Liberals will defend supply management

OTTAWA — Canada is ready to modernize the North American Free Trade Agreement, but supply management will be protected, Agriculture Minister Lawrence MacAulay said Monday.

“We’re quite ready to defend a system that works so well for this country, so well for the dairy farms, so well for consumers and (is) a model for the world, I might add,” MacAulay said as he left a meeting with Canadian farmers.

MacAulay met representatives from the agricultural industry — including wine, dairy, pork and beef — during the third round of talks with the U.S. and Mexico to replace the 23-year-old trade deal.

The minister said his defence of the system that protects Canadian dairy, eggs and poultry does not mean there is nothing about the trade deal that requires changing.

“The U.S. realizes we are their friends, but there’s things to iron out and hopefully it will iron out in a very positive way and even make the deal better.”

Some of the thornier issues expected to come up in NAFTA talks involve the Canadian agricultural industry, especially since the U.S. wants greater access for its dairy products.

On Sunday, Canada’s chief negotiator said he did not expect to see any details from the U.S. on its desire to end the supply management system for dairy and poultry this time around.

Steve Verheul also said he did not expect the U.S., which triggered the renegotiation of the continental trade pact, to table detailed proposals during this round of talks on other hot topics including investor state dispute settlement process and American content requirements for vehicles.

Prime Minister Justin Trudeau said Canada respects the pace of the negotiations.

“But Canada is always there, has done its homework, we have concrete proposals on the table and we’re very pleased to have a chance to discuss them with our counterparts from the other countries,” he said at an event in Toronto.

Jacques Lefebvre, president and CEO of the Dairy Processors Association of Canada, said his organization has told the Liberal government they do not think the sector should be part of the renegotiation of NAFTA at all.

“If the government can make a good case as to why it should be, then we need to ensure that any concessions to the sector, to the dairy market in Canada, is met with an equal net benefit to the sector,” said Lefebvre, who was at the meeting with MacAulay.