Canada's Freeland Lays Down Markers for NAFTA 2.0

Defending Canada's supply management system and the dispute settlement mechanism that currently exists in NAFTA are two areas that Canada will put a priority on during the coming discussions with the U.S. and Mexico, according to Canadian Foreign Minister Chrystia Freeland.The dispute settlement situation will be one of those that appear to be a line in the sand for Freeland as related a development from the initial round of Free Trade Agreement (FTA) negotiations with the U.S. in 1987. "It was during the initial FTA negotiations in 1987 that the late, great Simon Reisman walked out, pulled home by his PM over the Reagan administration's initial refusal to agree to binding bi-national review of anti-dumping and countervailing duties," she said. "Our government will be equally resolute. Just as good fences make good neighbors, strong dispute settlement systems make good trading partners."This could emerge as a key matter in the talks as the negotiating objectives laid out by the Trump administration included getting rid of that dispute settlement system as one of its keys. However, Freeland said that while she is "deeply optimistic" about the talks, "I think we do all need to be prepared for some moments of drama, that's going to be inevitable, and, as I also said, that happens in all trade negotiations."The agricultural access issues could also loom large for the talks, given Freeland's position that Canada will protect its supply management programs that are in place for dairy and poultry.