After the TPP negotiations were concluded in October 2015, in order to ensure no negative impact on Canadian dairy farmers as a combined result of CETA and TPP.... On compensation for supply management farmers for their losses as a result of TPP, the Government of Canada announced a multiple mitigation measure and a $4.3-billion compensation package to be delivered over 15 years.
It is important to keep in mind that, although the original $4.3 billion, 15-year compensation represented a significant sum, this is a government investment in all of the supply management sectors—chickens, eggs, turkey, hatching eggs, and dairy—to mitigate the CETA and TPP deals. At the time of the announcement, while the government specified that the entirety of the CETA portion of the $4.3 billion was meant for dairy, the government did not specifically say how much of the TPP portion of the package was destined to each of the supply management commodities.
After announcing their intent to consult with the dairy sector on CETA compensation within 30 days in May 2016, the government requested that the Dairy Farmers of Canada submit a framework for compensation for CETA to the Minister of International Trade and Minister of Agriculture, which was done on May 18. To date, the government has still not committed or offered any feedback from the proposal of the CETA package.
In addition to awaiting a commitment on the proposed CETA compensation, the DFPEI and our partners at DFC continue to expect a package geared specifically toward mitigating the effects of TPP, should it come into effect. The $4.3 billion package that was initially proposed to supply management remains a minimum expected of a combined CETA and TPP package.
In conclusion, DFPEI, along with its partners at DFC, has never opposed Canadian trade strategy as long as there is no negative impact to dairy farmers. Our position is simple: a dairy farmer should not have to pay the price for our nation's trade agreements.
While we would prefer not to have additional market access in the dairy sector conceded in the TPP agreement, we recognize that the government fought hard against other countries' demands and pledged to lessen the burden with mitigation measures and a compensation package. The government chose to make concessions on dairy to secure a TPP trade agreement for Canada. The compensation to dairy farmers' revenue lost was part of the compensation the Canadian government was willing to make.