Last Thursday, the House of Commons unanimously passed a motion to support compensation for sectors that are in supply management, including the dairy sector. „I want to thank all the members of the House of Commons who supported it and I want to acknowledge their support for this file,“ said Mr. Lampron. „Dairy farmers want to invest in their farms to innovate and improve efficiency. Our goal is to be better prepared for increased competition from dairy products imported from milk produced elsewhere, as a result of CETA, the CPTPP and, more recently, the Canada-Mexico States Agreement (CUSMA). These significant investments in the Farm can only come with a degree of certainty about the promised compensation. The reduction in expected payment terms is a recognition by the government of the importance of the foreign competition we are facing, which is why today`s announcement is so important,“ said Pierre Lampron, President of DFC. The federal government will provide US$1.75 billion to help Canadian dairy farmers cope with the effects of the two trade agreements. The funds are allocated over a period of eight years on the basis of individual production quota holdings.
The priority must be to regulate production, to ensure the sustainability of local agriculture, not to allow the import of more beef and pigmeat.  Conversely, increasing milk quotas in the agreement would facilitate additional cheese exports to Canada and put considerable pressure on the Canadian dairy sector, which currently provides stable and fair revenues to Canadian dairy farmers through a supply management system. Unlike the EU, which in 2015 pulled all the brakes on regulating milk production and bankrupted countless dairy farmers, the Canadian system allocates a production quota to its producers by fining them for every litre of milk exceeding the quota, thus maintaining a balance between supply and domestic demand. A healthy and vibrant dairy sector will also play a critical role in ensuring Canada`s recovery from the pandemic and ensuring greater food security for Canadians. The dairy sector supports more than 221,000 full-time jobs, contributes $19.9 billion annually to Canada`s GDP and generates $3.8 billion in tax revenue annually. The EU has expressed doubts about the WTO compatibility of Canadian milk class 7 for dairy ingredients. It also requested information on the future of Class 7 under the Canada-United States-Mexico Agreement (CUSMA). Canada reaffirmed to the EU that Canadian industry`s decision to create and implement Class 7 is consistent with Canada`s trade commitments. Canada also informed the EU that Class 7 milk would be abolished within six months of the entry into force of the CUSMA and that it was difficult to estimate a ratification schedule, as ratification procedures in the countries concerned are somewhat unpredictable.
The EU asked Canada to ensure that any solution agreed under the CUSMA would also apply to the EU. In Europe, as in most countries of the world, free trade agreements (SAAs) have become the vessel through which multinationals and large companies expand their conquest of new markets. The Canadian dairy sector is an important driver of the Canadian economy, but its ability to succeed has been compromised by the signing of these three trade agreements. . . .