Quotulatiousness

June 14, 2018

The economic idiocy of Canada’s supply management system

Filed under: Cancon, Economics, Politics — Tags: , , , , — Nicholas @ 10:03

Andrew Coyne, who finally seems to have weaned himself off the PR voting jag, explains the Canadian government’s idiotic yet deeply entrenched supply management bureaucracy:

How did supply management, of all things, come to be at the centre of everything?

The policy, under which farmers in a number of sectors — milk, cheese, eggs, poultry — are organized into government-approved price-fixing rings, enforced by a complex system of quotas and protected by prohibitive tariffs on imports of the same goods, has been in place since the early 1970s. It affects fewer than 15,000 farmers nationwide, who between them account for less than one per cent of Canada’s GDP.

Yet it has somehow become the central issue not only of our domestic politics, but of international trade talks. It was the pretext for Donald Trump’s decision to impose tariffs on imports of aluminum and steel, and is his most-cited grievance with Canadian trade policy. As such, it has become the rallying cry of preening political patriots, each of the parties seeking to outdo the others in defence of a policy whose avowed purpose, let us remember, is to make basic food items more expensive for Canadians.

It has also become a source of deep division within the Conservative Party. It was already, of course, thanks to last year’s leadership race, in which Maxime Bernier made its elimination the central plank in his campaign, as Andrew Scheer made its retention the key to his. Indeed, Scheer’s narrow victory was directly attributable to the votes of thousands of Quebec dairy farmers, who took out party memberships for the sole purpose of ensuring Bernier’s defeat. It is even possible the Scheer campaign encouraged them in this endeavour.

[…]

There is no serious case for supply management — a policy that is is as unjust, inasmuch as it imposes the heaviest burden on the poorest families, as it is inefficient; that locks out new farmers and deters existing farmers from seeking new markets; and that makes us look utter hypocrites in free-trade talks, not only with the U.S., but the rest of the world — and no serious person whose livelihood does not depend upon it would make it.

And yet every member of every party is obliged to swear a public oath of undying fealty to it. That all do, but for one, is a sign of the institutional rot in our politics. For they do so not in spite of its awfulness but because of it — because the willingness to say two plus two equals five has become the ultimate test of loyalty.

On other issues, that might be because of genuine agreement. But a willingness to sign onto a truly hideous policy like supply management — that’s certain proof an MP is a “team player.”

April 12, 2018

“Bernier was accused, variously, of naivete, hypocrisy, vanity, divisiveness and sour grapes”

Andrew Coyne covers the “revelations” (that anybody who’d been paying attention already knew) about how the federal Conservative leadership race was won and lost from Maxime Bernier’s upcoming book, Doing Politics Differently: My Vision for Canada.

You would think this would be something of a scandal. The leadership race was hijacked by members of a vested interest who not only had no prior involvement with the party, but most likely wished it ill: what in civilized countries are called “entryists.” The winner of the race, the party’s current leader, sold himself and the party, not just to the highest bidder, but to a particularly venal bidder at that, with a direct financial interest in the outcome.

The result was to leave the party hitched to what is widely acknowledged as an indefensible policy, one that takes food off the table of the country’s poorest families for the benefit of a dwindling number of wealthy quota-owners. That the policy — combining internal supply quotas, sky-high external tariffs, and heavy doses of government regulation — makes a mockery of every principle for which the party allegedly stands is probably worth mentioning as well.

So naturally the response of party supporters, on being lately reminded of all this, was fury … at the guy who pointed it out.

That would be Bernier. In his forthcoming book, the plangently titled Doing Politics Differently: My Vision for Canada, a chapter of which was released this week, the former industry minister recalls how Scheer’s campaign courted the dairy industry’s “fake Conservatives,” who were “only interested in blocking my candidacy and protecting their privileges.” He notes the ballooning of party membership in Quebec just before the vote, from 6,000 to 16,000, and its collapse back to 6,000 shortly afterward.

And that’s about it. He does not attribute his defeat solely to his stand on supply management: indeed he thinks he won more votes than he lost over it. Neither does he question the legitimacy of Scheer’s victory — indeed he acknowledges that Scheer’s tactic is “fair game in a democratic system.” He merely points out that this sort of squalid trading of votes for favours is “why so many people are so cynical about politics.”

October 26, 2017

The “sacred” Supply Management system Canada is fighting to preserve

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

The way our politicians talk about the supply management system, you’d think it was one of the founding issues of Confederation. They’re almost literally willing to abandon the NAFTA talks to preserve this encrusted bit of crony capitalist market distortion that hurts most Canadians in the wallet, to keep domestic producers happy. Matthew Lau explains the system our government is willing to crash the entire economy to save:

The United States wants Canada to end supply management, which impedes agricultural imports – dairy, eggs, and poultry. Canada’s trade negotiators and politicians steadfastly refuse, and in their defense of the policy call up an astounding piece of logic: that the less Canadians have, the richer we are.

Canada’s Agriculture Minister insists that supply management is an “excellent system” and that “to deal with anything else is simply a non-starter.” Supporters on the left argue that the policy is necessary to protect domestic farmers from unfair competition from American farmers who receive government subsidies.

Conservatives have argued the same. Current Parliament Member and former International Trade Minister, Ed Fast argued in a recent essay that America simply wants access to the Canadian market “to deal with its own problem of overproduction, to the detriment of Canadian farmers.”

Here is what all proponents of supply management are arguing: If we allow the Americans to send us milk, then their problem of overproduction becomes our problem. Don’t you see how problematic it is, how much poorer we will become if we allow them to send to us the fruits of their overproduction, and at a low price to boot? Don’t you see how much richer we would be if we had less milk?

The less milk we have, the higher the price of milk, the more we can “ensure that producers receive a reasonable return,” as Ed Fast put it – and having ensured that producers receive a reasonable return, certainly we shall all be richer. What could be more reasonable than ensuring Canadian producers receive a reasonable return?

In case the lunacy isn’t quite clear, he also offers a suggestion for a new supply management system for Canadians to “enjoy”:

If we’re made richer by having less dairy, poultry, and eggs, then why stop there? Why not create scarcity in all the other sectors in order to boost the domestic economy? For instance, consider that Ontario’s manufacturing sector has lost several hundred thousand jobs in the past twelve years or so. So according to the supply management logic employed by politicians, how can we revive this industry?

By destroying automobiles of course. And then throw up a tariff to make the purchase of automobiles abroad prohibitively expensive, in order to make sure the Americans, as well as other foreign producers, can’t take “unfair advantage” by inflicting us with cheap automobiles to deal with their problems of overproduction.

The result of such a policy would be that the price of automobiles would rise, thus enabling domestic manufacturers to earn reasonable returns. Destroying automobiles and instituting a tariff would revive the automobile manufacturing industry in Ontario and create thousands of jobs. If the Liberal government thinks supply management is an “excellent policy” they’d probably think this automobile policy is a panacea.

Indeed, the logic, or rather illogic, of the automobile policy is only an amplification and expansion of supply management. Both rest on the idea that we are richer when we have less.

August 12, 2017

End supply management in one swell foop!

Filed under: Bureaucracy, Business, Cancon, Economics, Government — Tags: , — Nicholas @ 03:00

As always, Colby Cosh can express my thought far more eloquently than I can myself:

Mad Max tried to sugar-coat it as much as possible. They rejected that option with great vigour. Now let’s just burn the whole thing down … before Trump forces us to.

July 23, 2017

Canada won’t give up on supply management, for fear of Quebec backlash

Pierre-Guy Veer provides a guided tour of Canada’s supply management system, with appropriate emphasis on the role Quebec dairy producers play in keeping the anti-competitive system in place:

Spared by the North American Free Trade Agreement in 1994, the Canadian milk supply restrictions are “in danger” again. Because of trade negotiations with the US and Europe, foreign farmers want better access to the Canadian market.

However, hearing complaints from the US about unfree dairy markets comes as paradoxical. Indeed, since the Great Depression, the dairy industry has been anything but free. It profits from various subsidies programs including “the Dairy Price Support Program, which bought up surplus production at guaranteed prices; the Milk Income Loss Contracts (MILC), which subsidized farmers when prices fall below certain thresholds, and many others.” It even came close to supply management in 2014, according to the Wilson Center.

But nevertheless, should US farmers ever have greater access to Canadian markets, it won’t be without a tough fight from Canadian farmers, especially those from the province of Quebec. Per provincial Agriculture Ministry (MAPAQ) figures, the dairy industry is the most lucrative farm activity, accounting for 28% of all farm revenues in the province, but also 37% of national milk revenues in 2013. “La Belle Province” also has 41% of all milk transformation manufacturers in Canada.

As is almost always the case with “protected” domestic markets, the overall costs to the Canadian economy are large, but the potential benefit to individual Canadian consumers for getting rid of supply management is relatively small (around $300 per year), but the benefits are tightly concentrated on the protected dairy producers and associated businesses.

But even though the near entirety of the population would profit from freer dairy markets, their liberalization will not happen anytime soon.

Basic Public Choice theory teaches that tiny organized minorities (here: milk producers) have so much to gain from making sure that the status quo remains. A region like Montérégie (Montreal’s South Shore) produced over 20% of all gross milk revenues in 2016. There are 23 out of 125 seats in that region, making it the most populous after Montreal (28 seats). So if a politician dares to question their way of living, milk producers will come together to make sure he or she doesn’t get elected. Libertarian-leaning Maxime Bernier learned it the hard way during the Canadian Conservative Party leadership race; producers banded together – some even joined the Conservative Party just for the race – and instead elected friendlier Andrew Scheer.

On the provincial level, all political parties in the National Assembly openly support milk quotas. From the Liberal Party to Coalition Avenir Québec and to Québec Solidaire, no one will openly talk against milk quotas. However, and maybe unwillingly, separatist leader Martine Ouellet gave the very reason why milk quotas are so important: they keep the dairy industry alive.

June 1, 2017

Terence Corcoran – It was the fake Tories that did in Maxime Bernier

Filed under: Bureaucracy, Business, Cancon, Economics, Politics — Tags: , , — Nicholas @ 03:00

In the Financial Post, Terence Corcoran blames the supply management fans and other anti-free market types for Maxime Bernier’s loss in the federal Conservative leadership race:

On Monday, during a noon-hour Ontario CBC Radio show, the host opined that Maxime Bernier lost the Conservative leadership because of his “wild ideas,” as if the libertarian politician from Quebec had been offering conservatives options too crazy to contemplate.

Wild ideas? In the recent history of Canadian politics, no politician has been more grounded or sane.

[…] if accounts from the frontline are accurate, Bernier would have won the leadership were it not for vote-rigging infiltrators from the farmers’ unions and associated backers of supply management.

One source says that as many as 3,000 points went to Scheer, mostly in Quebec and Ontario, as a result of an organized campaign in which farmers temporarily joined the Conservative party and then cast votes against Bernier.

Bernier didn’t lose the leadership vote; it was stolen from him by a concerted campaign organized by members of Union des producteurs agricoles (UPA) and farmers in Ontario. Via Facebook, Quebec farmers and others were urged to join the Conservative party and vote for Andrew Scheer.

Three Quebec ridings tell the story. One is Beauce, Bernier’s home riding. Right off the bat, in the opening round of the ranked ballot, Scheer collected 46.63 per cent of the points against 47.5 per cent for Bernier. By the end of the final round, Scheer was at 51 per cent versus 48 for Bernier — in a riding where Bernier is a local hero among Conservatives and hardly anyone would even know Scheer’s name.

May 29, 2017

Who the heck is Andrew Scheer?

I admit, I wasn’t really paying attention to the federal Conservative leadership race … I’d blithely assumed that Mad Max would win … so I didn’t pay much attention to the other candidates (other than my local MP, who was eliminated on the 12th ballot). So who is this new guy? Tom Flanagan thinks he’s the Tory version of our current “sunny ways” Prime Minister, god help us:

Andrew Scheer is the new Conservative leader, beating Maxime Bernier by the narrowest of margins, 51 per cent to 49 per cent. Mr. Bernier campaigned on an adventurous platform of economic libertarianism, including an end to supply management and corporate subsidies, and new approaches to equalization and to health-care funding. Mr. Scheer, in contrast, stressed continuity with past party policy. He positioned himself as the consensus candidate, the leading second or third choice.

Mr. Scheer is 38 years old, young for a political leader but not impossibly so. (Joe Clark became leader of the Progressive Conservatives at 37 and went on to beat Pierre Trudeau in the next election.) Though young, Mr. Scheer already has a lot of political experience. He has represented Regina-Qu’Appelle for 13 years and won five consecutive elections in his riding. He has also been Speaker of the House of Commons and House Leader of the Conservative Party under Rona Ambrose.

Mr. Scheer’s political roots are in Reform and the Canadian Alliance, but he followed Stephen Harper in abandoning the sorts of libertarian policies still favoured by Maxime Bernier. As leader, Mr. Scheer will continue to pursue Mr. Harper’s goals of lower taxes, balanced budgets, and closer cooperation with Canada’s international allies – things that all Conservatives agree on. Like Brad Wall, premier of his home province of Saskatchewan, he is vociferously opposed to the Liberals’ carbon tax and has promised to repeal it, though that may prove difficult to accomplish if and when he finally comes to office.

Oh, goody! He still supports market-distorting supply management and crony capitalist subsidies for “friends of the PM”. I’m sure he’ll fit in just fine in Ottawa — they’ll make room for him at the trough. Yay!

May 28, 2017

Maxime Bernier falls just short of victory in federal Conservative leader race

Filed under: Cancon, Liberty, Politics — Tags: , , , , — Nicholas @ 08:37

He was defeated on the thirteenth ballot by Andrew Scheer (who?)

Andrew Scheer emerged as Conservative leader after 13 ballots on Saturday evening, a surprise victory but one with which most Tories seem to be at peace.

He overtook Maxime Bernier on the final ballot, thanks to the support of social conservatives — even though he has pledged not to reopen the abortion debate — and Quebeckers upset at Bernier’s stance on supply management.

Bernier was struck by the 30 per cent curse: no Canadian leadership candidate has won after recording less than 30 per cent on the first ballot.

Scheer’s victory was a vote for moderation and continuity — a very conservative choice.

The new leader performed strongly in Quebec, even beating Bernier in his home riding of Beauce. He also won in Ontario, Atlantic Canada and his home province of Saskatchewan.

Scheer won by just 7,000 votes in the popular vote.

It’s pointed out that Bernier’s opposition to our illiberal protectionist supply management system may have been the deciding factor (it certainly cost him support in his own riding and in Quebec as a whole). It’d be almost amusing if Justin Trudeau is forced to break up the supply management system as a concession to save NAFTA…

April 20, 2017

Without our sacred supply management, it’d be “Human sacrifice! Dogs and cats living together! Mass hysteria!”

Filed under: Business, Cancon, Economics, Food, Politics — Tags: , , , — Nicholas @ 05:00

Colby Cosh saddles up old Rocinante and has a tilt at the ludicrous supply management regime in milk:

You remember how Chobani, a hipster yogurt business based in New York state, got a temporary permit to sell the product in Ontario and won over customers. You know how it tried to meet our supply-managed dairy system halfway by making plans for a factory in Kingston. You know how milk processors waged berserker war in court to prevent the permit from being renewed, and closed ranks to deny the company a supply of Canadian milk.

And, most of all, you know how the product disappeared from our shelves, how Canadians still seek it out on cross-border trips, and how slow and confused the dairy cartel was about meeting the new demand for extra-heavy yogurt. None of this is going to be too easy to explain to a four-year-old.

I hasten to add that I am not seriously playing the “Won’t someone think of the children” card so beloved of politicians, newspaper columnists, and other shameless scum. The four-year-old will get over it. She’ll grow up in a free-trade Canada in which she does not have to accept a world of consumer second-bests, simulacra, and make-dos, except possibly in the dairy section. She can have no personal memory of Seventies Canada — never know what it is like to switch from Eaton’s to The Bay just to buy slightly different versions of the same low-quality, unfashionable crap. The question I grew up with was “Why does Canada have seemingly permanent poorer living standards than the U.S.?”; now it is just “Why are the cheese sections in our grocery stores so pathetic?”

So, Mad Max to the rescue? Not if champion protectionist Steven Blaney can stop him:

… supply management froze the world of Canadian dairying at a perfect moment for Quebec, and so the system has become a sacred cow made of other, literal cows. Because economists and intellectuals know that supply management is a transfer of wealth from consumers of all classes to a few thousand affluent farmers, the beneficiaries reinvest a great deal of the profit in hapless, defensive public-relations efforts that only tend to make us loathe them more.

They have even found a political champion in Steven Blaney, the cadaverous oddball from the Eastern Townships who is in the Conservative leadership race to play milk spoiler to fellow Quebecer Maxime Bernier. Bernier wants to retire supply management by buying farmers out of their quotas with a national tax on dairy, lasting for a fixed period.

This is a generous approach to free trade in dairy: it is a buyout of unearned entitlements. Producers who want to leave the industry would do so with an enormous grubstake — the kind of which workers laid off from regular jobs can only dream. Those who hang in there would get to keep something like the present value of their annulled production quotas as they face new careers in an honest-to-God marketplace (which is what some of them very much wish to do).

January 14, 2017

Mad Max for PM!

Conservative leadership candidate Maxime Bernier gets an unusually even-handed profile from the CBC:

Bernier’s life is a moveable banquet of rubber chicken, and shaking grimy, anonymous hands, and pretending great interest in everyone, trying all the while to turn the discussion to Maxime Bernier. And perhaps asking for some money while he’s at it.

Actually, that’s unfair. What Bernier mostly turns the discussion to is his ideas.

He’s libertarian, to the extent that it’s possible to be a libertarian and seek high office in a country that was built on protectionism and entitlement and government being the answer to everything.

He advocates the end of quotas and supply management for dairy, poultry and eggs. Oh, and maple syrup. Most Canadian politicians — let alone MPs representing rural Canada like Bernier — prefer to leave such topics undiscussed.

He wants to abolish interprovincial trade barriers. Stopping companies from growing into other Canadian jurisdictions, or stopping workers from travelling between provinces, he characterizes as “foolish,” “doubly foolish” and “ridiculous.”

Go ahead and argue with that.

Bernier wants an end to what he calls “corporate welfare,” his term for governments using tax money to pick winners, such as Bombardier and General Motors, and letting losers struggle with market forces.

If you’ve been reading the blog for a while, it’ll come as no surprise that Bernier is far and away my preferred choice for Tory leader.

November 30, 2014

Bad politics, bad economics and the “great chocolate shortage”

Filed under: Africa, Economics, Food, Government — Tags: , , — Nicholas @ 00:04

Tim Worstall explains that the fuss and bother in European newspapers about the “market failure” in the chocolate supply is actually a governmental failure (a market sufficiently bothered by legislation and regulation):

The last few days have seen us regaled with a series of stories about how the world is going to run out of chocolate. That would be, I think we can all agree, almost as bad as running out of bacon. So it’s worth thinking through the reasons as to why we might be running out. After all, cocoa, from which chocolate is made, is a plant, it’s obviously renewable in that it grows each season. So how can we be running out of something we farm? The answer is, in part at least, that there’s some bad public policy at the root of this. As there usually is when something that shouldn’t happen does.

Here’s the basic story in a nutshell:

    A recent chocolate shortage has seen cocoa farmers unable to keep up with the public’s insatiable appetite for the treat–and the world’s largest chocolate producers, drought, Ebola and a fungal disease may all be to blame.

Much of the world’s chocolate comes from West Africa so the disruption by the Ebola outbreak is one obvious part of it. But the shortage is not something immediate, it’s something that has been coming for some years. Ebola is right now, not a medium term influence. Drought similarly, that’s a short term thing, and this is a medium term problem. It’s also true that as the world gets richer more people can afford and thus desire that delicious chocolate.

[…]

Ahhh…the government is paying the farmers £1 a kg or so and the market is indicating that supply and demand will balance at £1.88 a kg. So, what we’ve actually got here is some price fixing. And the price to the producers is fixed well below the market clearing price (although the government most certainly gets that market price). So, we’ve a wedge in between the prices that consumers are willing to pay for a certain volume and the price that the farmers get for production. So, therefore, instead of it being the price that balances supply and demand we end up with an imbalance of the supply and demand as a result of the price fixing.

This is how it always goes, of course, whenever anyone tries to fix a price. If that price is fixed above the market clearing one then producers make more than anyone wants to consume (think the EU and agriculture, leading to butter mountains and wine lakes). If the price is fixed below the market clearing one then producers don’t make as much as people want to consume. This is why it’s near impossible to get an apartment anywhere where there is rent control. And if prices are fixed at the market clearing price then why bother in the first place? Quite apart from the fact that we’ve got to use the market itself to calculate the market clearing price.

May 6, 2013

A Canadian criminal innovation – cheese smuggling

Filed under: Cancon, Economics, Food, USA — Tags: , , — Nicholas @ 09:58

The CBC reports on a breathtaking news item … imported mozzarella cheese is being removed from the clutches of the supply management system, which will reduce prices by a significant amount:

Pizza lovers could soon be paying less for their favourite pies.

A ruling made this week by the Canadian Dairy Commission could soon allow Canadian restaurants to buy deeply discounted mozzarella cheese.

The commission changed the rules used to classify mozzarella cheese, putting the milk product in its own class and essentially removing it from supply-management pricing. Before the ruling, the price for mozzarella cheese in Canada was artificially high when compared to the world market.

The new class, to take effect June 1, is expected to result in lower costs for Canadian-made mozzarella for restaurants that prepare and cook pizzas on site.

