Madam Speaker, I want to reassure the hon. member for Frontenac and say that Canada will not give up anything. Throughout the panel's proceedings, Canada will strongly defend its right to impose customs duties on dairy products, poultry and other American commodities.
The government worked in close co-operation with industry and provincial officials to prepare Canada's case, before it is heard by NAFTA's dispute settlement panel.
Canada and the United States have now submitted their briefs to the panel. In its document, the United States claims that Canada did not comply with its commitment, under NAFTA, not to increase its customs duties, adding that under the same agreement Canada must eliminate all such duties by 1998.
That position does not take into account-and I say it loud and clear-the fact that both the FTA and NAFTA clearly state that Canada retains the rights granted to it under GATT regarding agricultural commodities subject to a supply management system, including the right to apply WTO's tariff provisions to agricultural commodities of American origin.
In its brief to the panel, Canada insists that the tariff system it uses regarding these commodities is in full compliance with its international trade obligations under NAFTA and the WTO. When Canada agreed to have tariff provisions apply to Article XI, in support of products subject to the supply management system, it had obtained legal opinions expressly confirming the validity of its right, under GATT, the WTO and NAFTA, to impose resulting tariff equivalents to US imports.
We are convinced that our legal opinions are valid and we will vigorously defend the rights of Canadian producers before NAFTA's panel. We will not concede anything.