Regulation and Protectionism under GATT: Case Studies in North American Agriculture

By Andrew Schmitz; Garth Coffin et al. | Go to book overview

the relative political importance of groups that oppose substantive changes in the existing systems, have been made to date. Considerable room for economic and administrative reform still exists.

In the case of poultry industries, Skogstad has argued that the failure to make reforms is primarily the fault of Canada's first generation of marketing agencies and the associated governments that have failed to require "that producers think of their industry as a Canada-wide one, and enable their representatives in the private interest governments that implement supply management policies to set aside provincial concerns and promote the well-being of the Canadian industry as a whole" ( 1993). Nevertheless, consumers need more credible representation, "the type that will only come with better public funding of consumer advocates, either by government directly or by special levies of the marketing agencies" ( Skogstad, 1993), as well as much patience if they are going to play a role in encouraging that change.


Notes
1.
However, the relationship is not invariant and may change according to the issue or over time as adequacy of supply changes. An illustration was the battle during 1991-92 of the Ontario Chicken Producers Marketing Board and the Ontario processors over pricing policy before the Ontario Farm Products Appeal Tribunal. On the poultry task force itself, the primary processor representative chaired the committee, weakening this group's opportunity for input.
2.
Also relevant in this context are the interests and efforts of current dairy importers to have their considerable potential financial stake maintained through their efforts to achieve legal ownership of post-GATT tariff-rate import quota. These efforts are supported by the supply-side coalition which currently encompasses this group. This coalition opposed allocation of import quota by auction, the method recommended for dairy products and eggs by the Canadian International Trade Tribunal (CITT) following the inquiry into the allocation of import quota (CITT, 1992). With auction allocation, import rents would be captured by the government, rather than by the importers. The supply-side dairy coalition also unsuccessfully proposed that new dairy tariff-rate import quota be allocated to the Canadian Dairy Commission ( CDC) and that the CDC operate a private treaty quota exchange.
3.
Consumer representation was excluded in the subsequent and latest generation of supply management task forces, the Federal-Provincial Task Force on Orderly Marketing, or Vanclief task force, named after its chair, the parliamentary secretary to the Liberal Minister of Agriculture, Ralph Goodale, who appointed this group in early 1994 to guide post-GATT policy for the supply-managed sectors. This body stated, "changes to existing structures should be tied to the level of risk assumed by the participants" (Federal-Provincial Task Force on Orderly Marketing, 1994). This view ignores the considerable consumer interests in and costs of the existing structures and reflects the supply-side composition of this task force.

-296-

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Regulation and Protectionism under GATT: Case Studies in North American Agriculture
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Acknowledgments vii
  • About the Editors and Contributors ix
  • Section One - Overview of the Effects of Gatt 1
  • 1 - Itroduction: Trade and Regulations in Transition 3
  • References 18
  • 2 - Post-Gatt Assessment of the World Marketplace 20
  • Notes 35
  • 3 - Consequences of Tariffication 37
  • References 50
  • 4 - Supply Management Under Minimum Import Access Requirements 51
  • Notes 62
  • References 62
  • 5 - Imports into Canada: Why Have They Remained Low? 64
  • Notes 76
  • References 77
  • Section Two - Case Studies of Gatt's Effects 79
  • 6 - Regulation -- the Us Dairy Industry 81
  • References 94
  • 7 - Cost Competitiveness in the Canadian and Us Dairy Industries 96
  • Notes 115
  • References 116
  • 8 - Supply Management and Vertical Coordination: the Role of Cooperatives 118
  • Notes 126
  • References 127
  • 9 - Value-Added Economic Potential 128
  • Notes 145
  • References 146
  • 10 - Tobacco Supply Management: Examples from the United States and Australia 147
  • References 158
  • 11 - Gatt and the Us Peanut Market 160
  • Notes 178
  • References 179
  • 12 - The Us Sugar Industry: the Free Trade Debate 180
  • Notes 199
  • References 201
  • Section Three - Regulation and Supply Management 203
  • 13 - Supply Management Canadian Style 205
  • Notes 221
  • References 223
  • 14 - Power Relationships in the Political Process 226
  • Notes 241
  • References 244
  • 15 - Provincialism: Problems for the Regulators and the Regulated 245
  • References 267
  • 16 - Provmcial Versus Centralized Pricing: Protectionism and Institutional Design 269
  • References 283
  • 17 - Venturing into the Political Market 284
  • Notes 296
  • 18 - Vertical and Horizontal Coordination 299
  • Notes 312
  • References 313
  • 19 - Will the Supply Management Cartel Stand? 314
  • Notes 330
  • References 330
  • About the Book 332
  • Index 333
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