Those concerned about poverty, inequality or middle class living standards should oppose Canada’s milk tax and take advantage of the opportunity presented by Trump.
In a recent Wisconsin speech, President Trump targeted Canada’s dairy sector and promised “fair trade” in a renegotiated NAFTA. If he follows through, Canadians should be thankful.
While we’re not to blame for financial difficulties of some U.S. farmers, as the President suggested, our agricultural sector is highly restrictive—especially in “supply managed” products like milk, poultry, and eggs. We limit production by requiring farmers hold scarce and costly licenses (called quotas), and levy tariffs approaching 300 per cent on imports from abroad.
The result is less competition, lower productivity, and higher prices. This not only harms consumers, especially low income ones, but transfer vast sums to typically wealthy farmers and needlessly endangers our international trading relationships. It shrinks the available market for productive producers on both sides of the border, and the President is right to call us out.
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