Quotulatiousness

February 14, 2026

The EU’s plans to drain the “wine lake” … again

Canada isn’t the only place with rigidly governed agricultural cartels … the European Union has always been a big fan of governing agricultural markets by fiat rather than allowing the markets to sort out how much of which product should be produced. One of the biggest markets actively distorted by EU regulation is the wine industry, where faulty regulations ended up paying for a vast over-supply of wine in the 1980s and 90s. Rather than eliminating the regulatory structures, the EU continues to prefer letting bureaucrats dictate to producers:

When the Common Agricultural Policy was established, it was quickly determined that one of its core objectives would be the protection of farmers, ensuring stable incomes and food security. In the wine sector, this logic translated into strong interventionism aimed at expanding and stabilizing production.

For decades, Brussels subsidized vineyard planting, protected minimum prices, and absorbed producers’ economic risk, disconnecting production decisions from signals of demand. Producing more ceased to be an economic choice and became a politically safe decision.

This approach created a structural market distortion. As wine consumption began to decline across Europe for demographic, cultural, and economic reasons, the artificially incentivized productive structure remained intact and unable to adjust.

It was in this context that, during the 1980s and 1990s, the first major shock occurred, known as the wine lake: massive wine surpluses with no outlet. Even then, Brussels treated this episode as an isolated and temporary phenomenon, ignoring the fact that it was the direct consequence of existing policies. By persisting with the same strategies, the problem ceased to be episodic and became structural.

In the early 2000s, the European Union was finally forced to recognize that the wine crisis was not temporary. However, instead of removing production incentives and restoring the market’s adjustment function, it opted for a new form of intervention: subsidizing the voluntary uprooting of vineyards. The decision to destroy productive capacity ceased to be economic and became administrative, decreed from the European political center, with profound effects across several countries.

This model, presented as temporary, set a dangerous precedent. Rather than allowing less viable producers to exit the market through prices and economic choice, the state began paying for withdrawal, subsidizing the costs of adjustment and normalizing the idea that the correction of public policy errors should be financed with more public money.

This policy did not solve the underlying problem. It merely reduced cultivated area temporarily, while leaving intact the regulatory architecture which had created the initial distortion. The sector became trapped in a cycle of incentivized expansion, predictable crisis, and administrative correction.

It is within this framework that the Wine Package emerges as the European Union’s latest set of measures for the wine sector. The package relies on an administratively planned reduction of supply through financial incentives for vineyard uprooting, complemented by regulatory adjustments, temporary support measures, and crisis management instruments. Instead of allowing the market to adjust to declining consumption, Brussels once again opts for the destruction of productive capacity as a policy tool. Although the package includes support measures and environmental framing, its central axis remains the administrative reduction of supply.

The impact of these decisions is not marginal. The European wine sector represents a significant share of the European Union’s economy, sustaining approximately 2.9 million direct and indirect jobs and contributing more than €130 billion to EU GDP.

December 29, 2025

Will 2026 finally be the year Canada abandons food cartels?

For reasons unknown, Canadian politicians both left and right have been willing to sacrifice almost anything in trade negotiations except the cosy protectionist scheme we call “supply management”, which enriches a tiny number of farmers in Ontario and Quebec by keeping grocery prices significantly higher than the free market price. On his Substack, The Food Professor predicts that Prime Minister Carney will be forced to give up this market-rigging, anti-consumer scheme in the coming year:

Image from Agri-Food Analytics Lab, Dalhousie University

As we enter 2026, several forces are converging to reshape Canada’s food economy. Consumer empowerment — amplified by social media — continues to accelerate, while geopolitics, particularly tensions with our southern neighbour, are becoming increasingly disruptive. Together, these dynamics will push food policy issues that once lived in technical silos into the public spotlight.

At the top of that list sits CUSMA and supply management. Prime Minister Carney has signaled firmness on market access, backed by legislation that shields supply management from parliamentary debate. That protection, however, is unlikely to endure. Even if the United States has little genuine interest in exporting more dairy to Canada — and even if Canadian consumers show limited appetite for it — President Trump now understands, far better than during his first term, that supply management is a potent political wedge. The system protects roughly 9,400 dairy farmers who exert disproportionate influence over agricultural policy, while compensation payments continue to flow without any meaningful reduction in production or market share. For a growing number of Canadians, this arrangement increasingly resembles a closed loop rather than a public good. The irony is that global demand for dairy is rising and Canadian milk should be part of that growth story. Instead, the system prioritizes insulation over ambition — a missed opportunity at a time when competitiveness should matter most.

January 1 also marks the formal implementation of new front-of-package nutrition labels. Although these symbols have been appearing on shelves for some time, many consumers either overlook them or misunderstand their purpose. Their real impact has been largely invisible to the public: they have already reshaped how food companies formulate products, invest in research, and redesign portfolios. Whether the labels meaningfully change consumer behaviour remains debatable, but their influence on product development is no longer.

