Canada’s Supply Management in Short:
Recently much talk has centered on Canada’s long time policy of supply management. In short, Canada sets quotas for how much dairy, poultry, and eggs can be produced in a given year. Farmers then buy licenses to produce and sell these items and specific quantities, for example the license for a single dairy producing cow can cost upwards of $42,000 in British Columbia. Our system effectively subsidizes these producers through higher costs to consumers, and has been ruled on by the World Trade Organization as being a defacto government subsidy. This has been a constant sticking point in all global trade discussions Canada engages in, notably the Canada EU trade deal, and the ongoing NAFTA negotiations. Canadians are faced with some of the highest dairy, poultry, and egg prices in the world, however their respective industry representatives claims it keeps quality high, and supports rural farms and families.
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