by SUSAN MANN
The federal government’s move last month to clarify that the cheese in American pizza topping kits entering without duties are subject to tariffs has pleased Canada’s dairy farmers but angered pizzerias.
Jack Aubry, Finance Canada spokesperson, says by email the government brought in a technical amendment to the Customs Tariff law. The amendment was tabled in the House of Commons Nov. 22 and came into effect Nov. 29.
He says the technical amendment “was in direct response to ongoing attempts to circumvent that (Customs Tariff) law.”
Dairy Farmers of Canada has been lobbying the federal government to close the loophole for two years, says spokesperson Thérèse Beaulieu, and is pleased with the government’s steps to close it. The organization first noticed the kits were coming across the border in 2011.
Dairy Farmers has argued all along the cheese in the kits should be classified as a dairy product and be subject to the 245.5 per cent tariff for cheese products that are subject to duties. But the Canada Border Services Agency ruled last year the kits, containing 80 per cent mozzarella and 20 per cent pepperoni, are a food preparation and the cheese in them could come in duty free.
Dairy farmers challenged the classification at the Canadian International Trade Tribunal, which ruled in May the dairy farmers’ corporation, BalanceCo, launching the challenge wasn’t eligible to question the classification. That meant the Canada Border Services Agency decision classifying the kits as a food preparation remained intact.
Beaulieu says speculation in a Globe and Mail article this week that the government’s amendment could spark a trade war with the United States is just that – speculation. “That’s a lot of speculation by people who have seen their little trick thwarted.”
She adds, “Canada fully had the right to do what it did.” Canada didn’t change the classification but jut clarified “what was supposed to happen in the first place.”
Aubry agrees. “This amendment is fully consistent with Canada’s international trade obligations.”
But Garth Whyte, president and CEO of the Canadian Restaurant and Foodservices Association, which represents restaurants across Canada, called the government’s move to shut down the pizza cheese import process a “back door decision” that was particularly unpalatable since the border services agency already ruled the kits were a food preparation and that was upheld by the trade tribunal.
The restaurant association also questions the way the government brought in the amendment. The industry only received a one-week notice and “there was no transition,” he says.
The kits are the fresh pizza industry’s legitimate way to combating high priced cheese in Canada, he says. “People are looking for ways to keep their costs down and they’re looking for ways to sell more dairy.” He says he didn’t know how many of the kits were coming into Canada.
To address the restaurant association’s concerns that fresh pizza makers were paying 30 per cent more for their cheese than frozen pizza makers, the Canadian Dairy Commission introduced a new lower priced milk class on June 1. The restaurant association applauded the commission for launching the new class.
Beaulieu says the commission was looking into whether the new milk class to provide lower priced milk for manufacturing mozzarella for the fresh pizza market was slowing down American pizza kit sales. “The last I heard it was too early to tell. They were not really saying anything about that class.”
Dairy industry officials have said in previous reports the new class was implemented to boost sales of restaurant pizza cheese. BF
Comments
Know matter how you dress it up, cheese is cheese! The so-called pizza kits should never have been able to come across duty free in the first place.The Globe and Mail and their trade war talk, HA don't make me laugh!
The certain media writers that have at times been almost bragging about the pizza toppings circumventing the Supply Management system can now be shut up!
Oh look, the dairy industry got what they wanted again.....I guess they can keep building their 2-3 million dollar robotic barns to house their massive 75 cow herds and not have to worry about what the rest of agriculture has to deal with.
He who laughs first , May not laugh last .
You have to tie up all the lose ends before you start taking things away .
Let me see if I've got this correct - in the minds of the Canadian dairy industry, when someone figures out a way to avoid being hosed by 245% tariff barriers, it's dismissively referred to as a "little trick", but the 245% tariff barriers themselves, aren't a trick at all, but sound public policy.
It's truly a sad commentary about the dismissive and patronizing attitude of the Canadian dairy industry that the perpetrators of the "big trick" in the form of 245% tariff barriers so strongly believe that they are the only people who matter, and that anyone who suffers because of this tariff can be ignored.
As a further example of this patronizing and dismissive attitude to anyone but themselves, the "don't make me laugh" posting is just another example demonstrating why supply management is not well-liked, and will not be missed.
Stephen Thompson, Clinton ON
Even with the cheap American pizza kits and the lower priced milk class that was introduced in June the Pizza Palaces still felt no need to pass the savings onto Canadian pizza lovers.There should be no sympathy for them whatsoever.
I wouldn't be happy if l found out they were using USA beef at the local burger joint and not proud if l got USA ham on my sub sandwich, so why would Canadians want American cheese on their pizza especially in light of knowing it made no difference in the price of the end product ?...only the profit margin for the maker!
You might be surprised where your food is sourced from . If you don't take well to hearing the truth then you might be better off not asking the question . I would also suggest that you not ask and don't read the lable on you meat you buy at your local grocer . When you chase export markets you have to expect some one to fill your local market .
