Dairy complaint succeeds

Canada’s use of tariff rate quotas in the dairy sector breaches the country’s obligations under CUSMA, the trade deal that replaced NAFTA on July 1, 2020, according to a settlement panel decision published this week.

The decision stems from a complaint former US Trade Representative Robert Lighthizer filed December 9, 2020. Lighthizer claimed that Canada’s reservation of tariff rate quotas (TRQs) specifically for dairy processors prevents the US dairy sector from accessing the market in Canada. TRQs cover 14 types of products.

“Canada’s measures violate its commitments and harm US dairy farmers and producers,” Lighthizer claims. “We are disappointed that Canada’s policies have made this first-ever enforcement action … necessary.”

When initial discussions failed to resolve the complaint, the US escalated the matter to a three-member dispute settlement panel under CUSMA. The panel’s decision, issued in December, was made public this week.

While recognizing Canada’s right to allocate TRQs, it requires Canada to eliminate preferential allocations to processors by February 3.

This runs counter to the long-standing position of Dairy Farmers of Canada.

Comox Valley dairy farmers Dave Taylor, who serves as BC director with DFC, told the Mainland Milk Producers in November that DFC believes processors should receive TRQ allocations “at the maximum level.”

“Canadian processors, they know the marketplace, and historically they have brought product in when it’s not as much of a disturbance to our marketplace,” he explained, noting that giving processors access to import helps keep them profitable, which in turns benefits the sector as a whole.

Utilization has been good, Taylor reported, with cream imports maxed out in the first year of CUSMA while milk powders, cream powders, and butter also saw strong fill rates. Fluid milk imports stood at 80% of the product’s TRQ.

DFC told Country Life in BC that the next move lies with Ottawa.

“The panel has recognized Canada’s sovereignty in establishing its own TRQ allocation policy,” it said in a statement. “Now it is for the Canadian government to assign TRQs and demonstrate its support for its domestic dairy sector.”

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12 hours ago

Forty-six regions in BC are eligible to participate in the federal livestock tax deferral program, announced yesterday, more than anywhere else in the country. The program allows producers who downsize their breeding herds by 15% to defer reporting the proceeds until the following year, when they buy replacement stock. But after multiple years of drought, the BC beef herd is cruising 25-year lows and some producers are calling for more support to maintain and rebuild their herds. For more, see: [www.countrylifeinbc.com/bc-leads-livestock-tax-deferrals/]

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4 days ago

After weeks and weeks of no moisture, there's rain in Kelowna today. While much more moisture is needed over the coming weeks and months to reduce drought conditions and the air smells of wet campfire, the slow, steady rain is very welcome for fruit grower#BCAg#BCAg ... See MoreSee Less

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5 days ago

The first Delta Farmland and Wildlife Trust Grassland Set-aside Variety Trial Field Day was held at Delta's family-owned Tecarte Farms, August 27. Co-owner Bill Bates and DFWT executive director Christine Schmalz welcomed more than 35 people to view seven acres planted to different grassland blends specifically chosen to rejuvenate the soil and support the farm's blueberries. For the Bates family, it was time to try something different following the decline of the field's blueberry bushes over the past several years. "We tried everything, and nothing worked," says Bates. The blueberries were removed in May and the grassland crops planted about a week later.

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Bessette Creek is the latest watershed hit with a temporary fish protection order this year as the province moves to protect returning Chinook salmon. A total of 131 surface and groundwater users must cease drawing water immediately, with forage producers, greenhouses and nurseries impacted. "Declining flows in Bessette Creek reached record lows in early July 2026 and have remained below the minimum level required to support fish population survival," says the province. Bessette producers have embraced voluntary cutbacks, scheduled irrigation and other measures to reduce water use, and are also waiting on funding to boost water storage infrastructure. They're the second group of producers hit with a provincial order this year. Salmon River irrigators were told to top watering earlier this month following a reprieve to address wildfire risk. Growers in both the Salmon River and Bessette watersheds are urging the province to support new water storage infrastructure in advance of next year.

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There is a problem... having lived in the salmon river ( silver creek ) area, I remember a fish biologist telling family members that salmon only "survive" in high iron content creeks, they do not "thrive".... salmon river ( silver creek ) is a very high iron content, would stain clothes brown when i would use bleach... So don't expect high salmon numbers off of that creek , even in ideal situations...

I just wish they would take an interest in CHASE CREEK....went bone dry...100% of trout abd other species died...smell was terrible from rotting fish. Understand this has happened many times in the past. Chase Irrigation District totally responsible for this disaster. Now fishermen are complaining about major drop in water levels at Pillar Lake.

They could not mismanage things worse than they have. It's impossible for them to. The fact that farmers that we need for our animals are now suffering the consequences our governments have not protected us from, is absolutely fucking wild.