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>To specifically address dairy tariffs, US dairy in Canada is actually currently tariff-free because there is a volume cap and the tariffs only apply when that
by llm_nerd 2y ago
>To specifically address dairy tariffs, US dairy in Canada is actually currently tariff-free because there is a volume cap and the tariffs only apply when that volume cap is exceeded. Currently the US is only using about 40% of that cap.
And let's be crystal clear for the Americans: Canada uses supply management for dairy and poultry. We don't allow for free trade in, but we also don't want free trade out. The whole point of supply management is that we only produce for domestic consumption.
So when we sign free trade agreements, we exclude those things, or at most offer a quota. In the case of USMCA we gave the US 4X the quota to send to Canada than in reverse. Meaning those poor Wisconsin dairy farmers got a billion in extra exports, with marginal new imports competing with them.
And within the quota the tariff is 0.00%. Precisely the same for the 1/4 allocation of imports of dairy the US gives Canada. BOTH have largely the same tariffs if you exceed that.
And in the hypothetical that Canada were enticed to remove dairy quotas, no we wouldn't just get flooded with massively subsidized dairy from the US. In reality we'd pull a New Zealand and go wild with production and absolutely devastate your agriculture industry. It would not be the outcome you want. We have the land, the means and the capacity to absolutely take the knees out of US dairy.
So what the US really wants is unrestricted free trade in...but also keep supply management so you don't compete with our industry. ROFL. Nah.
- cmrdporcupine 2y agoHonestly, I see the same copy and pasted Truth Social content from Trump every time this comes up, about our unfair dairy tariffs, etc. The people who are repeating these things about dairy are not being, on the whole, intellectually honest. They bring it up to try and "win" an argument without actually engaging.