International Trade committee  Yes, supply management has been protected, but as I said, it has been undermined. In terms of the 3.9%, that's fine in itself, but the problem is that there was already the CPTPP and CETA, and there was already the WTO. It's that buildup that's the problem. We are really weakened.

International Trade committee  In 2017, we found an innovative strategy to address dairy production issues with the government and dairy processors, our partners. Now we need to change our model. We have made proposals, but the solutions will have to come from the government. It is up to the government to respond to the abolition of class 7.

International Trade committee  We're talking about ratification on May 1 for entry into force on August 1, the beginning of the dairy year, as you said. Since the ceiling is 50 tonnes in the first year, we start the second year right away—

International Trade committee  That's it. We must already adapt and see how we will manage this. At least the industry would have more time to adapt.

International Trade committee  It would be very important.

International Trade committee  That's fine. For CUSMA, it's only 3.9% of dairy products.

International Trade committee  I don't think that I've seen this. That's why I mentioned it in our brief. The sovereignty of the country is really under attack. Perhaps our expert, Mr. Cochlin, could tell us whether he has seen any cases of this nature.

International Trade committee  Good afternoon. On behalf of the Dairy Farmers of Canada, I want to thank you for the opportunity to offer our perspectives on Bill C-4 concerning the Canada — United States — Mexico Agreement. I'm accompanied by Jacques Lefebvre, our chief executive officer, and Chris Cochlin, our legal advisor from Cassidy Levy Kent LLP.

Finance committee  I’ll start with your first question. There is no denying that the reciprocity of standards is a concern for producers, and that’s true not just for dairy farmers, but also for our fellow farmers in other sectors. We have high standards in Canada. The proAction initiative ensures oversight of animal welfare, the environment, traceability and biosecurity.

Finance committee  Thank you for your question. Of course, there are other measures because the Canadian Food Inspection Agency, the CFIA… I'm not sure whether you're aware, but the Canada Border Services Agency, or CBSA, no longer has the expertise to check all the products entering the country.

Finance committee  Milk is the main one, but it could be concentrated or processed. The fat content for milk is 4%, but for cream, it's 35%. It can vary significantly, and that changes how the product is defined. It’s important to know what products are coming into the country. When the fat content is 4%, the product is nowhere near the same as when the fat content is 35%.

Finance committee  Yes. I also think Canadians want to know what they are consuming, so it's imperative to know what's coming in and ensure it's tightly controlled.

Finance committee  As you mentioned, the dairy sector was sacrificed. That means a loss of income. The cost of production and profit margin are also factors. While it’s possible to lose market share and still operate efficiently, efficiency is also a matter of volume.

Finance committee  We are calling on the government to put the money in the hands of producers. They know how to manage their investments. Not all farmers are at the same place in terms of benefiting from transfers versus investments. They aren’t all at the investment stage. That’s what was so frustrating about the first program.

Finance committee  Prior to the three recently signed agreements, significant investments had been made in animal welfare, because doing so benefits the industry. A lot of animal welfare research is conducted. Farmers have acquired considerable knowledge, established new steps and improved facilities.