Due to the COVID-19 pandemic, the federal government has not yet tabled its 2020 budget. However, outgoing Finance Minister Bill Morneau had previously indicated it would be tabled sometime this fall, after the return of Parliament. In its 2020 federal pre-budget submission, DFC urged the government to provide dairy farmers details on the remaining seven years of full and fair compensation, in the form of direct payments, to mitigate the impacts of CETA and CPTPP. You may recall that $345 million of the government’s promised $1.75 billion had been announced in the fall of 2019 and paid out to dairy farmers under the Dairy Direct Payment Program.

DFC has also asked the federal government to confirm the level and timing of the promised full and fair compensation to dairy farmers in response to the loss of Canadian market share under CUSMA, where the equivalent of an additional 3.9% of the Canadian domestic milk production was provided in import access to U.S. dairy products.

DFC continues to reiterate the need for the government to follow through on its commitments for compensation to offset the effects of recent trade agreements. In addition, DFC has requested further resources for the Canadian Border Services Agency and the Canadian Food Inspection Agency to ensure they have the training and tools needed to effectively enforce dairy import regulations and standards at the Canadian border, and ensure the same measures are upheld in dairy processing facilities seeking to export into Canada.

DFC congratulates Erin O’Toole on his election as leader of the Conservative Party of Canada

DFC extended its congratulations to Erin O’Toole on his recent election as leader of the Conservative Party of Canada and is looking forward to working with him in his new role.

During the campaign, O’Toole spoke with dairy farmers from across the country and heard firsthand how the Canadian dairy production that was transferred to foreign producers as a consequence of CETA, CPTPP and CUSMA hurt thousands of families working on more than 10,000 farms from coast to coast. We are grateful for his support for full, fair and timely compensation. O’Toole demonstrated a clear understanding of these consequences and vowed to support our Canadian dairy families.

We wish him good luck in his new role, and we assure him of our support in advancing these issues.

CUSMA interim allocation and administration of Tariff Rate Quotas

Following consultations with industry and DFC, on June 15, the government announced interim Tariff Rate Quotas (TRQs) for CUSMA, which entered into force on July 1. These TRQs establish how the import access under CUSMA is allocated by product category to parties within the supply chain such as processors and distributors. The majority of these new TRQs have been allocated to processors, similar to the current allocation of TRQs in place under CPTPP. Unlike CETA, there is no allocation for retail, which is something which DFC had advocated against with the government.

This is positive, as allocating the majority of TRQs to Canadian processors helps to ensure that more imported dairy products complement products produced in Canada instead of duplicating them or directly competing with them. This decision reflects joint recommendations by Dairy Processors Association of Canada (DPAC) and Dairy Farmers of Canada on this issue.

Meanwhile, the second phase of the broader public consultation on the long-term allocation and administration of TRQs for the World Trade Organization (WTO), CETA, CPTPP and CUSMA was put on hold in early May until further notice amid the COVID-19 pandemic. DFC has already met with officials from Global Affairs Canada to discuss the different proposed options and is carefully monitoring any next steps.  

Founded in 1934, Dairy Farmers of Canada (DFC) is the national organization which defends the interests of Canadian dairy farmers and strives to create favourable conditions for the Canadian dairy industry. Working in accordance with supply management principles, DFC promotes safe, high quality, sustainable and nutritious Canadian  dairy products made from 100% Canadian milk through various marketing, nutrition, policy and lobbying initiatives. Driven by a strong sense of community and pride, DFC and Canadian dairy farmers actively support a number of local and national activities. Visit dairyfarmers.ca for more information.