Part 5/13:
Canada's well-known supply management system, especially in agriculture, further compounds economic inefficiencies. Often likened to a "Soviet-style" system, it grants tight control over prices, production quotas, and import restrictions. While intended to protect farmers, it results in higher consumer prices—milk, for example, can cost twice as much in Canada than in the U.S.—and maintains internal tariffs between provinces, collectively costing 3-4% of GDP annually. These barriers hinder trade, inflating prices and reducing competitiveness in global markets.