The Big Story
Explaining supply management and why Trump is holding it against us
Feb 14, 2025
Sylvain Charlebois, Director of the Agri-Food Analytics Lab at Dalhousie University and an expert in agriculture policy, breaks down the complexities of Canada's supply management system. He explains how this decades-old policy regulates dairy production, influencing trade tensions with the U.S. and drawing criticism from Trump. The discussion highlights the challenges of pricing transparency, the evolution of dairy quotas, and the impact of tariffs. Charlebois also addresses the implications for Canadian farmers as they navigate these intricate regulations.
25:28
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Quick takeaways
- Supply management in Canada consists of a quota system, fair pricing, and significant tariffs, impacting agricultural trade dynamics.
- The contentious nature of supply management complicates Canadian trade negotiations with the U.S., reflecting internal economic interests and pressures.
Deep dives
Understanding Supply Management
Supply management in Canada revolves around three main components: a quota system, fair pricing, and tariffs on imports. The quota system, managed by provincial boards, regulates production levels to ensure that Canada only produces what it consumes, particularly in the dairy sector, which constitutes a significant part of this system. Fair pricing is determined by the Canadian Dairy Commission, which assesses production costs to establish equitable compensation for dairy farmers. Tariffs on imported dairy products can reach as high as 300%, making it difficult for American products to enter the Canadian market, thus protecting domestic producers from competition.
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