Government of Canada Delivers New Programs for Supply Management Sector
Canada protects supply management system
(firmenpresse) - OTTAWA, ONTARIO -- (Marketwired) -- 10/05/15 -- The Government of Canada announced today 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-EU Trade Agreement. Under both agreements, the three pillars of the supply management system will remain protected.
The following programs will be implemented:
The Government also announced two additional programs:
In addition to the long-term $4.3-billion investment outlined above, the Government will intensify on-going anti-circumvention measures that will enhance our 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 the Government of Canada''s Duties Relief Program. Cheese compositional standards, introduced by the Government of Canada in 2008, have been maintained. The Government remains committed to ensuring they are enforced, so the standards we have for Canadian cheese are fully maintained.
The Canadian Dairy Commission and the Farm Products Council of Canada will work with Agriculture and Agri-Food Canada to ensure the Income Guarantee and Quota Value Guarantee programs are delivered to producers in an effective and efficient manner. The Government will continue to work closely with dairy, poultry and egg producers and the entire supply-managed sector to implement these initiatives.
These Cabinet-approved initiatives will support producers and processors throughout the implementation period of TPP and the Canada-EU Trade Agreement.
The TPP will secure new market access opportunities for Canadian dairy, poultry and egg exports. Dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries. This will include complete tariff elimination on some specialty cheeses, including several artisanal cheeses, entering the United States.
Despite significant and broad demands from several of our TPP negotiating partners, Canada has offered only limited new access for supply-managed products. This access, which will be granted through quotas phased in over five years, amounts to a small fraction of Canada''s current annual production: 3.25% for dairy (with a significant majority of the additional milk and butter being directed to value-added processing), 2.3% for eggs, 2.1% for chicken, 2% for turkey and 1.5% for broiler hatching eggs.
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FACTSHEET
Programs for Canada''s dairy, poultry and egg farmers
The Government of Canada is providing new programs for dairy, chicken, turkey, egg and hatching egg producers as the implementation of the Trans-Pacific Partnership (TPP) and the Canada-European Union Trade Agreement proceeds. The Trans-Pacific Partnership will secure new market access opportunities for Canadian dairy, poultry and egg exports. Dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries.
The Income Guarantee Program and the Quota Value Guarantee Program have been approved by Cabinet and will be available the day the TPP comes into force.
Income Guarantee Program
What will it cover?
The Income Guarantee Program will keep producers whole by providing 100 per cent income protection to producers for 10 years. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. $2.4 billion is available for this program. Annual payments will be directly linked to the amount of quota a producer holds.
The Income Guarantee Program transfers with the sale of the quota, meaning that if the quota is sold at any point in the 15-year period, the remaining direct payments linked to that quota will transfer to the new quota holder.
What are the estimated payments producers will receive?
The following examples provide an estimate of the total compensation the typical producer may receive over the 15-year period. These amounts will vary by individual producer, depending on their level of production:
When will the program come into effect?
Annual payments will begin when TPP comes into force. There will be an application process designed to limit the administrative burden on producers which will be developed in consultation with the Canadian Dairy Commission and the Farm Products Council of Canada.
How are the income guarantee payments calculated?
The income guarantee payments will be calculated based on expected domestic production levels under conditions with TPP and the Canada-EU Trade Agreement in place. A model will be used that takes into account detailed historic economic and farm level data, projected into the future.
Quota Value Guarantee Program
What will it cover?
The Quota Value Guarantee Program will protect producers against reduction in quota value when the quota is sold following the implementation of TPP, and $1.5 billion has been set aside for this demand-driven program that will be in place for 10 years.
When will the program come into effect?
The Quota Value Guarantee will come into effect once TPP comes into force.
How will quota value be calculated?
Agriculture and Agri-Food Canada along with the Canadian Dairy Commission and the Farm Products Council of Canada will work with industry to develop the appropriate mechanism to operationalize the Quota Value Guarantee Program.
FACTSHEET
Programs for Canada''s dairy, poultry and egg processors and industry
The Processor Modernization Program and Market Development Initiative will be available for agri-food processors in the supply-managed sectors. These programs have been approved by Cabinet and will be phased in starting fiscal year 2015/16. Processor Modernization Program
The seven-year $450-million Processor Modernization Program will provide processors with support to increase competitiveness through capital investments and technical and management capacity.
Who is eligible?
What activities are eligible?
What is the application process?
There will be a two-step application process:
Assessment will be based on merit, feasibility and quality of business plan. Funding for activities will begin in advance of the implementation of TPP.
Market Development Initiative
The Market Development Initiative provides new funding over five years to the AgriMarketing Program to help the supply-managed sector to maintain, develop and expand their Canadian and international market share. The Initiative will add $15 million of new funding to the AgriMarketing Program.
Who is eligible?
What activities are eligible?
What is the application process?
Contacts:
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
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Datum: 05.10.2015 - 08:25 Uhr
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