HomeMy WebLinkAboutThe Huron Expositor, 1998-03-18, Page 85Imported blends concern
dairy producer groups
Dairy producer
groups continue to
be concerned with
butteroil-sugar blends
being imported into
Canada as a replacement
for Canadian butterfat in
many low and medium -
quality ice creams.
It is estimated these
imported blends have dis-
placed the equivalent of
2.5 per cent of Canada's
industrial milk production
during the last year.
The issue
•Butteroil/sugar blends are
being imported into
Canada in increasing
amounts as a replacement
for Canadian butterfat
(cream) in the manufac-
ture of many low and
medium -quality ice
creams.
•Butteroil and sugar as
separate products are sub-
ject to tariffs and import
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duties. However, as a
blend the Canadian gov-
ernment allows them into
Canada tariff -free. This
loophole has meant
imports of these blends
have increased 500 per
cent since 1995.
•Government representa-
tives at the GATT told
Dairy Farmers of Canada
(DFC) that dairy blends
promised by the govern-
ment.
Dairy farmers are suf-
fering
•Milk production was
reduced as a result of
these imports resulting in
a loss of $50 million for
Canadian dairy producers.
That's about $2,500 each.
Consumers pay more
•Ice cream prices have
would be captured on a risen 4.3
tariff line
that produc-
ers would
be pleased
with. DFC
has been
asking the
government
to reclassify
these blends
onto a tariff
line that
provides the
import con-
trol that was
per cent during
the past 18
months
when
Canadian
butterfat
prices have
n o t
changed.
Consumers
are paying
more for
lower quali-
ty ice cream
products
that contain
cheaper imported
butter/oil sugar blends.
Consumers are not gaining
anything through this
loophole.
Government response
•The government has cho-
sen to not act on the
request to reclassify the
product but instead has
referred the matter to the
Canadian International
Trade Tribunal (CITT).
This action totally ignores
the government's previous
commitment.
DFC's request is for the
government to immediate-
ly reclassify the blends
onto the proper tariff line
according to the commit-
ment it made to dairy pro-
ducers at the conclusion of
the last GATT round. DFC
and its members have
decided not to participate
in the CITT hearings.
(from Milk bulletin).
Farm Progress '98 — Page 29A
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