In recent years, Canada has given its trading partners considerable access to its domestic dairy market through agreements like the Canada-EU Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and most recently, the Canada-United States-Mexico Agreement (CUSMA, formerly NAFTA).
Alone, each of these agreements poses significant threats to Canada’s domestic dairy market. Combined, the three agreements have the potential to destabilize the market and curb further growth. It is estimated that the combined impact of CETA, CPTPP and CUSMA will be a loss of 300$ million annually for the sector.
Given these challenges, the Canadian Government has the ability to help Canadian dairy processors transition to this new market reality by providing them with a compensation package that includes dairy import licences called Tariff Rate Quota (TRQ).
DPAC Reports and Submissions
Speaking Notes: DPAC Presentation to the Standing Senate Committee on Agriculture and Forestry (February 26 2019)
Oversight in the USMCA – A letter to Prime Minister Justin Trudeau (November 2018)
Speaking Notes: DPAC Presentation to the Standing Senate Committee on Agriculture and Forestry (October 18 2018)
NAFTA and Dairy Concessions – A letter to Prime Minister Justin Trudeau (June 2018)
Recommendations on policy measures to promote innovation in the dairy processing sector – Submission to the Standing Committee on Industry, Science and Technology (October 2016).
Dairy processing industry by the numbers:
- $670 million expected in lost return on investments resulting from CETA
- $730 million expected in lost return on investments resulting from CPTPP
- Hundreds of millions more are expected in lost return on investments resulting from USMCA
- $7.5 billion in investments made since 2008
- $18 billion contributed annually to the Canadian GDP
- 16% percent growth in dairy processing real GDP since 2008
- 12,000 Canadian dairy farms supported by dairy processors
- 24,500 Canadians employed by dairy processors
- Aggregate annual payroll of $1.2 billion