MONTREAL - If it goes ahead, the free trade agreement between Canada and the European Union (EU) will create an uneven playing field between European and Quebec farmers, according to comments made by two major agricultural groups Thursday.
The Quebec Farmers' Union (UPA) estimates that the new deal will raise European cheese imports to Canada from 14,000 to 32,000 tonnes per year (still a small amount considering that 420,000 tonnes of Canadian-made cheese is sold in Canada each year) and that Quebec cheese makers will have a tough time competing against heavily-subsidized European competitors.
“We have discussed the markets but never discussed the financial support European milk producers receive," said Marceal Groleau of the UPA.
“European milk producers have direct subsidies that allow them to sell their milk cheaper. That gives European cheese makers an advantage over their Canadian competitors,” he said.
Meanwhile the Federation of Quebec Milk Producers (FPLQ) also saw little upside in the deal.
Representative François Dumontier said that Quebec will be the province hardest hit by the federal Harper decision to open the cheese market, because over half of all Canadian cheese is made in Quebec.
Groleau said that the money Canada makes by selling beef and pork on European markets will not compensate for the loss.
“They will have to beat out local competition in Europe, It will be harder for our beef producers to gain access to Europe than will be for European cheese makers to access to our market,” he said.
Farmers’ Union President Benoit Girouard said that the free trade agreement will bemefit only large Canadian companies, who will be the only ones able to crack the European market.
