British Cheese - New Rules Apply for Exports to Canada

5 January 2024

 

Canada has reclassified imports of cheese from the UK, with important consequences for exporters and producers.

For some time, in order to import with reduced tariffs, Canadian businesses have to apply for special licences, allowing them to import specified amounts of cheese as part of an agreed WTO quota, split into two “reserves”: a total of 14,272 tonnes from EU member states, and 6,140 tonnes from non-EU sources.

Under the UK/Canada Trade Continuity Agreement (TCA), which came into effect in 2021, both countries agreed that the UK would continue to be eligible under the ‘EU member state reserve’ of Canada’s WTO cheese quota until 31 December 2023.  This was a transitional arrangement.  Importers with a “EU Reserve” license could import British cheese. 

On 1 January 2024, the situation changed: a Canadian business will now need a “non-EU sources reserve” license in order to import British cheeses at preferential rates, or be subject to full tariffs, which would disadvantage them in this important export market.

The UK currently exports more than £21M of cheese to Canada per year, a trade which has grown by 12% on average since 2018. 

Contact us for expert advice and effective international trade services to help grow your business.

 

Follow Chamber International on Twitter @ChamberInt  and on Facebook for the latest in international trade.