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editorial
Postmedia Network file photo
Protectionism and free trade don't mix
Dairy farmers from around Ottawa
took their cows and tractors to Par-
liament Hill this week, to protest
the changes they expect in the Trans -
Pacific Partnership trade deal.
What has farmers worried is the fact
that Canada is unlikely to reach a deal
without making some "concessions" in
the dairy sector — that being to allow
Canadians to buy more foreign cheese
than they can now.
Access to imports is a good thing for
the country. It increases domestic pro-
ductivity by increasing competition
and reducing the costs of doing busi-
ness, including for exporters. Politi-
cians don't like to talk about it that
way, because it makes protected
domestic industries nervous. Instead,
they act as if imports are the regretta-
ble price we pay for exports. That's
why lower tariffs are called a "conces-
sion" - until a government wants to
make political hay out of, say, cheaper
sports equipment for kids, and then all
of a sudden they acknowledge that tar-
iffs raise costs in Canada.
It makes no sense to argue, as every
one of our federal leaders effectively
does, "I believe in free trade, and I will
fight to protect our tariffs on dairy."
These are two mutually exclusive ideas.
If free trade is good, tariffs are bad; this
is not exactly complicated logic to fol-
low. If you believe domestic industries
need to be protected from foreign com-
petition through tariffs, fine! That's an
opinion you're perfectly entitled to hold,
in 2015 as in 1985. But you're then by
definition not a free trader. Lower tariffs
are not a price we pay for free trade.
Lower tariffs are free trade.
All the nonsensical "water in our
wine" rhetoric about trade deals, espe-
cially from self-serving politicians who
have enough basic economics training
that they ought to know better, has the
effect of confusing people about what
trade deals are for and how they work.
The benefits ("market access") become
nebulous and distant while the sup-
posed "costs" are concrete and local:
milk spilled on the streets around
Parliament.
Meanwhile, dairy farmers have legit-
imate grievances. They've bought in to
a system that is slowly being eroded
through these trade deals because the
government (and all parties) are too
gutless to offer fair reform instead. And
even many farmers who might defend
the general principles behind supply
management haven't been completely
happy with the way the quota system
works in practice, the barriers it cre-
ates to growth and investment.
The TPP is a complicated deal, and
not all of it will necessarily be good for
Canada. But political rhetoric
shouldn't add to the confusion by
implying that imports are evil.
- Postmedia Network
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