RESTRICTED

GENERAL AGREEMENT ON

TARIFFS AND TRADE

M u l t i l a t e r a l Trade Nego t i a t i ons O r i g i n a l : Engl i sh

Grcu-> " A g r i c u l t u r e " Sub-Group on Dairy Products

IMFOH? AND/OR EXPORT REGIME TIT RESPECT OF CHEESE

Cane-da

In reply to the suggestion made in the proposal concerning the future work of the Sub-Grcup circulated as document MTN/DP/w/21, the information reproduced below has been received from the Canadian delegation.

Any information communicated to the secretariat subsequently will be published in addenda to the present document.

SECTION I

Custons Tariff as it Relates tc Cheese

Tariff item

1700-1

1700-2

Description

Choose

Cheddar cheese

British preferential

tariff

3 //lb.

3 //lb.

M.f.n. tariff

3i //lb.

3 //lb.

General tariff

7 //lb.

7 //lb.

1. Pursuant to the Canada/New Zealand Trade Agreement cheese, n.e.s., imported from New Zealand is dutiable at 1 //lb.

2. Pursuant to the Canada/New Zealand and Canada/Australia Trade Agreements cheddar cheese imported from New Zealand and Australia is dutiable at 1 //lb.

LÎTN/DP/w/22 1 July 1976 •..

Special Distribution

MTN/DP/W/22 Page 2

SECTION 2

Exports ci Cheddar Cheese by Principal Destination

Destination

United Kingdom

United States

Other countries

Total

1971

12,528

596

290

13,3U

1972

7,523

677

139

8,339

1973

1,371

1,215

66

2,652

_i 1974-

39

1,283

49

1,421

metric tens)

1975

499

521

115

1,135

Exnorts of Cheese Other than Cheddar by Principal Destination

(metric tons)

Destination

United States

Other countries

Total

1971

748

822

1,570

1972

1,086

112

1,198

1973

2,578

146

2,724

1974

2,140

206

2,346

1975 i 1

894 !

188

! j 1,082

MWEP/W/22 Psge 3

Imports cf Cl^.er? by Variety and Principal .Source

1971 1972 1973 1974-

(metric tons)

1975

All cheeses

Camembert

Denmark France Germany, F.R. Switzerland Other countries

Total : Cenembe

Gcuda

Denmark France Netherlands United States Other countries

Total: Gouda

Provolone

Italy j Netherlands Argentina United States Other countries

Total: Provoloi

Gruyère Process

Austria Denmark Finland Switzerland France Other countries

Total : Gruyère: Frocess'

15,699

203 336 66 4.

-

rt 609

70 37

1,641 16 16

1,781

161 55 0.9 4.0

ie 257

226 63 9

1,563 73 6 .

1,94.0

17,015

192 54-3

1 84. 15

835

90 57

i,6a 19 16

1,822

303 3 6

74-

387

234-23 29

1,670 138 23

2.117

19,593

233 565

66 79

4

953

161 31

3,233 16 68

3,509

230 0.4-

86

316

286 22 61

1,74-0 14.0

32

2,282

22,118

201 434.

90 34. 39

799

63 26

1,701 4-

10

1,804.

4-30

32

4-61

210 1

50 1,500

68 ,28

1,858

22,123

208 384-100 120

20

832

137 70

1,44-0 19 36

1,702

354

24.

378

281 1

64 1,456

41

53

1,898

MWlP/W/22 Pr.ge U

Imports of Cheese (Cont'd)

Source

Cheese n . e . s .

Uni ted Kingdom I r e l a n d A u s t r i a Denmark F in land France Germany, F.R. Greece I t a l y Nether lands Norway Por tuga l Sweden Swi tzer land A u s t r a l i a New Zealand Argent ina Uni ted S t a t e s Other c o u n t r i e s

To ta l n . e . s .

1971

354 13

443 2,730

861 664 485 454

1,134 1.068

406 82

144 507 72 12

355 1,280

46

11,112

1972

450 22

546 3,033 1,086

622 53S 682

1,017 '/J» 461 157 194 378

51

272 1,541

64

11,853

1973

492 1.8

638 2,929 1,048

881 576

56 1,169 1,159

518 152 184 400

33 -342

1,613 338

12,532

(

1974

502 7

754 3,291

938 1,231 1,670

164 2,312 1,178

578 192 200 581 46

526 1,978 1,045

17,194

met r i c tons)

1975

398 38

668 3,058 1,101 1,438 1,802

307 2,387 1,463

697 161 201 649 84 36

272 2,060

497

17,317

MTN/DP/V/22

Page 5

SECTION 3

Imp or t Measures

| Tariff iter:

i

1700-1

1700-2

Description

Cheese n.e.s.

Cheddar cheese

Statutory n.f.n. tariff

3i" //lb.

3 //lb.

Bound n.f.n. tari

3è //lb.

3 //lb.

ff

_ _ _ _ _ , Actually applied

m.f.n. tariff

3_" /Ab.

3 //lb.

