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Government defends European cheese deal

Canadian cheese makers will benefit from increased access to the largest and most lucrative market in the world under a new trade agreement, says a spokesman for the federal trade department.

John Babcock was responding to concerns from some P.E.I. cheese makers, mostly small-scale producers, who are worried that the increased access for Europeans to Canadian markets will mean more competition for them.

The deal will increase access for Europeans from about three per cent of current domestic consumption to about eight per cent.

But Babcock pointed out the deal completely opens up the European market for Canadian cheese. Those exports will be tariff-free.

The government also anticipates the additional imports from Europe will be absorbed by natural growth in demand.

Babcock also reiterated a promise to provide compensation to cheese makers if necessary.

"[We will] monitor any potential impacts from the implementation of CETA on dairy producers’ income and provide compensation to address such impacts if they materialize," Babcock wrote in an email.

The deal on cheese is part of the Comprehensive Economic and Trade Agreement, an agreement which further opens markets between Europe and Canada across a wide array of products.