Obama's Trade Deal Will Bankrupt Canada's Farming Industry "Overnight", Expert Says

Tyler Durden's picture

Earlier this month, in “Forget China: This Extremely "Developed" Country Just Suffered Its Biggest Money Outflow Ever,” we took a close look at Canada, where slumping crude prices are beginning to take a serious toll. As we noted, citing BofAML, Canada’s basic balance - a combination of the capital and the current account: a measure of national accounts that spans everything from trade to financial-market flows - swung from a surplus of 4.2% of GDP to a deficit of 7.9% in the 12 months ending in June. That’s the fastest one-year deterioration among 10 major developed nations.

 

Citing Sharma's data Bloomberg wrote that "money is flooding out of Canada at the fastest pace in the developed world as the nation’s decade-long oil boom comes to an end and little else looks ready to take the industry’s place as an economic driver." In fact, based on the chart below, the outflow is the fastest on record.

Well now, on the heels of the Obama administration's rejection of the "dangerous" Keystone Pipeline (which comes as oil tankers continue to derail across the country), some critics say The White House's controversial new trade deal could end up costing beleaguered Canada massive job along with the "overnight" collapse of their agriculture industry. Here's more, from Sputnik:

There are also major concerns over the effects the trade deal will have on Canadian agriculture industries.

 

Dr Sylvain Charlebois, professor of distribution and food policy at the University of Guelph's Food Institute in Canada, told Sputnik there were many unanswered questions in the deal.

 

"I think overall, reading the deal, there are some very strong elements to support Canada's membership into this partnership. However, there are a lot of unknowns unfortunately, particularly in the area of agriculture."

 

Dr Charlebois said that Canada's protectionist supply management scheme, which works to protect local industries, would be thrown out under the TPP, with concerns over how this would impact local producers.

 

"Canada has supply management, particularly with poultry, milk and eggs, so we basically produce what we need in Canada. Now the Trans-Pacific Partnership would compromise the equilibrium we have between supply and demand domestically […] allowing milk from other member countries to come into the Canadian market."

 

"What would happen to quotas for example? But most importantly, what would happen to processing? So there's lots of questions being asked by farmers and processors, and now with the changing government, hopefully we'll get some clarity on these issues."

Charlebois goes on to say that the dairy, egg, and poultry sectors may indeed collapse "overnight":

The supply management scheme has been in place since the mid-60s in order to protect Canadian agricultural sectors from larger US corporations. 

 

As a result, Dr Charlebois says the local industries have become complacent and inefficient, and would not be able to survive under the TPP if it was implemented immediately. "Overnight if we were to eliminate tariffs on imports, we would likely see the dairy sector in Canada, and perhaps the poultry and egg sectors, collapse overnight.

 

"We're just not competitive so we need to give it some time for these sectors to adapt and change their modus operandi to make sure they do become more productive and efficient over the next 15 years or so."

So, with Canada already stinging from plunging crude, some are now suggesting that TPP could be set to cripple the country's economy even further. Meanwhile, Jim Balsillie, former co-CEO of BlackBerry - which is of course “dominating” the global smartphone market - thinks this is the “worst thing Canada has ever done": 

“I’m not a partisan actor, but I actually think this is the worst thing that the Harper government has done for Canada… I think in 10 years from now, we’ll call that the signature worst thing in policy that Canada’s ever done. It’s such brilliantly systemic encirclement.

 

I’m just in awe at its powerful purity by the Americans… We’ve been outfoxed.”

Yeah ok, maybe, but let's just be honest, the Obama administration has never "outfoxed" anyone on anything. In fact, if recent geopolitical outcomes have taught us anything, Obama and Kerry couldn't "outfox" their way out of a wet paper bag, so to the extent they've designed some kind of cunning trade policy with the aim of bankrupting the Canadian dairy industry it would out of character, but again, stupidity sometimes produces unpredictable outcomes. 

Anyway, incompetence and naïvety do have a way of creating unexpected consequences so we hope, for Canada's sake, that the The White House doesn't end up bankrupting everything chicken-related north of the border but if it does, don't worry, because that same incompetence will invariably end up starting a world war in Syria which will swiftly drive crude prices through the roof and then it's problem solved for the Canadians...

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Normalcy Bias's picture

It's like he has the Midas Touch, except that everything he touches turns to shit.

yogibear's picture

What do you expect? He's from Chicago.

That town sold off their parking meters and Chicago Skyway for cash they already spent.

