Canada is pushing European Union countries to drop subsidies for agricultural products at talks aimed at reaching a bilateral free-trade agreement.

At the same time, European countries want Canada to get rid of its supply management systems for dairy, poultry and egg products, something Trade Minister Stockwell Day insists is not on the table.

"Our supply side sectors are not things that we negotiate," Day said in an interview with The Canadian Press.

"We have established many bilateral and multilateral agreements with that understanding, and that’s how we’re proceeding on this one."

Some experts, however, say that kind of intransigence will make reaching a new trade deal with the Europeans virtually impossible.

Canadian and EU officials completed their first week of formal trade talks last week, discussions which Day describes as tough but productive.

Canada is hoping a deal can be reached within two years.