A strong voice challenges an anchor on the Canadian economy

Brian Mulroney has been out of politics for more than two decades, but when he speaks, people generally take notice.

Such was the case when the former Conservative Prime Minister, pronounced that the time has come to end the protectionist regime that controls how dairy, eggs and chicken are priced and produced in Canada.

Unshackling these sectors would open up “enormous export potential,” particularly in fast-growing Asia, Mr. Mulroney pointed out...

What’s remarkable here is that Mr. Mulroney is saying publicly what no sitting politician of significance anywhere in Canada dares – that maintaining supply management has become an economic anchor. The system costs consumers, stifles innovation and competition, and deprives the industry a share of the exploding global market for food protein...

Speaking out is political heresy. Many Conservative MPs grumble privately about supply management. But on the record, they and members of every other federal party stand as a monolithic block in defence of the status quo.

Last June, MPs from all parties voted unanimously to urge the government to “respect its promise” to shield the dairy industry from any fallout from the European free-trade deal. The vote had echoes of a similar 2005 motion, when 100 per cent of MPs similarly stood up in the Commons to express unwavering support for supply management in global trade talks.

In its most recent Throne speech in October, 2013, the Conservative government vowed to continue “supporting supply management.”...

It is no secret that the U.S. and other partners in the Trans Pacific Partnership trade talks are pushing Canada hard to loosen its protectionist dairy and poultry policies. Doing so would bolster Canada’s case for concessions from the U.S. on government purchasing (Buy America), non-tariff barriers (country labelling for meat) and on agricultural export subsidies.

The tariff wall that protects supply management comes at a price – a cost paid in lost exports, and higher consumer prices. Every concession in trade talks has the potential to bring vastly larger gains in other areas of the economy.

This has been excerpted from 7 December 2014 article by The Globe and Mail.