Canada Refuses to Change Its Dairy Protection Policy
One of Canada’s most politically sacred policies is that pertaining to the dairy industry.
After the US president identified Canada’s dairy supply management system as one of the three primary irritants used to support a 50% tariff on $20 billion.
Which is scheduled to take effect in August, the system is once again in the public eye.
Trump claims that the system, which imposes import, production, and pricing limitations on dairy, eggs, and poultry, is “unreasonable” for American farmers who wish to sell their goods north of the border.
How Canada's Dairy Supply Management System Works
Politicians in Canada will now have to choose between risking the wrath of the public and a politically “powerful” dairy industry by trying to resolve this.
The largest dairy business in Canada is located in the province of Quebec, where Premier Christine Fréchette declared on Tuesday.
Furthermore, the system “is a cornerstone of Canada’s economy and our rural communities” and “ensures that dairy products.
That’s made by Canadian dairy farmers,” US-Canada Trade Minister Dominic LeBlanc told the news last week.
They contend that it helps Canadian farmers and ensures stable prices and supplies for key foods.
Canadian Leaders Defend the Policy
When faced with potential compromises in trade negotiations, dairy farmers have also been known to conduct rallies on Parliament Hill.
According to David Clement, a Canadian policy director of the global advocacy organization Consumer Choice Center.
It is the most potent political lobby in the nation that spans all of the main political parties.
Despite similar rules being phased out by other Commonwealth countries like Australia and New Zealand.
Dairy Farmers Hold Strong Political Influence
Under predetermined quota limits, a small quantity of dairy products from other countries can enter Canada.
However, those that go over the cap are subject to a charge of 200% to almost 300%, making selling in Canada unaffordable for both customers and sellers.
According to data from the US Department of Agriculture (USDA), Canada is one of the main importers of US dairy products.
Yet US producers now only enjoy tariff-free access to 3.5% of Canada’s market.
