International exporters that have had to cut their imports of concentrated milk proteins into Canada while Canadian dairies use a new pricing system that makes the local product more competitive are complaining that Canada violates WTO (World Trade Organisation) rules, according to Reuters News agency.

Major dairies in Canada such as Saputo have already invested and increased production of proteins while Gay Lea Foods is planning to invest in extra protein production.

Industry groups in the US, New Zealand, Australia and the EU say the new pricing policy unfairly cuts their exports and violates WTO rules.

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Canada’s milk quota or supply management system tightly controls dairy prices and production and Ottawa levies steep tariffs to limit imports.

Drop in US exports to Canada

Jamie Casteneda, senior vice-president of the US NMPF (National Milk Producers Federation)said US exports to Canada have dropped this year due to the new Ontario pricing system, “we strongly oppose any new special class that will be detrimental to the US. We will challenge such a new program and believe it wouldn’t be in place for too many years.”

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Canada is another brick in export market wall