Free trade in milk, eggs, even logs?

Columnist and legislative reporter for Black Press Tom Fletcher on logs

VICTORIA – One of the rituals of life in southern B.C. communities is cross-border shopping for certain items.

Even corner store owners are known to pop down to Washington border towns to load up a van with U.S. milk, taking advantage of a price difference generated by our “supply management” system.

The recent slide in the Canadian dollar reduces this pressure in the short term, but the fact remains that dairy producers are propped up in Canada. And that’s increasingly a problem as Canada pursues entry into the Trans Pacific Partnership, the next big trade deal. With the U.S., Japan, Australia, New Zealand and other countries involved, it would form the largest trading bloc in the world. Canada uses tariffs of up to 300 per cent to protect its dairy and poultry industries from foreign imports, and the higher domestic price on milk and eggs is a burden that falls most heavily on poor people.

The industry group Dairy Farmers of Canada and others argue that reducing or removing Canada’s import protection won’t change the huge farm subsidies paid by European and U.S. governments. The recent trade agreement between Canada and the European Union has already chipped away at this protection. The Conservative government is tiptoeing on this issue as a fall election approaches, with rural seats across the country at stake. But the United Kingdom, Australia and New Zealand have deregulated their dairy industries and the Canadian industry is already facing increased cheese imports due to the European Union agreement.

It’s an issue to watch as the federal election heats up. The NDP has positioned itself as a defender of supply management, a particularly touchy issue in rural Quebec, while the federal Liberals are committed to keeping up with the U.S. and joining the Trans-Pacific Partnership.

The trend toward freer trade is broad and long. The Harper government ended the monopoly of the Canadian Wheat Board in 2012, and grain growers continue to compete globally. A trade deal with Korea saw tariffs come off Korean import vehicles, and life goes on.

Another controlled and protected commodity that is seldom discussed is logs. That’s changed with the push for the Trans Pacific Partnership, as Japan protests federal and provincial restrictions that push up the cost of logs for export.

Ottawa regulates the export of private land logs, but only in B.C. This is a long-standing irritant for private land owners, holding the domestic price for premium “J grade” Douglas fir logs below $80 per cubic metre while the price in Asia and Washington state has climbed above $100.

The U.S. has long complained about B.C.’s cheap Crown land stumpage and low domestic log prices in general, viewing them as a subsidy to lumber production.

Indeed, this whole protection apparatus is designed to stimulate domestic milling, although it doesn’t seem to be working. The main investment by B.C. forest companies recently has been buying southern U.S. sawmills.

The coastal industry has maintained that profits from log exports are keeping logging alive, paying for the harvest and processing of logs in B.C.

With Pacific trade talks in the background, pushed hard by U.S. President Barack Obama, the latest Canada-U.S. lumber agreement is due to expire in October. It will be more difficult to defend what University of Alberta economist Jack Mintz calls a “Soviet-style approach to price determination.”

B.C. used to do something similar to this with wine, protecting a backward industry cranking out mostly god-awful plonk. Competition made the wine industry better, and now it’s world class.

(Tom Fletcher is legislature reporter and columnist for Black Press. Twitter: @tomfletcherbc Email: tfletcher@blackpress.ca

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Felled spruce and cedar trees waiting to be stripped, sorted and hauled down Island. (Zoe Ducklow photo)
Kwakiult angry at logging in Douglas Treaty land

The nation is calling on government to honour the Douglas Treaty

The Christmas Tree being put back up in the Thunderbird Mall parking lot. (Thunderbird Mall photo)
Giant Christmas tree returns to Thunderbird Mall Parking lot

At the end of the 2019, extreme winds knocked over the community Christmas tree.

Black Press file photo
Port Hardy RCMP catch shoplifting suspect who allegedly stole over $500 worth of clothing from local store

The suspect was eventually released with multiple conditions and to attend court in February of 2021

Quatsino First Nation is heading back to the polls. (Quatsino image)
Quatsino First Nation electing new Chief and Council

The ballot count will be broadcast over Zoom after polls close

For over a year Loaves and Fishes Food Bank has been giving 5,000-7,000 pounds of food every week to help address the massive need in the North Island. This year, they have partnered with the North Island Gazette Hamper Fund by providing $15,000 in gift cards to help with their Christmas Hamper Program. “Loaves and Fishes believes that everyone deserves access to a reliable abundance of food barrier free, it’s a real privilege to further serve the amazing people in Port Hardy and Port McNeill by assisting the Gazette Christmas Hamper Fund,” explains Peter Sinclair, Loaves and Fishes Executive Director. Loaves and Fishes bi-weekly depot is at Saint Columba’s Anglican-United Church and bi-weekly deliveries to other organizations in Port McNeill will continue through next year. (Natasha Griffiths photo)
It’s been a unique 41st year for the Gazette Christmas Hamper Fund

‘This year has been very different than previous years due to the pandemic’

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, Nov. 9, 2020. THE CANADIAN PRESS/Darryl Dyck
Another 694 diagnosed with COVID-19 in B.C. Thursday

Three more health care outbreaks, 12 deaths

A demonstrator wears representations of sea lice outside the Fisheries and Oceans Canada offices in downtown Vancouver Sept. 24, demanding more action on the Cohen Commission recommendations to protect wild Fraser River sockeye. (Quinn Bender photo)
First Nations renew call to revoke salmon farm licences

Leadership council implores use of precautionary principle in Discovery Islands

Ten-month-old Aidan Deschamps poses for a photo with his parents Amanda Sully and Adam Deschamps in this undated handout photo. Ten-month-old Aidan Deschamps was the first baby in Canada to be diagnosed with spinal muscular atrophy through Ontario’s newborn screening program. The test was added to the program six days before he was born. THE CANADIAN PRESS/HO, Children’s Hospital Eastern Ontario *MANDATORY CREDIT*
First newborn tested for spinal muscular atrophy in Canada hits new milestones

‘If Aidan had been born any earlier or anywhere else our story would be quite different’

BC Ambulance Services reassures people that the service is well staffed and ready to respond. Photo by Don Bodger
BC Ambulance assures the Island community they’re ‘fully staffed’

‘Paramedics are not limited to a geographical area.’ — BCEHS

(Pixabay)
Canadians’ mental health has deteriorated with the second wave, study finds

Increased substance use one of the ways people are coping

A coal-fired power plant seen through dense smog from the window of an electric bullet train south of Beijing, December 2016. China has continued to increase thermal coal production and power generation, adding to greenhouse gas emissions that are already the world’s largest. (Tom Fletcher/Black Press)
LNG featured at B.C. energy industry, climate change conference

Hydrogen, nuclear, carbon capture needed for Canada’s net-zero goal

An RCMP officer confers with military rescuers outside their Cormorant helicopter near Bridesville, B.C. Tuesday, Dec. 1. Photo courtesy of RCMP Cpl. Jesse O’Donaghey
Good Samaritan helped Kootenay police nab, rescue suspect which drew armed forces response

Midway RCMP said a Good Samaritan helped track the suspect, then brought the arresting officer dry socks

People line up at a COVID-19 assessment centre during the COVID-19 pandemic in Scarborough, Ont., on Wednesday, December 2, 2020. Toronto and Peel region continue to be in lockdown. THE CANADIAN PRESS/Nathan Denette
COVID-19 vaccine approval could be days away as pressures mount on health-care system

Many health officials in regions across the country have reported increasing pressures on hospitals

Most Read