Photo: Peter Power, The canadian Press
A study by PwC found that 58 000 of the 80 000 jobs would be threatened in the poultry sector only, in the event of the end of supply management.
Québec producers have vigorously countered the outputs repeat of Brian Mulroney calling for an end to the system of supply management. Even Saputo, who blows hot and cold on this issue based on the international diversification of its activities, believes that the ex-prime minister of canada goes too far.
Ottawa has already opened a breach in the system of supply management in the negotiations leading to the comprehensive economic and trade Agreement with Europe and the trans-pacific Partnership. But Brian Mulroney believes that more should be done. The former prime minister picks up where he left last year to expand in Western canada’s pleas for the abolition of the canadian system. It would be enough to offer generous compensation to producers and farmers affected to eliminate litigation which is recurrent in the context of international negotiations, the counsel to the federal government in its relations with the United States, giving Australia and New Zealand as examples.
“We can ask for which Mr. Mulroney is working. Such an output at this time can only hurt the negotiators canadians who are trying to renew the NAFTA in a context that is already very difficult […] Canada has a lot more to lose by abandoning the management of the offer, all the more that his references to Australia and New Zealand are wrong “, one can read in a letter from the Movement for the management of the offer submitted to the media Wednesday. This movement includes the Union of producers, milk Producers, producers of poultry, the Federation of producers of eggs and the hatching egg producers of Quebec.
We return in particular to the study from PwC concluding that 58 000 of the 80 000 jobs would be threatened in the poultry industry, only in the event of the end of supply management. And the Boston Consulting Group, stressing that the survival of more than half of the dairy farms in the country would be compromised. “Since the deregulation of the dairy industry in Australia in 2000, 55 % of dairy farms have disappeared and the value of their exports fell by 23 %. The price of milk to producers dropped 14 % during this period, while retail grew 31 %, ” adds the Movement in a long letter.
Established in Canada to assist in the maintenance of a certain agriculture, while other countries opted for direct subsidies, the system of supply management is based on commercial rates against foreign imports a barrier protecting a domestic market where producers are subject to quotas and price controls. This system of centralized control of quantities and prices, covers roughly 40 % of the agriculture in quebec. It is also very present in Ontario and Nova Scotia. It brings stability of income to producers and supply to the processors in a context where the quebec industry must coexist with the proximity ” of a power in the world of dairy and poultry “, have already pointed out the representatives of the producers of milk, poultry and eggs. And while the United States and Europe should increase the subsidies to stabilize the income of their producers.
They are numerous studies focusing on the relevance, contribution and impact of the model adopted here. The numbers of their arguments are more convincing than those supporting the counter-argument. Also, the failures associated with the deregulation experienced in some countries want evidence. It belongs to Mr. Mulroney to the demonstration that a system have confirmed its functionality for almost 50 years, which has withstood 12 trade agreements negotiated with 43 countries since 1994, can be erased from the back of the hand for the price of a compensated dollar.
Even that american farmers do not request so much. And it must be remembered that they were launched last year to the defense of NAFTA in the state, the market, canadian and mexican respectively their second and third customers, behind China. Since the entry into force of the agreement in 1994, their sales of agricultural products and agri-food have almost quadrupled to Canada and have been multiplied by five to Mexico.
In 2016, more than $ 20.5 billion of agri-food products and americans have taken the lead in Canada, representing 15% of exports total us. Top products purchased by Canada, the processed foods, followed by vegetables and fruit. For its part, Mexico has purchased in total for $ 17.9 billion to american farmers, or 13 % of their exports, mostly from dairy farmers and corn, could be read in a text of Agence France-Presse.