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It appears little change for dairy in TPP

It appears there is minimal movement in dairy policy in the Trans Pacific Partnership trade deal announced Monday. Dairy was one of the main sticking points in the negotiations as the U.S. wanted more access to the Canadian market before granting New Zealand more access to the U.S. market.

The Canadian government says the deal will allow dairy imports up to 3.25 percent of total supply annually. Ottawa will spend $4.3 billion over the next 15 years to compensate Canadian farmers impacted by the TPP. The deal leaves Canada’s dairy quota system intact.  Dairy Farmers of Canada president Wally Smith says the agreement is good news for Canadian dairy producers.

New Zealand dairy cooperative Fonterra expressed disappointment with the dairy the agreement. New Zealand had hoped to eliminate all tariffs on dairy exports but negotiators were unable to get that. Fonterra chair John Wilson says while the deal failed to reach its potential, it is a small but significant step forward for the sector. NZ Trade Minister Tim Groser says the deal will eventually lead to elimination of tariffs on cheese exported to Japan and one part of cheese tariffs to the U.S.

The U.S. dairy industry is withholding judgement at this point. In a joint statement, the National Milk Producers Federation and U.S. Dairy Export Council said they will “carefully review the agreement’s dairy provisions in the coming days” and then make a statement. Wisconsin Farm Bureau president Jim Holte says his organization will also review the details of the deal before deciding if they should support it.