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John Keays

John Keays recently graduated from Saint Mary's University, where he obtained a BA in Economics.

Supply management should offend left and right alike

Under the rules adopted by the World Trade Organization’s 1995 Agreement on Agriculture, a cartel system like that of Canada’s supply management - were it created today - would be illegal. The global community has decided that policies which artificially inflate domestic prices, and protect them with outrageous import tariffs, are a thing of the past. Ironically, public opinion in Canada still favours supply management, even though it perfectly embodies the protectionist policies that Canadians love to hate when they come from the White House. Canadians roll their eyes at Donald Trump’s “America First” economic policies. Yet most Canadian politicians continue to support their own archaic system of supply management. Consumers are forced to pay nearly $600 more per year on groceries than their American counterparts. Import tariffs have made it nearly impossible for Canadians to buy foreign dairy products, forcing low-income families to pay a huge price to provide their children with a healthy diet. Prior to supply management’s introduction in 1971, Canada had over 140,000 dairy farmers who were struggling to break even, due to price volatility in the dairy market. Fast forward 46 years, and we can see that the Canadian dairy industry has undergone a great change. For starters, the number of dairy farmers in Canada has dropped by over 90 percent to less than 11,000 nationwide. More importantly though, over this 46-year period, the average wage and net worth of Canadian dairy farmers have increased dramatically. According to the 2008 OECD Economic Survey of Canada, the average Canadian dairy farmer had a gross income of over $250,000 and held over $2 million dollars in assets, in the form of dairy quota. Today, the average Canadian dairy farmer is a millionaire, yet policy makers still believe we should be taking money from low income families to… Read More