The Trans-Pacific Partnership (TPP) agreement was completed by Canada and eleven other nations, on October 5th, 2015. In the TPP negotiations, Canada’s agenda on dairy was defensive. The mindset of providing as little increased access to the Canadian dairy market as possible in a TPP agreement, key aspects of the position was to defend the Canadian standards for cheese, and maintain the balance of butterfat and skim milk solids in …show more content…
In order to win the hearts and minds of farmers in Canada, dairy farmers across the country claimed for decades that supply management is essential to keeping the family farm. They believe that the only reason they started a dairy farm in Canada is because of this guarantee.
In 1970, there were 122,914 dairy farms in Canada, compared with 14,660 in 2006. The current number is closer to 12,000, the current rate of decline at about 88 percent. In fairness, it is not known if supply management policy was in fact successful in slowing the decline family dairy farms in Canada. However, if this trend continues, and many believe it will, Canada could stand to lose almost half of these farms by 2031.
The Trans-Pacific Partnership will secure new market access opportunities for Canadian dairy, poultry and egg exports. Foreign dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries.
There are several arguments pointing at the potential risks linked to the implementation of …show more content…
Some programs that will be implemented include the following. The Income Guarantee Program will keep producers whole by providing 100 percent income protection to producers for a full 10 years from the day TPP comes into force. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. $2.4 billion is available for this program.
The Quota Value Guarantee Program will protect producers against reduction in quota value when the quota is sold following the implementation of TPP. $1.5 billion has been set aside for this demand-driven program, which will be in place for 10 years.
The $450 million-Processor Modernization Program will provide processors in the supply-managed value chain with support to further advance their competitiveness and growth.
These Cabinet-approved initiatives will support producers and processors throughout the implementation period of TPP and the Canada-EU Trade