Government creates working groups to inform USMCA supply management compensation

Canada’s federal agriculture minister has struck working groups in relation to recent international trade deals and their impact on Canada’s supply managed sectors. Of note, Agriculture and Agri-Food Canada says that there will be two working groups for dairy.

These two groups, comprised of dairy farmers, government, researchers, dairy industry representatives, and processors, will focus on USMCA and CPTPP mitigation (i.e. producer compensation) and will also ensure Canada maintains its “robust dairy industry now, and in the future.”

The first group will collaborate to develop “mitigation strategies to fully and fairly support farmers and processors to help them adjust to the short-term impacts of the United States-Mexico-Canada Agreement (USMCA).” It will also discuss support to reflect the impact of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

A second, separate working group will “chart a path forward to help the dairy sector innovate and remain an important source of jobs and economic growth for future generations.” Supporting expertise to the working group may also include academic leaders, as well as industry and financial experts, as necessary, the government says.

The federal government says it will also engage with provincial and territorial governments on an ongoing basis throughout the process.

Canada’s market access for dairy in the USMCA is estimated at approximately 3.59% of Canadian production, with total market access to foreign competitors for dairy under all trade commitments, including the USMCA, is estimated at approximately 10% of Canada’s production.

Agriculture and Agri-Food Minister Lawrence MacAulay also announced the formation of a new working group with poultry and egg farmers and processors to focus on USMCA and CPTPP mitigation, and also long-term goals for the sector.

More details can be found here.

 

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