Supply management | Ottawa’s bluff

Who would have thought that supply management would become a political topic? At a time when the Trump government is preparing to shake up the rules governing the commercial relationship with our neighbor to the South, the federal Parliament must firmly demonstrate the principles it holds dear. For many Quebec farmers, the economic future of their business depends on it.


Published at 9:00 a.m.

Like many other projects from opposition MPs, Bill C-282 was unknown to the general public until it became, earlier this fall, one of the Bloc Québécois’ two demands for he assures his support for the Trudeau government. This piece of legislation aims to prohibit trade negotiations that weaken the supply management systems in force in sectors such as dairy products, eggs and poultry. To date, the bill has not yet passed the Senate.

Even if the Bloc now wants to bring down the Trudeau government, its bill on supply management is still under study. The Standing Committee on Foreign Affairs and International Trade in the Senate has just amended it to reduce its already very modest scope. This uproar in the Senate should soon result in the bill returning to square one. The House of Commons will have to decide again, in a pre-election context in Canada and a post-election context in the United States.

A signal to the Trump government

In the aftermath of the American election, the vote of federal parliamentarians on Bill C-282 will be symbolic. The intentions of the Trump government are well known on this subject: it wants Canada to renounce this form of protectionism that constitutes supply management.

On the eve of new trade negotiations with the United States, Bill C-282 represents an explicit signal of the firmness of Canada’s intentions.

One of two things: either parliamentarians affirm their attachment to supply management by adopting the Bloc’s bill, or they reject it and indicate to the American government that Canada is already ready to give up, and this, even before the start of the negotiation.

Relative protection

Bill C-282 aims above all to strengthen the position of Canadian negotiators. Despite the wording, its adoption does not prevent a subsequent questioning of supply management.

PHOTO JUSTIN TANG, CANADIAN PRESS ARCHIVES

The leader of the Bloc Québécois, Yves-François Blanchet, speaks on Bill C-282 during a press conference in October, in the company of farmers and elected officials from the New Democratic Party and the Green Party.

Certainly, it prohibits the government from changing the current rules. However, a future government could always ask the federal Parliament to remove this legal obstacle. This law therefore does not freeze Canadian policy, but it forces a government that would like to reopen this debate to do so in a more transparent and democratic manner by requiring, beforehand, the consent of parliamentarians.

Increase our balance of power

Indirectly, Bill C-282 offers the government additional justification in trade negotiations in order to resist pressure from the American partner. Pressured by the United States to abandon supply management, Canadian negotiators will then be able to remind their counterparts that there is a legal constraint preventing them from doing so.

This constraint may prove particularly relevant, in particular for a government which would like to preserve supply management, but which lacks arguments to support this position in the final stretch of an intense negotiation.

Obviously, Bill C-282 is not a flawless solution. Its effects should neither be underestimated nor overestimated. But the upcoming vote in the House of Commons, caused by the Senate amendments, will constitute an important signal to the American trading partner.

Making concessions – before the negotiation even begins – probably appears to be the worst strategy for preserving Canada’s balance of power. By sending the message “we are not that keen on it…”, the deputies and senators who wish to amend or reject Bill C-282 are forcing Canadian negotiators to reveal to the Americans the few cards they have in their hands. game.

In this long poker game that lies ahead, Canada does not have the means to display the slightest doubt about its determination. Certainly, the vote on Bill C-282 forces him to reveal one of these cards, but let’s hope that he will reveal one strong enough to dissuade the American partner from strengthening its ante and putting Canada at the foot of the table. wall.

What is supply management?

The supply management system consists of managing the production of an agricultural product so that it corresponds to market needs. This system makes it possible to stabilize prices, while ensuring regular supply to consumers. In the country, supply management concerns in particular the production of milk, dairy products and eggs. For supply management to work, imports must be controlled, which displeases American producers who would like to have greater access to the Canadian market in a free trade context.

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