OTTAWA – Canadian consumers have nothing to celebrate in the news that Canadian farmers won their fight against an American assault on supply management protections, says a consumer spokesperson.
“I don’t think it can be considered a victory for consumers,” Memorial University economist and Consumers’ Association of Canada representative Robert Sexty said in an interview from St. John’s, Nfld.
“If this remains as the ruling, then the consumers’ association is disappointed.”
Keeping tariffs
Sexty was responding to news two weeks ago that an international trade tribunal will rule that Canada can keep its protective tariffs on dairy, poultry and egg products.
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The CAC has long been a critic of the fixed prices and import controls that are an integral part of supply management.
It had hoped the American challenge would force the Canadian industry to lower its prices.
Lower tariffs on agenda
Sexty said the next major challenge could come during the next round of world trade talks when tariff reductions are on the agenda.
However, he also speculated the Americans will keep the pressure on Canada’s borders, despite the NAFTA panel loss.
Sexty said Canadian farmers should not take the panel judgment as a final victory. “They should not be complacent. Change is coming.”
He said one of the major consumer concerns is that if Canadian dairy and poultry farmers do not become more efficient, the Canadian market will be swamped with American product once the border is opened.
“The CAC believes that Canadian consumers should continue to have access to Canadian product as an option and we are concerned about the increasing trend to having American products here because they are cheaper,” he said.
