“This decision comes after Canadian dairy producers and processors failed to reach a consensus on long term solutions to the challenges facing the industry,” says Federal Agriculture Minister Chuck Strahl.

“I am disappointed that, after so much time and effort, dairy producers and processors have been unable to agree on how to ensure the long-term growth and prosperity of the sector,” said Mr. Strahl. “I made it clear to the Dairy Industry Working Group that if they could not reach a consensus, my government would take action on behalf of the industry.”

As a result, Mr. Strahl and International Trade Minister David Emerson announced plans to invoke Article 28 of the GATT to modify its World Trade Organization (WTO) commitments accordingly. Article 28 gives a country the right to renegotiate its tariff concessions in the WTO, allowing for increasing tariffs and setting new tariff rate quotas, and by providing other WTO members with equivalent compensation.

“Canada is exercising its legitimate rights under the WTO,” said Minister Emerson. “This decision will allow the Government to introduce legislation to establish tariff-rate quotas that take into account recent developments regarding the classification of milk protein concentrates.”

Milk Protein Concentrates are being increasingly imported by processors to make cheese and other dairy products, noted the Ministers.

On a separate issue of interest to the dairy industry, Minister Strahl also announced that he would be asking the Canadian Food Inspection Agency (CFIA) to launch a regulatory process related to compositional standards for cheese. The CFIA will work together with stakeholders and take into account relevant international standards, including Codex Alimentarius standards, as well as the need to reflect industry innovation. The process should result in the further harmonization of the relevant federal regulatory instruments and will be designed to protect consumer interests and promote choice in the marketplace.

Source: The Chilliwack Progress