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Andrea Harrington's avatar

It would be really helpful to debunk misinformation about the trade relationship between the US and Canada.

Donald has been very successful at convincing many Americans that Canada has massive tariffs against the US and is violating trade agreements. This is entirely false - and in any case if he believed it to be true, trade agreements have dispute resolution mechanisms that he has not availed himself of.

The most common “fact” parroted is that Canada has a 250% tariff on dairy. CNN repeated this today without even attempting to commit journalism. Aside from being extreme cherry-picking - 99% of all US goods come into Canada tariff-free - this misrepresents how dairy trade works. BOTH countries protect their dairy industry through a system of quotas and very high tariffs for imports above the quota. Not all imports. Canada imports a certain amount of dairy from the US and then applies an extremely high tariffs once the quota is met in order to prevent the market from being flooded with cheap imported dairy. The US does exactly the same already, though its over-quota tariff is in the range of 70%. The quotas and tariffs were consistent with the CUSMA, which Donald once bragged about signing, and which expanded access to Canada’s markets for US dairy without a reciprocal loosening of US dairy import restrictions.

The net effect is that Canada exports very little dairy to the US and is a net importer of US dairy.

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Or.G's avatar

The big money people are playing a dangerous game by allowing this bullshit to continue.

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