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If Canada eliminated its supply management system and the U.S. opened up the softwood lumber industry, both countries would benefit politically and economically

TORONTO, Ont./Troy Media/ U.S. President Donald Trump has attacked Canada's supply management system.  He believes certain American industries, including the dairy sector, have been crushed by Canada's "wasteful destructive job killing regulations" and the U.S. "demands fair trade with all of our trading partners … and that includes Canada."

He's absolutely correct: supply management is an archaic, statist and anti-free-market principle.

In Canada, the state has been directly involved in the market share of milk, eggs, cheese, chicken and turkey since 1971.  Our federal and provincial governments set a standard price for each product, regulate the available supply and use restrictive tariffs to protect against international competition.

The result is twofold.  Several groups of Canadian farmers can maintain sustainable profit margins and protect their vested interests, while all Canadian households must pay substantially higher amounts for these five products.

This isn't the free market in action.  It's protectionism, plain and simple.

The United Kingdom, Australia, New Zealand, Switzerland and the European Union once had similar supply management systems.  In each instance, their industries were deregulated and trade liberalization was increased.  This enabled them to find ways to survive and thrive in a competitive marketplace.

Why can't Canada do the same?

Truth be told, the group that should be the most insulted by the mere existence of supply management in Canada are farmers.  Our governments are telling them, in effect, that they don't have the ability, ingenuity and creativity to survive in the nasty and brutish free market without help and taxpayers' money to soften the economic blow.

It's astonishing that the many dedicated, hard-working members of Canada's agricultural sector aren't speaking out more about this. Their pitchforks should be directly raised as a form of protest against this arrogant type of governance.

Fortunately, some people want to help eradicate the protectionism of supply management and create a real free-market economy for all farmers and Canadians.

Former Liberal MP and current Canada West Foundation president and CEO Martha Hall Findlay, to her credit, has spent several years advocating for dairy supply management to be dismantled.  As she wrote in Maclean's magazine on May 14, 2014, "The overwhelming evidence shows that supply management, although it may have been laudable in the 1970s when it was implemented, is now a big problem, and it must go."

More recently, Conservative Party leadership candidate Maxime Bernier has made supply management one of the centrepieces of his policy platform.

In an April 19 Globe and Mail op-ed, Bernier agreed with Trump that this "protectionist system is unfair for the farmers in Wisconsin and other states, who cannot make a better living by selling their products to their Canadian neighbours."  At the same time, he correctly pointed out the U.S. president seems "to be falling under the influence of lobbyists for special interests in your country who are asking once more for protectionist measures," including softwood lumber.

As Bernier nicely put it, "you and I can agree on this basic economic law: protectionism is unfair for everyone.  Unfair to some producers, and unfair to all consumers."

For Prime Minister Justin Trudeau and the Liberals, this could be a great bargaining chip to use with the Trump White House.  If Canada could agree to eliminate its supply management system and the U.S. could agree to open up the softwood lumber industry, both countries would benefit politically and economically.

Trump certainly wants less regulation in the dairy sector and to create more fairness in free trade.

Will Trudeau reciprocate?

Time will tell.

Troy Media columnist and political commentator Michael Taube was a speechwriter for former prime minister Stephen Harper.

© 2017 Distributed by Troy Media

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.


In the weeks leading up to Parliament's Easter break, we were witness to a surlier than usual House of Commons, with weeks of filibusters at the Procedure and House Affairs committee, and innumerable privilege debates and dilatory motions in the chamber while a mounting number of bills go without seeing any debate.  While it's not uncommon for tensions to rise in the last few weeks of any sitting particularly as MPs get squirrelly as sittings stretch out to four and five weeks without breaks in May and June, those same tensions have already been felt before we've reached that point on the calendar.

