On October 1, 2018, Canada announced that it had reached an agreement with the United States and Mexico after a year of renegotiating NAFTA. Renamed the Canada-United States-Mexico Agreement (CUSMA), the agreement will provide trading partners with 4% market access to Canada’s domestic dairy market, and will impose significant changes to Canada’s domestic dairy policies. DPAC estimates that, at full implementation, CUSMA market access will result in more than $140 million losses per year for Canada’s dairy processors.
What is DPAC doing for dairy processors?
During negotiations, DPAC urged the government not to use access to Canada’s dairy market as a bargaining chip. Unfortunately, that’s precisely what happened. In choosing to further open our border to subsidized American products, the government has exacerbated uncertainty and concern among domestic actors. As with CETA and CPTPP, DPAC is actively advocating for the introduction of an investment program and the allocation of Tariff Rate Quota (TRQ) to compensate Canada’s dairy processors for this economic harm.
Want to know more about CPTPP and its impact on dairy?
As the government makes a decision on CUSMA compensation, it needs to remember that Canadian dairy families are worth fighting for.