Canada offers programs to help processors with trade agreements

by World Grain Staff
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OTTAWA, ONTARIO, CANADA — Agriculture and Agri-Food Canada announced on Oct. 5 a series of new programs and initiatives for supply-managed producers and processors to support them throughout the implementation of the Trans-Pacific Partnership (TPP) and the Canada-E.U. Trade Agreement. Under both agreements, the three pillars of the supply management system will remain protected.

The following programs will be implemented:

-The Income Guarantee Program will keep producers whole by providing 100% income protection for a full 10 years from the day TPP comes into force. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. C$2.4 billion is available for this program.

-The Quota Value Guarantee Program will protect producers against reduction in quota value when the quota is sold following the implementation of TPP. C$1.5 billion has been set aside for this demand-driven program, which will be in place for 10 years.

Agriculture and Agri-Food Canada also announced two additional programs:

-The C$450 million-Processor Modernization Program will provide processors in the supply-managed value chain with support to further advance their competitiveness and growth.

-The Market Development Initiative will assist supply-managed groups in promoting and marketing their top-quality products. To support the initiative C$15 million in new funding will be added to the AgriMarketing Program.

In addition to the long-term C$4.3-billion investment outlined above, the Canadian government will intensify on-going anti-circumvention measures that will enhance border controls. These measures include requiring certification for spent fowl, preventing importers from circumventing import quotas by adding sauce packets to chicken products, and excluding supply-managed products from Canada’s Duties Relief Program.

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