U.S. dairy groups cheesed off by Canada-EU deal

Thursday, September 11, 2014

by SUSAN MANN

American dairy groups are finding the proposed 12.5 per cent reduction in their access to the Canadian cheese market due to provisions in the Canada-European Union trade deal tough to swallow.

An ad-hoc group of 16 American dairy companies and organizations, such as cheese manufacturers, dairy cooperatives and trading companies, have come together to oppose the cut. They wrote to United States Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack in August about their concerns. The dairy group has also asked their political representatives to express their concerns to the Canadian government and to ask Canada to refrain from implementing its European Union cheese access provisions.

Patrick Girard, senior media relations officer with Agriculture and Agri-Food Canada, says by email the Canadian government hasn’t been contacted by the groups on this matter.

In the Aug. 19 letter to Froman and Vilsack, the ad-hoc dairy group says the non-European Union countries’ access to the Canadian cheese market would be reduced by 800 tonnes annually as part of the proposed Canada-EU trade agreement, falling to 6,140 tonnes annually from 6,940 tonnes. The Canadian government intends to allocate that 800 tonnes of its ‘most favoured nation’ cheese quota to the European Union, the letter says.

“This reduction of 12.5 per cent is significant given the tightly limited access the U.S. currently has to the Canadian market and it will have a detrimental impact on the ability of U.S. cheese producers to export their product to Canada for consumption,” the letter says.

In addition, the Canadian plan violates the 1994 General Agreement on Tariffs and Trade, which bars countries from using free trade agreements to restrict trade access, the letter says.

Shawna Morris, vice president of trade policy for the United States Dairy Export Council, says they’ve asked their political leaders to request Canada not implement the European Union cheese access provisions “out of respect for their (Canada’s) existing trade obligations.” The council, which supports the ad-hoc dairy group, is based in Arlington, Virginia. It’s a non-profit, independent, membership-based organization that represents the global trade interests of U.S. dairy farmers, processors, cooperatives, ingredient suppliers and export traders. BF