The federal government is considering a transition program rather than promised compensation for dairy farmers and processors hurt by increased European cheese imports under the Canada-Europe trade deal.
Government officials at an off-the-record briefing for reporters on technical details of the deal said Ottawa preferred “a package of transition assistance to position both processors and producers to be better able to compete with imports from the EU.”
Caroline Emond, executive director of Dairy Farmers of Canada, told the Commons agriculture committee Nov. 3 that the news came as a surprise to her organization, which has been discussing compensation with the government for more than a year.
The Harper government promised $4.3 billion in compensation for producers hurt by the imports. Earlier this year, Agriculture Minister Lawrence MacAulay said the commitment would be honoured. He is currently leading a trade mission in China. A request to Global Affairs Canada for more information was not responded to.
“The reporters have more information than we do,” Emond said. “I can’t tell you anything more about what the government might offer. A transition program might be helpful.”
DFC has estimated that farmers and cheese makers could lose $100 million to $200 million a year in sales because of the cheese imports, which are produced using government-subsidized milk.
The government officials said the details on the transition program will be announced in the near future. Separate programs will be available for farmers and dairy processors. There would be no lump sum payments.
Following news that Canada and the European Union finally signed the deal on Oct. 30, DFC president Wally Smith said his group was “eager to see how the government is going to fulfil its promise of a mitigation and compensation package to Canada’s dairy farmers. We are pleased that, since 2013, we have been able to get the Government of Canada to understand that lost market opportunities warrant mitigation and compensation.”
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The market access granted in CETA will cost Canadian dairy farmers as much as $116 million in lost milk sales that produce high-quality, award-winning Canadian cheeses each year, as imported cheeses from Europe take more shelf space.
Canadian dairy farmers have never opposed Canada signing more trade deals, as long as there are no negative impacts on dairy farmers as a result of these agreements, Smith also said.
Dairy farmers stand with many small and medium cheese makers across Canada in wanting to continue to grow the market for high-quality Canadian dairy products, he noted.
