Thanks very much.
My name is Dean Beyea. I'm the director of the international trade policy division at the Department of Finance. The duties relief program is legislated under the customs tariff, which is the responsibility of the Minister of Finance. My division is responsible for providing analysis and advice to the minister on customs tariff matters, including this program. Day-to-day administration of the customs tariff, however, falls under the purview of the Canada Border Services Agency. The DRP relieves customs duties on imported inputs used in the production of goods that are ultimately exported. This long-standing program is similar in nature to the supply-management focused import for re-export program administered by Global Affairs Canada.
Given the general nature of the DRP, it has certain program features that are more flexible than the import for re-export program; for example, it has longer time frames for re-export. Supply-managed farmers and farm groups have expressed concern that some of these features are negatively impacting the domestic market. On the other hand, certain food processors argue that the DRP features provide them with additional flexibility that improves their competitiveness in export markets.
While DRP imports have grown in recent years, this largely represents a diversion from imports previously under the import for re-export program. Total combined imports across the two programs continue to represent a stable proportion of the domestic market. The government recognizes the importance of effective import controls to the integrity of the supply management system and is committed to their enforcement. In that context, officials are actively reviewing previously announced anti-circumvention measures, including potential changes to the duties relief program. It's also important to note that U.S. milk producers and members of the U.S. Congress have expressed concern that changes to the duties relief program could undermine negotiated market access under the Trans-Pacific Partnership. As a result of the supply management industry concerns, I understand that the CBSA has recently heightened enforcement activities to ensure that the DRP continues to be used as intended under the law.
I think I can stop there and listen to my colleagues. I am happy to receive any questions.