In a way Obama is Cihicagoizing the rest of the country.

Looney's picture

<<< Niggay

<<< Best prez ever

Looney  ;-)

y3maxx's picture

prediction...

Someone very big is gonna get suicided in an Archduke Ferdinand moment

 

hedgeless_horseman's picture

 

 

Charlebois goes on to say that the dairy, egg, and poultry sectors may indeed collapse "overnight"

Thank God raise our own poultry, some of which we just butchered that are now drying on the kitchen counter...

...and this spring's chicks are already laying.

nmewn's picture

Nice posing/positioning...looks like a nekid chicken dance...lmao! Yeah I know, they drain better that way...still...lol.

hedgeless_horseman's picture

 

 

Yeah I know, they drain better that way.

Really?

Shit.

I thought mrs_horseman was hinting at something.

BurningFuld's picture

As a Canadian I would just like to say I'm not going to drink the USA's shit milk. Sorry.

highandwired's picture

Shit milk in Canada isn't any better and as far as I'm concerned, the sooner this marxist, collectivist paradise collapses, the better. 

 

I don't know why people think so highly of Canada.  We are just another US state.  Lapdogs to the Obama regime.  Fuck Canaduh!

 

Oh and eggs are shit here too.  Frankenfood

0b1knob's picture

I can remember when an earlier treaty eliminated or reduced tarrifs on US butter, cheese and other dairy products in New Zealand.

American products were of such inferior quality that no one would buy them at any price.   The butter was even unsuitable for movie theater popocorn.

cheka's picture

free trade bitches

where nyc/dc trades your jobs/life for holiday bonus pools

trump is right -- tariff every import, no matter who makes it

nmewn's picture

Faaarrreee! trade is not the same as fair trade. Faaarrreee! trade sounds all warm and fuzzy but when practiced with the wrong hands results in Chinese i-shit makers jumping out of windows in Apple Valley, communist China.

Jus sayin ;-)

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) nmewn Nov 9, 2015 10:06 PM

Pound Sign CanadianBeerLivesMatter!

Occident Mortal's picture

I can't imagine Canadians will buy American milk or eggs.

 

Terrible.

 

Americans mostly eat dehydrated plastic.

 

Last time I was there I was picking up some stuff in Wallmart and found a grapefruit... $8.00

WTF?

 

Meanwhile the locals would fill their carts with "mechanically recovered meat".

 

It was quite an experience. I completely understand how their capitalist class see the public as cattle. They are cattle.

old naughty's picture

hey, no worry...

"rich-in-reserve" China will buy up bankrupt farms;

or, farmers can switch overnight to grow "legalized" weeds, the new guy who booted out the bad guy who signed the deal...said he would.

 

 

Bangin7GramRocks's picture

That's funny because in the U.S., we don't even use our shit butter for popcorn. They created a truly horrifying oily goo that causes cancerous "popcorn lung" in the workers that produce this nightmare. There is no food in our food.

MalteseFalcon's picture

Wherever you live, buy and support local food.

Avoid corporate food and avoid GMOs and "additives".

Local food is healthier and tastes better.

It's actual food.

itchy166's picture

You obviously don't spend much time travelling between the two countries.  The difference in food quality is astonishing - especially at the price level that the average working family shops at.  

 

highandwired's picture

Keep thinking that you are an exceptional Canadian...the peacemaker, the most loved people in the world.  Mass delusion in this country!

itchy166's picture

I'm in North Dakota you dork.  I go to Canada to escape the police state now and again. We were taliking about how there is a difference in food quality (unless you pay through the teeth), due to the factory-ization of American food.

 

 

 

highandwired's picture

And you're talking talking to me about travelling.  You've probably never been outside of north America, YOU dork!

uhland62's picture

Our Australian A2 milk is really good. When you buy organic eggs and don't eat too many, the teenagers' acne is likely to go away. Unfortunately it takes about 2 months for the glunk to wash out of the system. 

The viciousness of the TPP is apparent when you look at the exit clause - nowhere to be seen.

If we don't like the outcome we can't leave the Trojan "Trade Partnership' ????? How do we make it clear to the politicians that we have NOT given them a mandate to sign up for such a vicious Trojan???

Peak Finance's picture

Just FYI: Clean eating + Detox drinks you make at home with lemom in arm water and some othet herbs to taste (peppermint maybe) + extra hard cardio will clear you out quickly. 

