ADMS 1010 Final Exam
Essay Question (50 marks)
The article below indicates that government may give up Canada’s supply management regime, which
protects many parts of Canada’s agricultural sectors, in order to gain strong free trade agreements with
1. Using Porter’s Five Forces analyze the impact to Canada’s agricultural competitiveness if the
supply management system if it is opened up to free trade. (25 marks)
2. Based upon the wine case, please say what the government of Canada could do to prepare
Canada’s dairy industry for a future free trade agreement. Describe the benefits it initiative
would bring. (25 marks)
March 13, 2012
Which side of farm's supplymanagement fence are you on?
By John Ibbitson
Globe and Mail Update
Many farmers and other supporters argue passionately for continued protection for
poultry and dairy, while many economists and business groups condemn it
Hundreds of comments, emails and tweets greeted Monday's column, which opined that Stephen Harper might be
willing to abandon the supply management system.
That system protects dairy and poultry farmers from foreign competition. The column predicted that the Prime Minister
would dismantle these protections if that was the only way to secure access to the Trans Pacific Partnership, an
ambitious free trade agreement currently being negotiated among Pacific nations. We should know the future of supply management by September, when the United States is expected to decide whether
it supports this country's accession to the talks. If Canada is invited to the table, then that means supply management
will be on the table.
Many farmers and other supporters argue passionately for continued protection for poultry and dairy, while many
economists and business groups strongly condemn it.
So what are those arguments, pro and con? Herewith, a brief primer on the two sides of the dispute.
In Praise of Protection
For four decades the federal and provincial governments have regulated the supply of dairy and poultry products,
through a system of quotas, marketing boards and tariffs. The system provides consumers with a safe and affordable
supply of milk, butter, cheese, eggs and poultry, while assuring farmers of predictable income.