The Rural Voice, 1988-02, Page 8TREVOR
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6 THE RURAL VOICE
FEEDBACK
IN DEFENCE OF
FREE TRADE
Regarding the letter from William
Hodges, "Troubles with Free Trade?"
in the January issue of The Rural
Voice:
Some figures and assumptions in
this letter appear to be incorrect.
It is my understanding that 10 per
cent of milk produced finds its way to
near -milk products. As the tariff (17
per cent) is removed, the price of milk
must adjust to accommodate the re-
duction in protection. Canadian milk
can continue to be used and there will
be no flood of American product and
no loss of quota value. Gross dairy
income could decrease in 10 years
(not five) by 1.7 per cent. I would
suggest that this is about equal to the
annual variation.
Minister (John) Wise is determined
to place yoghurt and ice cream on an
import list, but we must remember that
this could stimulate a reaction under
the GATT (General Agreement on
Tariffs and Trade).
The two -price wheat system, put in
place to protect Canadian consumers,
is now used to protect farmers. Its ex-
istence was in jeopardy prior to "free
trade." Minister (Charles) Mayer is
searching for a method of removing
two -price wheat while protecting
farmers' incomes.
The U.S. farmers had a legitimate
(cont'd on following page)
The Rural Voice
welcomes letters and
will publish as many as
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The Rural Voice,
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Ontario N7A 3Y5.
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