You gloss over this idea of Supply Management. If you really want to get sick to your stomach over what it really means, read the wikipedia entry.
Its basically a cartel. It abuses all Canadians, with high prices that go right into the pockets of politically connected farmers:
Here's why I'm putting focus on this. Canada is crying about NAFTA. Poor Canada. Why are you torturing us?Supply management is considered to be one of the most powerful lobbies in Canada by supporters and critics alike.[21]However, critics have pointed out that their tactics are similar to the NRA , a pretty influential lobby in the USA, by using propaganda and fear-mongering to push the interests of a small group of highly motivated actors at the expense of overall national well-being. It has been reported that the supporters spends about $120 million per year on public ad campaigns and political lobbying.
Here's part of the why. Canada has a protected dairy and poultry market.
300% butter tariff. Is that free trade? It was negotiated into NAFTA, because the rich dairy farmers want to keep screwing Canadian consumers, and keep our more efficient US producers.In addition to import quotas, foreign producers face tariffs on their products, that range from 168% for eggs, up to 285% for chicken, 246% for cheese and over 300% for butter. These high tariffs hamper imports in the general food market.
So here's a solid example of what Canada is doing that Trump doesn't like. The current battle has something to do with milk solids of some sort that I think Wisconsin wants to ship north, but the evil cartel north of the border has recategorized in some way to make sure its taxes [[tariffed) and US producers are stopped from providing Canadian citizens with products at fair prices.
In case you think the US unfairly subsidizes its farmers, here's from the same article:
Not in the article, but I have read that the typical average low-income Canadian family pays $300-500 / year more than they would without 'Supply Management', just to appease rich farmers that write cheques.The OECD estimates the subsidy equivalent in 2012 [[producer support estimate) paid to all of Canadian agriculture as 18% of the value of the industry; a majority of this goes to the supply managed sectors although they account for only a small part of Canadian agriculture, meaning that the supply managed sectors have a much higher effective subsidy. In the European Union, the effective subsidies are 27%, with the United States at 10%, Australia [[6%), New Zealand [[1%), Brazil [[6%), and China at 9%.[4]
So if you want a fair NAFTA, Canada... you can start by stopping this absurd subsidy to the rich today.
Until then, this pro-free-trade American says 'Go Donald'.
Bookmarks