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$1.75 billion trade compensation

August 16, 2019

Dairy farmers in Ontario and across Canada are grateful to the Canadian government for the compensation announced today, which will help mitigate the losses sustained in the sector as a result of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade deals.

The federal government will allocate $1.75 billion to help Canadian dairy producers deal with the impacts from the two trade agreements. The funds will be allocated over an eight-year period based on individual producer quota holdings.

“Ontario dairy producers appreciate the federal government following through on its commitment to continue to support the industry, and are pleased the federal government recognized the impact of the CETA and CPTPP trade agreements on the sector,” says Murray Sherk, Dairy Farmers of Ontario’s chair. “The compensation will continue to allow Canadian dairy farmers to succeed at what they do best—delivering safe, nutritious food to Canadian families.”

Dairy Farmers of Canada estimates the market access granted under CETA, CPTPP and the Canada-USA-Mexico Agreement, represents an annual loss equivalent to 8.4 per cent of the country’s milk production. Adding these concessions to the access already granted under the World Trade Organization, it is estimated by 2024, nearly 20 per cent of domestic demand for dairy products will be met by imports.

“There is no doubt conceding part of our domestic dairy market has had a major impact on the livelihoods of dairy producers,” says Pierre Lampron, Dairy Farmers of Canada’s (DFC) president. “Prime Minister Justin Trudeau recognized this and committed to mitigating this impact. We welcome today’s announcement as a continuation of this commitment.”

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