Canada and EU in negotiations on dairy tariffs

The European Union and Canada are discussing a lowering of Canada’s high dairy tariffs in exchange for improved access for Canada to the EU’s beef and pork markets in a free trade agreement, according to reports. However, sticking points include the ban on beef from cattle treated with growth hormones, and complaints from Ireland, which would like to see Canada’s access limited to less than 5,000 tonnes per year. However, Canadian beef producers argue that 40,000 tonnes a year is the minimum to incentivise them to move to hormone-free beef production.

Currently, around 20,400 tonnes of foreign cheese come into Canada tariff-free per year under special arrangements. The EU has the majority of this amount, is allowed to import about 13,400 tonnes of cheese annually. It comes to more than three per cent of Canada’s current annual cheese consumption.

The EU is seeking as much as 10,000 tonnes more of annual tariff-free access for cheese, but it is uncertain if the Canadian government would agree to this higher amount.