One of the main sticking points in the ongoing NAFTA re-negotiation is Canada’s regulated dairy industry vs. America’s market-driven dairy industry. And it shouldn’t be.
The dairy industry in Canada uses a system called ‘Supply Management’ to produce only as much milk as is required (with no waste) for the Canadian market, and unlike the American dairy industry it isn’t an export-driven model.
Yet, it’s the United States under President Donald Trump that is pressing Canada to accept American milk into the Canadian market. That same United States subsidized its dairy industry to the tune of $22.2 billion (2015) a number that increases every year. In fact, without massive subsidies American dairy producers would go bankrupt in a year.
U.S. dairy subsidies equal 73% of producer returns, says new report
“Based solely on the USDA’s national average farm-gate price and national average costs of production, Clark says American dairy farmers lost money every year from 2005 to 2016. The report figures support granted to U.S. dairy farmers in 2015 represented approximately $0.35 per litre — almost three-quarters of producers’ revenue.” — RealAgriculture.com
Why President Trump or anyone in America’s dairy industry would want to subsidize Canadian consumers by $1 per gallon is a complete mystery.
American Milk Has High Levels of Growth Hormone and Antibiotics that are Illegal in Canadian Milk
Not one gallon of U.S. dairy product is allowed to be sold in Canada for this reason, although some Canadians do cross the U.S. border and are allowed by the Canada Border Services Agency to return with small amounts of American dairy products for their own consumption (but not for resale).
There are up to 20 chemicals, hormones and antibiotics in milk and Monsanto’s glyphosate is toxic to dairy cows
“According to the Daily Mail, a study published in the Journal of Agricultural and Food Chemistry released information that cow’s milk contains traces of anti-inflammatory drugs such as niflumic acid, mefenamic acid, ketoprofen, diclofenac, phenylbutazone, naproxen, flunixin, diclofena. The researchers also discovered hormones (both natural oestrogen and 7-beta-estradiol), antibiotics, anti-fungal drugs, steroids and Anti-malaria drugs (pyrimethamine) in milk and dairy products.” — excerpt courtesy of SeattleOrganicRestaurants.com
Will Canadians want to purchase dairy products sourced in the United States where such growth hormones, chemicals and antibiotics are on the ingredient list? Likely not.
However, those living in poverty might. Prison administrators in Canada who feed thousands of people every day might enjoy saving $1.00 per gallon of milk and save even more by purchasing American cheese and other dairy products — those savings courtesy of the American taxpayer.
Canadian Cows are Happy Cows!
(Because they don’t have to take bovine growth hormone or other nasty medicines or chemicals)
But it’s not all cowbells and sunny meadows for the Canadian dairy industry. Canada employs the Supply Management system which plots exactly how much milk will be required annually and the country’s milk producers must comply.
Canada’s dairy industry regulates the supply to ensure the optimum amount of milk for the Canadian market without the oversupply spikes or undersupply crashes that other countries experience due to market forces.
It means that every year some amount of Canadian dairy product is poured back onto the fields so that prices will stay high enough for Canada’s milk producers to stay in business. While pouring milk on fields re-adds vital nutrients to the soil it’s an expensive way for farmers to condition their soil. Consequently, it doesn’t happen very often.
Canada’s dairy industry is sized to fit the Canadian market and very little of the country’s milk is exported, therefore, American milk producers rarely compete with Canadian milk producers anywhere on the planet.
Canada’s dairy industry contributes about $20 billion CAD to Canada’s GDP, which is smaller than the $21 billion USD that the California dairy industry sells to Californians — but California also exports an additional $44 billion USD worth of dairy products to other U.S. states — and good for California! Both the Golden Bear state and other U.S. states benefit from the excellent growing and production conditions in California.
The Canadian industry threatens no other country’s dairy industry as it’s sized for Canadian needs alone — therefore, one wonders why President Trump wants to flood the Canadian market with subsidized American milk and other dairy products.
And the reason Trump wants to export U.S. dairy products is because there’s a huge supply glut in the United States which means that dairy producers there must either downsize or find new markets.
If President Trump wants to export American milk, here’s some food for thought; The total annual demand for milk in China is more than the United States could produce in 10-years — and 1.35 billion Chinese citizens pay an average of $7.00 USD per gallon of milk while 327 million Americans pay an average of $2.39 USD per gallon.
American milk producers could charge Chinese consumers $5.50 USD a gallon (and not require U.S. subsidies due to the higher retail price in China) and still sell every gallon they could ever hope to produce!
America’s leaders must stop focusing on microscopic markets like Canada where the market is already saturated with established Canadian producers and concentrate their efforts on the huge unfilled demand economies like China where they pay so much for milk that American subsidies could be discarded entirely and U.S. dairy products would still be cheaper than what Chinese consumers pay now.
