STATE TRADING

NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE

GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON

the INTERPRETATION OF ARTICLE XVII

QuestionS Posed By the United states

regarding the notification of Canada^[1]

The following communication, dated 12 September 2016, is being circulated at the request of the Delegation of the United States.

_______________

The United States thanks Canada for its notification and poses the following questions:

Question

In its notification, Canada lists on page 2, section I.B. "Description of products affected (including tariff item number(s) encompassed in product description) 04.05 Butter and other fats and oils derived from milk; dairy spreads". According to the Canadian Dairy Commission's (CDC) 2013-14 annual report (http://www.cdc-ccl.gc.ca/CDC/userfiles/file/CDC_AR_web_2014_en.pdf), on page 20, the CDC exports skim milk powder, dairy blends, milk protein concentrate and "other products" under a surplus removal program. The report also states on page 25 that "[d]uring the 2013-14 dairy year, the majority of dairy product exports were performed by private companies under permits issued by the CDC. The main role of the CDC was to dispose of structural surplus of solids non fat mainly in the form of skim milk powder or blends containing skim milk solids".

Based on this information from the CDC:

(a)    Please explain why the CDC has only notified "butter and other fats and oils derived from milk; dairy spreads".

(b)    If this was in error, please provide the requisite statistical information for the additional products.

__________