[…]

Finally, 2026 coincides with the United Nations’ International Year of Rangelands and Pastoralists — a timely moment to reset the debate around meat consumption and livestock production. Rangelands underpin global meat systems by converting grasslands — often unsuitable for crops — into high-quality protein. In a world where demand for animal protein continues to grow, portraying livestock as inherently incompatible with sustainability ignores nutritional, economic, and ecological realities. Well-managed grazing supports rural livelihoods, strengthens export economies, and can enhance biodiversity and soil health rather than undermine them. If policymakers are serious about food security, climate resilience, and affordability, 2026 should mark a shift away from apologizing for meat production and toward recognizing livestock as a strategic pillar of resilient food systems — not a sector to be regulated out of existence

December 10, 2025

Murmurs of dissent from within Canada’s supply management cartel

At Juno News, Sylvain Charlebois shares a sign of internal dissent inside the supply management system that prioritizes protecting producers at the cost of significantly higher prices and reduced choice for Canadian consumers — not to mention getting Trump’s attention (and anger) for shutting out American competitors:

Every once in a while, someone inside a tightly protected system decides to say the quiet part out loud. That is what Joel Fox, a dairy farmer from the Trenton, Ontario area, did recently in the Ontario Farmer newspaper. In a candid open letter, Fox questioned why established dairy farmers like himself continue to receive increasingly large government payouts — even though the sector is not shrinking, but expanding. His piece, titled “We continue to privatize gains, socialize losses“, did not come from an economist or a critic of supply management. It came from someone who benefits from it. And yet his message was unmistakable: the numbers no longer add up.

Fox’s letter marks something we have not seen in years — a rare moment of internal dissent from a system that usually speaks with one voice. It is the first meaningful crack since the viral milk-dumping video by Ontario dairy farmer Jerry Huigen, who filmed himself being forced to dump thousands of litres of perfectly good milk because of quota rules. Huigen’s video exposed contradictions inside supply management, but the system quickly closed ranks. Until now. Fox has reopened a conversation that has been dormant for far too long.

In his letter, Fox admitted he would cash his latest $14,000 Dairy Direct Payment Program (DDPP) cheque, despite believing the program wastes taxpayer money. The DDPP was created to offset supposed losses from trade agreements like CETA, CPTPP, and CUSMA. These deals were expected to reduce Canada’s dairy market. But those “losses” are theoretical — based on models and assumptions about future erosion in market share. Meanwhile, domestic dairy demand has strengthened.

Which raises the obvious question: why are we compensating dairy farmers for producing less when they are, in fact, producing more?

This month, dairy farmers received another 1% quota increase, on top of several increases totalling 4% to 5% in recent years. Quota — the right to produce milk — only increases when more supply is needed. If trade deals had truly devastated the sector, quota would be falling, not rising. Instead, Canada’s population has grown by nearly six million since 2015, processors have expanded, and consumption remains stable. The market is expanding.

Understanding what quota is makes the contradiction clearer. Quota is a government-created financial asset worth $24,000 to $27,000 per kilogram of butterfat. A mid-sized dairy farm may hold $2.5 million in quota. Over the past few years, cumulative quota increases of 5% or more have automatically added $120,000 to $135,000 to the value of a typical farm’s quota — entirely free. Larger farms see even greater windfalls. Across the entire dairy system, these increases represent hundreds of millions of dollars in newly created quota value, likely exceeding $500 million in added wealth — generated not through innovation or productivity, but by regulatory decision.

September 27, 2025

Canada’s supply management cartels benefit “an affluent few, burdening the poorest, and creating needless friction with allies and trading partners”

In Reason, J.D. Tuccille explains to an American audience why Donald Trump has been playing hardball with Canada on trade issues:

President Donald Trump justifies his enthusiasm for prohibitively high tariffs by insisting the U.S. is being “ripped off” by other countries. It’s a strange argument, since people only trade with one another if they see benefit in the deal. But the president is right to complain that other governments impose trade barriers of their own that are often every bit as burdensome as the high taxes Americans pay on imports. If foreign officials honestly wish to restore something like free trade, they should emphasize dropping their own barriers in return for lower U.S. levies. Case in point: Canada, which sends three-quarters of its exports across its southern border but imposes damaging restrictions on imports.

In a February proclamation of trade war on the world, Trump announced, “the United States will no longer tolerate being ripped off” and complained that “our trading partners keep their markets closed to U.S. exports”. The first part of that claim is silly. But the second part has a kernel of truth.

A glimpse at that truth came in June when Trump angrily posted that Canada “has just announced that they are putting a Digital Services Tax on our American Technology Companies” and, as a result, “we are hereby terminating ALL discussions on Trade with Canada”.

The threat had the desired impact. Canada rescinded the tax immediately before it was supposed to take effect. While nominally targeted at all large tech companies, in practice that meant American companies and everybody knew it, since U.S. firms dominate the industry.

But that was only the tip of the iceberg when it comes to Canada’s trade barriers. Also in June, international trade attorney Lawrence Herman, a senior fellow at Canada’s C.D. Howe Institute, bemoaned proposed legislation in the Canadian parliament that he characterized as “yet another regrettable effort to enshrine Canada’s Soviet-style supply management system in the statute books.”

He added, “the bill would prohibit any increase in imports of supply-managed goods – dairy products, eggs and poultry – under current or future trade agreements”.

The legislation about which Herman complained has since become law.

[…]

More skeptically, Fraser Institute senior fellow Fred McMahon notes, “supply management is uniquely Canadian. No other country has such a system. And for good reason. It’s odious policy, favouring an affluent few, burdening the poorest, and creating needless friction with allies and trading partners.”

McMahon elaborates that the supply management process is controlled by agricultural management boards which “employ a variety of tools, including quotas and tariffs, and a large bureaucracy to block international and interprovincial trade and deprive Canadians of choice in dairy, eggs and poultry”.

But as we’ve seen so many times over the years, it disproportionally benefits Quebec, and the Liberals desperately need those Quebec votes to stay in power, so the government would rather destroy the national economy rather than give up on our Stalinist supply management cartels.

August 23, 2025

“Trump … sees transshipment and nearshoring as sneaky workarounds”

Filed under: China, Economics, Government, Politics, USA — Tags: , , , — Nicholas @ 05:00

At the Foundation for Economic Education, Jake Scott explains Donald Trump’s latest anti-trade moves:

President Donald Trump’s executive order of July 31st, effective August 7th, has upended global trade dynamics in a single stroke. Slapping a 40% tariff on all “transshipped goods” — products rerouted through third countries to dodge US duties — this is merely the natural development of his evolving protectionist agenda.

Just a week after the order, the move is a clear shot at China’s sprawling manufacturing empire, which has long exploited methods like transshipment and “nearshoring” to skirt American tariffs in general, and Trump’s tariff policies in particular.

While applied globally, China stands to take the biggest hit (and likely already is), with its vast factory networks and knack for rerouting goods through Southeast Asia, Mexico, and beyond. This isn’t just a tariff hike; it’s a calculated escalation in Trump’s ongoing crusade to reshape US trade policy and the global economy in the United States’ favor. But ripple effects that bruise consumers are already visible — and this move is likely to strain relationships with key allies as well.

The new tariffs build on Trump’s first-term strategy — so extensive that it now has a Wikipedia entry — when he wielded America’s economic heft like a sledgehammer to renegotiate or smash trade deals he deemed unfair. Back then, Chinese firms sidestepped US tariffs by setting up shop in countries like Vietnam and Mexico, funneling goods through these hubs to mask their origins.

This nearshoring strategy buoyed many economies that had pre-existing arrangements with the United States or were treated more favorably than China, such as Canada and Latin American nations. It is also seen as a natural part of globalization: shipping parts from where they are constructed (like China), assembling them in developing nations (like Mexico), and then exporting to high-value markets (like the United States). Nearshoring has a long history, but the fragility of extended global supply chains was exposed in the Covid pandemic; since then, manufacturers have sought to mitigate their damage.

The US trade deficit with China (roughly $295 billion) has long been a sore point for Trump, who sees transshipment and nearshoring as sneaky workarounds. The 40% duty on these goods, layered atop existing tariffs, aims to plug this loophole. As Stephen Olson, a former US trade negotiator, noted in the New York Times, China will likely view this as a direct attempt to “box them in”, potentially souring already tense talks.

August 5, 2025

Will the courts take away Tariff-master Trump’s favourite toy?

Filed under: Government, Law, Politics, USA — Tags: , , , — Nicholas @ 03:00

President Donald Trump’s second term in office has been dominated by his capricious and seemingly random deployment of tariffs as a bludgeon to intimidate and coerce America’s allies and enemies alike. In Reason, J.D. Tuccille considers the possibility of the courts taking away the one tool Trump has been using to get his own way in trade negotiations:

Everybody with a brain knows that tariffs are taxes. And they know that tariffs imposed on goods imported to the United States are largely paid by American businesses and consumers. The big question is whether tariffs unilaterally imposed by President Donald Trump under creative interpretations of emergency executive powers will withstand a federal court challenge. So far, the signs are promising for those hoping that a law intended to rein in the power of the presidency will not be read to permit the president to set trade policy of his own accord.

As CBS News reported this week, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. heard “oral arguments on Thursday in V.O.S. Selections v. Trump, a case brought by five small business owners and 12 states who allege they have been harmed by President Trump’s import taxes. V.O.S., the lead plaintiff in the case, is a New-York based wine importer.”

Representing the plaintiffs is the free-market Liberty Justice Center, along with co-counsel Ilya Somin, a law professor at George Mason University’s Scalia Law School. The plaintiffs are challenging the Trump administration’s invocation of the International Emergency Economic Powers Act (IEEPA) as the basis for the “Liberation Day” tariffs on much of the world as well as related tariffs on Mexico, Canada, and China.

A Law Intended To Trim Presidential Power, Not Expand It

The plaintiffs maintain that “under that law, the President may invoke emergency economic powers only after declaring a national emergency in response to an ‘unusual and extraordinary threat’ to national security, foreign policy, or the U.S. economy originating outside of the United States. The lawsuit argues that the Administration’s justification — a trade deficit in goods — is neither an emergency nor an unusual or extraordinary threat.”

What’s interesting is that Congress passed IEEPA not to expand presidential power, but to restrict it. According to a 2024 Congressional Research Service report, “following committee investigations that discovered that the United States had been in a state of emergency for more than 40 years, Congress passed the National Emergencies Act (NEA) in 1976 and IEEPA in 1977. The pair of statutes placed new limits on presidential emergency powers”. Under these laws, presidents are required to assess emergencies on an annual basis, extend them if necessary, and report on their status to Congress.

“Some experts argue that the renewal process has become pro forma“, the report acknowledges. “History shows that national emergencies invoking IEEPA often last nearly a decade, although some have lasted significantly longer — the first state of emergency declared under the NEA and IEEPA, which was declared in response to the taking of U.S. embassy staff as hostages by Iran in 1979, is in its fifth decade.”

August 2, 2025

“[T]he United States is an imperial power … it does not give foreign nations free rides and unearned favours”

Filed under: Economics, Europe, Media, Politics, USA — Tags: , , , , , , — Nicholas @ 04:00

On Substack, eugyppius discusses the European situation in a time of seemingly random and capricious tariffs from the Trump administration:

Europe in 1899, when the continent contained multiple world powers, before the rise of non-European power.

Whenever I talk about things like tariffs, Trump supporters appear in my comments to tell me that Europe has gotten a free ride for long enough and that it is time we learned to pay our way. I find it a little frustrating to read this, because in Europe it does not feel like we are getting a free ride at all. In fact it seems like the opposite: The most common complaint on the populist German right is that our political class refuses to represent our interests and will not stop carrying water for the Americans.

I recognise that I’ll never be able to put this right, but it’s worth trying, because it is important to understand the world as it is. The truth is that the United States is an imperial power. Generally speaking, it does not give foreign nations free rides and it does not hand out unearned favours. There is however a lot of confusion here, because hardly anybody bothers to describe honestly the geopolitical strategy pursued by the United States or the nature of the American empire. Western liberalism cannot conceptualise imperial politics, and while empire generally benefits political elites on both sides of the Atlantic, it is not necessarily or always in the interests of ordinary Americans or ordinary Europeans, which is yet another reason not to talk about it.

The Americans and the British before them expended enormous effort to preempt the emergence of a dominant power on the European Continent that might challenge their successive naval empires. They fought two world wars to stop Germany from becoming just such a power. This great struggle ended in 1945 with Western Europe as a fully subjugated imperial province. Since then, the Americans have coordinated the NATO alliance and guaranteed the security of European countries not out of charity, but because Europe is their provincial possession. As a rule, they have not wanted Europe to assume full responsibility for its own defence, because a world in which America no longer guarantees the security of Europe is a world in which Europe is no longer an American province. It’s that simple.

To fend off the Soviets, the Americans nevertheless rebuilt and rearmed the nations of Western Europe. Everyone involved in this project had to come up with a way to allow the Germans to become a dominant economic power again, without displacing the United States or provoking the hostilities of wary postwar neighbours like France. One solution here was the European Union, which promoted economic interdependency as a counterweight to nationalist concerns. Another solution came at the cultural level, where Germany sought to allay European anxieties over possible Teutonic aggression by developing a national cult of historical guilt for World War II, which steadily blossomed into a full-blown civic religion. This exercise in self-effacement has grown more and not less extreme over time, in part as a response to nervousness about the consequences of German reunification. Many voices on the right like to portray Germans as victims of an externally imposed guilt regime, but the truth is that we did most of this to ourselves. The German left in particular has profited from and encouraged this mindset from the beginning.

German political self-effacement had one unexpected feature, in that it proved to be contagious. Within a generation of 1945, many of the victorious allied powers were striving to develop their own historical guilt cults after the German example, in each case centred around a national original sin like slavery or colonialism. Just as the German political class found it expedient to foreground collective European concerns at the expense of a more narrowly construed German nationalism, so did the broader West develop an overarching obsession with global issues and the plight of the developing world. This has caused the proliferation of a lot of silly people in our political culture, a lot of profoundly stupid organisations, and at least two cancerous ideological systems in the form of climatism and migrationism. We have had a nearly incalculable gift in the form of 80 years of peace, which may yet be offset by the equally incalculable costs of the lunacies this peace has encouraged.

July 21, 2025

Was Juan Perón a Fascist? The Cold War Origins of Peronism – W2W 037

TimeGhost History
Published 20 Jul 2025

Was Juan Perón really a fascist, a socialist, or something entirely different? In this episode of War 2 War, we explore the rise of Peronism in post–World War II Argentina and how Perón tried to position his country between the superpowers of the Cold War.

Through labour reforms, nationalist rhetoric, media control, and brutal repression of dissent, Juan and Eva Perón created a powerful populist regime that borrowed ideas from both fascism and socialism, while claiming to reject both. From Argentina’s “Third Way” to its complicated ties with the US, USSR, and even Nazi fugitives, we examine the ideology, contradictions, and legacy of Peronist rule.

Was Peronism a unique form of authoritarian populism, or just another face of fascism?

Join us as we uncover the foundations of Argentina’s Cold War identity and the true political nature of Juan Perón.
(more…)

July 19, 2025

Trump administration records huge increase in tariff revenues

Filed under: Government, Media, Politics, USA — Tags: , , — Nicholas @ 03:00

Oddly, most of the coverage on the US government’s surge in tariff income fail to emphasize two relevant facts: first, that the money is largely being paid by American consumers and second that it’s a surge driven by the fact that higher tariffs will kick in soon. J.D. Tuccille reports:

I have no idea where I saw this meme, but it makes me laugh

Last Friday, U.S. Treasury Secretary Scott Bessent took a victory lap as his department reported an unexpected increase in receipts from tariffs. The revenue undoubtedly came from a surge in imports to the U.S., which led to payments that filled federal coffers. It would seem to be a win for an administration that has staked an awful lot on waging a trade war with the entire planet to (take your pick) redress wrongs done to America, raise revenue for the government, and encourage domestic manufacturing and employment. But that victory lap comes too soon; the tariff windfall more likely represents efforts by U.S. firms to accumulate inventory before tariff rates rise even higher.

[…]

That mention of “higher prices on imported goods paid by US consumers and firms” deserves to be emphasized because it highlights the fact that tariffs are taxes on Americans. Ultimately, most of the burden of high rates is shouldered by companies and individuals within the U.S. As the Tax Foundation’s Alex Durante pointed out in February, “rather than hurting foreign exporters, the economic evidence shows American firms and consumers were hardest hit by the Trump tariffs”.

The Yale Budget Lab agrees, estimating in May that “the price level from all 2025 tariffs rises by 1.7% in the short-run, the equivalent of an average per household consumer loss of $2,800” in 2024 dollars. In particular, the Yale economists found “consumers facing 15% higher shoe prices and 14% higher apparel prices in the short-run”.

Even Walmart, which had vowed to absorb as much as possible of the tariff burden, conceded two months ago that prices would have to rise because of the trade war.

This week, the Federal Reserve Bank’s “beige book” noted that “in all twelve Districts, businesses reported experiencing modest to pronounced input cost pressures related to tariffs” and that “many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges”.

Penn Wharton’s concerns, mentioned above, about “lower economic growth” are shared by the Tax Foundation and by the Yale Budget Project. The Tax Foundation’s Erica York and Alex Durante forecast that the Trump administration’s tariffs would “reduce US GDP by 0.8 percent” before taking foreign retaliation into account. Yale economists see a similar GDP reduction of 0.7 percent.

If the courts issue a final ruling against Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, that will reduce the negative effects on the economy. But it will also take a chunk out of the revenues the administration expects to collect.

So, Secretary Bessent’s victory lap on tariff revenues was a little premature. And so are hopes that the trade war won’t damage commerce and the U.S. economy.

July 1, 2025

Like a cheap suit, Canada folds under Trumpian pressure on the Digital Services Tax grab

Filed under: Cancon, Government, Media, Politics, USA — Tags: , , , , , — Nicholas @ 05:00

A couple of days back, I characterized Prime Minister Mark Carney’s determination to push ahead with the Digital Services Tax “insane”, as it was overwhelmingly likely to trigger a strong reaction from the Trump administration. As it did. So, finally recognizing they were in a no-win situation, the federal government announced at the last minute that they wouldn’t be demanding the literally billions of dollars from the US “tech giants” after all. Michael Geist can legitimately say “I told you so” on this issue:

President Trump Attends G7 Summit in Canada by White House https://www.whitehouse.gov/gallery/president-trump-attends-g7-summit-in-canada/ CC BY 3.0 US

After years of dismissing the warnings of likely retaliation, the Canadian government caved last night on the digital services tax. Faced with the prospect of the U.S. suspending trade negotiations, Finance Minister François-Philippe Champagne announced that the government would drop the DST altogether, payments scheduled for Monday would be cancelled, and legislation will be forthcoming to rescind the legislation that created it in the first place. Over the weekend, I wrote about the repeated warnings that the DST was a serious trade irritant with the U.S. that cut across party and presidential lines. While ignoring the risks was bad enough, I argued that Canada played its DST card too early. Rather than delaying implementation in the hopes of incorporating it into a broader trade deal with U.S., it marched ahead, leading to an entirely predictable response from U.S. President Donald Trump. That left Canada in a no-win situation: stick with the DST but face the prospect of higher tariffs or embarrassingly drop the DST (and $7.2 billion in revenue over five years) with only restarting negotiations that were on until government overplayed its hand to show for it.

It is hard to overstate how badly the government managed the DST issue over the past five years. It alienated allies by pushing ahead with the DST despite efforts at an international deal at the OECD, stood alone in rejecting an extension of a moratorium on new DSTs, made the DST retroactive which solidified opposition, and continually downplayed the concerns of successive U.S. Presidents and Members of Congress from both sides of the aisle. Meanwhile, when companies began passing along the costs of the DST to Canadian businesses, it did nothing. And when they urged the government to delay implementation to at least allow for the issue to be incorporated into a broader trade pact, it ignored the advice.

At every step, there were better options. This year, the likelihood that the DST would come to a boil was obvious to anyone who was paying attention. But rather than following the UK strategy, which managed to salvage a smaller DST (2% rather than 3%) as part of a bigger agreement that includes a commitment to support UK digital access to the U.S. market and to negotiate a larger digital trade deal, Canadian officials seemingly assumed that the U.S. was bluffing and would not retaliate.

If this sounds familiar, it is because the Canadian government misreading the tech sector has become a hallmark of its policy. Talk tough, practically dare companies and foreign governments to respond, and then frantically seek an exit strategy when they do. This was the case with the Online News Act and Meta’s blocking of news links, with the government’s AI regulation which new Minister of AI Evan Solomon says will not be re-introduced, with the Online Harms bill, and now with the DST.

The Food Professor explains what Trump got right in his Trade War

On the social media site formerly known as Twitter, Dr. Sylvain Charlebois, aka @FoodProfessor explains how Trump’s Trade War strategy is working out for US interests, in contrast to the Trudeau/Carney governments’ approach:

The Globalism Hangover: What Trump’s Trade War Got Right

“Trump’s bombastic style aside, his nationalist approach to trade and food policy is forcing global institutions to justify their existence — and that’s a conversation Canada can no longer afford to ignore.”

For the past six months, President Donald Trump’s trade policies have been widely mocked, criticized, and condemned. Some of it is certainly warranted. The Wall Street Journal, for instance, recently likened his tariff-heavy approach to global trade as a direct path toward another Great Depression. But data out of the United States tells a more nuanced story — one that challenges conventional wisdom.

Despite persistent headwinds, the U.S. economy continues to outperform expectations. The Federal Reserve Bank of Atlanta projects second-quarter GDP growth at 3.8%. In May, the U.S. economy added 139,000 jobs, outpacing forecasts, while inflation remained subdued at 0.1% month-over-month and 2.4% annually. The U.S. trade deficit has been cut nearly in half, pointing to stronger export performance and a rebalancing of trade relationships.

Canada, by contrast, is showing signs of economic strain. The national economy is shrinking, manufacturing is struggling under U.S. trade pressure, and food inflation is outpacing general inflation. In short, our economy is not keeping pace—despite our public criticism of the Trump administration.

To make matters worse, the Trump administration has now halted all trade negotiations with Canada, signaling that our bilateral economic relationship holds little strategic value for Washington. For the U.S., Canada is no longer a priority — especially under a Carney-led government that has visibly pivoted toward Europe, a market still heavily invested in maintaining close ties with the United States. From an agri-food standpoint, this shift is consequential: access to our largest trading partner is narrowing, while Ottawa appears more focused on diplomatic optics than on securing stable, competitive trade channels for the Canadian agrifood economy.

This is the one thing the ‘Elbows Up’ crowd never understood — and still doesn’t. We’re not in a trade war with the U.S. There’s no war to be won. For Trump, this is about a realignment of the global order, plain and simple — one centered entirely on American supremacy.

Love him or loathe him, Trump is not destroying the U.S. economy — not yet, anyway. His unapologetically nationalist agenda extends far beyond tariffs. He has withdrawn U.S. support from key global institutions such as the WHO and is threatening to sever ties with others, including NATO and several UN-affiliated agencies. Among them is the Food and Agriculture Organization (FAO), the UN’s most authoritative body on food security.

At a recent event in Brazil, a senior FAO official acknowledged that fundraising dynamics have shifted. In the Trump era, governments are asking harder questions: Why should we fund the FAO? What domestic benefit does it provide? What used to be assumed support is now conditional — and arguably, more accountable.

This shift isn’t unique to Washington. Many countries are quietly aligning with the U.S. position, scrutinizing globalist institutions with renewed skepticism. Transparency and accountability are byproducts of this anti-globalist sentiment — something not inherently negative.

For decades, globalism pushed the world to believe that trade liberalization was the only viable path to growth and prosperity. It became conventional wisdom. But globalism has made some nations — and some people — richer, while leaving others behind. In the process, domestic sectors, including agriculture, were often sidelined or sacrificed in the name of global efficiency.

The problem with globalism, particularly in agri-food policy, is its tendency to pursue uniformity over relevance. Canada, for example, adopted the carbon tax under a globalist climate agenda that often overlooks the vital role food producers play in feeding people. Instead of being supported, the sector is too often vilified as a problem. But agriculture is not a liability — it is a necessity.

Trump’s message — wrapped, of course, in provocative and often abrasive language — is that one-size-fits-all global policies rarely work. Nations have different socio-economic realities, and those should come first. While cooperation is essential, so is recognizing local and regional priorities. In this sense, his “America First” approach is not without logic — especially when it seems to be yielding short-term economic gains.

For Canada’s agri-food sector, the lesson is clear: striking a better balance between global commitments and national imperatives is overdue. We should not abandon multilateral cooperation, but we must stop anchoring policy to global agendas we have little influence over. Instead, let’s define what works for Canadians — what supports our farmers, protects our food security, and reflects our unique landscape — while keeping the broader global context in view.

We are not there yet. But if this moment of disruption sparks a more realistic and regionally attuned approach to food policy, we’ll be better for it.

June 22, 2025

Delaying Mark Carney’s next book

Filed under: Books, Business, Cancon, Politics, USA — Tags: , , , — Nicholas @ 03:00

In the latest SHuSH newsletter, Ken Whyte outlines the various oddities of Mark Carney’s next book to market:

Three years ago, long before he declared himself a politician, Mark Carney published Value(s), his attempt at solving some of the world’s biggest problems: income inequality, climate change, systemic racism, etc. The book was reasonably well received. It sold well. A sequel was in order.

Announced last year, The Hinge: Time to Build an Even Better Canada was ostensibly Carney’s attempt to address Canada’s biggest issues, and perhaps to position himself as our future leader. The book was set for release in May 2025. Events interceded and Carney was elected prime minister on a far tighter timeline than anyone, including his publisher, could have imagined. Publication of The Hinge was delayed. An anonymous source told the Toronto Star Carney was too busy politicking to finish the final edits on the book. I heard the delay had more to do with campaign finance rules that would consider a book publicized or released in election season as political advertising. Anyway, a new release date was set for July 1. Amazon now has The Hinge coming next January.

Carney’s political opponents have been enjoying the delay. Critics both left and right have attributed it to the difficulty of squaring positions taken by Carney a year or two ago with positions he espoused during the campaign and, more recently, as prime minister.

I don’t doubt that Carney’s politics have moved over the last six months. And I wouldn’t be surprised if his second book is being rewritten in whole or in part. I don’t have a problem with that. Much has happened, both in Canada and south of the border. We’ve all been reconsidering our positions.

My problem with Carney’s conduct is not that he’s revising his manuscript, if he is, but that he’s not revising his publishing contract.

The Hinge is set to be published by Signal. Signal is a division of McClelland & Stewart. M&S is a division of Penguin Random House Canada. PRHC is a division of Penguin Random House LLC, corporate headquarters at 1745 Broadway, 3rd Floor, New York, New York, 10019.

Penguin Random House LLC is owned by Bertelsmann, a media conglomerate in Gütersloh, Germany, but legally and operationally, it is a US company. Its executive leadership, including CEO Nihar Malaviya, works out of the above address. Strategy and publishing priorities are set in New York, and profits in PRH’s many far-flung international divisions flow to New York. So the prime minister of Canada is publishing his book with the Canadian branch plant of a US company.

Other recent prime ministers have done the same. Justin Trudeau published Common Ground with HarperCollins. Steven Harper published Right Here, Right Now with Signal, and his forthcoming memoir sits there, too. Jean Chretien released My Stories, My Time with Random House Canada. Most of our politicians have published with branch plants of American firms.

I should add that many of our best writers publish at these same branch plants, if not directly with US publishers. (Even middling scribblers like me have published directly in the US.)

But, again, the world has changed. To quote no less an authority than Mark Carney, Canada’s old relationship with the US, “based on deepening integration of our economies and tight security and military cooperation, is over”. We need to “fundamentally reimagine our economy”, “retool” our industry, and enhance our self-sufficiency.

He sees our cultural relationship with the US as part of this project. From the Liberal platform: “In this time of crisis, protecting Canada means protecting our culture, our journalism, our perspectives. The Americans have threatened our sovereignty and issued inflammatory statements about our economy; we need to be able to tell a story that fights back.”

Right under the cultural section of the platform was a “Buy Canadian” plank. “At a time when our economy is under threat, consumers want to do their part as patriotic Canadians, buying things that are truly made here.” Team Carney promised to make it easier to determine what is and isn’t a Canadian product and prioritize made-in-Canada suppliers in every sector of the economy, limiting bidders from foreign suppliers, and so on.

So it’s “eLbOwS uP!” for the voters, but carry on publishing your next book through a US-owned subsidiary, eh? You have to admit they wear their hypocrisy proudly.

June 18, 2025

Canada’s Supply Management system – protecting us from cheaper milk, eggs, and chicken

On the social media site formerly known as Twitter, The Food Professor celebrates the latest achievement in Canada’s omni-competent supply management system:

The Chicken Crisis Supply Management Won’t Admit

Canada’s supply management system—once heralded as a pillar of food security and agricultural self-sufficiency—is failing at its most basic function: ensuring reliable domestic supply.

According to the latest figures from the Canadian Association of Regulated Importers (CARI), Canada imported over 66.9 million kilograms of chicken as of June 14 — a 54.6% increase from the same period last year. To put that in perspective, this volume could feed 3.4 million Canadians for an entire year, based on per capita poultry consumption. That’s roughly 446 million individual meals — meals that, under a tightly managed quota system, were meant to be produced domestically.

To be fair, the avian influenza outbreak in Canada has disrupted poultry production, and it partially explains some of the shortfall. But even accounting for that disruption, the numbers are staggering. Imports under trade quotas established by the WTO, CUSMA, and CPTPP are all running at or near pro-rata levels, signaling not just opportunity — but urgency. Supplementary import permits — meant to be emergency tools — have already surpassed 48 million kilograms, exceeding the total annual import volumes of some previous years. This is not a seasonal hiccup. It is systemic failure.

Canada’s poultry sector is supposed to be insulated from global volatility through supply management. Yet internal shocks — like the domestic avian flu outbreak — have shown how fragile the system truly is. When emergency imports become routine, we must ask: what exactly is being managed?

The original intent of supply management was to align production with domestic demand while stabilizing prices and farm incomes. But that balance is clearly off. The A195 production period, ending May 31, 2025, showed one of the worst underproduction shortfalls in more than 50 years. Producers remain constrained by rigid quota allocations, while consumers continue to face rising poultry prices. More imports. Higher costs. Diminished confidence.

Some defenders will insist this is an isolated event. It’s not. This is the second week in a row Canada has reached pro-rata import levels across all chicken categories. Bone-in and processed poultry products — once minor parts of emergency programs — are now central to keeping the market supplied.

The dysfunction extends beyond chicken. Egg imports under the shortage allocation program have already topped 14 million dozen, up 104% from last year. Just months ago, Canadians were criticizing high U.S. egg prices — yet theirs have fallen. Ours haven’t.

All this in a country with $30 billion in quota value, intended to protect domestic production and reduce reliance on imports. Instead, we are importing more — and paying more.

Meanwhile, Bill C-202, now before the Senate, aims to shield supply management from future trade negotiations, making it even harder to adapt or reform. So we must ask: is this what we’re protecting? A system that fails to meet demand, relies on foreign supply, and costs Canadians more at the checkout?

Our trading partners are seizing the moment. Chile, for instance, has increased its chicken exports to Canada by over 63%, now representing nearly 96% of CPTPP-origin imports. While we double down on rigidity, others are gaining long-term footholds in our market.

It’s time to face the facts. Supply management no longer guarantees supply. And when a system meant to ensure resilience becomes the source of fragility, it’s no longer an asset — it’s an economic liability.

May 31, 2025

“U.S. libertarians [are] the best friends Canada doesn’t know it has”

In the National Post, Colby Cosh sings the praises of American libertarians for their work in trying to dismantle some of Donald Trump’s dubiously Constitutional extensions of presidential power:

The James L. Watson Court of International Trade Building at 1 Federal Plaza in Lower Manhattan, New York City.
Photo by Americasroof via Wikimedia Commons.

The U.S. Court of International Trade (CIT) issued a decision Wednesday that annuls various salvos of surprise economic tariffs, including ones on Canada, that have been enacted by President Donald Trump since his inauguration in January. I won’t lie to you: I had the same initial reaction to this consequential news that you probably did, which was “Hooray!” and then “Huh, there’s a U.S. Court of International Trade?”

