Deal secures markets
Working groups to support dairy, poultry and egg farmers, and processors, to help USMCA adjustment
On Sept. 30, Canada and the United States took a historic step into the future by reaching an agreement to join Mexico in forming the new United StatesMexico-Canada Agreement (USMCA).
With this agreement, we have maintained tariff-free access to the American market for Canadian exports, and have protected the hundreds of thousands of jobs that rely on that access.
As a trading nation, Canadians expect their government to ensure their continued prosperity through secure and stable access to Canada’s largest trading market.
Throughout the negotiations, our government worked extremely hard to advance the interests of Canadian farmers and food businesses. We know that they are primary economic drivers for creating well-paying jobs, particularly in our rural communities, including right here on the Island.
This agreement is great news for farmers, fishers, and businesses across our province, who export more than $1 billion worth of products to the U.S. every year. This includes $150 million worth of lobster, while most of our $350 million in potato exports go to the U.S.
At the same time, we fully recognize that the USMCA will impact farmers and processors under supply management.
Canada’s market access commitment for dairy in the USMCA is estimated at approximately 3.59 per cent of Canadian production. Total market access for dairy under all trade commitments, including the USMCA, is estimated at approximately 10 per cent of Canada’s production.
Canadian farmers will continue to supply the vast majority of the Canadian market. Moreover, Canada has negotiated reciprocal access to the US dairy market, including tonne-for-tonne access for most dairy products.
Yesterday, our Government announced the formation of two supply management working groups with dairy producers and processors, and poultry and egg producers and processors. The working groups will develop strategies to fully and fairly support dairy farmers and processors to help them adjust to the short-term impacts of United States-Mexico-Canada Agreement (USMCA).
They will also discuss support to reflect the impact of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In addition, the working groups will chart a path forward to help the dairy sector innovate and remain an important source of jobs and economic growth for future generations.
These working groups have been designed in close consultations with the industry and will allow us to hear from farmers and processors on how they would like to structure government support.
Our government’s trade diversification strategy is paying dividends. For example, in the first ten months of our new agreement with Europe, we have new market access for Canadian agriculture and food exports worth over $100 million.
And the new market access to the world’s fastest growing consumer markets in the Pacific countries negotiated under the CPTPP could boost Canadian farmers’ sales by close to $2 billion. These agreements eliminate tariffs on vital P.E.I. products such as lobster, mussels, potatoes and blueberries.
Having signed the biggest trade agreements in Canada’s history with the world’s largest trading blocks in Europe, North America and the Pacific, our Government has firmly maintained the three pillars of Canada’s supply management system, while giving Atlantic Canadian farmers and processors access to a full twothirds of the global economy.
I am confident that farmers and businesses across Prince Edward Island will continue to grow and take advantage of these new market opportunities.
As a former dairy and potato farmer, I understand how much hard work goes into building and growing a farm business, and I fully appreciate how important our farmers and farm businesses are to our economic prosperity. Together, we will make sure all sectors of our economy are well positioned to thrive.