Madam Speaker, I thank the hon. member for his question.
I want to make it very clear that Bill C-86 is only talking about the legislative authority to implement a national pooling system of market returns from the different classes of milk. It will not establish a national quota exchange. To be very clear, it will set up a national pooling system of market returns and would give that authority within the context of federal-provincial agreements on pooling mainly through delegated functions. I raised quota exchange because it is a concern of producers in Prince Edward Island that this legislation not been seen as the first step toward moving in that direction.
This requirement is really as a result of the GATT. In terms of the point he raised with respect to GATT and NAFTA, we in Canada know which tariff reduction regime has priority. We know it is the GATT negotiation and not NAFTA. The Americans may differ in their opinion but certainly we are firmly behind the stand that the GATT tariff reduction rules apply.