House of Commons Hansard #11 of the 43rd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was deal.

Topics

Oral QuestionsPoints of OrderOral Questions

3:05 p.m.

Liberal

The Speaker Liberal Anthony Rota

Order, please. I am having a hard time hearing. Perhaps someone could check the volume on the speakers.

The hon. member for Saanich—Gulf Islands.

Oral QuestionsPoints of OrderOral Questions

3:05 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, it is an honour to rise to speak. I was also very troubled by the behaviour of the member for Edmonton West. It is not so much what he said, but he did something that is against the rules of the House.

Our Standing Orders indicate that it is not allowed to interrupt members when they are speaking.

The leader of the Bloc Québécois was asking his question and the member violated the Standing Orders.

It is clear that the catcalling, “How did you get here? Did you take a plane?” is completely inappropriate and falls below the standards of this place.

Oral QuestionsPoints of OrderOral Questions

3:10 p.m.

Liberal

The Speaker Liberal Anthony Rota

The member for Saanich—Gulf Islands has a very good point and it is a true point. That is why we want to keep the heckling down during proceedings. We want to keep it to a minimum and non-existent would be better.

We will leave it at that. I am hoping that all members in this House will remember that as we proceed.

Business of the HouseOral Questions

3:10 p.m.

Conservative

John Nater Conservative Perth—Wellington, ON

Mr. Speaker, it being Thursday, I am sure Canadians from coast to coast to coast are tuning in for the weekly business statement. It is my pleasure to ask the government House leader what business he intends to bring before the House for the remainder of this week and into next week.

Business of the HouseOral Questions

3:10 p.m.

Honoré-Mercier Québec

Liberal

Pablo Rodriguez LiberalLeader of the Government in the House of Commons

Mr. Speaker, this afternoon we will continue with second reading debate of our first key priority, the CUSMA implementation bill.

Next Monday and Wednesday, we will resume debate on Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Tuesday will be a supply day.

Next Thursday and Friday, we will continue debate on Bill C-3 on border services.

The House resumed consideration of the motion that Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, be read the second time and referred to a committee.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

3:10 p.m.

Liberal

The Speaker Liberal Anthony Rota

The hon. member for Dufferin—Caledon has five minutes remaining in questions and comments.

The hon. member for Winnipeg North.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

3:10 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons

Mr. Speaker, it has been a good day thus far. The minister brought forward a substantial piece of legislation, which is good news for all Canadians in all regions of our country, as it is an agreement between Canada, the United States and Mexico.

What is really encouraging is that we are seeing cross-party support. We are getting support for the legislation. That really speaks volumes for the negotiators, whether it is the minister or, most importantly, the Canadian team of negotiators who have done a phenomenal job representing Canada's interests. They have demonstrated that ability not only with this agreement but with previous agreements. They have demonstrated that they can actually work with different ministries, different political parties to ensure that Canada gets the best deal possible.

Could my colleague provide his thoughts on that Canadian team of diplomats and civil servants who made this deal possible?

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3:10 p.m.

Conservative

Kyle Seeback Conservative Dufferin—Caledon, ON

Mr. Speaker, first of all, I am flattered that I was confused with the eloquent and debonair member for Edmonton West. I thank my Bloc colleague for that confusion. It is quite a compliment.

With respect to the trade agreement, I know that we have a fantastic group of people who worked very hard on this agreement. I am still waiting for answers and I am becoming increasingly despondent that there will not be answers to the specific questions that I raised in my speech.

These are questions that not only people in my riding are asking me, but Canadians from coast to coast to coast are asking as well. What are the economic impacts of this agreement? We have been asking for two months. I met with dairy producers in my riding. They know there has actually been a report prepared about economic impacts on the supply management sector, and the Liberals have kept it confidential.

Why will the Liberals not produce the report? What are they hiding?

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3:10 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Mr. Speaker, I want to ask my hon. colleague about the timing.

He is well aware that the original Trans-Pacific Partnership was the renegotiation of NAFTA. It was ready to be signed back in 2015, two weeks after the Prime Minister took office. It was Mr. Obama's deal, the most progressive president in the history of the United States, and our Prime Minister decided that it was not progressive enough for him. Instead, he delayed the signing of the Trans-Pacific Partnership.

Obviously, the Liberals did not have any problems with it because they did eventually sign it. However, there was four years of uncertainty on the NAFTA, and of course we ended up with a worse agreement.

