Farmers Make Their Cases for and Against Bloc’s Supply Management Bill

Farmers have presented arguments for and against the supply management bill proposed by the Bloc Québécois to the Liberals as a condition for supporting the minority government.

In exchange for backing the Liberals in non-confidence votes, the Bloc has set an Oct. 29 deadline for passing Bill C-282 into law. The bill passed the Commons in June 2023 and completed second reading in the Senate in April this year. It has been in Senate committee consideration since then.

Bill C-282 aims to ensure that in international trade agreements, the foreign affairs minister cannot commit to increasing the tariff rate quota on imported eggs, dairy, or poultry, or reduce tariffs on these products when imports exceed that quota. This means the government can maintain strict limits on how much of these products can be imported into Canada at a low or zero rate of duty, thereby protecting Canadian farmers from foreign competition.

Bloc Quebecois Leader Yves-Francois Blanchet speaks at a news conference on the lawn of Parliament Hill in Ottawa on Oct. 10, 2024. MPs from the Bloc Quebecois, NDP, Liberal, and Green parties, along with federal cabinet ministers and agriculture producers, participated in the event to urge the Senate to pass Bill C-282 on supply management. The Canadian Press/Justin Tang

In addition to import control, Canada’s supply management system also regulates domestic production levels for dairy, chicken and turkey products, and eggs based on provincial demand. This national system, introduced in 1972, aims to set stable prices for these products.

However, various international trade agreements sparked concerns among supply-managed industries over increased foreign product access to the Canadian market, stated a 2018 parliamentary study. For example, the study said the Canada-European Union Comprehensive Economic and Trade Agreement will grant access to roughly 17,700 tonnes of cheese from the EU and the Canada-United States-Mexico Agreement (CUSMA) will grant the United States much increased access to supply-managed products in Canada.

Concern for Free Trade

During the Oct. 23 meeting of the Senate committee on foreign affairs and international trade, grain and beef producers opposing Bill C-282 raised concerns that the legislation is a protectionist measure threatening billions of dollars in free trade.

Kyle Larkin, executive director of Grain Growers of Canada, said the bill poses a significant threat to Canada’s ability to secure and expand access to international markets. He specifically highlighted its potential impact on the upcoming CUSMA review in 2026, describing the bill as an “additional trade irritant” for grain producers.

“Canada is an export-oriented nation. In fact, we are the fifth-largest exporter of agricultural products worldwide,” he testified. “We rely on trading relationships with countries around the globe to deliver our products to market, which in turn supports the livelihood of thousands of grain farmers across the country.”

Nathan Phinney, president of the Canadian Cattle Association, which represents Canada’s 60,000 beef farms and feedlots, urged the senators to vote against the bill, saying that it neglects the Canadian beef sector’s significant reliance on exports to the United States.

“Our sector alone exports 50 percent of live cattle and beef. Of that, over 70 percent goes to the U.S., and because trade adds 40 percent value to our producers, we’re able to keep costs lower for Canadians,” Phinney testified.

Citing his recent discussions with U.S. state-level officials and stakeholders, he said that“Bill C-282 is going to create unnecessary tensions before even beginning negotiations.”

Supporters

Industries leaders defending Bill C-282 at the Senate committee said the bill aligns with Canada’s supply management system and protects Canadian farmers.

Keith Currie, president of the Canadian Federation of Agriculture, rejected the argument that supply management is a barrier to expanding free trade. He said the merits of Bill C-282 should be “assessed on the basis of its anticipated real-world implications.”

“Canada currently has 15 free-trade agreements with 51 countries, and only the last three agreements required negotiators to provide significant concessions on the supply-managed products,” he said.

“The reality is that Canada needs both supply-managed and export-oriented product producers to succeed, and we have seen for decades that both systems can successfully coexist while continuing to negotiate ambitious and forward-looking trade agreements.”

Currie, noting that his organization represents both supply-managed and non-supply-managed farmers, said the bill has gotten too political.

“I know there’s a lot of noise around this bill, but I think the less that we turn it into a political battle and political football, and get down to what does this bill mean, I think the better off we are all going to be,” he said.

Matthew Horwood contributed to this report.

Source link