It’s happened in previous decades and it’s happening again. Unelected Americans working within a U.S. Administration are (apparently) circumventing the will of a democratically elected U.S. president.
It happened to president Reagan, to president Carter, to president Nixon, to president Kennedy (ushering in the loss of innocence in America, and destroying a noble family in the process) and it happened to Ike Eisenhower who was America’s five-star general and Supreme Allied Commander in WWII before becoming the president of the United States. And all these U.S. presidents were legally voted into office by American citizens via a rigorous democratic process.
America has a problem.
Were the Unnamed Operatives Elected to be President, or Was the President Elected to be the President?
Of course Donald Trump was elected to lead the American people, to have the privileges of the highest executive office in the land, and to hold the most powerful keys of the country’s armed forces.
In defense of the unnamed operatives; There’s no doubt that such people interfere in the proper operation of the White House for the most altruistic of reasons and believe wholeheartedly that they’re doing the right thing for the United States and feel very patriotic about the actions they take. Certainly they’re risking their careers to stand up for what they believe is ‘right’ for America.
Therefore, I sincerely and profoundly admire the motivations of such operatives, but the simple fact is they’re wrong to subvert the will of American voters who voted — not for political operatives to run the country — but for Donald Trump to run the country.
Whether I like or hate President Donald Trump as a person (or like or hate his policies) or whether I’m his biggest backer on both counts (I’m not) this discussion must be about democracy in America and who is, and who isn’t, allowed to tamper with the process.
Maybe Trump Is All The Anonymous Operatives Say He Is: Regardless, He’s Still the President
What if President Donald Trump really is everything his detractors say; “Amoral, Impetuous, Adversarial, Petty, Half-Baked, Ill-Informed, and Occasionally Reckless” or his worst sin I suspect, not being under their control as they would like?
These operatives want him under some kind of control — not because he is bad for the country — but because he’s big, powerful, and scary, and such people need to be kept under control! (Don’t they?)
In an anonymous Op/Ed posted at the New York Times today the operative or operatives wrote, “It may be cold comfort in this chaotic era, but Americans should know that there are adults in the room. We fully recognize what is happening. And we are trying to do what’s right even when Donald Trump won’t.”
Shocking that any unelected official would say it in any country about any leader — let alone in the United States of America — one of the best democratic nations in the world.
In some countries, writing or speaking such words might get you arbitrarily imprisoned for a number of years, it might get you dead, or it might be the reason you hideout in another country for the next 25-years.
Yes, I ‘get’ that he is big, powerful, and scary, and he doesn’t negotiate using the same tried and true methods as previous American presidents. And to some people that means they must step in to control the situation — because to them — it means the president is out of control.
Or is it they just don’t recognize that the guy really is some kind of weird genius who, using the weirdest methods possible (to them) gets his way (which to Donald Trump, means getting America’s way) and is a breath of fresh air to American politics.
He isn’t like the last holder of that office, nor will Donald Trump be like his successor whomever that may be. He’s a one-off, unique communicator, and definitely an agent of change for the country.
But in their own way, so were Barack Obama, George W. Bush, Bill Clinton, George H.W. Bush, Ronald Reagan, and many others. Such a disparate and talented group of individuals American presidents are — and each one in his own way cut across boundaries to do great things for the country they love. You have to admire them as individuals regardless of which side of politics you’re on.
Whether you like Trump’s style or not, he is accomplishing things for the country. Bombastic, irreverent, loud and in charge, or however you want to term his style, he gets results and bad press — although I’ve seen harsher media coverage of a U.S. president.
All administrations have their chaotic moments. Most however, have plenty of experienced politicians working for them who know how to cover it with the White House press corps. But such is not the case with the Trump White House. Many people who work there are ultra-patriotic Americans who would take a bullet for their country, yet they might not have decades of beltway experience to guide them around Washington’s invisible traps.
But as long as Trump feels he is accomplishing good things for the country, he’ll stay on as the country’s leader. But he’s the kind of person who would resign if he ever felt he wasn’t contributing to America’s success. Such is his love for the country.
He’s the President for as Long as ‘We The People’ Say He Is
Barring ill health or accident, Trump is the President for the next 2 1/2 years.
The position of the American president is, by careful design, the person elected to carry out the will of the people and is the person most responsible for, and the most responsive to, United States citizens. It goes with the office.
The president of the United States works for the American people and his loyalty must be to them, and ultimately is accountable only to them. But those who work for the president, work for the president and are accountable to the president, not to voters.
Therefore, if these operatives feel they can do a better job as president, they should submit their resignation (and, if they feel the need) post a copy in the New York Times outlining the reasons they worked to subvert the decisions of the elected president, and at the next election run for the top job themselves.
