canada pressured to dump dairy supply management
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

In NAFTA talks

Canada pressured to dump dairy supply management

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice 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

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

 



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 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 06:15 2018 Tuesday ,23 January

Volkswagen clinches record sales

GMT 22:30 2017 Thursday ,01 June

Actress Heidy Karam deals with her work

GMT 12:19 2012 Wednesday ,22 August

School violence and 'collective sanctions'

GMT 19:36 2016 Friday ,26 August

Univision to hold unity concert ahead of election

GMT 13:40 2017 Friday ,20 January

PSG better option than China

GMT 08:36 2017 Thursday ,09 November

Kobe Steel,Nissan scandals tarnish image

GMT 12:41 2017 Wednesday ,22 February

Saudi Crown Prince Meets US Senator John McCain

GMT 08:48 2011 Wednesday ,14 December

Botanical suplements linked to serious illness

GMT 20:24 2011 Saturday ,26 February

Iran rejects nuclear watchdog\'s concerns

GMT 13:27 2013 Wednesday ,08 May

300,000 day-old babies die each year in India

GMT 14:21 2017 Monday ,14 August

Aqua therapies available in UAE

GMT 09:46 2011 Monday ,20 June

DisplaySearch downgrades LCD TV market outlook

GMT 04:33 2016 Sunday ,08 May

NBA playoff results

GMT 09:29 2017 Tuesday ,27 June

Federal National Council visits UAE soldiers

GMT 16:40 2011 Friday ,25 February

Egypt arrests former information minister

GMT 11:52 2017 Sunday ,12 March

NASA reveals strange shape of Saturn's moon Pan

GMT 16:36 2017 Tuesday ,02 May

Rain for parts of Oman

GMT 12:30 2017 Monday ,04 December

Mining giant Rio Tinto appoints new chairman

GMT 23:08 2017 Wednesday ,28 June

French officials realize Qatari threat
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice