Canadian Dairy Producers Call for TRQs

OTTAWA - Apr 11/05 - SNS -- Canadian dairy producers are being mobilized by the Dairy Farmers of Canada commodity association to convince the Canadian government to impose tariff rate quotas on imports of milk protein ingredients and butteroil/sugar blends.

"The Canadian ice cream industry has experienced a 48% jump in imported butteroil and other milk solids in 2004; any Canadian content could soon be wiped out," said DFC President Jacques Laforge. "Producers are demanding that Government take immediate action to stop history from repeating itself with the Canadian cheese and yogurt markets."

"We are calling on Ministers Mitchell and Peterson to immediately exercise Canada's right as a member of the WTO to invoke GATT Article XXVIII," said Laforge. "This WTO rule allows Canada to cap - not stop - imports of specific dairy ingredients by introducing new tariff-rate quotas (TRQs)(1). This ensures farmers have the predictability needed to plan production to meet Canadian demand.

"All technical aspects of DFC's request to invoke GATT Article XXVIII have been reviewed thoroughly by legal experts, bureaucracy and ministers' staff," said Laforge. "All we need is the political will. The best time to move forward is now."

The DFC Board has unanimously called for the mobilization of dairy farmers across Canada. Farmers are asked to write, telephone, fax, e-mail and speak directly with federal and provincial politicians to urge them to move quickly to cap imports of dairy ingredients that cannibalize the Canadian market.

Dairy Farmers of Canada is demanding an emergency meeting with Prime Minister Martin to urge him to exercise Canada's right as a WTO member and make good on the Liberal Government's stated commitments to defend supply management.

DFC will call a special general assembly of dairy farmers in May to assess the Federal Government's resolve and ability to actively defend and promote the interests of Canadian farmers internationally. Representatives of other farmers operating in supply management will be invited to participate in this meeting.