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CETA Update: Distribution of Tariff Rate Quotas for EU Cheese

: General

Global Affairs Canada Updates Its Guidelines for Distribution of Cheese TRQ under CETA 2017-08-02

The Canadian Government announced yesterday August 1, 2017, its allocation policy for tariff rate quotas (TRQs) for imports of cheese from the EU under the Canada-EU Comprehensive Economic and Trade Agreement (CETA). Most significantly, Canadian companies that previously did not have permits to import cheese will now be able to apply for a share of the new CETA import TRQs.
Under the Government’s new cheese TRQ policy, 60% of the TRQ will be made available to small and medium-sized enterprises (SMEs) who will be allocated 60% of the new quotas: 30% to SME manufacturers and 30% to SME retailers and distributors. Large manufacturers and large retailers/distributors will share equally in the 40% balance.
Each of the two quotas will be completely open to new entrant applicants (companies that do not currently have an allocation under Canada’s existing cheese TRQ). Eligibility for an allocation will be assessed on the basis of each applicant’s activity in Canada’s cheese sector, not on a history of cheese importing activity. The policies also include specific measures to help SMEs and new entrants participate meaningfully in the two new quotas.
The TRQ for “all types” of cheese will be allocated to eligible Canadian enterprises that are active in the manufacturing, distribution or retailing of cheese. The quota for “industrial” cheese will be allocated entirely to processors for use in other foods (further processing).
The adoption of this policy removes a major stumbling block in the Canada-EU free trade agreement, which is scheduled to come into force provisionally on September 21, 2017.
Information, Frequently Asked Questions and instructions about how to file an application for cheese TRQ under CETA can be found on Global Affairs Canada’s website.
Interested persons are encouraged to visit this website and file their application as quickly as possible for an allocation under the new CETA cheese TRQs. The deadline for submitting completed applications to Global Affairs Canada (for an allocation in 2017) is September 8, 2017.
Applicants who receive an allocation for 2017 will be able to start requesting permits to import cheese as of October 2, 2017.
To qualify for an allocation in the 2017 allocation year, applicants must demonstrate that they were active in the Canadian cheese sector between October 1, 2015 and September 30, 2016.
The new rules include a mechanism for transferring TRQ from one company to another. The transfer mechanism is described in the Frequently Asked Questions.
Interested persons may contact Global Affairs Canada directly at

Source: Global Affairs Canada


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