Profit margin sounds like a dairy farmer
THE POPLE HERE ARE MAKING POINTS ON BOTH SIDES BUT IT DOES NOT MATTER FOR MUCH LONGER !! I CAN MAKE THAT STATEMENT BECAUSE WHEN MOST EXPORTING COUNTIES REMOVED THE REQUIREMENTS NOT TO HAVE ANY TRANSFATS IN THEIR ,CHEESE,BUTTER ,ICECREAM,FLUID MLIKS ,ETC. CANADA DID NOT !! THAT OPENED THE CANADIAN MARKET 100% TO ALL COUNTIES THAT MEET THAT REQUIREMENT ,GUESS WHO THE U.S.A. AND MOST OF EUROPE, NEW ZELLAND AND MORE !! IMPORTER ARE LINING UP CONTRACTS AND PRODUCTS FOR ENTRY INTO CANADA AND WILL BE REQUESTING SPECIAL IMPORT PERMITTS TO DO SO SHORTLY !! THIS IS USED AS A NON-TARRIFF BARRIER UNDER TRADE RULES BY IMPORTERS ,YOU PEOPLE ARE TALKING ABOUT A NON ISSUE WHEN THESE IMPORTS START FLOODING THE CANADIAN BORDERS !! TRY AND STOP THIS ,GOOD LUCK REGARDS, BILL DENBY P.S. MY ASSOCIATES WILL BE AT THE ANNUAL MEETING OF DAIRY FARMERS OF ONTARIO WITH PRODUCT TO SHOW THEM WHATS COMING IN 2014 !! CHEESE ,BUTTER,FLUID MILK WITH NON-TRANSFAT IN THE PRODUCTS !!
Good luck with that Bill but most of us in the Dairy Industry know your prediction record all too well.
By the way you talk you would think we are a Nation of 300 Million and not 30, the US, Europe and New Zealand look at us as a drop in the bucket, that is why we have been able to retain Supply Management for such a long time and will for some time to come.
Once again the Canadian dairy industry demonstrates that its members care not one iota about consumers or their fellow farmers as long as they can get to keep the benefit of 200% tariff barriers.
It's the mistaken belief by Canadian dairy farmers that what is good for 12,000 existing quota owners, is also good for over 30 million Canadian consumers, which will eventually be the Achilles Heel of supply management.
Mr. Denby, as well as every economist in the country, is wrong only about the timing of the end of supply management.
Stephen Thompson, Clinton ON
New Zealand has a population of 4.5 million and is a long way from here why would dfo worry about them
I do not know why all my fans are afraid to sign their names for every one to know who you are !!Like I said ,Come to the annual meeting of the DFO and my associate will show every one all the products that can come in tariff free uner all trade agreements !! My associate might even give out free samples of real dairy products not the ones that plug up your heart valves !! Maybe mr . ?????? can be their if he can afford to pay his own way !! It should be a very interesting meeting on Thursday ,maybe someone will ask dfo about the statement of claim being filed against them for a lot of money !! regards ,Bill Denby c/o BILLS RENTALS
Seems your associates have now gone down in numbers to an associate .
You sure he/she is going to show ?
I fail to see what one real dairy product will do any differently than another real dairy product for my heart . Actually I am not into dairy products other than a little cream in my coffee so I should be good to go !!
How many associates would you like to come ,you should check out my web site billsrentals.ca and you can see all my associates !! It only takes one to bring 3lbs. of cheese ,a pound of butter ,a gallon of ice cream and a gallon of 3.5 % milk ,now do you really think the D.F.O. is going to let him pass out samples !! You must not even be a D.F.O. dairy inmate ,maybe just a wantabe one,the KIND that thinks he wants to milk cows ,but has no money to buy quota? But thinks if he keeps defending the system ,D.F.O. might pick you and give you some free quota to start !! GOOD LUCK !! So you still write your cheap comments and are afraid to sign your name ,that says a lot about what you are !! D.F.O. follower who believes in the system because they have never operated under government control ,unless your from China !! Like I said come to the annual meeting in Toronto at the Royal York and watch my associate in action ,when he goes to the mic and starts his address to the Dairy farmers of Ontario !! I CAN bet you they will turn off his mic and try and throw him out of their private meeting !! But he has arranged for the media to be their as well , should be quit interesting !! I wish I could be their to watch the fireworks explode !! regards ,Bill Denby c/o BILLS RENTALS and The Negotiators and Associates
I think l can honestly say most people commenting on here don't sign their name because they are not plugging their business or association like a selected few.
Maybe instead of going to the Annual Dairy meeting you and your associates should go to the steps of city hall and spew your end-of-the-Dairy Industry theories to the good people of Toronto, l am sure you would get a huge response.
CAN YOU BELEIVE THIS WE GOT A EMAIL ,WARNING NOT TO COME WITH OUR NON TRANS FAT PRODUCTS !! WHAT A JOKE ,IT LOOKS LIKE DFO STAFF READ BETTER FARMING ... THEN CONVINCED THE GOVERNMENT TO STOP THE LEGAL IMPORTATION OF THESE PIZZA KITS !! IT DOES NOT SURPRISE ME WHAT THE FEDS WILL DO TO ALLOW THE DAIRY INDUSTRY TO RIP OF THE PUBLIC AND PROTECT THAT QUOTA !! WELL MYSELF AND ALL MY ASSOCIATES WILL HAVE TO CHANGE THAT ,AND THAT IS A PROMISE ,COME ELECTION TIME !! AFTER THE VOTING PUBLIC GET ACCESS TO HEALTHIER AND BETTER LOWER RETAIL PRICED DAIRY PRODUCTS OVER THE COMING MONTHS !! WE WILL SEE HOW WELL THE GOVERNMENT DOES IN THE NEXT ELECTION FEDERALLY ,IF THE NDP WANT A CHANCE TO RUN ONTARIO THEN THEY BETTER WAKE UP !START SUPPORTING THE ONES THAT ELECT YOU ,NOT THE DAIRY FARMER IN ONTARIO !! REGARDS , BILL
This post was modified by an editor
I believe the NDP want to form the next Government of Ontario, thats why they won't listen to one word you have to say!!
Post new comment