Would the member please comment on what these four years of uncertainty have done to the business sector in Canada, and that investment that could have been brought to our country that was not available at the time because of the uncertainty of the trade agreement?

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3:15 p.m.

Conservative

Kyle Seeback Conservative Dufferin—Caledon, ON

Mr. Speaker, that is a great question. Uncertainty is, of course, the antithesis of good business practices. With uncertainty, businesses do not know how to plan and budget to expand.

These delays and the amount of time it has taken has caused all kinds of damage within our business sectors. Not knowing what is going on with the economic analysis of this new trade agreement is creating further uncertainty. It is creating incredible anxiety and uncertainty in the dairy sector and other supply-managed sectors, because they do not know what the impacts of this agreement are going to be.

I do not want to continue to repeat myself, but we have been asking for these documents for over two months. I do not understand why these documents are not being produced, and why we are not being given the understanding of what the economic impacts are going to be. Effectively, what we are being asked to do is support a trade agreement without knowing the implications of the trade agreement. Quite frankly, that is wrong.

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3:15 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Mr. Speaker, I am proud to give my first speech, to address the 43rd Parliament on a very important agreement that would impact many Canadians not only in my riding but throughout this nation.

First, I would like to thank the constituents of Dauphin—Swan River—Neepawa. It is an honour and a privilege to represent them each and every day.

In addition, I would like to recognize and thank my lovely wife Leigh and our children Hannah and Michael. Without them, standing in this House today would not be possible.

Before I begin my comments on the new NAFTA, it is important to take this opportunity to describe my constituency to the House in order to properly reflect its priorities in response to such a significant piece of legislation and its impact on Canada's international trade. Dauphin—Swan River—Neepawa is a constituency slightly larger than the province of Nova Scotia. It is a region that is deeply rooted in riches of a social and natural heritage which holds a significant place in our country's history. That history is tied to the physical environment, which is defined by its majestic hills, rivers and plains.

Its bounty has been the lifeblood of our region for thousands of years, beginning with our indigenous ancestors and later the eastern European homesteaders of the early 20th century. More recently, our constituency has welcomed many newcomers from across the world, most prominently from the Philippines. Dauphin—Swan River—Neepawa has become a diverse constituency made strong by the contributions of the land and its peoples. Those traditions, that history and that work ethic are what drive me as the people's representative each and every day.

As a region our economic wealth is derived from our abundant natural resources and agriculture strengths. More important, our economic wealth has been derived from our ability to export our excess production. Therefore, it is without question that my constituents would expect me to rise and address this important piece of legislation.

Let us be clear. Our party strongly supports free trade initiatives that will generate increased economic activity and job growth. After all, it was our party that negotiated the original NAFTA. With that said, it is our democratic obligation to analyze this legislation that is brought before this House, especially when that legislation is a free trade agreement with our neighbour, a neighbour with whom we hold our most important trading relationship. Furthermore, it is my democratic responsibility to analyze this agreement, to ask the questions and to raise the concerns so we can ensure that the people of my riding are not forgotten again by the Liberal government. Our party and I will fulfill that democratic obligation.

What are the facts of the new NAFTA? First, the Liberals failed to work with the opposition parties during the negotiation and ratification process, and now we are rushing to get this deal done without proper consultation. Second, the Liberals have failed to provide documents outlining the impacts of a new trade deal, despite numerous requests from opposition members. As a farmer, as a steward of the environment and as a former representative of a farm organization, these failures were evident each and every day during the negotiation process, specifically in our dairy sector.

The agriculture and agri-food processing sectors are key drivers in my riding, providing economic growth, good jobs and social stability, linking rural and urban businesses together and supporting other sectors of our economy. The agriculture industry is the bedrock not only of my riding but also of this nation.

In my province of Manitoba, the dairy industry plays a key economic role, generating over $250 million in farm gate revenues every year. It is a Canadian industry that proudly produces the highest quality of dairy products in the world. Our party recognizes the contribution that the dairy industry makes to family farms, allowing them to be profitable, to be financially stable and to be able to give back to their communities. This, in turn, grows and connects our rural and urban economies, yet our farm families and rural communities will bear the brunt of these changes.

Now let us examine a few of these impacts. First, an additional 3.6% of the Canadian dairy market has been opened up to import. Second, the new NAFTA dictates specific limits for Canadian exports of milk proteins, skim milk powder and infant formula. If the export limits are exceeded, Canada will add duties to additional exports. This will make them more expensive in countries that trade with the U.S. and limit us in helping to nourish developing nations. As a result of these changes, current and potential future investments in food processing are increasingly threatened in Manitoba and across Canada.

