#Dairy official calls U.S. policy hypocritical

Supply management | Dairy Farmers of Canada head says existing dairy imports are generous

A Canadian dairy leader has accused Americans of double talk as they try to use Trans-Pacific Partnership trade negotiations to win more dairy product access into Canada.
Dairy Farmers of Canada executive director Richard Doyle told the House of Commons international trade committee May 27 that while the United States is targeting Canada’s supply managed protections, it is not willing to negotiate its own restrictions on New Zealand dairy products or Australian sugar.
“I think the U.S. is talking out of both sides of their mouth, to be quite frank,” he said.
Doyle also told supportive MPs from all parties that despite critics’ view of supply management as a closed import system, dairy imports into Canada exceed that of many of its international critics.
“Between six percent and eight percent of our Canadian dairy consumption is supplied by imported dairy products coming in tariff-free, which makes Canada more generous than the U.S. or (European Union) in terms of access,” he said.
“Predictability and import control are not equal to no imports.”
He said the World Trade Organization has ruled that Canada’s fixed domestic prices means its dairy exports are subsidized and therefore limited. That restricts exports to one percent of production.
As a result, the industry could not benefit from new export sales opportunities even if a trade deal was reached that opened dairy markets.
“Any market opening, therefore, even if it were reciprocal, would come at the expense of Canadian dairy farmers,” said Doyle.
Government and opposition MPs who support supply management jumped on DFC’s claim that Canada’s dairy market is more open than some of its most vehement international opponents.
“There’s more access allowed into Canada for dairy products versus access we have into Europe or the United States, but that’s not well known,” said Prince Edward Island Liberal Wayne Easter. “We’ve somehow lost the messaging fight.“
Ontario Conservative MP and former dairy farmer Bev Shipley agreed.
“I wish we could get the message out more,” he said.
Under questioning from MPs about how the dairy industry sees the TPP negotiation in which supply management is a target, Doyle said both Liberal and Conservative governments have protected the supply management system in previous trade negotiations.
He said the industry trusts the government to protect its interests. The dairy farmer lobby is included in briefings from the government on the talks.
However, Doyle said that unlike previous trade negotiations, industry representatives this time do not have a text of the proposed deal being negotiated.
“I think the lack of access to the text is what makes most of the industries, including the experts, very nervous about a negotiation where you aren’t able to do a proper analysis of what is on the table,” he said.
 
Source:  Producer