Murphy Pleased With Trade Decision

Agriculture and Forestry Minister Mitch Murphy today said he is pleased that Canada will suspend the normal issuance of supplementary permits for the import of breaded cheese sticks from the United States. Federal trade minister Pierre Pettigrew made the announcement today, with the decision effective September 1.

"The federal government has a responsibility to protect the interests of the Canadian dairy industry and the integrity of our supply management system," said Mr. Murphy. "Since the US has imposed tariff-rate quota restriction on the imports of Canadian breaded cheese sticks, it seems reasonable that Canada should take similar measures in return."

Imports of breaded cheese sticks from the United States are about $10 million annually, while Canada's exports to that country were approximately $3.0 million before the US reclassified them as a cheese product in 1999, effectively halting Canadian exports.

"After the experience with export restrictions on Prince Edward Island potatoes in the last year, I am pleased that the federal government has responded in this way," said Mr. Murphy.