Mr. Speaker, I accept the challenge.
Canada wants to vigorously defend the Canadian dairy industry against American claims that we are subsidizing dairy exports, in violation of our obligations under the World Trade Organization.
They also state that we did not respect our quota on milk. The United States asked Canada for formal consultations on these issues until October 8. These consultations were held at Geneva on November 19. Consultations are the first formal step in a complaint made to the World Trade Organization.
It will be up to the United States to request that a World Trade Organization panel be set up 60 days after the request for consultations, that is after December 7.
The special system for pricing in Canada and for quotas on dairy tariffs meets Canada's obligations under the rules of the World Trade Organization. We are ready to defend our system before a commission so that this conflict can be resolved.
Canada will insist that any action taken by the United States on this issue not be in compliance with the rules of the World Trade Organization.