There aren91裸聊视频檛 many issues that garner support across party lines in Ottawa these days.
But when it comes to the supply management system for egg, poultry and dairy products 91裸聊视频� the mechanism that sets prices for producers 91裸聊视频� all of Canada91裸聊视频檚 federal parties seem to see eye-to-eye.
Political support for the controversial agricultural framework has endured, despite the country91裸聊视频檚 ongoing affordability crisis and critics who persistently warn that it91裸聊视频檚 Canadian consumers who pay the price.
As a result, Ryan Cardwell, an agricultural economics professor at the University of Manitoba, doesn91裸聊视频檛 put much stock in what elected officials have to say on the subject.
91裸聊视频淥n one hand, they talk about food affordability, and (on) the other hand, they have a government-sanctioned cartel in staple foods,91裸聊视频� Cardwell said.
91裸聊视频淪o, it91裸聊视频檚 talk. I don91裸聊视频檛 give it much credence.91裸聊视频�
Canada91裸聊视频檚 supply management system sets prices for products and puts controls on production and imports to protect domestic farmers from foreign competition, guard against price volatility for their products and stabilize production levels.
First introduced in the dairy industry in the 1960s before expanding into eggs and poultry, the system exists in lieu of subsidies, which are common in the agricultural sector around the world.
Proponents of supply management argue the system is a win-win for producers and consumers alike: it offers both stability and predictability in prices and production.
But economists are often critical of the system because they say it stifles competition. Economic theory suggests more competition generally leads to lower prices.
The sharp rise in food prices post-pandemic has led to more scrutiny of grocery giants and raised concerns about a lack of competition in the industry. The Liberal government recently introduced amendments to the country91裸聊视频檚 competition law, in part to address these concerns.
More broadly, all parties have had more to say on competition since inflation took off in 2022.
Conservatives and New Democrats, for example, both opposed a proposed banking merger between Royal Bank and HSBC, arguing it would reduce competition and lead to higher mortgage rates.
But when it comes to sectors covered by supply management, concerns about weak competition in the Canadian economy don91裸聊视频檛 seem to exist.
In a news conference last month, Industry Minister Fran莽ois-Philippe Champagne doubled down on the government91裸聊视频檚 support for the system.
91裸聊视频淚91裸聊视频檒l be very clear to folks who are watching, supply chain management is not on the table. This has provided stability and predictability to our farmers. This has been key to the fabric of our country,91裸聊视频� Champagne said.
91裸聊视频淐anadians want us to tackle the profits of the big firms. We91裸聊视频檙e not going after the small guys.91裸聊视频�
Last June, the House of Commons passed legislation that would limit the ability of trade negotiators to make concessions on supply management.
The Bloc Qu茅b茅cois bill passed with 262 votes in favour, while 49 Conservative MPs and two Liberal MPs voted against it.
Former competition commissioner Melanie Aitken is a forceful critic of supply management, which she described as a 91裸聊视频渟acred cow91裸聊视频� in Ottawa.
91裸聊视频淚f you want to take advantage of the opportunities of trading with your global partners 91裸聊视频� you need to recognize that you can91裸聊视频檛 have these incredibly stultifying protectionist policies denying access to our markets,91裸聊视频� she said.
From an affordability standpoint, Aitken said regulating prices hurts lower-income earners the most.
91裸聊视频淚t is actually quite regressive in its nature, preferring one group of farmers over everybody else who may be struggling to make ends meet and put dinner on the table.91裸聊视频�
Research co-authored by Cardwell in 2015 found that supply management costs the poorest households $339 a year, which amounts to about 2.3 per cent of their income.
Cardwell said it91裸聊视频檚 fair to debate how much of higher prices is due to supply management, but 91裸聊视频渘o one credible argues that prices aren91裸聊视频檛 higher.91裸聊视频�
The paper went on to earn the researchers the Vanderkamp Prize from the Canadian Economics Association. Proponents of supply management have disputed the research, however, and lobby groups fervently deny that the framework raises prices on consumers.
Bruce Muirhead, a history professor at the University of Waterloo, is a strong advocate for supply management who holds a research position funded by a lobby group for egg farmers.
He said he was a fan of the system before he took on his role as Egg Farmers of Canada chair in public policy.
91裸聊视频淚 think that economists, for the most part, they base their findings on ideology,91裸聊视频� said Muirhead.
91裸聊视频淭here91裸聊视频檚 just this sort of implicit assumption, if it91裸聊视频檚 regulated 91裸聊视频� then it just can91裸聊视频檛 be competitive. But that is absolutely not the case.91裸聊视频�
He argues the agricultural industry deserves to be approached differently by government because it is responsible for producing essential goods: food.
Supply management also boosts rural sustainability by protecting smaller-sized farms; without it, he said, Canada would be 91裸聊视频渇looded with American milk.91裸聊视频�
In statements to The Canadian Press, groups representing egg and dairy farmers argued that supply management offers predictability at a time of growing global instability.
91裸聊视频淭he experience from COVID is a reminder that depending on foreign industries or governments to supply Canadians in times of need is unwise,91裸聊视频� said the Dairy Farmers of Canada.
91裸聊视频淚t91裸聊视频檚 a border-proof solution that is critical to the food sovereignty of Canada (producing enough food to feed Canadians year-round) and the food security of our communities,91裸聊视频� added the Egg Farmers of Canada.
Cardwell said he91裸聊视频檚 working on a followup study looking into the support for supply management both among Canadians and political parties.
91裸聊视频淲e91裸聊视频檝e actually been spending quite a lot of time investigating 91裸聊视频� what explains the support for this policy among voters and among politicians,91裸聊视频� he said.
His research finds that the majority of Canadians are in favour of supply management, but he warns that many people don91裸聊视频檛 really understand the system and its implications.
Cardwell said people who are in favour of redistributive measures were less supportive of supply management when they were told that it disproportionately affected low-income people.
His research also found that people who say they are in favour of international trade as well as those who vote for the Conservative Party of Canada are more likely to be against supply management.
91裸聊视频淏ut none of that translates to political parties,91裸聊视频� Cardwell said.
In a statement, the NDP91裸聊视频檚 agriculture critic defended supply management, noting countries like Australia and New Zealand have had to heavily subsidize their respective sectors and volatility in prices has driven many of their farms out of business.
91裸聊视频淲e91裸聊视频檝e managed to avoid these pitfalls in Canada because of supply management,91裸聊视频� said Alistair MacGregor.
The Conservatives did not respond to a request for comment.
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