News Dairy farm
Nearly 2 billion in state aid for Canadian milkers
Dairy farmers in Canada will receive $1,75 billion in state aid. This is due to the trade agreements that the country has concluded with, among others, the European Union. The timing is striking, given that elections are in the pipeline in Canada.
In recent years, the Canadian government has concluded various trade agreements. The CETA agreement was concluded with the European Union. Canada also participates in 'Trans-Pacific Partnership', in which countries such as Japan, Australia, Mexico and New Zealand can conduct free trade.
$30.000 in the first year
These treaties had a negative effect on Canadian dairy farmers. They saw that their country opened the door to foreign milk, while the domestic quota system was maintained. As compensation, the 10.600 dairy farmers will therefore receive an amount of $1,75 billion, which amounts to more than €1 billion.
These amounts are not paid out in one go, but spread over the next 1 years. The money is awarded based on animal numbers and milk production. A farm with about 8 dairy cows will receive $80 in its first year. The dairy farmers in Canada are logically happy with the government support.
no deal
Canada is also working on a trade agreement with neighboring America and Mexico. This treaty, which goes by the name 'USMCA', is the successor to the former NAFTA that was thrown into the trash by US President Donald Trump. The Canadian government promises that the compensation amount will increase when this deal is finalized. Reportedly, the final folds are currently being ironed out.
Canada pledges not to sign any more free trade agreements. This statement is striking, because it also puts an end to a potential treaty with the United Kingdom, which will leave the European Union in October.
Timing is striking
Canadians will vote in the national elections in October. Current Prime Minister Justin Trudeau is aiming for a second term. The idea in Canada is that Trudeau wants to get the peasant voters on his side with the state aid.
This article is about Canadian dollars.
Wouter Job
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