The outcome of CUSMA negotiations goes far beyond the dairy market access concessions that were made. CUSMA imposes export charges on skimmed milk powder, milk protein concentrates and infant formula beyond a specified amount.
This effectively equates to a worldwide cap on the export of Canadian dairy products and sets a dangerous precedent that could affect other sectors in future trade deals. Therefore DFC recommends that the Canadian government conclude an administrative agreement with the American government to ensure that the export charges contained in CUSMA, which are triggered after a threshold on certain dairy products has been reached—and again that's on the milk protein concentrates, skim milk powder and infant formulas—apply only to exports to the signatories of this agreement. In other words, they would apply to only the United States and Mexico and would not apply worldwide.
Last, we would like to see the other sectors under supply management, as well as the dairy processors, compensated to mitigate the impact of the recent trade agreements.
In conclusion, Canadian dairy farmers remain committed to supporting research and the development and adoption of new on-farm practices and technology. In the absence of government action on these recommendations, our ability to make the investments required to drive these important initiatives could be impeded by the concessions granted in recent trade agreements.
I'd like to thank you for your time and welcome any questions that you would have.