canada pressured to dump dairy supply management
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

In NAFTA talks

Canada pressured to dump dairy supply management

Egypt Today, egypt today

Egypt Today, egypt today Canada pressured to dump dairy supply management

Canada is facing pressure to open up its protected
Ottawa - AFP

Canada is facing pressure to open up its protected dairy market to more US milk and cheeses in talks to renegotiate the North American Free Trade Agreement that resumed Saturday in Ottawa.

US President Donald Trump has called Canada's supply-managed dairy sector, which is not included in the current NAFTA, "a disgrace."

The Canadian government effectively sets production quotas and the price of milk, which ends up costing consumers a bit more but provides farmers with a stable income.

The system has been in place since the 1970s, and has survived several attempts to quash it -- as well as the prohibitive tariffs that limit foreign imports.

"Its compatibility with trade agreements is unclear, but to date neither the WTO nor NAFTA have been able to push Canada to dismantle it," dairy experts Richard Ouellet and Erick Duchesne of Laval University in Quebec wrote recently.

Every so often, notably when Canada negotiates a new trade deal, the system comes up again, Mathieu Ares of Quebec's University of Sherbrooke told AFP.

Ottawa opened up a small share of its domestic dairy market to Europe in its latest trade agreement with the EU, which provisionally took effect Thursday.

It could do the same, if pressed, for the United States and Mexico as part of the renegotiation of NAFTA - but the Americans "have not yet made a formal request on dairy," a source close to the talks told AFP.

- Global milk glut -

Trump blamed Canada's restrictions on dairy imports for the economic woes of dairy farmers in New York and Wisconsin.

But experts point to a global oversupply of milk as consumers cut purchases in favor of alternatives such as soy or almond milk.

With several small US dairies looking to emulate Canada's supply management system, it is unlikely US negotiators will launch a full frontal attack on Canadian dairy.

What's more, the powerful American farm lobby does not want to upset its agricultural trade surplus with Canada and Mexico over this issue, according to Ares.

Prime Minister Justin Trudeau has passionately defended Canada's dairy industry.

He pointed out that the United States has a surplus in dairy trade with Canada, with Can$110 million ($89 million US) in Canadian dairy exports to the US last year versus Can$550 million in imports from the US.

Over the long term, as more and more trading partners chip away at roadblocks to gain access to the Canadian market "it won't be viable," Ares said.

"This cartel ensures that Canadians pay slightly more for milk than Americans," he added, "while Canadian producers are prevented from exporting to other countries."

The system also makes it harder for young Canadians to enter the industry, he said, because "a good dairy cow costs about Can$2,000 but the right to sell its milk costs Can$27,000 annually."

"So unless you're a farmer's son it's almost impossible to get into the business," Ares said.

Even if there was a political will, however, dismantling the quota system would not happen overnight -- as it would cost Ottawa an enormous sum to buy back quotas for 1.4 million dairy cows on 11,000 farms across the country

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

canada pressured to dump dairy supply management canada pressured to dump dairy supply management



GMT 10:07 2019 Monday ,19 August

Live a calm and distinctive atmosphere

GMT 18:26 2018 Friday ,14 December

Mashrou’ Leila headline Apple event in Dubai

GMT 15:01 2018 Monday ,26 November

Koreas to launch joint railway inspection

GMT 09:35 2017 Sunday ,20 August

FM starts European tour including Russia, Estonia

GMT 05:55 2014 Saturday ,08 March

U2 rolls back next album to 2015

GMT 12:07 2017 Thursday ,20 April

Elham Shahin will not participate in Ramadan

GMT 13:20 2017 Sunday ,24 December

'Tongan Bear' Uhila extends Clermont contract

GMT 14:47 2018 Sunday ,09 December

Pashinyan praises 'free, democratic' elections

GMT 19:39 2012 Sunday ,29 April

Jordan\'s Diva Diana Karazon Emulates Lada Gaga

GMT 11:24 2018 Friday ,28 September

Washington to Europe: We forbid you

GMT 07:37 2011 Tuesday ,11 October

Green, Aboriginal groups lash BHP

GMT 00:18 2012 Monday ,26 March

Al Shabab downs B. Yas thanks to Ciel\'s winner

GMT 10:02 2017 Wednesday ,15 February

How your barber can save you from suicide

GMT 14:36 2012 Sunday ,28 October

Nadia Lutfi: Still sad about Ramzy\'s death

GMT 22:55 2013 Monday ,09 December

\'Californication\' wrapping up in 2014

GMT 11:46 2013 Tuesday ,12 March

Olivia Wilde stuns in black lace

GMT 09:31 2017 Friday ,04 August

Amnesty urges EU's Mogherini to press Iran

GMT 09:47 2017 Thursday ,29 June

Hot weather forecast over next three days

GMT 08:53 2017 Saturday ,22 July

Yemeni forces kill dozens of Houthis in Hajjah

GMT 00:25 2017 Wednesday ,05 July

Temperature in UAE just hit 50 degrees today

GMT 19:39 2012 Saturday ,26 May

Bright prospects for solar power

GMT 22:54 2012 Saturday ,12 May

Mastering the UAE\'s performing arts

GMT 11:06 2011 Thursday ,15 December

Putin says US involved in Kadhafi killing

GMT 18:30 2014 Wednesday ,01 January

GSI partners with Kashmir University to promote research
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday