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When Donald Trump took aim at the North American Free Trade Agreement during the first presidential debate last fall, it was as much about theatrics as it was about trade. Standing against a blue backdrop that featured passages from the Declaration of Independence, Trump wagged his finger and called NAFTA "the single worst trade deal ever approved" by the States. Although his diatribe was directed mainly at Mexico, many Canadians couldn't help but wince.

Now that Trump is president, some are terrified by what he might do. But his plan to reopen NAFTA isn't necessarily something to be feared. It could be a rare opportunity for Ottawa to resolve long-standing trade irritants with Washington while securing a better deal for Canadians.

To be sure, Trump is proving to be an unpredictable president. He's called NAFTA "defective" and is unapologetic about his "America first" stance. Such bombastic statements have made handwringing a national pastime in Canada. But perhaps Ottawa could take a page from Trump's playbook and use this opportunity to champion the interests of ordinary Canadians.

For starters, if the agreement were reopened, it would give us the chance to challenge protectionist pandering to pet industries. Supply management, which fixes prices for milk, eggs and poultry in Canada, is a good place to begin. Because milk prices are predetermined, when the market is oversupplied, rather than driving down prices, excess milk gets thrown out. Ontario farmers have been known to dump almost a million litres in a month.

For subscribers: The pros and cons of leaving NAFTA behind

The Organisation for Economic Co-operation and Development has estimated that supply management costs Canadian consumers an average of $2.6 billion per year. Another study by researchers at the University of Manitoba highlights how much more we pay for milk, butter and eggs at the store. For instance, in 2011, Canadians paid $5.48 for four litres of milk, on average, versus $4.01 in the U.S. (both prices in Canadian dollars). And don't even get me started on eggs or cheese. This is exactly the type of consumer price gouging an improved NAFTA could address head-on.

Supply management would also be a powerful bargaining chip in resolving other thorny trade issues, such as softwood lumber. Billed as "the Freddy Krueger of trade disputes" by former diplomat Colin Robertson, the battle over softwood is poised to flare up again soon, as the Softwood Lumber Agreement expired in 2015 and time has run out on a year-long standstill period between Canada and the U.S.

Americans have long argued that our softwood industry is unfairly subsidized, because most timber is grown on Crown land, and provinces such as British Columbia charge logging companies below-market rates to harvest it. This has resulted in threats of an anti-subsidy duty being slapped on our timber exports—not to mention bickering that stretches back more than 30 years. An update to NAFTA could clarify the issue once and for all, and smooth trade for decades to come.

Other American grievances, such as concern over provincial monopolies on alcohol sales and our foreign ownership restrictions on large telecom carriers, could also be resolved.

Perhaps most importantly, putting all these issues on the bargaining table could help Canada increase energy exports, while gaining wiggle room to fight a potential border adjustment tax. Increased exports would provide a boost for energy-producing provinces, including Alberta, Saskatchewan and Newfoundland, which are still smarting from slumping commodity prices.

There are plenty of reasons for optimism. Trump has already resurrected the Keystone XL pipeline, a project that will create an abundance of jobs on both sides of the border. The White House has also indicated the venture would be exempt from "buy American" provisions on steel. And although the U.S. wants to reduce its reliance on energy imports, it's largely focused on OPEC, not Canada, which it views as an energy ally.

Negotiations will be tough, and there's no guarantee we'll get what we want. But the potential upside is a modernized deal that leads to improved market access for Canadian exports. Let's just hope our politicians are prepared to ditch the protectionism and perfect the art of the deal.

Don Coxe, chairman of Coxe Advisors LLC says Canada is in a good position to renegotiate NAFTA with the U.S.

The Globe and Mail

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