Lessons for Canada from New Zealand’s dairy industry

Lessons for Canada from New Zealand’s dairy industry

Tiny New Zealand, with a population just one-eighth that of Canada, is on a quest to quench the world’s thirst for milk. Today milk is the country’s biggest export, and 95 per cent of what Kiwi farmers produce goes abroad, mostly to China.

Compare that to Canada, where dairy farmers keep fighting to protect their supply management system, which means higher milk prices for consumers and puts a strain on Canada’s trading relationships. Only five per cent of what Canada produces is exported.

While Canada is wringing its hands about what to do about the dairy sector, the question to ask is: Will ending supply management spell doom for Canadian dairy farmers?

Read More

The consequences of Justin Trudeau’s Chinese trade decision

The consequences of Justin Trudeau’s Chinese trade decision

Prime Minister Justin Trudeau faces a tough decision on Canada’s relationship with China: Will Ottawa agree to Beijing’s demand that Canada stop treating China as a “non-market” economy under the World Trade Organization?

The stakes are high. Refusing the Chinese would likely end the chances of a far-reaching trade deal with Canada’s second-biggest trading partner. A recent report puts the value of a Chinese trade deal at $7.8 billion in new economic activity for Canada. But experts say China will come to the table only if Canada first grants it market economy status.

Read More