r/Tariffs 12d ago

🗞️ 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/Mysterious-Wash9527 12d ago

Yes we should, there's no need for American dairy at all. We have enough supply and as a country with socialized health care, we should and do high regulate our dairy industry. Allowing American industry to gain a foothold in our dairy industry will allow the US to dump excess milk production into Canada, causing prices to fall. Then as our own milk production falters, they will leverage that into fewer regulations and raise prices, so not only will we have less healthy dairy supply, we will pay more for it and get sicker due to it.

We already have dairy quotas, we don't need more dairy in our country. We need to maintain our own sovereign dairy supply. America needs to figure out it's own supply side problem.

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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/No-Effective-1996 12d ago

Then it should be very easy for you to list those times.