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So Canada manipulates and controls the production of milk with angi-market policies and then taxes its citizens by importing milk from the US with a 270% markup going to the Canadian government. And Canadians defend this! It sounds like Canadian consumers will greatly benefit from Trump's fair trade policies.
Canada takes a different approach when it comes to milk production. They have very strict rules with small farms averaging about 80 cows, they are not allowed to overproduce and imports are reduced to about 10%. As a result, the price of milk stays supportable and the Canadian government does not need to subsidize their farmers.
"Supply management enjoys strong government support in no small part because the policy obviates the need to subsidize farmers directly in the manner of the US and the EU – the two greatest culprits behind the current world dairy glut.
“The system works so incredibly well,” said Bruce Muirhead, associate vice-president and professor of history at the University of Waterloo. “And the big thing about supply management is that it doesn’t cost the government a cent. Consumers pay the full cost of production.”
The speculation is Canada would sooner end the treaty all together than to sacrifice the supply management they have today that works for them.
So Trump supporters might say "See, Trump is right!". Except U.S. restricts dairy imports down to 3%, so Canadian dairy farmers see Trump and the U.S. as filled with hypocrisy. Talking to farmers in Wisconsin, they don't blame Canada, they would prefer Canada's system. They say dairy deregulation has resulted in what they are experiencing now.
What you are referring to is price-fixing and we do that as well on vegetables and various other crops... I don't like price-fixing but I also have this strong urge to eat when I am hungry... What Canada is doing is not allowing FAIR competition for milk in Canadian markets and this of course, lets dairy farmers have a leg up on the competition... you are for fair competition, right?
What you are referring to is price-fixing and we do that as well on vegetables and various other crops... I don't like price-fixing but I also have this strong urge to eat when I am hungry... What Canada is doing is not allowing FAIR competition for milk in Canadian markets and this of course, lets dairy farmers have a leg up on the competition... you are for fair competition, right?
And the U.S. subsidies dairy farmers, Is that fair?
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