
A supply-managed dairy sector is undermining Canada’s internal trade progress.
Efforts to create a seamless internal trade market across Canada are facing resistance from Quebec’s dairy farmers, who are defending the province’s protectionist supply management system. This stance directly conflicts with national free trade ambitions and continues to limit the movement of dairy products across provincial borders.
The article argues that Quebec’s refusal to participate fully in national trade agreements highlights broader issues within Canada’s agricultural policy framework. Critics claim that supply management benefits a small group at the expense of consumers and the broader economy.
Internal trade barriers in dairy, such as restrictions on transporting cheese and fluid milk across provinces, have been flagged by economists and policymakers as economically damaging. These policies inflate prices and create inefficiencies, especially in a sector where Canada claims to be competitive globally.
The piece notes that while politicians have pledged to dismantle these trade walls, entrenched interests in Quebec, particularly powerful dairy lobbies, have successfully preserved them through political pressure. This has left the rest of the country subsidizing an outdated model.
Ultimately, the article calls for decisive federal leadership to end these internal barriers and prioritize consumer choice, economic efficiency, and modern trade principles over regional protectionism.
Source: Macdonald-Laurier Institute – Read the full article here
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