November 7, 2024 – Bill C-282 on supply management could limit Canada’s ability to secure future trade deals, jeopardize key economic sectors and put broader trade opportunities at risk, according to a new Verbatim.
In “Beware the Costly Spillovers from Bill C-282,” a presentation to the Senate Standing Committee on Foreign Affairs and International Trade, Daniel Schwanen, Senior Vice-President of the C.D. Howe Institute, raised concerns about the potential economic risks posed by the bill. Currently before the Senate, the bill aims to prevent the government from making market-access concessions in future trade agreements for supply-managed products.
“Dairy and other supply-managed sectors are, of course, important, comprising somewhat less than 1 percent of Canadian GDP and employment, with an outsized impact on some rural communities,” Schwanen noted. However, he cautioned that the bill negatively impacts trade prospects for the other 99 percent of the economy. He explained that jobs, tax revenues, and exports in Canada’s non-supply-managed sectors overwhelmingly depend on open trade agreements and the flexibility of negotiators to respond to global trends.
“The bill completely ties the hands of our trade negotiators in a global context where protectionism is on the rise,” Schwanen said. “Canada will have to be nimble and creative in responding to this challenge.”
Schwanen highlighted the risks to key Canadian export industries that could face retaliatory barriers if Canada cannot negotiate more favourable trade terms. “From aluminum to forest products, from shrimps to beef and other food products, from services to technology, all these Canadian exports are potentially hampered by this bill,” he stated.
Schwanen warned that the bill’s “non-negotiable” stance in specific sectors risks costly spillovers, such as delays in ongoing and future trade discussions with the United Kingdom, where Canada’s unwillingness to “talk cheese” has led the UK to pause negotiations. Similar risks may arise in the 2026 CUSMA review if Canada’s negotiators cannot make concessions, possibly prompting trade partners to deny opportunities to other sectors.
“This bigger picture – the overall good of the Canadian economy or, heaven forbid, of Canadian consumers – is apparently swept aside by proponents of this bill,” Schwanen stated.
This bill could further stall Canada’s already sluggish economy, according to the Verbatim. “Canada’s economy has not been flourishing recently and we are amid a big national debate around how to kick-start it. This bill, if it became law, would make those efforts less likely to succeed.”
For more information, contact: Daniel Schwanen, Senior Vice-President, C.D. Howe Institute; Percy Sherwood, Communications Officer, C.D. Howe Institute, 416-407-4798, psherwood@cdhowe.org.
The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.