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The budget also indicates more money could be forthcoming as the government works with industry “to address the impacts on processing, as well as potential future impacts of the Canada-United States-Mexico Agreement.”

“The federal government recognizes the impact of trade agreements on our sector and is following through on its commitment to support our domestic dairy industry,” said Pierre Lampron, president of the board of directors for the Dairy Farmers of Canada.

“We also welcome the government’s commitment to continue the dialogue on the future impact of CUSMA on our sector.”

The North American deal, which will succeed NAFTA, has yet to be ratified and come into effect. That deal is the third free-trade agreement in which Canada agreed to open its supply-managed sectors, which emerged last year as a favourite target of U.S. President Donald Trump, particularly the dairy sector.

Supply management has long been hotly debated in Canada.

Proponents say the system keeps the market from getting saturated, which keeps prices stable and ensures steady incomes for farmers while protecting food safety, ensuring higher-quality products and eliminating the need for direct subsidies.

Critics say it drives up the cost of dairy, eggs and chicken for consumers, which has a disproportionate impact on low-income families. The system has been a frequent target in — and barrier to — past free-trade negotiations.

Successive federal governments for decades nonetheless resisted opening Canada to more tariff-free imports from other countries, in part because of the political implications.

But when Stephen Harper was prime minister, the Conservatives opened the door to change when they agreed to ease restrictions on European cheese imports through the Canada-European Union trade deal, which was signed and came into force under the Trudeau Liberals.

Ottawa then agreed, in the 11-country Trans-Pacific Partnership trade deal, to give participants more access to Canada’s dairy, egg and poultry markets.