The United States is threatening Canada with tariffs and other
protectionist policies. In this environment, it is worth
considering the role of competition in Canada's response.
Competition law and policy is directed towards increasing
consumer welfare through the supply of products and services at
competitive prices. It is widely recognized that artificial
restraints on competition reduces consumer welfare.
Tariffs are one example of an artificial restraint that reduces
consumer welfare. However, such restraints are often relied on to
support other policy objectives. There are a host of protectionist
policies in Canada that protect various sectors of the economy
including agriculture, telecommunications and broadcasting,
financial services, transportation services, energy and pipelines.
Support for these policies is based on other public policy
objectives. In the case of agriculture, for example, quotas and
price support programs results in higher consumer
