“Once again unto the breach” (sorry Mr. Shakespeare) President Trump jumps into a situation of which he has absolutely no understanding. He is making a habit of it and this time he is trying to skewer the Canadians. He has pitted the free market, unfettered Wisconsin dairy farmers against what Trump calls the ‘unfair’ position of Canada’s farm marketing boards.
That must be what you get when you do something decent for people. The milk marketing board in Ontario is probably always under fire for its trying to balance the cost of production with the price at the farm gate for milk. What it is trying to do is to keep farmers producing while keeping the price to consumers at a reasonable level.
Americans should not knock it until they try it. Under the Canadian boards, a company that unilaterally cut off 75 farmers because it wanted to switch to lower world milk prices would be out of the milk-related business. A Canadian board would not allow that kind of disruption in the market.
But President Trump is telling the farmers in Wisconsin that we are just unfair. Tell that to the soft-wood lumber people in British Columbia. He really does not understand that you cannot have free trade agreements with other countries and then demand that federal and state governments buy American to the exclusion of your free trade partners.
What Trump does not understand is that the highly integrated North American market demands open borders to speed commerce back and forth. Canada exports far more raw materials to the United States for processing than the U.S. sends to Canada. We are probably America’s most reliable supplier. We are also the best customer that America has ever had.
Cooler heads in Washington had better start thinking seriously about where Trump is taking them. If he really starts building walls between countries that are his neighbours, he is liable to start something he cannot control. His approach to these concerns could throw North America into an economic tailspin that could ultimately create a world-wide recession. Will anyone want to ‘buy America’ then?
Donald Trump should start getting his information straight or shut up.
Copyright 2017 © Peter Lowry
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