What Canadian regulations or standards affect U.S. milk imports?
Executive summary
Canada controls U.S. milk imports through a mix of trade-managed quotas and high over‑quota tariffs, detailed import permits and tariff‑rate quotas (TRQs) under the Export and Import Permits Act, and food‑safety, animal‑health and compositional standards enforced by CFIA and other federal acts (examples: TRQs for 14 dairy categories; over‑quota tariffs can exceed 240%) [1] [2] [3]. Health and safety rules — the Dairy Products Regulations, Safe Food for Canadians Regulations, and the Health of Animals Act — add labelling, grading, establishment registration and animal‑disease controls that affect which U.S. milk and dairy products can enter Canada [4] [5] [6].
1. Tariff‑rate quotas and prohibitive over‑quota tariffs: the economic firewall
Canada uses TRQs to admit preset volumes of dairy at preferential (often low or zero) duties; imports beyond those quotas face very high “over‑quota” tariffs — sometimes reported above 240–290% for products such as liquid milk, cheese and butter — which effectively price many U.S. dairy products out of the Canadian market if quotas are exceeded [2] [3] [7]. The TRQ mechanism is also implemented under CPTPP and USMCA commitments; Canada maintains TRQs for multiple dairy categories and publishes rules on allocation and in‑quota access [7] [2].
2. Import permits, allocation holders and the Export and Import Permits Act
Importing dairy for commercial sale requires an import permit under the Export and Import Permits Act; permits for market‑destined shipments are issued to TRQ allocation holders and are administered by Global Affairs Canada/Foreign Affairs, Trade and Development Canada [1] [7]. Notice No. 850 explains that permits, supplemental imports and discretion by the Minister determine whether extra imports will be authorized — and permit applicants can be denied for prior misstatements or noncompliance [1].
3. Food safety, standards of identity and grading that affect market eligibility
Beyond trade controls, imported milk and dairy must meet Canada’s food and compositional laws. The Dairy Products Regulations, the Safe Food for Canadians Regulations (SFCR) and the Food and Drugs Act set product identity, grading (Canada 1/2/3 for some products), labelling and establishment registration requirements that U.S. exporters must satisfy to sell in Canada [4] [8]. CFIA guidance explicitly notes standards of identity and grades incorporated into SFCR documents and recommends exporters check labelling, ingredient and grade requirements [5] [8].
4. Animal‑health rules and disease risk controls
The Health of Animals Act and CFIA import policy restrict milk products from countries or shipments that pose animal‑disease risks (for example, foot‑and‑mouth disease risk controls), and may require zoosanitary certificates or permits for particular feed or milk‑replacer products [5] [9]. These rules mean some U.S. shipments must meet specified veterinary certificate conditions or be excluded if they present biosecurity concerns [5] [9].
5. Special programs: Import for Re‑export (IREP) and processing access
Canada operates targeted programs such as the Import for Re‑export Program (IREP) that allow U.S. milk/cream to enter Canada for processing and ultimate re‑export, with strict conditions (prohibiting release into the Canadian domestic market and limiting transfer/sale within Canada) [5] [1]. IREP is a channel many U.S. dairy firms and cross‑border processors use — it explains significant bilateral flows of milk used in manufactured products destined abroad [10].
6. Disputes, political context and interpretation of “high tariffs”
U.S. authorities and industry have challenged some allocation and quota practices under USMCA; dispute panels and USTR materials document both Canada’s right to maintain 14 TRQs and U.S. complaints about how Canada administered allocations [2] [11]. Media and fact‑checkers note that headline figures of “245–298% tariffs” are technically accurate as over‑quota rates but apply only if TRQs are exceeded — and in practice most U.S. exports remain within in‑quota quantities or use programs like IREP [3] [12] [13].
7. Practical implications for U.S. exporters and exporters’ compliance checklist
U.S. exporters face three intertwined constraints: limited in‑quota volume (TRQ allocations and eligibility rules), potentially crippling over‑quota tariffs, and regulatory compliance with Canadian food safety, grading and animal‑health rules [7] [2] [4]. Exporters should confirm TRQ allocation eligibility, secure import permits or work with Canadian allocation holders, ensure SFCR/CFIA labelling and establishment requirements are met, and obtain any required zoosanitary or health certificates [1] [5] [6].
Limitations and sources: This analysis relies on Canadian government notices, CFIA guidance and trade‑policy reporting supplied in the cited documents; available sources do not mention detailed province‑level implementation nuances or current quota fill‑rates for specific 2025 subcategories (not found in current reporting). Sources: Export and Import Permits Act notices and General Import Permit [14] [1]; CFIA import and animal‑health pages [5] [9] [6]; Canadian Dairy Commission and Dairy Products Regulations summaries [4] [15]; TRQ and USMCA dispute materials and tariff examples [7] [2] [3].