With the vitriolic comments spewing forth from DJT and some of his cronies I am doing my best to learn more about supply management and our Canadian dairy industry. As I understand it a marketing board controls the amount of milk produced, sets a price to the dairy farmer, places a high tariff of imported milk to prevent dumping of over produced milk from other countries and imposes penalties on our dairy farmers if they overproduce. The result of this is our dairy farmers receive a reasonable return for their labour and maintain a reasonable standard of living.
DJT objects to this as it is protectionism and imposes a tariff on milk produced by US dairy farmers and which is exported to Canada. DJT is correct.
I am no fan of Justin Trudeau. Far from it. However his balanced response to DJT and his failure to try to justify Canadian policy is, in my opinion, the correct approach. It is the Canadian way of managing the production of a commodity and attempting to stabilize the income of an often marginalized industry. I hope he continues this approach.
I know I am over simplifying this complicated issue but perhaps the US ag industry could learn from a disciplined Canadian approach.