We have heard the concerns from across the industry. David Wiens, the chairman of the Dairy Farmers of Manitoba and vice-president of the Dairy Farmers of Canada, noted that Canada's dairy farms are losing 20% of their market share. He said locally produced milk from Canadian dairy farms is going to be pushed off the shelves to bring in dairy products from the U.S.

The more dangerous precedent in this agreement for Canadian dairy farmers is that the new NAFTA puts limitations, through tariffs, on Canada's ability to enter foreign markets or operate in a foreign dairy market that the U.S. is already in. Mr. Wiens also said it will further limit our ability to export dairy products, noting that Canada's largest exports are products such as milk proteins and baby formula. He added, “With that tax it will be very difficult for us to compete against the U.S. dairy industry in any [foreign] market they are in”.

Here we are with a new NAFTA that is threatening our domestic food supply, and the Liberal government should be informing Canadians of how they will be impacted. It is the Liberals' duty to be transparent and accountable, something I hope they learn during this Parliament. Dairy farmers and Canadians have been betrayed by the Liberal government by not providing the complete details of this new NAFTA and the real impacts it has on their livelihoods, their families and their communities.

The members opposite do not seem to recognize the realities of this new minority Parliament. They do not seem to recognize that they will be held accountable at every step of the legislative process, to ensure my constituents, Manitobans and Canadians understand the full impacts of this agreement and what it means to them.

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3:20 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons

Mr. Speaker, Canadians understand the importance of trade agreements. With this administration we have seen many trade agreements signed off. What makes this one more significant than the previous 30 trade agreements is that this one is with our greatest trading partner.

We are very much dependent on trade. There is no country more than the U.S. with which we need to get a deal finalized. It is really encouraging to see the type of support that we are getting. Yesterday when we had votes, we had the New Democrats and even the Green Party recognizing the value of this agreement.

Is there anything in the old agreement that the member across the way believes was lost by not being incorporated into the new agreement? Would he not agree that this is indeed a better agreement than the previous one?

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3:25 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Mr. Speaker, the problem with this agreement is that there are still more unknowns, especially on the standards. The types of things that we are going to be importing into Canada now, because of the new agreement, still require some standards to be figured out.

In my previous life as a farm leader, I sat on the board of the Canadian Standards Association. There, on the ag-technical committee, we looked at different standards that were required for couplings for hydraulics, but also roll bars for tractors, and the metallurgy required for a manufacturer to import those into Canada.

Interestingly enough, if a manufacturer in a warm climate manufactures a tractor and tries to import it into Canada, there are certain standards that have to be met in Canada before they can import it, or it is considered a grey market tractor. If such a tractor is unknowingly brought into Canada, it becomes the Canadian owner's responsibility and a liability to that farm worker. It is totally unacceptable for the Canadian government to be standing to the side and letting that happen every day.

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3:25 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Mr. Speaker, it was not this government but, I guess, the United States Democrats who pulled out the chapter 11 clause in the previous NAFTA from this new agreement, which is something we have been very happy to see happen. The investor-state provisions threatened our sovereignty. It is something we saw the U.S. Democrats lead on. We hope that in future trade deals the Liberal government will also make sure that the investor-state provisions are no longer something it would support.

Does my colleague support the decision, which the Liberal government is now supporting because the United States is leading on it, and would he also like to see this provision and clause be removed from future trade deals to protect Canadian sovereignty and the environment?

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3:25 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Mr. Speaker, I would like to see something, plain and simple. We have not seen enough details on many impacts. As the member can imagine, these agreements are very complex, and one decision impacts another. Therefore, without seeing the documents, I cannot honestly answer that question.

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3:25 p.m.

Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, it is a pleasure to have the opinion of my colleague from Manitoba, with his experience in agriculture, on the impact that this agreement will have on agriculture.

Does my colleague know of another trade deal that a Canadian government has ever signed that puts a cap on an agricultural commodity and would stifle future growth for that commodity?

This has happened in the dairy sector through the new NAFTA, which puts a cap on Canadian dairy farmers and processors to be able to expand their market when it comes to certain types of protein and skim milk powder.

Can my colleague name any other trade agreement that a Canadian government has signed that has put a cap on future growth in a Canadian agricultural commodity?

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3:25 p.m.

Conservative

Dan Mazier Conservative Dauphin—Swan River—Neepawa, MB

Mr. Speaker, not offhand, and I think that is the game-changer in all of this. It limits our ability to go out and develop our good quality food products to other nations. Wherever the U.S. is, we cannot go, and that is the biggest problem with this agreement.

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3:25 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, before I begin, I will be sharing my time with the member for Kitchener South—Hespeler.

I represent Surrey, and Surrey Centre in particular. It is a port city and major logistics centre for goods, particularly trade, and home to some of the most amazing produce, berries, dairy and poultry in the country. I am pleased to stand today to talk about the Government of Canada's unwavering support for supply management in our dairy, egg and poultry industries in the context of the new Canada-U.S.-Mexico agreement and our other international trade deals.

These industries are pivotal. I have met many hard-working Canadians in this sector, whether it be Donia Farms, which has been continuously family-run since 1955 and produces high quality grass-fed milk, or Gurpreet Arneja and Vineet Taneja, who had humble beginnings and launched Nanak Foods in Surrey, a large specialty dairy processor that now exports Canadian dairy products to over 15 countries around the globe. These are real people who have worked hard. As a new member on the Standing Committee on International Trade, I hope to ensure that our government prioritizes their needs.

Let me begin by stating that the future of supply management in Canada is not in question. Our supply management system is fundamental to the overall success of Canada's agriculture and agri-food industry. Our dairy, poultry and egg farmers provide high quality, delicious and nutritious food to Canadians at an affordable price.

Combined, the sectors drive a strong economy, with almost $34 billion in sales and tens of thousands of jobs. They are vital to the prosperity of our nation. That is why in our negotiations for the new NAFTA, the CUSMA, the government fought hard to maintain the three pillars of Canada's supply management system: production control, pricing mechanisms and import control.

The same commitment to Canada's supply-managed sector also guided Canada in negotiations for CETA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The new NAFTA, like Canada's other trade agreements, preserves and maintains Canada's supply management system. Canadian dairy farmers will continue to supply the vast majority of the Canadian market. As well, Canada has negotiated reciprocal access to the U.S. dairy market, including tonne-for-tonne access to most dairy products.

We are united in our goal to help the dairy sector innovate and drive the economy for future generations. Across Canada, we are helping dairy producers purchase state-of-the-art equipment to boost productivity and efficiency. Innovation is driving significant growth in chicken and egg production across Canada. Canadian egg producers like to talk about the tale of the three 50s: Over the past 50 years, they have increased their production by 50%, while reducing their environmental footprint by 50%. That is all thanks to innovation.

We continue to roll out investments to support innovation in our supply-managed sectors. Our government has clearly recognized the great value of the supply management system. Canada will continue to defend this system at home and abroad.

Our government has committed to fully and fairly supporting the supply-managed industry. This support will help chart a path forward so our supply-managed farmers can continue to innovate, grow and remain competitive and sustainable for future generations.

In the fall of 2018, the government announced the formation of supply management working groups. These groups were tasked with looking at providing support and helping the industries adjust to recent trade agreements, including the new NAFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP. The overall goal is to ensure Canada maintains its robust dairy, poultry and egg industries now and in the future.

Together with industry, we have one common goal and that is a strong Canadian supply management system. For our farmers and food processors, the new NAFTA will protect and secure our $30-billion agri-food exports to the United States.

In addition to preserving key aspects of the original NAFTA, the new agreement helps open new market access opportunities in the U.S. market. This agreement provides Canadian exporters with new market access into the U.S. in the form of tariff rate quotas for refined sugar and products containing sugar, as well as certain dairy products, including cheese, cream, milk beverages and butter. It also eliminates U.S. tariffs for whey products and margarine, and provides a more liberal rule of origin for margarine.

As my hon. colleagues well understand, trade is vital to Canada and Canada is a trading nation. Our farmers depend on trade. They export about half the value of their production. That is why the government is seeking to expand market opportunities and promote the interests of Canadian farmers by negotiating new trade agreements and modernizing existing ones. This is why our government has big plans for agriculture trade.

Our exports hit a new record in 2018, but we are not stopping there. We set our sights on $75 billion in agriculture exports by 2025. A 2018 report of the agri-food economic strategy table has challenged us to think even bigger, proposing a target of $85 billion.

In addition to preserving Canada's supply management system, Canada's existing trade agreements play a key role in realizing these export goals.

CETA has provided Canadians with preferential access to the European market since September 2017. Canadian farmers and food processors are already taking advantage of access to the world's single largest market for food. From 2018-2019, Canadian agriculture exports to the European Union increased by 24%.