It’s an honourable way to register their disappointment with the nation’s chief executive.
Four things have happened in relatively quick succession in regards to the Trans Mountain Pipeline Expansion project (TMX) that Kinder Morgan proposed back in 2013 and it’s important to understand those before proceeding.
- On November 29, 2016 Canadian regulators approved the Kinder Morgan Trans Mountain Pipeline Expansion project.
- On May 29, 2018, the Canadian federal government acquired the Trans Mountain Pipeline from Kinder Morgan for $4.5 billion.
- On August 30, 2018 the Federal Court of Appeals reversed the original decision of the court to approve the TMX pipeline.
- On August 31, 2018, the purchase of the TMX pipeline by the Canadian government from Kinder Morgan finally completed.
If the federal government wants to be able to restart work on the pipeline expansion project and be well placed to sell it to investors, the federal government of Canada must now enter into negotiations with the stakeholders who weren’t consulted in the original consultation process and gain their acceptance to allow the TMX pipeline expansion project to continue.
NOTE: On August 31, 2018 Alberta premier Rachel Notley pulled her province out of the federal government’s national carbon tax plan to register her displeasure with the Federal Court of Appeals and to put more pressure on the Justin Trudeau government to get the TMX pipeline completed.
How to Address Legitimate Safety Concerns of Vancouver and Burnaby Residents
It’s a huge undertaking to sail an oil tanker through English Bay and into Vancouver Harbour under the Lions Gate Bridge and the Ironworkers Memorial Bridge, park it at Parkland Oil Refinery and fill that tanker with 250-thousand barrels of oil, tar sands ‘dilbit’ material, jet fuel, gasoline or naptha (all of them highly volatile or explosive liquids) and then sail out of Vancouver through a frenetic crowd of marine traffic including float planes landing and taking off every few minutes, ferries, pleasure boats, container ships and cruise ships.
Vancouver Harbour is far too congested for this dangerous practice to continue. There are almost half a million people living and working within a few miles of both sides of that very narrow waterway.
It may have been OK back in 1953 when the Trans Mountain Pipeline was originally built, but it’s definitely not OK now.
A Solution Hiding in Plain Sight
What could solve these very serious issues, is to continue the TMX pipeline route on to Deltaport (a major industrial port south of Vancouver) and relocate the existing Parkland Oil Refinery in Burnaby, BC to Deltaport, BC. The existing site in Burnaby would need to be remediated as it’s unsuitable for housing or businesses due to the steep terrain and continuous rail traffic along the water’s edge.
The Delta Superport (Deltaport)
The Deltaport facility in Delta, BC is already the site of a major rail terminus where thousands of rail cars offload 29 million of tonnes of coal every day for transport to ports around the Pacific Rim trading area and other large scale industries operate in Deltaport.
There are container ship facilities there and also some shipbuilding and ship repair businesses operate within the industrial zone. The Delta Superport site (Deltaport) was specifically chosen because it’s well away from major population centres in case of land or marine-based accident at the site.
Also, in the event of pipeline construction delays or oil spills along the Trans Mountain Pipeline corridor, railcars could haul Alberta’s oil and dilbit to the Delta Superport as they already travel from Alberta and Saskatchewan to Deltaport 365 days of the year.
For an extra $5 billion (for example) the federal government could continue the pipeline to Deltaport and assist Parkland Oil Refinery Ltd. to move their existing oil refinery to Deltaport, thereby neatly solving every safety issue.
If taxpayer revenue isn’t used to enhance the safety and security of hundreds of thousands of people, what is the point of collecting taxes in the first place? Surely Job Number One for any level of government is the safety of its citizens — especially when such large numbers of people could be adversely affected in the case of a major marine spill and/or fire in Vancouver Harbour.
Moving the Burnaby Oil Refinery to Deltaport Solves Every Safety Concern
Captains of oil tankers that leave port full of refined oil products (like gasoline, for one example) will be happy to find they won’t be ‘deking around’ a dizzying flow of float planes taking off and landing, small transit ferries packed full of commuters, pleasure boats, container ships and cruise ships — as they are forced to do when they arrive and leave through Vancouver Harbour and Burrard Inlet.
In fact, the only activity at Deltaport is the ten bulk carriers (coal) that leave port every day and (judging on personal observation, although not recently) the one container ship that leaves port every night.
As mentioned earlier in this blog post, way back in 1953 the Burnaby location was probably the best option for the region — but with the huge increase of marine traffic in Vancouver Harbour and English Bay since those days, it’s an accident waiting to happen.
If the federal government wants a solution that works for everyone this should be their Number One priority — and failing that — perhaps the proposal I’ve suggested should become a requirement for any potential purchaser of the TMX pipeline before their bid would be accepted.
It’s the responsible thing to do.