Canada PM Stands By Supply Management As US Debates NAFTA

Manufacturing.net ^ | 7/20/2017 | Associated Press

[spintreebob]

Canadian Prime Minister Justin Trudeau says he will continue to defend the supply management system that protects the Canadian dairy industry in talks about revamping the North American Free Trade Agreement.

A U.S. House subcommittee raised the long-standing trade irritant at its hearing on NAFTA negotiations Tuesday, suggesting Canadian measures to protect the industry will be a sticking point.

Congressman Ron Kind, a Democrat from Wisconsin, says he does not want to jeopardize a crucial trading relationship with Canada but thinks the system should be more balanced.

The Trump administration released its objectives for a new trade deal earlier this week, including better access for its agricultural exports.

Trudeau said Tuesday that Canada has signed significant trade deals with Europe, North America and elsewhere while protecting the supply management system.

[spintreebob]

One of many examples that NAFTA is mis-labeled and is not free trade.

Trump and a Democrat Congressman both want to re-negotiate NAFTA. Note how AP treats each person differentl who want to do exactly the same thing.

[butlerweave]

Under Trudeau’s Free Trade Deal with the EU Canada has to buy tons of EU cheese every year ,D’OH

[Former Proud Canadian]

Canada has had a "supply management" system to protect the domestic dairy industry for decades. The artificial shortage it creates increases prices for the consumer. The reason is simple, dairy farmers and their dependents vote. Rural ridings are over represented, therefore rural votes are more powerful than urban votes. Programs like this are just another way of buying votes.

The US also subsidizes their dairy industry, they just do it more directly and the result is lower consumer prices, paid for by taxpayers. If "free trade" in the dairy sector is implemented, cheaper US dairy products will flood the Canadian market and prices will fall. I would be happy to let the US taxpayer subsidize Canadian consumers of dairy products.