Bob Abumeeiz, who owns Arcata Pizzeria in Windsor, Ont., said the ruling could drop the price of a large pizza by as much as 10 per cent.

Oh, and the cheese smuggling?

High prices are part of the reason some pizzeria owners were turning to contraband cheese, smuggled into Canada from the U.S.

Last fall CBC News learned three men, including one current and one former police officer from the Niagara Falls area, were charged in connection with an international cheese-smuggling network.

The men are accused of smuggling caseloads of cheap cheese from the U.S. to sell to Canadian pizzerias and restaurants.

March 6, 2013

QotD: Canada Syndrome

It’s one of the marvels of the Canadian electorate. Show Canadians a special interest group that uses its government-granted privileges to fleece consumers, and they’ll embrace it as a “national champion,” a “uniquely Canadian way of life” or some equally vapid catch-phrase.

This is from the Wikipedia entry for Stockholm Syndrome:

    Stockholm syndrome, or capture–bonding, is a psychological phenomenon in which hostages express empathy and sympathy and have positive feelings toward their captors, sometimes to the point of defending them.

What we suffer from is the economic policy equivalent. Call it “Canada Syndrome”: a tendency for consumers to identify with the producer interests that are holding them hostage.

Stephen F. Gordon, “Our Stockholm Syndrome about supply management”, Maclean’s, 2013-03-05

February 11, 2013

Senate report calls for tariff cuts

In the Financial Post, Terence Corcoran looks at the good and not-so-good aspects of a recent Senate report on the reasons Canadians pay so much more for goods than Americans (even when the goods are identical and the currencies are trading at par):

Retail prices in Canada, seemingly across the board, are higher. Even with the Canadian dollar at par, the price of everything from running shoes to televisions and Chevy Camaros to books is said to be above U.S prices. One bank report once put the Canada-U.S. price gap at 20%.

Somebody’s gotta do something, everybody agrees. Enter the Senate committee with one of the most hard-nosed, market-driven overviews of how and why Canadians pay more for goods at retail. The report dodges and fudges some key issues, especially farm product supply management, which was seen by the committee and the retail industry as too politically hot to handle.

[. . .]

Even in this, however, the committee pulls its first punch. The recommendation to “review” such tariffs — watery phrasing in itself — also suggests “keeping in mind the impact on domestic manufacturing.” Sorry, folks, but you can’t have it both ways. Tariffs are protectionist devices for manufacturers that consumers pay for. If you want to reduce the price to consumers, the $3.9-billion in protection for manufacturers has to go. End of discussion.

What makes The Canada-USA Price Gap even more valuable is its compact insights into the many causes of higher retail prices in Canada. The economy is a complicated and often unfathomable series of market and price relationships beyond the power and even understanding of policy makers. The report recognizes that fact time and again.

November 24, 2012

Regulating food container size as a form of soft protectionism

Filed under: Bureaucracy, Cancon, Food — Tags: , , , , — Nicholas @ 10:54

Terence Corcoran talks about the 1970s-era food packaging regulations that have suddenly become topical:

What started out looking like a regulatory non-event, the Harper government’s plan to repeal scores of petty federal rules governing the size of containers for packaged food in supermarkets, has suddenly become a great national food fight.

It’s industry against industry, food processors versus supply management, Heinz battling Campbell’s, baby-food makers against corn canners — all part of a war over jobs and trade and consumer dollars. Nominally over antiquated federal regulations, it’s also a war that highlights another reason why Canadian consumers pay more for products at the retail level.

[. . .]

Never mind peanut butter. Ottawa has detailed container specs for what looks like every food product on store shelves: canned vegetables, fruit juices, vacuum-packed corn, tomato juice, maple syrup, frozen spinach, pork and beans, bagged potatoes, soups, desserts, pies, sauerkraut, horseradish sauce, wine — and many more.

It is unclear why these detailed container-size regulations exist, but one explanation is that they are a result of Ottawa’s mass conversion to metric measure in the 1970s under then prime minister Pierre Trudeau. Under the metrication rules, the law mandated metric for all prepackaged food products.

Whatever the intent of the detailed regulations, the effect has been to erect trade barriers that have created protected industries that are now opposing the proposed changes. The Food Processors of Canada set up a web page, KeepFoodJobsInCanada, promoting an email campaign to force Agriculture Minister Gerry Ritz to block the plan to repeal the container-size regulations. It seems to have worked, so far.

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