making a difference for dairy

Canadian Trade Policies

Dairy Groups Around the Globe Challenge Canada’s New Protectionist Dairy Policy

Dairy organizations in the United States, Australia, the European Union, Mexico and New Zealand have expressed indignation about Canada’s actions in September 2016 to deepen its already prohibitive restrictions on dairy trade. In a joint letter to their respective trade and agriculture officials, the groups said Canada’s increasingly protectionist policies violate international trade obligations, hold out the prospect of trade diversion with attendant global price-depressing impacts and conflict with the principles of free markets and fair and transparent trade.

In the United States, IDFA joined the National Milk Producers Federation and the U.S. Dairy Export Council in opposing the Canadian Agreement in Principle recently concluded between Canada’s dairy producers and processors. The agreement, which is undergoing finalization and review in Canada, would provide an incentive to substitute Canadian dairy ingredients for imported dairy ingredients and would unfairly subsidize exports of Canadian dairy products. The agreement is set to take effect February 1, 2017.

IDFA and other dairy organizations believe the Agreement in Principle would breach Canada’s trade obligations under the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA). The agreement also would undermine the intent of the pending Trans-Pacific Partnership (TPP) and the EU-Canada Comprehensive Economic and Trade Agreement (CETA).

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