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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.
Canada produces too much steel and aluminum, so the US is imposing tariffs to maintain a stable market...
Protectionism is protectionism no matter what label you slap on it. If Canada wants open access to our markets there going to have to provide the same to us.
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.
With a 270% tariff on US dairy, I guess the Canadian farmers do think they have a good deal going. How about a 270% tariff on autos assembled in Canada coming into the US...fair?
This week Mexico announced tariffs on U.S. cheeses which could have a devastating impact on U.S. dairy exports.
Mexico accounts for 28% of all U.S. cheese exports, making it the No. 1 export market for U.S. cheese, according to the U.S. Dairy Export Council (USDEC). The Mexican initiated the tariffs in retaliation for the tariffs President Trump placed on steel and aluminum imported from Canada, the EU and Mexico.
“Tariffs on cheese will potentially eliminate the competitive advantage we have in our No. 1 market,” said USDEC president and CEO Tom Vilsack. “That is a legitimate concern.”
Canada produces too much steel and aluminum, so the US is imposing tariffs to maintain a stable market...
Protectionism is protectionism no matter what label you slap on it. If Canada wants open access to our markets there going to have to provide the same to us.
RR
and why shouldnt US companies benefit from that?
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