Mr. Speaker, the following reflects a consolidated response approved on behalf of Global Affairs Canada ministers.
The World Trade Organization, or WTO, specialty creams tariff rate quota, or TRQ, allocated annually on a dairy year basis, from August 1 to July 31, is not being impacted by the expiry of the cheese side letters. Therefore, the response below will primarily focus on the WTO “Cheeses of All Types” TRQ, or WTO cheese TRQ, and the cheese side letters addressed in the question.
The WTO cheese TRQ is allocated annually on a calendar year basis, from January 1 to December 31, and split into two reserves: one for European Union origin cheeses and one for non-EU origin cheeses.
The 2020 cheese side letters to the Canada-United Kingdom of Great Britain and Northern Ireland (U.K.) Trade Continuity Agreement, or TCA, are the product of a negotiated outcome between Canada and the U.K.
As part of a balance of concessions, Canada agreed to grant the U.K., via the cheese side letters, continued access to the EU cheese reserve under the WTO cheese TRQ until December 31, 2023, in order to facilitate planning horizons and an orderly transition for Canadian allocation holders under the WTO cheese TRQ.
The terms of this transitional arrangement have been well known to stakeholders since the TCA was concluded in late 2020.
After December 31, 2023, cheese imports originating from the U.K. can be imported under the non EU reserve of the WTO cheese TRQ.
Regarding the WTO “Cheeses of All Types” TRQ, for the calendar years 2022, 2023 and 2024, the import access quantity for the WTO cheese TRQ is 20,411,866 kilograms. Of this, 69.9%, or 14,267,894.3 kilograms, is allocated to cheese imports from the EU, and 30.1%, or 6,143,971.67 kilograms, is allocated to cheese imports from non-EU sources. There is no specific quantity of TRQs allocated to individual countries and/or markets under each respective reserve.
For the calendar years 2022 and 2023, cheese from the U.K. could be imported under the EU reserve’s overall access quantity of 14,267,894.3 kilograms. For the calendar year 2024 and going forward in subsequent calendar years, cheese from the U.K. will be imported under the non-EU reserve’s overall access quantity of 6,143,971.67 kilograms.
Regarding WTO specialty creams TRQ, for the dairy years 2022-23 and 2023-24, the import access quantity for the WTO specialty creams TRQ is 394,000 kilograms. There is also no specific quantity of TRQs allocated to individual countries and/or markets under the WTO specialty creams TRQ.
TRQ allocation holders’ individual business decisions are made in line with their own commercial considerations. However, Canada’s inclusive approach to trade seeks to ensure that the benefits of trade are more widely shared, including with traditionally under-represented groups in trade such as small and medium-sized enterprises, or SMEs.
The Government of Canada is committed to ensuring that SMEs have access to the right resources, information and tools required to participate in trade, access global opportunities and supply chains, benefit from international trade and investment opportunities, and succeed in global markets.
This is achieved through mainstreaming inclusive trade provisions across Canada’s free trade agreements, or FTAs, and seeking dedicated inclusive trade chapters, including on trade and SMEs, with FTA partners.
The Government of Canada has a range of programs to provide financial support to SMEs in trade, including the CanExport SMEs, Canada small business financing program, the women entrepreneurship strategy, the Black entrepreneurship program, the 2SLGBTQI+ entrepreneurship program, and the indigenous growth fund.