On June 20, 2016, Global Affairs Canada posted an invitation for comments on the administration of the new Tariff Rate Quotas (TRQs) and Origin Quotas that will be established under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). Canada and the European Union have undertaken to provide new or expanded market access in specific sectors, by way of TRQs for European Union cheese exports into Canada, and Origin Quotas for Canadian exports of high-sugar containing products, sugar confectionary and chocolate preparations, processed foods, dog and cat food, fish and seafood, textiles and apparel, and vehicles into the European Union.
Global Affairs Canada is seeking comments from all sectors of Canadian society and international stakeholders interested in TRQs and Origin Quotas:
- Producers, manufacturers, processors
- Importers, exporters, distributors
- Small and medium-sized enterprises and retailers
- Other stakeholders, including industry associations and the public
The establishment of two new TRQs for cheese will provide new access to imports of cheese from countries within the European Union, while the introduction of new export Origin Quotas across seven sectors will provide Canadian exporters with preferential access to markets within the European Union. Global Affairs Canada seeks comments on Tariff Rate Quotas and Origin Quotas for the following commodities:
Tariff Rate Quotas
- Cheese: for the annual import of 16,000 tonnes of cheeses of all types
- Industrial Cheese: for the annual import of 1,700 tonnes of industrial cheese
- High-sugar containing products
- Sugar confectionery and chocolate preparations
- Processed foods
- Dog and cat food
- Fish and seafood
- Textiles and apparel
For products made using non-originating, or imported, materials or ingredients, the “main” rules of origin may apply. If this main rule of origin is satisfied, there is no need to refer to the Origin Quota, and the product can exported to the European Union at the preferential duty rate.
Products that do not satisfy the main rules of origin may qualify as originating under the “alternative” rules of origin for Origin Quotas. Under these “alternative” rules of origin, producers can use more non-originating materials or ingredients than otherwise permitted under the main rules of origin. Relying on the Origin Quotas to export preferentially to the European Union is only necessary for products that: 1) do not satisfy the main CETA rules of origin; or 2) are not subject to duty-free entry to the European Union under the Most-Favoured Nation (MFN) tariff rates.
Global Affairs Canada has prepared a Toolkit for information about the administration of TRQs and Origin Quotas. Commenters should complete the feedback form by July 21, 2016 and submit additional information or materials to Trade Controls Policy Division (TIC) by email or by postal mail to: CETA.Quotas international.gc.ca or Trade Controls Policy Division (TIC), Global Affairs Canada, 125 Sussex Drive, Ottawa, ON K1A 0G2.