P.E.I. 'stands firmly in support of supply management' in trade talks, assures premier

As trade talks continue between Canada and the United States, P.E.I.'s premier says a new North American Free Trade Agreement cannot come at the expense of dairy farmers.

'I believe it's important for the government to indicate that we value this sector'

CBC News · Posted: Sep 05, 2018 6:00 PM EDT | Last Updated: September 5, 2018

P.E.I. Premier Wade MacLauchlan says the province will continue to firmly support supply management. (CBC)

As trade talks continue between Canada and the United States, P.E.I.'s premier says a new North American Free Trade Agreement should not come at the expense of dairy farmers.

Canada's supply management system has been one of the sticking points for U.S. President Donald Trump during trade negotiations.

"It's very important that it be known as these talks unfold, and they're still unfolding, that Prince Edward Island stands firmly in support of supply management," Wade MacLauchlan told CBC News: Compass host Louise Martin.

Prime Minister Justin Trudeau will 'absolutely not' give up on supply management

How Canada's supply management system works

MacLauchlan says in his discussions with federal government officials, he will continue to make it clear that Island dairy farmers must not be bullied.

Support from Trudeau, provinces

One of those discussions happened last week when Prime Minister Justin Trudeau held a conference call with all of Canada's premiers to discuss NAFTA.

MacLauchlan said he had the chance to make his thoughts on supply management clear, and he was reassured by the response.

Just recently at our meetings in Vermont, the governor of Connecticut said he'd prefer the Canadian system.— Wade MacLauchlan

"The subject did come up, and there was a good, clear indication of where the provinces are, and indeed where the federal government is," MacLauchlan said.

"We hear the federal government say that they support supply management. And … that no deal would be better than a bad deal."

Differences in ideology

When it comes to negotiating a compromise, MacLauchlan said he believes the two countries are "are quite far apart" on basic ideology.

MacLauchlan said Canada and the U.S. have different outlooks on the dairy industry. (CBC)

"The United States has a system of subsidized overproduction. They're looking for someplace to put their milk. And it's actually not working very well for U.S. farmers," MacLauchlan said.

"Just recently at our meetings in Vermont, the governor of Connecticut said he'd prefer the Canadian system."

Island dairy farmers fear U.S. could double-dip in market access

Not concerned about concessions

While MacLauchlan said he does not currently have a concern that Canada will allow concessions when it comes to supply management, he recognizes that farmers may not be as confident.

"People are watching this of course with real concern," MacLauchlan said.

"And that's really the main reason why I believe it's important for the government to indicate that we value this sector, and believe that supply management is a productive and competitive system, and should be protected."