Trans-Pacific Partnership opens up dairy market
Door to Canadian dairy market opens
The newly announced Trans-Pacific Partnership opens up Canada's supply-managed commodities to foreign imports, most significantly for P.E.I. dairy.
Last week Island dairy farmers rallied in Summerside to express their concerns about opening their market.
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There were reports the Americans were looking for as much as 10 per cent of the market. The deal allows for 3.25 per cent.
The government announced two programs, with a $4.3 billion investment, to ease the transition.
The Income Guarantee Program will provide 100 per cent income protection for dairy farmers for 10 years, and tapered support for a further five years. The budget for that 15-year program is $2.4 billion.
The Quota Value Guarantee Program will protect producers against a reduction in their quota value, after quota begins to be sold with the implementation of TPP. That 10-year program has a promised investment of $1.5 billion.
The government notes the TPP will provide new opportunities for dairy producers, including tariff-free access for some specialty cheeses.