Saputo Inc., Canada's largest dairy processor, said the Trans-Pacific Partnership trade accord will result in few global opportunities for domestic producers as the country's quota system and import restrictions remain intact.
"I think the TPP could have been a catalyst for Canada to be a real supplier of dairy to the emerging markets, the world markets," Chief Executive Officer Lino Saputo Jr. said Tuesday in an interview with Danielle Bochove on Bloomberg TV Canada. "I think Canada could've been on the map as a dairy supplier to the world."
Other nations pushed Canada to increase access to its dairy, poultry and egg sectors, where production is controlled through quotas and imports are restricted with tariffs under a system known as supply management. Canada agreed to open foreign quotas for 3.3 percent of its dairy market over five years.
The global trade deal could have been the catalyst to dismantle the supply managed system, Saputo said.
The St. Leonard, Quebec-based company is exploring acquisition opportunities in the U.S. to diversify its product and customer base, Saputo said.