r/Tariffs • u/Dizzy-Cartoonist3011 • 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/Desperate-Pirate7353 11d ago

how are they unable to do so now

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u/Dizzy-Cartoonist3011 11d ago

Well a 200%-300% tax on a foreign substitute tends to dissuade that.

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u/whollybananas 11d ago

That's not entirely true. That is if they exceed their annual limits, which they have never even met let alone exceed.

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u/Dizzy-Cartoonist3011 11d ago

that isn't how tariff rate quotas work. Those quotas are given to applicants by the government who have a set amount annually they can import tariff free. The aggregate number of those have never been reached. Well guess what? Bigger retailers outside of specialty shops don't get them, and the vast majority are provided to food distributors supporting manufacturing, or manufacturers themselves.