QUESTION PERIOD — International Trade
Compensation for Dairy Farmers
May 6, 2021
Honourable senators, my question is, again, for the government leader. Leader, Canada’s dairy industry is responsible for nearly 200,000 jobs in Canada, contributes nearly $16 billion annually to our economy and generates $3 billion annually in tax revenue.
Yet, with each new trade agreement, CETA, CPTPP, and now CUSMA, it has seen its share of dairy markets steadily decline in our country. By 2024, 18% of our domestic dairy production will be outsourced to foreign producers. While dairy farmers have slowly begun to receive compensation for what they lost under CETA and CPTPP, fair compensation for CUSMA remains outstanding.
Senator Gold, in my recent meeting with Manitoba dairy farmers, they told me that while there have been discussions, nothing concrete has been established regarding full and fair compensation under CUSMA. When can farmers expect to hear about a time frame for compensation?
Thank you for the question.
I have to make inquiries in terms of the specific time frame. As we’ve mentioned many times in this chamber, there’s no denying the fact that the free trade agreements Canada has entered into — which, overall, have benefits for Canadians in many different ways — also impose challenges for certain sectors, notably the dairy sector.
Recently, I met with the Quebec representatives of the Canadian Cattlemen’s Association, who raised a number of issues with me, one of which was the fact that they remain keen to see our export markets expand for their products because their products and the quality of their products, whether beef or dairy, are increasingly solicited and appreciated around the world.
It’s a complex issue to balance the competing needs and interests of our agricultural sector. The Canadian government, I’m happy to repeat, is committed to provide fair compensation. When I know more about the timeline, I’ll be happy to report to the chamber.
Leader, one of the biggest concerns about Canada’s dairy farmers regarding CUSMA is the distribution of tariff rate quotas, or TRQs. Dairy farmers argue that the allocation of TRQs should be maximized for Canadian dairy processors.
Last year, your government agreed to this regarding interim tariff rate quotas for CUSMA. Dairy farmers and their various associations have made it clear to Global Affairs Canada that this is what they are seeking for permanent TRQs. However, the signs are not encouraging south of the border with the appointment of Thomas J. Vilsack as Secretary of Agriculture. He openly disdains supply management and has criticized the allocation of CUSMA TRQs. Secretary Vilsack is a former lobbyist for the U.S. dairy industry and has pledged to grow their exports from 15% to 20%.
Leader, what is your government doing to ensure that the interim allocation arrangement for TRQs under CUSMA becomes permanent and to maximize its allocation to Canadian dairy processors?
Thank you. The government has worked successfully to defend supply management to Canada for the benefit of our dairy producers. We’ll continue to work diligently to protect their interests and our interests in all negotiations with the United States.
