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The Issue

Canadians want Canadian-made dairy, poultry and egg products.

This is only possible with a thriving domestic processing industry.

Right now, Canada’s supply management system has been weakened because of trade agreements signed in the past five years: the Canada-EU Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA).

Did you know?

10%

of Canada’s domestic dairy market has been signed away through CETA, CPTPP and CUSMA.

up to 4%​

of Canada’s domestic poultry and egg markets, depending on commodity, has been signed away through CPTPP and CUSMA.

$350 million lost​

annually on average for these industries, According to the Minister of Agriculture and Agri-Food’s own Working Groups

This is roughly the same as Canada losing 20
medium-sized dairy processors.

This impacts not only processors, but the 14,700 dairy, poultry, egg and broiler hatching egg farmers they buy from, and the 52,500 Canadians they employ.

Measures to lessen negative impacts of these trade agreements are urgently needed to ensure that dairy, poultry and egg processors continue to deliver the best quality products to Canadians despite challenges presented by the COVID-19 pandemic.

Helping Canada’s dairy, poultry and egg processors

The government announced $292.5 million to support Canada’s dairy, poultry and egg processors impacted by CETA and CPTPP in the latest Federal Budget. Funding for a Processor Investment Fund will roll out over seven years to support private investment in processing plants.

This is a very good first step toward fulfilling the government’s commitment to full and fair compensation for processors.

Full and fair compensation includes CUSMA and TRQ

The 2021 Budget announcement did not include CUSMA compensation. We’ll continue working to ensure the government keeps its compensation commitments and takes all necessary steps to support Canada’s dairy, poultry and egg processors. This includes providing processors with most of the import licenses related to CETA, CPTPP and CUSMA. These licenses are known as tariff-rate quota or TRQ.

This is an opportunity to help the industries innovate and adapt to new market realities created by trade agreements, and ensure that the Canadian-made products that consumers want will continue to be made here at home.

Thank the Ministers

Tell the government that CETA and CPTPP compensation is a welcome announcement, but full and fair compensation for dairy, poultry and egg processors includes CUSMA.

The Honourable Marie-Claude Bibeau, P.C., M.P.
Minister of Agriculture and Agri-Food
House of Commons
Ottawa, Ontario
K1A 0A6

The Honourable Chrystia Freeland, P.C., M.P.
Deputy Prime Minister and Minister of Finance
House of Commons
Ottawa, Ontario
K1A 0A6

The Honourable Mary Ng, P.C., M.P.
Small Business, Export Promotion and International Trade
House of Commons
Ottawa, Ontario
K1A 0A6

Dear Ministers,

I write today to thank the government for its recent support for Canada’s dairy, poultry and egg processing industries. The $292.5 million Processor Investment Fund announced in the recent Federal budget is a very good first step toward the government fulfilling its commitment to “full and fair compensation” for Canada’s supply managed sectors.

While the announced fund will not eliminate the negative impacts of CETA and CPTPP, it will help Canada’s processors to innovate and adapt to new market realities and ensure that they can continue to deliver the high-quality Canadian-made products that Canadians want.

A government commitment to full and fair compensation is not just a sign of support for Canada’s processors, but the 52,500 Canadians they directly employ and the 14,700 farms from which they buy milk, chicken, turkey and eggs.

Canada’s supply management system is under extreme pressure not only from CETA and CPTPP market access commitments, but also those made in CUSMA. Canada’s dairy, poultry and egg processors eagerly await further information on compensation for this agreement and other measures, such as the allocation of the majority of tariff-rate quota to processors and further processors, that can support the long-term vitality of Canada’s supply management system.

I thank you again for your demonstration of support for Canada’s supply managed processors and producers.

Yours sincerely,
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