Thus far, Government House Leader Bardish Chagger has refused to give ground when it comes to offering guarantees that her ideas for how to "modernize" the House of Commons' operations won't be unilaterally imposed.  She's couched this in the language of refusing to give a veto to the Conservatives on changing the very tools that they abused while in government, whether it's things like omnibus bills or prorogation, to which the Conservatives have outwardly stated that they agree any changes to the Standing Orders should be done by way of consensus with all parties rather than be imposed.  I'm not sure that Chagger would find this reassuring, however, as agreeing to consensus just allows the opposition parties to stall and block the proposals (which, to be fair, they should be doing for most of them because they're terrible).

It's the fact that Chagger has been so ham-fisted about this whole debate, and has in fact doubled down on her position, that doesn't fill me with a lot of hope that we'll see any resolution to this situation when the spring sitting gets underway next week.  The fact that the Liberals have been agitating to have these "discussions" around the Standing Orders completed by June 2nd  an overly ambitious timeline given the magnitude of what is being proposed (not to mention the fact that the vast majority of said proposals miss the mark in terms of what they're supposed to be addressing), will only make the next few weeks even more fraught.  And in terms of that ever-increasing stack of bills that aren't seeing any debate?  Well, you can bet that Chagger is going to start wielding the hammer of time allocation to try and start moving it along.

If anything will make the surly feelings worse, it's the "guillotine" of debate.  Expect weeks of snap votes in protest, yet more dilatory motions, bitter debates and accusations of rank hypocrisy that the government promised they wouldn't use these same tactics that the Conservatives did when they were in government.  All of it, of course, is self-inflicted for Chagger, who didn't need to be so insistent on these changes, and could have pulled Liberal MP Scott Simms aside at any point to have him withdraw his motion at the committee to have this debate completed by June.

The possibility does exist that Chagger has been this ham-fisted deliberately, looking to provoke a crisis on the Order Paper in order for her to justify ramming through changes to the Standing Orders around programming motions or the likes, claiming the need to get those bills moving after weeks of delays.  It would be a gamble, hoping that the public will side with her and find the opposition tactics to be childish and obstinate rather than with the opposition and their apocalyptic talk about this being the death of democracy in Canada (only the eleventieth time that this claim has been made), but one that could succeed, especially as the opposition has not been walking their own talk on things like Friday sittings.  Chagger also has precedent on her side, given that the opposition overplayed their hand after the Elbowing and lost all sympathy from the public.  If this is indeed Chagger's ultimate goal, then it would be a sign that this Liberal government is not only far more cynical than their "sunny ways" branding would have us believe, but that they are also bent on centralizing power to a greater extent than previous governments through far more underhanded tactics than we've seen in the past.

Meanwhile, the only two viable proposals in Chagger's discussion paper prorogation and omnibus bills are almost certainly going to be misread by people who don't understand the difference between legitimate and abusive uses of each mechanism, and it's going to inevitably lead to leading to yet more tears and recriminations whenever the debate around these measures gets underway.  You can bet that we'll see opposition demands to both outlaw omnibus bills in any recognizable form (a mistake given that they have perfectly legitimate uses, especially given that most budget implementation bills are by their very nature omnibus given the fact that they will touch on several Acts as a matter of course), and to try to turn control of prorogation over to the House of Commons in defiance of our constitutional conventions (which rests that power with cabinet as a Crown prerogative), and that the bulk of our nation's columnists, ignorant of the actual workings of a Westminster parliament, will side with them when Chagger tries to push through the  more palatable options of empowering the Speaker to break up abusive omnibus bills and to codify rules around restoring prorogation ceremonies.  If this is one area where Chagger would be willing to show flexibility in order to blunt some of the criticisms and look like she's listened, then we'd be left with the worst possible outcomes rather than get at least one or two decent outcomes in a package of bad ones.

This insistence by the government that they bully though these changes is mystifying, but so is their continued cultivation of such bad feelings among the opposition.  Unless Chagger is sincere in saying that she'll come to a decision on the next steps of this voyage of the damned when she "takes the temperature" of the Commons upon their return and backs away when she finds the hot tempers unchanged, we could be in for one of the most deservedly acrimonious spring sittings in years.

Photo Credit: Huffington Post

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.