Notice to exporters 2024/01: UK moving into the 'non-EU sources reserve' of Canada's WTO cheese quota
Published 2 January 2024
1. The situation聽
Canada currently offers a World Trade Organization (WTO) cheese quota, which is split into 2 reserves:
- one allocated to European Union (EU) member states the (volume of 14,272 tonnes)
- one allocated to non-EU sources (volume of 6,140 tonnes)
In the UK/Canada Trade Continuity Agreement (TCA) in 2021, both countries agreed that, as a transitional arrangement, the UK would continue to be eligible under the 鈥楨U member state reserve鈥� of Canada鈥檚 WTO cheese quota until 31 December 2023.聽聽聽
This has meant that up until now, UK cheese producers have been able to export products to Canada by partnering with specific Canadian importers, who have been awarded 鈥楨U reserve鈥� import licences by the Government of Canada to purchase specified volumes of cheese.聽聽聽
However, as of 1 January 2024, the UK has moved out of the 鈥楨U reserve鈥�, and into the 鈥榥on-EU sources reserve鈥� of Canada鈥檚 WTO cheese quota.聽
2. What the change means for business聽
From 1 January 2024, for UK cheese to be eligible for export under Canada鈥檚 WTO quota, UK exporters need to ensure the Canadian importer they are partnering with has access to an import licence for the 鈥榥on-EU sources reserve鈥�.聽聽聽
If UK exporters do not have this, any cheese products they export to Canada will be subject to the full tariffs.聽聽聽
3. Contact the Department for Business and Trade (DBT)
If you represent a business and are at all concerned about anything in this technical note, contact:
Department for Business and Trade
Old Admiralty Building, Admiralty Place
London
SW1A 2DY
Telephone +44 (0) 20 4551 0011
We cannot reply promptly to correspondence sent by post at the moment.