Compensating dairy processors harmed by trade agreements

Canada has given trading partners unprecedented access to domestic dairy market Canada-EU Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Canada-United States-Mexico Agreement (CUSMA).

Alone, each of agreements pose significant threats to Canada’s domestic dairy market. Combined, the three agreements destabilizes market and curb further growth. It is estimated that the combined impact of CETA, CPTPP and CUSMA will amount to loss of $300 million annually the sector. By government’s own admissions, these losses will not be balanced by new export market opportunities.

A comprehensive trade compensation program is needed

Addressing impacts of trade agreements will allow dairy processors more confidently invest and innovate in Canada. Government compensation for impacts these trade agreements on Canada’s dairy processors will help to stabilize market disruption and help processors adapt new market realities created by influx of imported products.

Government has committed to fair and full compensation for processors. To date, this included $100 million in government funding the impacts of CETA, as well as larger program for supply managed processors–dairy, poultry and egg part of 2021 federal budget. The $292.5 million Processor Investment Fund will roll out over seven years to support private investment in processing plants. In last election, the current government committed to fulfilling commitments by providing compensation for CUSMA within the first year of next mandate.

Are important steps toward securing strong future for Canada dairy processors, as well as farmers. The Dairy Processors Association of Canada will continue working to ensure the government keeps is compensation commitments.

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