Final hurdle in Canada-EU trade pact: cheese

Canada is close to implementing a free trade deal with the European Union, but one last detail remains to be ironed out -- what cheeses Canadian distributors can import, sources said Monday. The Comprehensive Economic and Trade Agreement (CETA) foresees a gradual doubling of the volume of European cheeses currently imported by Canada. The pact has been approved by both the European and Canadian parliaments but must still be ratified by all EU member states. A European diplomat and a spokeswoman for Canada's trade minister said it will be implemented within weeks. "The final few steps before provisional application are underway," Chantal Gagnon, a spokeswoman for Canada's trade minister, told AFP. As part of the trade deal, the European Union will be allowed to export up to 16,000 tonnes of cheese and 1,700 tonnes of "industrial-use" cheese products. Canadian distributors have sent their demands to Ottawa for what varieties of European cheeses they wish to bring in to sell to domestic clients. Faced with European agricultural subsidies, "our sector will be heavily impacted," said Francois Dumontier, who represents Quebec dairy farmers. For example, specialty cheeses such as blue, gouda or cheddar that will be imported under CETA represent 20 to 30 percent of the high value cheese segment in Canada. Most of those cheeses are made in Quebec province, he explained. Starting in the coming weeks, 6,000 tonnes of European cheese will be imported into Canada in 2017, ramping up to meet the 16,000 tonne quota over five years.