:
Mr. Speaker, first, before I begin my address, I would like to advise you that I will be sharing my time with the .
[Translation]
I am honoured to rise here this evening to take part in the debate on the first report of the Standing Committee on Agriculture and Agri-Food regarding the free trade agreement between our government and the European Union, and specifically the effects it will have on the agriculture sector.
[English]
I want to thank the hon. member for , the NDP's deputy agriculture critic, for moving this motion, letting the House have a chance to talk about our government's free trade agreement with the European Union. As I said on October 31, there is a lot of interest on our side of the House.
I also want to thank our agriculture committee for undertaking its study on the free trade agreement with the European Union and its impact on Canada's agricultural sector. The committee initiated this study last fall, after the agreement in principle was concluded in October 2013. As noted on page two of the report, the particulars of the final agreement were still being negotiated during the committee's study. However, after the committee's work wrapped up and its report was tabled, those negotiations were finally finished, and we now have a detailed legal text available for members and all Canadians to study and assess.
Before the last election, and during the midst of these trade negotiations, I had the great honour and privilege of serving as Canada's Minister of International Trade. In that role, I had the opportunity to meet with various Canadians, those with a real, tangible interest in getting a free trade agreement signed, sealed, and delivered. One segment of the Canadian economy that was among the keenest to see action was the agricultural sector.
I am pleased to say that our Conservative government has delivered. This free trade agreement would give new market access in Europe for key Canadian agricultural exports of beef, pork, and even bison. Specifically, there would be new duty-free access for up to 80,000 tons of pork, 65,000 tons of beef, and 3,000 tons of bison every year. I could go on, but suffice it to say that the agriculture industry estimates that the Canada–Europe free trade agreement would achieve over $1.5 billion of new exports for Canadian farmers every single year. While that would be a vital boost for our economy, it is just one of the components of Canadian economic growth, over $12 billion a year some estimates say, that would be realized by the free trade agreement between Canada and the European Union.
This opening for Canadian exporters would be accentuated by, as page three of the report notes, the fact that Canada would be the first large economy with free trade agreements with both the United States and the European Union. In fact, we would be the only major developed economy in the world with such access. For investors looking to build a facility to create jobs and to export both to the U.S.A. and Europe, Canada would be the one place to go in the developed economies if they were looking for a place to locate. This would be a major gain for Canada, the place for job creation and long-term prosperity. That being said about manufacturing and similar kinds of activities, let me return to agriculture, the subject of this report.
[Translation]
Our agri-food industry will benefit from an incredible opportunity and enjoy a leg up on its competitors around the world. It is no wonder that the committee recognized this and made a recommendation that states that approving the agreement quickly will expedite the economic benefits for Canada.
[English]
This free trade agreement, with our second-largest trading partner and the world's largest economy, represents the greatest single boost for the Canadian economy since the previous Conservative government reached a free trade agreement with the United States. What is more is that this free trade agreement with the European Union is historic in its reach. It is Canada's most ambitious trade initiative, broader in scope and deeper in ambition than the Canada–United States free trade agreement or the North American free trade agreement.
As ambitious as the negotiations with the EU were, our Conservative government continued to defend Canada's supply management system, and I am pleased to say that we succeeded in that aim. Under the Canada–Europe free trade agreement, the three pillars of our domestic supply management system would remain intact.
[Translation]
No only did we defend supply management, as the committee recommended in its report, but we also opened new trade markets for the products of these sectors.
[English]
Canadian dairy farmers would, for example, gain, through the agreement, unlimited access for their products on European shelves. The excellent balance we have achieved for Canada's agricultural sectors is a major component of what makes this free trade agreement the masterpiece it is for our economy's growth.
The benefits to be enjoyed by agricultural exporters will go a long way toward making free trade with Europe the great success that I know it will be. Farmers, and Canadians generally, recognize this free trade agreement for the success that it is and the opportunity it represents.
