The passage of the CETA trade pact between Canada and the European Union has Quebec dairy farmers concerned new competition could put them in dire straits.
Federation of Quebec Dairy Producers General Director Alain Borbeau said an influx of European cheeses could deal a major blow to sales, estimating it could cost the producers $150 million per year.
“This is the value of the milk that dairy producers won’t have the opportunity to produce because… more cheese that will come now in Canada,” he said.
Borbeau said the deal does mean the Quebec-based producers could benefit from new markets to export to. However, because the EU has internal protections in place that differ from Canadian regulations, those producers may find themselves shut out.
The federation is asking the Trudeau government for a compensation program that could see them paid $2.4 billion over 15 years. International Trade Minister Chrystia Freeland said packages for industries affected by CETA will be finalized before the deal comes into effect.
“We understand and believe that it’s important to support the transition for industries that face a particular impact from CETA,” she said. “We’re absolutely committed to doing that. We will do that in the areas that we’ve identified. We’re working hard and finalizing those packages now.”
The agreement must be ratified by the European parliament, with a vote planned for December.
