The International Trade Tribunal has turned aside an appeal
by Dairy Farmers of Canada, so imports of pizza kits can continue without
facing a dairy-products tariff of 245.5 per cent.
The tribunal ruled that only companies in competition with
the importers have standing to appeal.
The provincial milk marketing boards formed BalanceCo, a
non-profit organization, to file the appeal against J. Cheese Inc. which is
importing the kits which contain shredded mozzarella cheese.
The tribunal noted that BalanceCo did not exist at the time
the Canadian Border Services made the decision that the kits are not covered by
the tariff.
J. Cheese Inc. supplies Pizza Pizza which has 960 outlets
across Canada.
The pizza restaurants have long complained that the milk
supply management system gives a price break to frozen-pizza makers, such as
McCain’s, but not to pizza restaurants and home delivery services, so it’s
unfair competition.
The Dairy Farmers of Ontario milk marketing board is now
considering a proposal to extend the price break on milk to make mazzarella
cheese to the restaurant trade.
The pizza kits ruling is similar to a loophole ice cream
manufacturers identified so they can import a blend of vegetable oils and
butterfat without paying the high tariff.
