: Canadian exporters are free to continue exporting beyond the threshold amount that is set out in the agreement, but for volumes that exceed the specified amount, they will face a specific export charge.
In the case of skim milk powder and milk protein concentrates, that charge is 54ยข Canadian per kilogram. In the case of infant formula, it is $4.25 per kilogram. Any export charge revenues that are generated as a result of this mechanism would be directed to the general revenue fund of the Government of Canada.