TPP to include dairy concession

The list of major issues in TPP was very short after the talks in Hawaii: rules of the automotive sector and Intellectual property protections for pharmaceuticals. Other than these the agreement is said to be 98% done. But there are some minor issues related to the dairy market on how much Canada’s domestic market will be open to American products to compensate the U.S. dairy producers for opening their market to an aggressive and competitive dairy exporter New Zealand. According to CBC News, Canada is prepared to offer a significant share of its domestic product not only fluid milk, but also butter, cheese, yogurt and other milk powders.

http://www.cbc.ca/news/politics/canada-election-2015-trans-pacific-partnership-dairy-1.3242234

For the EU deal (European Union), the Harper government has offered dairy compensation on proven losses. Conservative leader Stephen Harper let slip in the Sept 17 leaders’ debate that Canadian automotive will accept concessions in the final TPP deal. Will dairy producers be joining them? The deal would not offer Canadian dairy products any new international markets so more imports will mean smaller Canadian industry.

The compensation package this time may be massive. At current values, even 10% of milk production could require $2 billion. It’s a calculated risk for Canada as their ambitions at the table aim for billions in new export growth for other agricultural products. The U.S. industry anxious over its losses was pressuring up to 15% additional market access in Canada.

The dairy deal took shape in Maui, but the government officials just listened and didn’t offer any scenarios on conversations by the stakeholders. The deal is expected to conclude less than three weeks before the voting day.

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