This court is surely unfamiliar even to most Americans, no doubt because much of its work involves settling issues like “Do hockey pants count as ‘garments’ or ‘sports equipment’ under customs law?” Nevertheless, the CIT does have exclusive jurisdiction over civil actions involving U.S. trade law. It’s just that no president has ever before rewritten the tariff schedule of the republic in the half-mad fashion of a child taking crayons to a fresh-painted wall.

The American Constitution, from day one, has unambiguously assigned the right to set international tariffs to Congress. Congress is allowed to delegate its powers to the president and his agents for limited or temporary purposes, but it can’t abandon those powers to him altogether. Defining this legal frontier is what the CIT was asked to do, and their demarcation of it will now swim upward through higher appellate courts (its decision has been put on hold in the meantime).

The lawsuit was actually two parallel suits raising overlapping objections to the tariffs. One was brought forward by 12 U.S. states, and the other was filed by a group of tariff-exposed American businesses, including manufacturers of bikes, electronics kits and fishing equipment. The latter set of plaintiffs was roped together by the usual posse of heroic libertarians and legal originalists, including George Mason University law prof Ilya Somin.

About 24 hours after Trump originally announced the “Liberation Day” worldwide tariffs, Somin quickly blogged about how insanely unconstitutional the whole idea was, and concluded his article essentially by saying “I’m darn well gonna do something about this nonsense”. I don’t mean to suggest he deserves primary credit; I only intend to call attention, once again, to U.S. libertarians being the best friends Canada doesn’t know it has.

May 28, 2025

The Throne Speech

Filed under: Cancon, Media, Politics, USA — Tags: , , , , , — Nicholas @ 03:00

On his Substack, Paul Wells reports on the first Throne Speech delivered by the reigning monarch since the 1970s:

Mark Carney joins our visiting King in the traditional Making of the Small Talk.
Photo by Paul Wells from his Substack

We’re like Charlie Brown with Lucy’s football, or I guess, since the new PM is said to prefer British spellings, Charlye Brownne with Lewsey’s Foote Ball. Each generation of Canadian leadership tries to find a new way to make throne speeches exciting. These attempts are forever doomed, because no generation of Canadian leadership is exciting and because the format — a statement of intent from a dignitary who is forbidden to harbour autonomous intent — tends to short-circuit the delivery.

This time the delivery mechanism was the King of Canada, Charles Philip Arthur George, popping over from his secondary residence at Buckingham. His French tops Mary Simon’s, though his Inuktitut is shaky. He did his best to sound excited, or resolute, about the CBSA’s “new powers to examine goods”.

A quarter-century ago the reliably impish John Fraser told me he was preparing a book called Eminent Canadians that would survey recent developments in four Canadian institutions. The institutions he’d selected were the office of the Prime Minister; the Globe and Mail; the Anglican Church; — and here Fraser urged me to guess the fourth. Canadian institution? I dunno, the armed forces? The NHL? “The Crown”, Fraser said with a twinkle. Thus was I prepped for this week’s extended round of you-know-he’s-really-the-king-of-Canada browbeating.

This throne speech was like many before it, though out of deference for the deliverer it was on the short side, 21 pages tucked inside wide margins. In substance it was a paraphrase of Mark Carney’s already-semi-legendary Single Mandate Letter for cabinet ministers. There were sections on redefining Canada’s relationship with the United States; on internal trade; on crimefighting and national defence; and on “spending less and investing more”, which, I mean, we’ll see.

The mandate letter seems to have supplanted the Liberal election platform as the main blueprint for Carney’s action. The two aren’t wildly incompatible, but the mandate letter/throne speech is streamlined and puts stuff in different order.

I saw two surprises big enough to make me write today, but first I want to point to a few elements that are worth noting in the less-surprising stuff. That’s right, I’m trying to be useful, not just smart-assed, so here’s a way to thank me. […]

First, Carney (through His Majesty) makes claims for the “new economic and security relationship with the United States” that seem unrealistic. He expects “transformational benefits for both sovereign nations”. But surely any cross-border negotiation can only be, at best, an exercise in damage control? Any security costs that would be newly borne by Canada would represent a net cost. Trade arrangements short of the substantially free trade we’ve enjoyed for 40 years will also represent a net cost. The point of seeking “one Canadian economy” and taking relations with third countries more seriously is to offset the cost of a degraded Canada-US relationship, no?

Under “more affordable”, the throne speech repeats campaign promises for income-tax cuts and cuts to GST on new homes. The list of tangible financial benefits to individuals doesn’t go much past that. “The Government will protect the programs that are already saving families thousands of dollars every year. These include child care and pharmacare.” “Protect” is an old Ottawa word meaning “not extend”.

The goals for the “one Canadian economy” now include “free trade across the nation”, at both federal and provincial levels of government, “by Canada Day”. Which is 34 days away. The staffing and mandate of another new entity, a single-wicket “Major Federal Project Office”, may end up mattering more to this government’s success and Canada’s prosperity than the name of the PM’s next chief of staff, so put an asterisk next to that.

The government repeats a mysterious claim I’ve found shaky since Carney became a Liberal leadership candidate. It “will take a series of measures to catalyse new investment to create better jobs and higher incomes for Canadians. The scale of the Government’s initiative will match the challenges of our times and the ambitions of Canadians.” The challenges of our times, at least, are large.

So again: if the Canada Infrastructure Bank, the Canada Growth Fund and the Freeland-Sabia investment tax credits are sufficient to catalyse (British spelling) new investment, why duplicate them?

And if they haven’t worked, why keep them?

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