The trade ministers from the twelve member countries at the final negotiations in Atlanta in early October.

The trade ministers from the twelve member countries at the final negotiations in Atlanta, USA, in early October. The preliminary agreement has yet to be presented to Parliament and passed. Many Canadians are raising concerns.
Photo Credit: AP/Audrey McAvoy

Trans-Pacific Partnership and conflict with Canada’s supply management

The Canadian supply management programmes in dairy, poultry and eggs, have meant a fairly stable income and market for farmers in Canada.

Many have said the new TPP international trade deal is threatening that.

Anthony Winson (PhD) is a professor in the College of Social and Applied Human Sciences at the University of Guelph, in Ontario and has written several books on agriculture relating to politics, business and social issues.

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Professor Anthony Winson (Phd) CSAHS University of Guelph, Ontario. He has authored several books on the relationships of agriculture, politics and social issues in Canada and the situation in other countries around the world
Professor Anthony Winson (Phd) CSAHS, University of Guelph, Ontario. He has authored several books on the relationships of agriculture, politics and social issues in Canada and the situation in other countries around the world © supplied

Professor Winson says there are many benefits to the supply management system that Canada should consider before agreeing to open up its markets to foreign dairy and poultry products.

Under the proposed deal, foreign partners would gain access to 3.5 percent of Canada’s managed dairy and poultry market.

He says the system has provided for stability for both the producers and the consumers since its inception several decades ago.

He insists this has been an important advantage for the some 16,000 dairy and poultry related farming families across the country,  helping to maintain the viability of small towns, and helping to keep the economy moving through the goods and services those farm families purchase.

Conservative leader and Prime Minister Stephen Harper on the campaign trail defends the TPP and says there will be protections for the auto sector and the supply management systems for dairy, poultry and eggs. Others have expressed doubt, saying it could lead to the end of the systems in a few years.
Conservative leader and Prime Minister Stephen Harper on the campaign trail defends the TPP and says there will be protections for the auto sector and the supply management systems for dairy, poultry and eggs. Others have expressed doubt, saying it could lead to the end of the systems in a few years. © CBC

He notes that the beef market, which is not an open market system, has seen a number of dramatic ups and downs in recent years.

Allowing foreign producers in threatens that stability and reliable source of income he claims.

Dairy and the TPP-another view

Earlier this year, a huge protest of dairy farmers took place in fornt of Parliament in Ottawa over possible concessions in the TPP which would undermine the current supply management system.
Earlier this year, a huge protest of dairy farmers took place in fornt of Parliament in Ottawa over possible concessions in the TPP which would undermine the current supply management system. © CBC

The supply management system has also established a very good reputation for food quality and safety in Canada, again he says, the same is not the case for the open market food systems where there have been bacterial scares and even deaths from contaminations.

Professor Winson also notes that not all countries in the new deal have the same standards or regulations for food quality and ingredients, citing the use of hormone boosters in beef and dairy cattle in some states in the US, and in other cases, genetically modified foods.

As to the argument that supply management has resulted in higher prices for consumers buying milk, eggs and poultry, Professor Winson says if that’s the case, it’s more likely the retailers setting the price. He points out that Canada’s food retail market is one of the most highly concentrated retial sectors in the world giving the retail corporation substantial control over prices.

Quebec dairy farmers this week cited another example of how the supply management programme is already being undermined by a US scheme to circumvent the controls. The Quebec farmers Union (UPA) says instead of raw milk which is not allowed into Canada under the system, US producers have begun shipping vast quantities of milk protein liquid and powder to cheese and yogurt manufacturers in Canada. The UPA says this has cost them a claimed $200 million dollars in 2014 alone. The milk protein is not regulated under the system and so can pass through the border.

Another protest this week at the Quebec-US border as farmers from Quebec and Ontario expressed anger at a US scheme to bypass the current supply management system by exporting a milk proten powder which can by used in yogurt and cheese, The producers say there has been 45,000 tons shipped in this year already, hurting their own sales. Although not part of the TPP, they feel this is an example of how even the 3.5% market allowance granted will end up being much greater and hurt them much more.
Another protest this week at the Quebec-US border as farmers from Quebec and Ontario expressed anger at a US scheme to bypass the current supply management system by exporting a milk proten powder which can by used in yogurt and cheese, The producers say there has been 45,000 tons shipped in this year already, hurting their own sales. Although not part of the TPP, they feel this is an example of how even the 3.5% market allowance granted will end up being much greater and hurt them much more. © Radio-Canada

Professor Winson says while we know some information about the mega- trade deal, details have not been released and so we can’t know the full affect on the economy and various sectors.

He says whether the current Conservative government is returned to power on October 19, or one of the opposition parties, the issue of what Canada could gain or lose in terms of its supply management system should be looked at very closely before accepted the deal.

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