The most common uses of Canadian dairy normally include milk, cream, yogurt, butter and cheese. But a new report suggests an altogether different application: use it as a bargaining chip.

A free-market think tank suggests offering American negotiators in upcoming NAFTA talks more open trade in dairy, in exchange for more stable trade in softwood lumber to secure long-term peace on that perennially problematic file.

Squeezing some protectionism out of both industries would be good for consumers, spur economic productivity, and ultimately result in more successful businesses in both countries, says the report from the Montreal Economic Institute.

This was excerpted from 23 March 2017 edition of CBC News.