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Rene Cremonese's avatar

It should be self-evident that nobody’s hands are clean with respect to tariffs and non-tariff barriers. That is hardly a revelation. This post would have been much more honest and useful if it managed to compare the Canadian situation with the United States and our international peers. Simply highlighting some elements of the Canadian situation with the final disclaimer that you don’t know how we compare is a cop out. It certainly leaves the impression that we have somehow been telling the world we are free traders when we are not.

Don’t know if these stats are correct but here is a link to a Statista chart suggesting our average tariff rate in 0-1.9% range. We have 10 negotiated free traders agreements in place with an 11th with the EU provisionally in effect. ChatGPT suggests our non-tariff trade barrier level is moderate and transparent compared to the international norm. This is possibly because of our many free traders agreements.

Finally, I have no opinion as to whether supply management for dairy is of significant value of Canada to keep it. But the United States and the EU have their own similar systems and significant agricultural subsidies, so I find our constant focus on this part of the economy, largely because of American complaints, a specious debate. Let’s look at the system for whatever benefits or disadvantages it produces for Canada by all means but don’t immediately seek to get rid of it because of US rhetoric and threat.

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David Clinton's avatar

You certainly make some valid points here. However, I'm not sure how useful it is to create a single "tariff rate" number that's meant to represent our entire set of national (and provincial) trade policies. It's like that old gag about a guy with one foot on a lit stove top and the other foot packed in ice: on average he's comfortable.

What might be more helpful - although less quantifiable - would be some measure of the government's overarching protectionist "mood". Of course, given how our various trade barriers are the products of different eras, governments, and pressures, there are limits to how useful even that would be.

That's why I still think that this story is best told through the fine details.

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Andre L Pelletier's avatar

Not to mention that all of these were all discussed during CUSMA renegotiations. The Big Beautiful Deal. These bad faith actions by the US don't need any sort of "both-sidesing".

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Robin Ford's avatar

The more information like this we have the better. Not self-evident to many. I suspect many barriers or tariffs have built up over time with no one checking from time time on their impact and whether they are still justified, and no one putting together an overall picture of tariff and non-tariff barriers, let alone one that compares Canada to other countries. Thanks for kick starting this.

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MikePalecek's avatar

It’s not a trade war; it is a destabilization campaign.

The erratic swings in trade policy are not a bug, they’re a feature.

https://palecek.substack.com/p/its-not-a-trade-war-it-is-a-destabilization

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Mark Jackets's avatar

Looking at same data from a non -Trump angle, several vested interests have had tariff moat in place to facilitate their rape of Canadians. Dairy cartel is the kind of corruption a politician is supposed to prevent, not prolong. Sigh.

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Terry M Morin's avatar

Just had the discussion today about supply management, dairy in particular. The number of $60K for a single cow fluid milk quota was thrown around, and the concern was the millions of dollars Canadian milk producers stand to lose should supply management be ended. I find it hard to believe that a producer would have the majority of their farm investment in quota acquisition and not in physical plant upgrades.

It needs to be pointed out that Canadian protectionism of the dairy sector, has been a thorn in the side for any and all trade negotiations with the US, predating NAFTA. Dairy producers in Canada should have had enough warning that gov't supply management was not going to last forever.

Sorry I can't summon up tears for these guys, but an unrestricted free market for dairy products would greatly reduce the cost to families, not to mention greatly increasing the choices available. Also not to mention demonstrating that we are serious about negotiating.

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GJS's avatar

That no political party has been or is willing to step up and advocate for the end of supply management is proof positive that power of the Canadian dairy mafia knows no bounds.

It can be done though. Australia is a good example to follow. https://www.fraserinstitute.org/studies/phasing-out-supply-management-lessons-australias-dairy-industry

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Meowshell AM Bradshaw's avatar

I like the different standards for importing, especially food, into Canada and the smaller food supply chains. I would like to see closer to European in fact. As for the supply chains. My understanding is food security is the reason behind them as well as protecting the producers. America loves its mega centralized facilities which I’m told is the issue with avian flu and also these large producers switching to hens modified to produce more eggs, which came from Europe. Canada does have a trade barriers but not how Trump is describing them.

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Meowshell AM Bradshaw's avatar

Canada should absolutely have its own standards. And more closely aligned than it currently is with Europe’s.

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Frank Hiebert's avatar

So, does Canada have the right to establish its own safety standards for its food supply or not?

As I understand, Hormonal Growth Promoters are allowed for beef cattle but not dairy cattle in Canada. Should our food safety standards "trump" trade obligations or not? Simply writing these off as BS is not a very informed argument and does nothing to convince me as a consumer concerned about food safety.

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Meowshell AM Bradshaw's avatar

Not really my points but I’ll stand corrected for you.

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GJS's avatar

food security is the horseshit excuse trotted out by dairy industry goons, and "yeah but look at America" is the same nonsense trumpeted by healthcare status quo advocates, as if the American approach is the only other option.

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