The general consensus, which now prevails, that free trade is a good thing emerged following the very exciting election of 1988, when Canadians were called to the ballot box over the issue. In the early 1980s, when I was in university, free trade was a very hot issue. The consensus of the media, academics, Liberals, and socialists was that free trade was a terrible thing and a bad thing for Canada. The debate that went on through those years culminated in that gripping election of 1988.
I remember that campaign well. Those of us at the time had become accustomed to campaigns being about music, who had the best song, or who had the best looking leader. It was the first election I remember in my lifetime so focused on policy, and in that particular case, on one issue, and in fact, where the debate went back and forth, as did the lead through the election. Of course, they were vigorous debates.
Over time, having been defeated in that election and having seen the tremendous benefits of free trade, the Liberals have come around to supporting free trade, but the New Democratic Party still, reliably, has opposed free trade bills. However, the consensus for free trade continues to grow, so much so that this year, we saw a very fascinating event: the NDP actually backing one of the many free trade agreements we have brought forward in bills. I bet my New Democratic classmates from a quarter-century ago would have laughed in my face had I told them that this would ever happen.
Of course, we are awaiting the NDP view on this agriculture committee report and on this free trade agreement, but we will soon hear from an NDP MP in this debate. Farmers and agricultural exporters are certainly waiting to hear.
In closing, I want to extend my thanks to my counterpart, the NDP House leader, because it is through his program of daily concurrence motions this autumn that MPs have this opportunity to speak and vote on the issues raised in this report and on the exciting trade agreement with the European Union, which the agriculture committee studied.
I personally take great pride in this. When I was trade minister, as I said, my number one priority was seeing progress on this. I am very pleased that my successor has brought it to a satisfactory conclusion, and I look forward tremendously to the benefits to all Canadians. With the people-to-people links we have between Europe and Canada, the opportunities are tremendous. I look forward to hearing what other members have to say, but more importantly, I look forward to all this free trade agreement will mean for the creation of growth, long-term prosperity, and jobs well into the future for our country.
:
Mr. Speaker, I am pleased to speak in favour of the report of the Standing Committee on Agriculture and Agri-Food.
I would like to begin by pointing out that the committee conducted a thorough study of the Canada-European Union comprehensive economic and trade agreement, as well as the very positive economic impact it will have on Canada's agricultural sector.
The Standing Committee on Agriculture and Agri-Food heard from many witnesses who painted a complete picture of agriculture in Canada and who said they welcome the Canada-European Union comprehensive economic and trade agreement, especially considering the new opportunities it will provide to our agriculture sector.
The committee presented the House with an exhaustive report on the Canada-European Union comprehensive economic and trade agreement that included five major recommendations.
My comments will touch on the second recommendation, which reads as follows:
...that the Government of Canada continue its strong defence of supply-management to promote sustained growth and profitability in the supply-managed sectors of the economy.
Canadian dairy and farm producers are innovative and supply consumers every day. These industries contribute over $30 billion to the Canadian economy, in both rural and urban areas.
These industries also create thousands of jobs in Canada and help keep the economy strong and stable.
Supply management is vital to thousands of family farms in Canada, and it has served the interests of Canadian farmers, processors and consumers very well for more than 40 years. That is why the government continues to support the current supply management system.
However, the NDP did not even mention the issue of supply management in its 2011 election campaign. In fact, the NDP does not seem to know that agriculture and farmers are the main engines of the Canadian economy.
Yesterday, the NDP announced that it would again vote against the fundamental interests of producers, especially those of the Quebec producers they represent, by voting against Bill , and the access it will provide to seed technologies.
[English]
Our government supports supply management. We have always supported supply management, and we will continue to support supply management. At the same time, our government continues to pursue extensive international trade initiatives. This is vital to Canada's exporting farmers, who depend on trade and a strong Canadian economy.
