Canada and its dairy industry finally on the table.

As part of the TPP negotiations, Canada has always kept the dairy industry on the bay.  The article “http://www.cbc.ca/news/politics/canada-election-2015-trans-pacific-partnership-dairy-1.3242234” explains this.

Canadians typically pay atleast 23% more than the others on  the negotiating table for consumption of the dairy products. More importantly the industry in Canada so far had discouraged imported products in this domain by issuing approximately 250% tariffs on imported dairy products. However as the deal approaches more serious talks, the pressure on Canada to open its industry to the other members has been mounting. USA, New Zealand and Australia are the major ones that would benefit. This is detailed in “http://www.theglobeandmail.com/report-on-business/rob-commentary/no-turning-back-for-canada-now-that-dairy-protection-is-finally-on-tpp-table/article25834661/

Comparing the two North American nations as per reports, opening of the dairy markets in the USA and Canada led to a fall in the local farms by more than 60%, but while the USA counterparts increased production for exports, the Canadian market continues to survive on the local consumption. Moreover with all of the other three countries having milking operations at least 3-5 times, the question the Canadian dairy farmers ponder over is how much of a decline in the sales are they looking at especially considering that some of the USA dairies are only a couple of hours drive from Canadian markets! Are they justified considering they would get access to 40% of the global trade?

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