G/STR/Q1/CAN/15  
 
18 October 2016  
(16-5639) Page: 1/2 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
REPLIES TO QUESTION S POSED BY AUSTRALIA1 
REGARDING THE NEW AND FULL NOTIFICATIO N OF CANADA2 
The following communication, dated 17 October  2016, is being circulated at the request of the 
Delegation of Canada . 
 
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Question s 
 
In Ca nada's latest STE notification (G/STR/N/16/CAN) Canada describes the function of 
the Canadian Dairy Commission (CDC) as chairing and supporting the work of the 
Canadian Milk Supply Management Committee (CMSMC). Based on this description, and 
owing to its i nvolvement in Canada's milk production and management issues, could 
Canada please:  
 
a. Explain the role of the CDC in authorising the extension of the 4M special milk class?  
Reply  
 
The Canadian Milk Supply Management Committee (CMSMC) amended milk class 4(m).  The CDC 
implemented this decision, as it is mandated by the CMSMC to administer this class.  
 
b. Are products made from 4M special milk class eligible for export by the CDC or other 
Canadian entities? If so what volumes of products have been exported?  
Reply  
 
The use of milk class 4(m) is not contingent upon export. Goods produced with milk paid under 
this class, or any milk class other than milk class 5(d), can be sold by any eligible processor on the 
domestic or export markets, and do not require export perm its. It is therefore not possible to 
determine whether there have been any exports of dairy products from milk class 4(m), nor to 
quantify them.  
 
c. What, if any is the role of the CDC, in authorising or permitting the introduction of 
the new milk class Ontar io Class 6 milk?  
Reply  
 
The Ontario Farm Products Marketing Commission amended R.R.O. 1990, Regulation 753 (Grades, 
Standards, Designations, Classes, Packing and Marking), made under the Milk Act to implement 
Ontario milk class 6.   Dairy Farmers of Ontario  (DFO) is a provincial marketing board established 
under the Milk Act and has the authority to establish milk prices that dairy processors pay for 
cow's milk. DFO sets milk prices for each of the milk classes in Regulation 753. The CDC had no 
decision role  in this process.  
 
                                                
1 G/STR/Q1/CAN/13.  
2 G/STR/N/16/ CAN. G/STR/Q1/CAN/15  
 
- 2 - 
 
  d. What is the intended role of the CDC with respect to the Dairy Ingredients Strategy?  
Reply  
 
The agreement in principle concluded between Canadian dairy p roducers and processors in 
July 2016 is in the process of being ratified by relevant  industry entities and has yet to be 
finalized. The CDC performed its due diligence and committed to analyse the elements of the 
agreement in principle. Until the agreement is completed, it is not possible at this stage to identify 
what role the CDC will p erform after this.  
 
e. How will the Dairy Ingredients Strategy will be implemented with respect to the 
CDC?  
Reply  
 
The agreement in principle concluded between Canadian dairy p roducers and processors in 
July 2016 is in the process of being ratified by relevan t industry entities and has yet to be 
finalized. Until the agreement is completed, it is not possible at this stage to identify what role the 
CDC will perform under the strategy.  
 
f. We note that in the past when responding to questions on the Dairy Ingredien ts 
Strategy the Canadian Government has answered that it was not involved in the 
negotiation of the Strategy. If this is the case then we presume that there is no role 
for the CDC or CMSCMC in implementing the Strategy on a national basis or allowing 
for its operation, is this the case?  
Reply  
 
The Government of Canada was not involved in the negotiation of the strategy. The Canadian dairy 
industry is best placed to determine how to adapt to the changing market environment and 
address the need for skim milk solids in the Canadian market. The CMSMC serves as the key 
national body for policy development and discussions respecting the dairy production and 
processing sectors. It has discussed the ingredient strategy and will again at its October 2016 
meeting. As for any potential role for the CDC in implementing the strategy, as mentioned under 
question (e), it is too early to know what this role may be.  
 
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