All types and varieties cf cheeses are subject to a single global import quota. The current global quota is 50 million pounds (22,680 metric tons) for the dairy year 1 April 1976 to 31 March 1977.

Anti-dumping duties may be applied under the provisions of the Anti-Dumping Act. Countervailing duties may be applied under the provisions of Section 7 of the Customs Tariff Act. At the present time there are no anti-dumping or countervailing duties being applied against cheese imports.

Currently all cheese imports into Canada are carried out by the private trade, although the Canadian Dairy Commission, under the provisions of the Canadian Dairy Commission Act, has the power to import on its own account.

SUCTION U

Export Measures

Cheese exports have traditionally been carried out by the private trade although, as in the case of imports, the Canadian Dairy Commission has the power to export on its own account.

Under the dairy export equalization fund, which is financed by producer levies, the Canadian Dairy Commission has the option of assisting export sales of Canadian dairy products.

A bilateral arrangement between Canada and the European Community provides for the application of a fixed EEC import levy of 15 U.A./100 kgs. on "aged" Canadian Cheddar cheese in exchange for a Canadian commitment to maintain a minimum c.i.f. import price.

IOK/LPAT/22

Page 6

SECTION 5

Description of Internal Regulations Governing Importation of Cheese int; Canada

(a) The global import quota for all cheese is applied under the provisions of the Export and Inpcrt Permits Act and is administered by the Department of Industry, Trade and Commerce. The following notice, dated 29 March 1976, which has been distributed to all cheese importers, explains how the 1976/77 quota is being administered.

NOTICE TO IMPORTERS

Expert ar.d Import Permits Act

Import Controls over Cheese of all Types

1. A global import quota of 50,000,000 pounds of cheese has been established by the Government for the dairy year 1976/77 (1 April 1976-31 March 1977).

2. The quota will be allocated to importers based on their 1975 quota entitle­ments. Importers, who received quota entitlements in 1975 are considered to be traditional importers for the 1976/77 quota year. Provision is made for new importers to obtain a share cf the 1976/77 quota.

3. Each importer will be notified of his individual 1976/77 quota entitlements by "process" type, "soft" type and specific variety.

4-. Importers will be required to obtain individual import permits by country of origin, but may make more than one entry against a permit. Care should be taken to ensure that applications are fully completed to indicate the quantity (in pounds) and f.o.b. value in Canadian dollars by variety of cheese to be imported, together with the anticipated date of arrival into Canada. Import Permits will normally be valid for a ninety-day period from date cf issuance.

5. Importers will be free to source their cheese imports from any country, except Rhodesia. All authorized imports of cheese may be distributed in Canada without restriction as to end use.

6. To meet Canadian market requirements, a shift may be permitted to reduce up to a maximum of 20 per cent by weight, an entitlement for any type or variety by increasing by up to an equivalent weight another type or variety for which

M T N / D P / Y / 2 2

Page 7

an entitlement exists. Importers will be United to a single shift for each type or variety. Importers will be required to indicate from which other type cr variety they wish the shift to be made and to provide a justification for requesting such a shift. Requests to shift to varieties for which an importer has no entitlement, will not normally be permitted.

Consideration will bo given to import permit applications to import new varieties of cheese within the framework of the shift provisions outlined in paragraph 6 above. A new \-ariety is defined as a variety of cheese not imported into Canada in 1975.

Consideration will be given to import permit applications from importers with no 1975 performance record, provided such applications are received no later then 1 June 1976. Total allocations to new importers will be limited to 1 per cent of the global quota or 500,000 lb.

The utilization of quota entitlements in 1976/77 may be taken into account in the provision of individual quota entitlements for any cheese quotas that may be established in subsequent years.

Applications for import permits are to bo forwarded on the prescribed form to the Chief, Export and Import Permits Division, Department of Industry, Trade and Commerça, Ottawa, Ontario. Import permit application forms may be obtained from the Zxpcrt and Import Permits Division; from any Customs Office in Canada; cr from the Regional Offices of the Department of Industry, Trade and Commerce - St. John's, Newfoundland; Halifax, Nova Scotia; Fredericton, New Brunswick; Quebec City, Quebec; Montreal, Quebec; Toronto, Ontario; Winnipeg, Manitoba; Regina, Saskatchewan; Edmonton, Alberta; Vancouver, British Columbia.

) Sanitary, packaging and labellinr regulations

The import and sale of cheeses is governed by the relèvent provisions and gulaticns of the following statutes:

Canada Dairy Products Act 1951, as amended. 2. Canada Agricultural Products Standards Act 1955, as amended. Z. Food and Drugs Act, as emended.

These statutes and regulations pertaining thereto provide, inter alia, for:

(a) packaging and labelling specifications (b) grade specifications and standards of composition

MTU/nP/W/22 Page 8

(c) exporter declaration for eus tons entry re fitness for human consumption, conformity with packaging and labelling requirements

(d) regulations regarding damage arid careless handling of dairy produce (e) provisions regarding ingredient listing, durable life date, use of

preservatives, misleading labelling etc.