In a surprise announcement, the federal government announced it is scrapping its review of applications for lucrative import quotas and civil servants will instead be making interim allocations.
The Globe and Mail reports that most will go to processors.
That has already drawn fire from U.S. Trade Representative Robert Lighthizer in testimony in Washington this week.
He said Canada’s dairy industry has a history of trying to negate imports agreed to during international negotiations and said he will be watching closely to ensure American exporters get a fair deal.
The tariff quotas offer little or no tariffs for limited volumes of imports that were negotiated in the trade deal with the United States and Mexico.
The allocations will be for milk, cream, skim milk powder, industrial cheeses, other cheeses, milk powders, yogurt and buttermilk, powedered buttermilk, whey powder, natural milk concentrates, ice cream and ice cream mixes, some other dairy products, chicken, eggs and egg products.
Those who hold the permits can import low-cost U.S. products and sell them in the Canadian market where prices are substantially higher.
The quotas this year will last from July 1 to Dec. 31..
The deadline for applications for both dairy and calendar year TRQs is June 22, 2020. Allocations will be issued on June 30, 2020.
“Please note that applicants are not required to submit an affidavit or an accountant’s letter for the current application period,” the government said in its notice.
More information, including instructions on filing applications, is online at https://www.international.gc.ca/trade-commerce/controls-controles/messages/2020-06-15-message_industry-industrie.aspx?lang=eng
