The sector faces annual losses of about $1.3 billion because of the new NAFTA, DFC says
By Diego Flammini
Staff Writer
Farms.com
The feds will help Canada’s dairy farmers remain competitive as more American milk and cheese is set to enter the country.
Prime Minister Trudeau’s government received criticism for its concessions to the U.S. on the new NAFTA agreement, known as the U.S.-Mexico-Canada Agreement (USMCA). As part of the negotiations, the U.S. will receive access to nearly 4 per cent of the Canadian market.
Canada will also abolish its Class 6 and 7 milk policies.
Dairy farmers “told me they have continued to give in trade deals,” Trudeau told reporters today after a meeting with dairy producers in Quebec, Global News reports. “They’re right.”
The influx of American dairy entering Canada will result in annual losses of about $1.3 billion, Dairy Farmers of Canada says.
Trudeau and Foreign Affairs Minister Chrystia Freeland promised to compensate dairy farmers. Trudeau reaffirmed that commitment today.
The USMCA isn’t the first trade agreement where partners targeted Canada’s dairy sector.
“The dairy farmers across this country have faced challenges with (the CETA and CPTPP) trade deals and I said we understand that and we pledge to work with them,” he told reporters. “Not just to compensate them, but (on) what compensation is required.”
When Canada opened its market to Europe, the federal government created the $250-million Dairy Farm Investment Program, which provides grants to help farms update equipment.
No compensation, however, makes up for a strong supply management system.
We recognize the symbolism of the gesture of Prime Minister Trudeau, in offering to meet with our industry to hear our concerns firsthand,” Pierre Lampron, president of Dairy Farmers of Canada, said in a statement.
“However, the absence of details on measures to mitigate the impact of the concessions made within the USMCA, as well as the absence of a vision for the future of our industry at this time, cannot appease the concerns of the dairy farmers.”
Justin Trudeau
Adrian Wyld/Canadian Press photo