Dan&#039;l's picture

One thing that shocks me every time I go to Canada is the super high cost of shit beer and wine. A bottle of crappy wine is 3x the price in the USA. I find the food to be of a higher quality, but it's priced accordingly. I can buy excellent food here, but not at Wally World. I raise my own Berkshire hogs, so I know what I'm eating and you can't beat homemade Pancetta, Guanciale and my own sausage, etc. 

itchy166's picture

Wine is all tax.  If you really want a surprise, buy chewing tobacco up there...

astoriajoe's picture

I'll have to look for some of that Guanciale. sounds interesting. 

roddy6667's picture

Why don't you move to somewhere that has better food and more freedom?
Where would that be?

Redneck Hippy's picture

I was going to ask why it's Obama's fault that Canada's going broke because of the TPP.  I was under the misimpression that Canada was a sovereign state, but if it's really our 51st state, I understand.

greenskeeper carl's picture

Ya, I'd be in the same boat. I only buy organic because I don't want my kids drinking BGH. I'm American too. We use shit in our food that's banned in a lot of countries. But that's something I'm curious about- removing tariffs, etc isn't going to flood the market with a product if the product comes with chemicals in it that are banned for human consumption in that country, so does obamatrade repeal those bans too?

A Lunatic's picture

Eventually nothing will be banned because the corporations will sue (and win) for financial losses incurred by said bans. Get used to eating toxic waste.....

logicalman's picture

Have never been a fan of cow juice.

You going to give up cheese too?

Anyway, what's wrong with the occasional dose of growth hormone?

I know Monsanto is a big producer of rBGH, so it MUST be safe.

 

highandwired's picture

Don't worry, he gets his FAIR SHARE of growth hormone and the rest of the poisons in his milk he speaks so highly of

ceilidh_trail's picture

Enjoy your 7 buck a gallon milk and 8 buck a pound butter! 

itchy166's picture

Milk for a gallon (at convenience store prices) is $4.99CAD in Alberta (that's $3.75US). Butter is about $5.99 (or $4.50US).

Most food in southern Saskatchewan is cheaper than here in North Dakota.  Of course, Canadians aren't paid in US dollars.

The real difference in prices are alcohol, cigarattes and other tobacco products, and gasoline which are all taxed to death up there...

 

 

Money Counterfeiter's picture
Money Counterfeiter (not verified) nmewn Nov 9, 2015 9:00 PM

Protectionism argument crap.  Been awhile since I heard this moaning and bitching.  Suck it up Canada and produce something you can export.

Philo Beddoe's picture

Container ships full of tiitie bars. Could work. 

hedgeless_horseman's picture

 

 

Suck it up Canada and produce something you can export.

This is a quality Canadian export...

...despite that tyrannical cunt on the other side.

Ajax_USB_Port_Repair_Service_'s picture

Hell yes! That's what I'm stacking! Canadian bacon and eggs on a cold winter morning is good too.

greenskeeper carl's picture

Ain't that the truth. She fucks up a lot of good looking coins. Did you see the Brit silver this year? Mine look like they are chromed, and beautiful detail on the non-queen side as well. I like the Aussie coins a lot too, and I have some maples as well. All ruined on one side with that 'tyrannical cunt' as you so eloquently put it.

stewie's picture

At first I thought you meant "on the other side [of the border]".  There's a tyranical cunt there too ;o)

FIAT CON's picture

All Canadian mint coins and bars are .9999 and they also mint coins and bars for other countries perhaps not for the USSA hence their mint coins state they are minted of "fine gold" then diluted to 22K gold and american silver eagles are .999 silver so I guess Canada has you beat.

Poop on a stick's picture

They'd be nice if RCM products didn't get shitty milkspots on every single coin.

greenskeeper carl's picture

I would take a shot in the dark here and say that the main reason they aren't competitive now is because they probably labor under a bunch of stupid rules enforced by mindless bureaucrats that keep them bogged down. If they were freed from government bullshit, that would probably allow them to be that much more competitive. I'm sure someone Canadian can chime in and tell me if I'm on the right track here, but id look there before blaming the farmers.

Typical government - regulate an industry to the point it's uncompetitive then cry when the inevitable happens.

highandwired's picture

Think of the USSA...add in a police state...oh wait...add in collectivism...oh wait...

 

Yeah it's pretty much the same as the good old USSA

itchy166's picture

I am beginning to think you've never actually been to Canada.  Not that it isn't heading that direction, but shit man - there are almost no cops, there is definately nothing even remotely close to a police state.