Dairy industry getting help to compete, not compensation, for EU trade deal - Politics - CBC News
The government wants to help the dairy industry adjust to free trade in CETA by providing some funding.
I think shifting to a carbon tax would be a solution.
There are many differences between a carbon tax and a tariff. One difference in international trade is as follows.
Wheras tariffs can harm the environment by encouraging Montreal to trade with Vancouver instead of NYC or Seattle with NYC instead of Vancouver, a carbon tax encourages localization. So it would encourage Montreal to trade more with NYC and Seatle with Vancouver for example. This in turn not only helps the environment but local business too.
Another difference us that a tariff stops at the border with minimal effect internally. A carbon tax would encourage Vancouver to trade more with Victoria BC rather than Halifax, and Halifax to trade more with cities in the Naritimes rather than Vancouver. A tariff would gave no effect on internal trade.
So while tariffs promote inefficiencies, a carbon tax promotes efficiencies.
I think Canada and the EU should promote free trade and carbon taxes. The best product could still be exported at the vest price, but only after calculating the impact on resources into the cost.
Another difference is that whereas tariffs are beggar thy neighbour, carbon taxes are reciprocal. Carbon taxes try to keep imports out, but a carbon tax raises the cost both on long distance imports and exports, so it's more fair. It's just based on resources consumed.
The government wants to help the dairy industry adjust to free trade in CETA by providing some funding.
I think shifting to a carbon tax would be a solution.
There are many differences between a carbon tax and a tariff. One difference in international trade is as follows.
Wheras tariffs can harm the environment by encouraging Montreal to trade with Vancouver instead of NYC or Seattle with NYC instead of Vancouver, a carbon tax encourages localization. So it would encourage Montreal to trade more with NYC and Seatle with Vancouver for example. This in turn not only helps the environment but local business too.
Another difference us that a tariff stops at the border with minimal effect internally. A carbon tax would encourage Vancouver to trade more with Victoria BC rather than Halifax, and Halifax to trade more with cities in the Naritimes rather than Vancouver. A tariff would gave no effect on internal trade.
So while tariffs promote inefficiencies, a carbon tax promotes efficiencies.
I think Canada and the EU should promote free trade and carbon taxes. The best product could still be exported at the vest price, but only after calculating the impact on resources into the cost.
Another difference is that whereas tariffs are beggar thy neighbour, carbon taxes are reciprocal. Carbon taxes try to keep imports out, but a carbon tax raises the cost both on long distance imports and exports, so it's more fair. It's just based on resources consumed.
