To mitigate the negative impacts of CUSMA, we propose a two-pronged approach: first, the issuance of dairy import licences to Canadian dairy processors; second, an investment program in the dairy processing sector.
With regard to the allocation of quotas, we want to reiterate today that import licences for dairy products, commonly known as dairy import quotas, must be allocated to dairy processors. Processors have the necessary expertise and the distribution network to import a wide variety of dairy products, while ensuring the least possible disruption to the Canadian market.
The government must absolutely refrain from repeating the same mistake it made with the Comprehensive Economic and Trade Agreement, or CETA, when it allocated more than half of the quotas to stakeholders outside the dairy industry, which are retailers and brokers. These non-dairy stakeholders have no vested interest, whereas, on the contrary, dairy processors have a vested interest in importing cheese and minimizing the impact on existing production lines and manufacturing platforms, without displacing the milk produced by Canadian farms. Moreover, Canadian processors continue to innovate, invest and maintain well-paying jobs across the country. Additional imports that are poorly planned or poorly targeted will undermine the survival of many businesses.
With respect to the investment program, which is the second component, the dairy processing industry is made up of organizations of different size and product mix, all of which will be significantly affected by these trade agreements. As such, we recommend that the government create a dairy compensation and investment program to support investments in processing facilities and plants to increase competitiveness and modernize our plants.
This program could include tools such as non-refundable contributions for investments, refundable tax credits, and so on. The program would operate on a matching principle to ensure that funds can be provided if investments are made.