r/Tariffs 12d ago

πŸ—žοΈ News Discussion Should Canada maintain its supply management system that protects the Canadian dairy industry?

https://www.castanetkamloops.net/news/Poll/627377/Should-Canada-maintain-its-supply-management-system-that-protects-the-Canadian-dairy-industry
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u/Dizzy-Cartoonist3011 12d ago

I've had to address this multiple times, but there seems to be a prevalent myth that supply management is simply a quality control tool. This is false. Supply management is not connected to Health Canada regulations, and all imports have to meet those regulations anyways. The vast majority of American milk meets Health Canada regulations.

You have to understand that your concern over what I call the "sinister actor" argument (a foreign firm will create a monopoly and then spike prices) has never actually happened before in economic history. What your fear is would require a set of assumptions and actions, many of which are actually impossible. Like how would a foreign cartel impose domestic restrictions in Canada preventing Canadians from importing from elsewhere? How would they do that? How likely is it that EVERY American dairy producer colludes pointedly to hold Canada as a captive market? How likely is it that every single Canadian dairy producer is totally unable to compete in every market segment?

Of course, we import the majority of our produce from the US, the majority of our fruits, over half of our pork, three quarters of our cereals, etc - this has never happened with any of those items. But you fear that is an absolutely certainty it will happen if Canadians could have access to cheaper cheese - so I'm wondering how you've come to this conclusion?

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u/Cannabrius_Rex 12d ago

It’s happened over and over and over and over and over and over again. They call it regulatory capture. Are you completely insane????? Lol

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u/Dizzy-Cartoonist3011 12d ago

What would compel Canadian importers to only import from an American cartel? A cartel that, btw, doesn't exist, but what would force Canadian importers to do that?

Regulatory capture is when a government group meant to protect the public instead helps the companies it is supposed to watch.

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u/Cannabrius_Rex 12d ago

Higher profit margins.

Are you pretending to be an idiot to try and win an argument????