SUPPLY-MANAGEMENT

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Why Canadian Dairy Won a Massive Subsidy Despite Falling Demand

The finalized TPP opens up 3.25 per cent of Canada's dairy market to foreign products. Right away, Stephen Harper announced that his cabinet has approved a plan to spend a hefty $4.3 billion in compensation to soothe the vocal dairy industry. It would be another whole day before Harper announced the significantly lower $1 billion in compensation for the auto sector. Canada just entered the global tax subsidy race, and the dairy industry got the first golden egg.

Supply Management Must Not Be Sacrificed for New Zealand and the U.S.

Supply management, a sensible regulated system where domestic supply is governed by domestic demand, is under attack from critics who are uninformed about its usefulness and effectiveness for producers, processors and consumers. In short, they suggest it must be sacrificed on the altar of the Trans Pacific Partnership negotiations if Canada wants to be inside that grouping which, they all assume, would benefit the country.
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The Real Reason Canadians Pay Higher Prices Than Americans For the Same Products

The United States and Canada do not allow for full competition, but Americans benefit from a bigger market given their much larger population. Thus, a continental market in airline travel would serve passengers if an American airline could compete head-to-head with Canadian airlines on domestic routes. But the federal government won't allow it. The result? Higher airline fares in Canada.