Milner wrote a great book, a model for those working on dissertations, arguing that the interests of protectionists (such as the dairy industry in Canada) are often offset by those with stakes in international stuff:
- those firms that rely on exports since they understand that trade involves reciprocity
- those firms with foreign investments that sell back to the domestic market (less relevant here)
- those firms that rely on foreign parts for their own products. Barriers to trade increase their costs.
I don't expect consumers, who are hurt by the dairy cartel via higher produces and reduced selection, to lobby because their pain is diffuse. I don't expect consumers to solve their collective action problems to organize to push for lower prices and more selection (and better quality--competition does help with that as well).
Given that dairy farmers are but a few, where are the companies whose interests are threatened by these few folks? I am seriously confused. Helen Milner cannot be denied!