Supply Management Back In Focus

Why are Canadians paying more for dairy, poultry, and eggs while missing out on trade opportunities?

Look no further than Canada’s system of production, pricing, and import control in these industries - protecting the dairy and poultry industries from international competition and leaving our country exposed to retaliatory trade restrictions from other countries.

These controls limit the amount of product on our shelves, artificially fixing prices at the grocery store above international prices.

The import restrictions on milk, poultry, and eggs have long been a divisive issue when it comes to international trade negotiations.

Unfortunately, this system is about to be solidified even further.

Last year, Bill C-282, An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management), was introduced as a Private Members’ Bill by Luc Thériault, a Bloc Québécois MP.

The bill was designed to ensure that the “Minister of Foreign Affairs cannot make certain commitments with respect to international trade regarding certain (supply managed) goods.”

The Bloc’s bill was supported at the second reading stage by the Liberals, NDP, Greens, and - disappointingly - also by about 80% of Conservative MPs.

The bill passed third reading with support from the Liberals, the NDP, the Greens, and about half of Conservative MPs.

But, then it went to the Senate, where it has been stuck for more than a year...

Until now…

Now, federal International Trade Minister Mary Ng has formally requested that the Senate expedite the passage of Bill C-282.

So, what has changed recently?

Well, the Liberal government is now dependent on the Bloc for their survival, of course!

And the Bloc are perfectly happy to use their newfound parliamentary leverage to get as many concessions from Ottawa as they can in exchange for propping up the government.

And, it just so happens that supply managed industries are most prominent in Quebec, where a large number of farms are protected from competition.

So, naturally, in exchange for their support in keeping the Liberals in power, the Bloc wants the Senate to expedite the passage of Bill C-282. 

During Trudeau’s nine years in office, he has appointed 86 of the 100 Senators currently serving in the upper chamber. 

Despite claiming his appointments are “Independents,” the vast majority of his appointments have ties to the Liberal Party, either as party activists or as ideologically-aligned personalities and academics.

"It is his Senators, the ones he appointed, who are standing in the way,” said Bloc Québécois leader Yves-Francois Blanchet earlier this month. 

“Will he instruct them to respect democracy and our choices as elected representatives?"

The Liberals, as Ng has confirmed, will acquiesce.

C-282 has sparked outrage from other sectors of the agriculture industry across the country. 

While dairy and poultry are shielded from competition, other export-dependent sectors - such as beef and cattle - are left vulnerable to trade retaliations.

Earlier this year, negotiations for a trade deal with Britain collapsed when Canada refused to open its market to British dairy and poultry products, echoing recent disputes with the United States, Australia, and New Zealand.

Foreign governments, seeking access to Canadian markets for their products, often slap retaliatory trade restrictions on Canadian exports of other products - meaning other industries (such as timber, automotive, and non-supply-managed agricultural products) are limited in their ability to access foreign markets.

The Canadian government, however, is standing firm.

Earlier this month, MPs from four federal parties - the Bloc Québécois, the Liberals, the NDP and the Greens - hosted a rally on Parliament Hill in support of C-282. 

This prompted an immediate response from provincial cattle organizations in Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, and Prince Edward Island.

In a joint statement, released the following day, the organizations stated that the cross-party display of support “left many sectors, including the beef and cattle sector, both surprised and disappointed.”

“It was particularly disheartening to see the current and former federal Minister of Agriculture and Agri-Food take part in a public gathering in support of a bill that seeks to undermine and threaten the interests of the majority of Canada’s agri-food industry, as well as all export-dependent sectors that fuel the Canadian economy,” read the statement.

“Yesterday’s actions were unprecedented and should be alarming to every business and sector of the Canadian economy.”

Alberta’s government also weighed in, with Jobs, Economy, and Trade Minister Matt Jones warning that Bill C-282 would "hamper Canada's ability to negotiate trade agreements that expand market access to benefit the broader agriculture industry."

"Canada is a trusted and principled trade partner and negotiator around the world,” Jones wrote in a statement. “This bill would undermine Canada's reputation as a reliable trading partner.”

“Alberta's government will continue to call on the federal government to re-evaluate their approach to keep trade markets open and supply chains moving across Canada."

Supply management has long been a divisive issue with the agricultural sector, with grain and cattle producers being forced to compete for critical resources - such as feed and land - with supply-managed industries protected from competition by government policy.

Project Confederation has long believed that unrestricted cross-country free trade is important for national unity.

We believe that free trade principles are crucial to the economic foundation of this vast country, where each province has its own distinct economy and aspirations.

No province should gain an advantage through trade barriers at the expense of the broader national economy.

By extension, as an export-based production economy, access to international markets is key to economic growth across the country.

As Bill C-282 moves through the Senate, it represents yet another example of how federal policies can favour one region over the broader national interest.

By prioritizing protectionist policies like supply management, the federal government is not only keeping consumer prices high but also putting Canada's reputation as a reliable trade partner at risk. 

Project Confederation is dedicated to ensuring that regional balance is applied to all aspects of confederation - including international trade.

If you believe in standing up against federal policies that hurt consumers and restrict trade, consider making a donation today. 

Your donation will help us advocate for policies that benefit all Canadians.

Thank you for standing with us in the fight for a fairer, more competitive economy.

Regards,

Josh Andrus
Executive Director
Project Confederation