Canada has dairy tariffs, US quotas allow 2% of dairy products to be imported and there are direct subsidies to dairy producers. Different mechanism for same protection.
I guess it feels better to give producers money from the tax pool than charging the consumer more for the product as is the case in Canada?
https://www.realagriculture.com/2018/02/u-s-dairy-subsidies-equal-73-percent-of-producer-returns-says-new-report/
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Difference is milk drinkers in Canada are subsidizing the dairy industry (by paying more at the till) while in US everyone is, regardless if you drink milk, are lactose intolerant or have an ethical issue with the dairy industry. Also US subsidizing dairy industry means that the US government is giving their industry an economic advantage in a free trade scenario, something they accuse Canada of doing for Softwood lumber.
ReplyDeleteThe US subsidizes everything direct to producer then accuses everyone else of do the same even when they don't.
ReplyDelete