While it is still too early to measure the full impact of CPTPP since it came into force December 30, 2018, there are early signs of success for Canada's agriculture sector.

For example, Canada's exports of pork to Japan increased by 11% and exports of beef grew by 68% during the first 11 months of 2019, compared to the same period in 2018.

We are advancing Canadian agriculture in international markets, while preserving and protecting our supply managed systems.

I am proud of the federal government's incredible achievements in this regard. We will continue to support and defend our dairy, egg and poultry industries, while ensuring a strong and competitive future for Canada's agriculture and food sector.

With this new agreement, we will be helping Canada's farmers and food processors harvest the benefits of what the Canada-United States-Mexico Agreement has to offer. I urge all hon. members to support this bill.

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3:35 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Mr. Speaker, we have heard a lot of concern, and for good reason, around the chapter 11 provisions that were in the past NAFTA agreement. These are huge concerns, and it effects our sovereignty with respect to the protection of the environment and indigenous rights.

The New Democrats have been calling for it to be removed in any future trade deal. We were glad to see the U.S. Democrats actually pull that out in their side of the negotiations. We wish it had coming from Canada, but we do not even know what Canada put on the table.

In terms of moving forward, can we count on the member for Surrey Centre and his government to ensure that chapter 11 and those sorts of provisions that threaten our sovereignty and the environment will not be included in any future agreements that Canada does? I know Canadians have voiced concerns about that. We have been brought these concerns forward around investor-state provisions that protect corporations instead of people, communities, the environment and our sovereignty.

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3:35 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, in fact, if I recall from my days in law, when I studied some of this international trade, chapter 11 has been more helpful for Canadians in most of those cases. The provisions protecting and arbitrating our trade laws between the two nations must be strengthened and protected so companies and the government are protected.

I take my colleague's point very seriously. Canada has now entered into a new arbitration agreement. There are four WTO trade mechanisms with China and others, which is now the envy of many others. The U.S. is left behind. We have been doing better and I urge our ministers to do even better going forward.

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3:40 p.m.

Bloc

Luc Thériault Bloc Montcalm, QC

Mr. Speaker, as I listened to my colleague's speech, I wondered how he could be so proud of this government's free trade agreements. We all know the government made concessions on supply management that resulted in compensation for the agricultural sector.

How can he be so proud of CUSMA when, just yesterday, a delegation representing Quebec aluminum workers condemned the agreement for damning their sector to die a slow death?

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3:40 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, I am very proud. We faced a president in the U.S. who wanted to end supply management. In fact, it was his electoral goal to eliminate supply management to appease his interests in some dairy farming sectors and states. We upheld our end to protect our own supply management systems and gained access for Canadian farmers into the U.S., allowing a very small amount of gain from them.

The alternative option of having no trade agreement and scrapping NAFTA was much worse than what we have now, which is much more robust and healthy for our industry.

As for the aluminum sector, now 70% of the aluminum for the auto sector will come from our country as opposed to what was there before, which was zero protection. Therefore, 70% is a lot more than zero, and I am very proud of our trading team for negotiating that.

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3:40 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Mr. Speaker, I thank the hon. member for mentioning supply managed sectors in his intervention.

In the last Parliament, I was on the agriculture committee. I come from Guelph and it is a topic that has been discussed there. He talked about the working group, which also included the Dairy Farmers of Canada and the Dairy Processors Association of Canada, that collaborated with the Government of Canada to develop mitigation strategies to protect the supply-managed sector within this agreement. We also have an expert negotiating team that is internationally recognized for its world-leading efforts in negotiating what is best for Canadians.

One thing I have heard is that it is very important for Canadians to know and recognize Canadian products, such as our dairy products, so consumers can make the choice to support our industry.

Could the hon. member comment on how important it is for our industry to have protection in place so we know Canadian products are Canadian products?

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3:40 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, it is very vital to have Canadian dairy produce, our own poultry and our own eggs. Our standards are stricter and our farms are better and world class. The products are eaten locally. The GHG emissions used to get that food to our tables is much less.

In fact, in my personal life, I have been advised by my doctor to drink only Canadian milk, grass-fed milk in this case, which is produced very close to home and is much better and healthier. This agreement is the only way our home grown industries are protected. These industries are handed down from one generation to another. This protection will make it even stronger and we will have a robust industry, which will provide consumers better products and help farmers who produce them.