Mr. Speaker, it is a pleasure to respond to the hon. member's comments tonight.
On February 2 the United States trade representative, Ambassador Kantor, requested formal consultations under NAFTA relating to the U.S. access to the Canadian market for dairy and poultry products.
The Minister of Agriculture and Agri-Food and the Minister for International Trade have repeated frequently and remain of the view that our application of tariff equivalents in our bilateral trade in poultry and dairy products, including ice cream and yogurt, is fully consistent with our rights under GATT and NAFTA. In fact, the ministers issued a press release on February 2 of this year setting out that view so there could be no misunderstanding on it. The Canadian position has not changed and is not changing. Moreover, both ministers stated their view again in this House last Friday.
The U.S. request for consultations should be seen as just that, a request to meet with us and to discuss the issue. The fact that the U.S. is seeking consultations under the dispute settlement provisions of NAFTA does give it a more formal character, I agree, but it does not alter its fundamental nature.
Requests for formal consultations occur quite frequently between trading partners. Sometimes they are in the form of a panel before they are over. Other times the consultations are adequate to resolve the issue. In some cases they are concluded only after lengthy discussions.
We expect these consultations to start in the next week or so. In this particular case we are satisfied that our legal position is sound and we will continue to hold our own. Our preferred approach is a negotiated solution.
It could be expected that the issue might arise in the upcoming visit of Mr. Clinton to Ottawa. If it does, the Canadian line will not change. We are acting within our trade agreement rights and we will defend those rights.