UPDATE 1-Canada says Pacific trade deal offers limited access to dairy market

(Adds further detail)
By David Ljunggren
OTTAWA, Oct 5 (Reuters) - Canada said on Monday that a major
trade deal agreed by 12 Pacific nations would only allow limited
access to protected Canadian domestic dairy and poultry markets,
a politically sensitive issue ahead of the Oct 19 election.
Officials said the Trans-Pacific Partnership (TPP) would
offer up just 3.25 percent of the Canadian dairy market and
around 2 percent of the poultry market over five years.
Farmers said during the negotiations that they could be
crippled if Canada gave up too much of its supply management
system, which imposes strict production quotas and export
tariffs to keep domestic dairy and poultry prices high.
Canada's ruling Conservatives, locked in a tight election
race, rely heavily on the rural vote. The main opposition New
Democrats say if they form the next government, they will not
feel bound by the terms of TPP.
Ottawa will also make available a total of C$4.3 billion
($3.28 billion) over 15 years to compensate dairy and poultry
farmers for losses they might suffer under TPP and an earlier
free trade deal negotiated with the European Union.
"Despite significant and broad demands from several of our
TPP negotiating partners, Canada has only offered limited new
access for supply-managed products," the Canadian government
said in a statement.
Another area of contention is rules of origin for autos sold
in Canada. Under TPP, the total cost of a vehicle sold in Canada
must contain 45 percent of content from TPP nations.
Canada, along with Mexico and the United States, is a member
of the North American Free Trade Agreement. The equivalent NAFTA
rule of origin for cars sold in Canada is 62.5 percent.
Canadian officials, speaking to reporters on the condition
of anonymity, said TPP would open up great opportunities for
beef and pork producers, who complain that high tariffs are
hurting their prospects in major markets like Japan.
($1 = 1.3113 Canadian dollars)