Bilateral beef trade and Canada’s dairy supply management system are top trade issues Canadian Agriculture Minister Lawrence MacAulay is prepared to confront with the incoming Trump administration, he said on Monday.

U.S. President-elect Donald Trump has said he will formally notify Mexico and Canada of his intent to renegotiate a North American free trade deal and has threatened to put a 10 per cent tariff or more on virtually all imports, a risk to Canada’s economy.

“We are so intertwined and it’s so vitally important,” MacAulay said on the sidelines of an industry conference, referring to the Canada-U.S. beef cattle industry.

“We intend to deal with the Trump administration as friends and be sure that we continue the trade.”

Western Canada’s beef cattle herd is tightly integrated in the continental industry, making it vulnerable to border issues. Many cattle cross the border to other cow herds, to feedlots and for slaughter.

During the first Trump term, relations between the U.S. and Canada frayed, with Trump threatening to end the North American Free Trade Agreement, and demanding Canada allow more access to U.S. dairy products.

The United States Mexico Canada Agreement that replaced NAFTA technically allowed more U.S. dairy access, but some U.S. dairy and trade interests have accused Canada of betraying the spirit of the deal. MacAulay said he knows Canadian dairy issues could arise again.

“The last (Trump) administration, we had a pretty heavy discussion about supply management,” said MacAulay.

“It costs us some, but it turned out pretty good for everybody and that’s what we want to make sure is what happens again.”

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