Agriculture and Forestry minister Eric Hammill is urging the federal government to take immediate action on applying tariff rate quotas on the imports of certain dairy blends from the United States. The butteroil-sugar blends are used in the manufacture of ice cream and are not now subject to dairy import quotas. They have been blamed for quota cuts in the dairy industry.
"Canada's dairy industry is being hurt by these imports, and immediate action must be taken to resolve the issue," said Mr. Hammill.
The federal government last December asked the Canadian International Trade Tribunal to review the issue of imports of dairy blends that are outside of Canada's tariff rate quota system.
In a letter to Agriculture and Agri-Food minister Lyle Vanclief, Mr. Hammill said that referring the issue to the Canadian International Trade Tribunal is inadequate as it could take too long to resolve. He wants quick action to establish import controls to help maintain the stability of supply management programs.
"I urged Mr. Vanclief to take the immediate action in applying tariff rate quotas on these imported blends in lieu of the lengthy process of the CITT option," said Mr. Hammill. "The fact that Canada won the NAFTA challenge on the right to apply tariffs should provide assurance that tariff rate quota applications would be just and defendable."
The Prince Edward Island dairy industry accounted for more than $40 million in farm cash receipts last year. In addition to dealing with imports of dairy blends, the industry is also facing elimination of the national dairy subsidy.