The treaty, however, specifically requires that TRQs be allocated to those who are most likely to use them.Īccording to Sylvain Leclerc, spokesperson of Media Relations, Global Affairs Canada, Canada’s administration of the CETA cheese TRQs is in full compliance with its obligations under CETA. According to Mr McIlroy, 50% of TRQs went to Canadian cheese manufacturers “who’ve made it very clear they do not want to import European cheeses that compete with Canadian cheeses.” In particular, European cheese exporters are concerned that Canada gave the cheese TRQs to their competitors, not their customers. “The Europeans are concerned that they’re not getting what they bargained for.”Ĭheese quotas under the CETA are currently under review as Europe has raised concerns about where tariff rate between Canada and the European Union quotas are allocated and when they are used. “Last year they achieved a fill rate, but it all came in during the last few weeks,” said Mr McIlroy. By the end of August, only 25% of the expected 8 million kg of cheese allocation for fine cheese had entered the country. In the meantime, cheese is entering the country, but slowly. On April 17, the European Union requested a formal review of Canada’s cheese TRQ allocation system. “It’s pretty simple to see why they’re concerned,” he added. “This ratification process is not being helped because of European concerns that Canada is playing games and it’s not complying with its treaty obligations,” said Mr McIlroy.
While European Parliament approved the agreement over 2,5 years ago, it has been ratified only half of European member states have ratified it. “But all that changed when Canada realised it had to diversify its trade, particularly when President Trump came to power, and so we started signing trade agreements,” he added.Įurope, however, is not happy with the way Canada has implemented its trade obligations under CETA, said Mr McIlroy. Mr McIlroy is an international lawyer who represents the International Cheese Council of Canada (ICCC), Canadian importers of cheese. “Under the World Trade Organization, there was a TRQ of about 20 million kg and that existed for 40 years and never grew by 1 kg, which illustrates that the policy of Canada is not to allow in any cheese imports,” explained James McIlroy. Recently, Canada signed 3 major trade agreements that included Tariff Rate Quotas for cheese, CETA, the Trans-Pacific Partnership (TPP), and the United States–Mexico–Canada Agreement (USMCA). Canadian counterparts, including processors and producers, have concerns of their own. While allocation targets have so far been met in full, the EU complained that the rate of quota use is inconsistent and spikes come the end of the year.