Trade talks in the Trans-Pacific Partnership (TPP) pact continue
and some producers are becoming restless with the ongoing
uncertainty as to what impact the trade bloc would have on
Canada's supply management system.
In a previous post, located here, we discussed the potential implications
of the TPP on Canada's supply management system and some
policies other countries have implemented to phase out supply
Some reports have surfaced suggesting
that Canada's ongoing insistence on supply management has been
a contributing factor to the slow progress of the trade talks. New
Zealand and Australia, two countries which phased out supply
management in the past, are amongst the most vocal in insisting
that Canada's protected market for dairy products must be
opened to greater access.
In the latest round of talks, reports
surfaced stating that Canada offered concessions in which Canada
would permit a greater amount of tariff-free imports of fluid milk,
butter, and cheese. While the U.S. and New Zealand felt that the
volume offered was not sufficient, the issue of supply management
is now on the table. If these reports are accurate, this would
represent a significant concession from Canada which had previously
insisted that supply management would be maintained. It is expected
that New Zealand, Australia, and the United States will continue to
push for a greater volume of tariff-free imports while Canada
advocates for a longer-term phase-in period to accommodate
We will continue to monitor the
developments to the TPP. However, some observers comment that it is
unlikely that an agreement is reached while Canada is in the midst
of an election.
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While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
On September 29, 2016, the Supreme Court of Canada issued its first tariff classification decision since Canada signed the International Convention on the Harmonized Commodity Description and Coding System in 1998.
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