Over the past nine years, we have concluded 10 free trade agreements that have facilitated trade with more than 40 countries. Our government has negotiated and signed these free trade agreements, all the while maintaining Canada's supply management system.
In fact in 2013, under our Conservative government, we reached over $50 billion in export trade deals with our agriculture and food industry. A recent Farm Credit Canada report highlighted Canada's agricultural exports as accounting for 30% of GDP, the second largest contributor to Canada's economic growth.
It is clear that our free trade negotiations and our upholding of supply management benefit the economy and strengthen our agricultural industry. The opposition, however, has opposed almost every initiative we have brought forward to strengthen trade and increase Canadian exports.
The NDP members have even said that, if given the chance, they promise to repeal international trade agreements to which Canada is a party. Of course, they will never be given that chance.
Farmers across the country, particularly those in the Quebec NDP ridings, support free trade because it is good for agriculture, good for Canada, and good for our economy.
The comprehensive economic and trade agreement is the most ambitious trade agreement since the North American Free Trade Agreement. With these two free trade agreements, Canada would be one of the few countries in the world to have preferential access to the world's two largest economies. These economies account for approximately 800 million of the world's most affluent customers.
The Canada-EU trade agreement would allow Canadian exports to benefit from duty-free access into the EU market. This would make Canadian products more competitive and provide our exporters with a significant advantage over their competitors.
The Canada-EU trade agreement trade agreement has been welcomed by many in the agricultural industry. Wally Smith, president of the Dairy Farmers of Canada said:
We have some of the finest and best artisanal cheese in the world, without a doubt, and we can compete with anyone in the world....
The Grain Farmers of Ontario said:
The Comprehensive Economic and Trade Agreement (CETA) will benefit Ontario, and Canadian, corn, soybean, and wheat farmers.
Canada's beef industry has also welcomed this agreement:
Once ratified and implemented, CETA will provide new duty-free access for 64,950 tonnes of Canadian beef - 50,000 tonnes of which is new quota - totally[sic] nearly $600 million annually.
The Canada-EU trade agreement is now signed, and stakeholders across Canada are delighted; yet the NDP still will not say if it agrees with stakeholders, even its own stakeholders, and supports this agreement as signed.
It is most regrettable, even shameful, when a political party does not even listen to its own stakeholders.
Mr. Jim Laws, executive director of the Canadian Meat Council, summed up the benefits best when he said:
CETA will result in higher incomes for farmers, increased competitiveness for processors, more job opportunities for workers, greater choice for consumers, and higher tax revenues for municipalities.
[Translation]
As a result of the government's consultations with many stakeholders across Canada, we know that farmers, dairy producers, provincial producers and associations, cheese producers and importers and the provincial governments may have concerns about the Canada-EU trade agreement.
The government will keep the promises it made to dairy farmers in the event that their productivity is negatively affected by the Canada-EU agreement.
As the said in October 2013, the federal government is firmly committed to closely monitoring the potential effects of the agreement. We could, if necessary, provide compensation if the agreement were detrimental to farmers.
Furthermore, under the terms of the Canada-EU trade agreement, Canada's supply management system will remain strong. The three pillars of the national supply management system—production control, import controls and price controls—are still in place and will remain in place.
[English]
Canadian farmers want to be competitive. Quebec farmers also want to be competitive. How would the NDP explain to the farmers in their ridings who are in favour of this agreement that they will not support the Canada-EU trade agreement?
Once again the NDP members are not listening to those they represent. They have pro-export and pro-trade stakeholders who want the NDP to support this agreement. The time is now for the NDP to listen to farmers, listen to their stakeholders, listen to their constituents, and vote in favour of the Canada-EU trade agreement.
Canadian farmers need a final answer from the NDP. Will it support the text of this trade agreement or not?
I have talked about how this agreement is supported by farmers and how supply management would remain intact with this agreement. We have discussed this at the agriculture committee and in this House, yet the NDP cannot make up its mind if it supports free trade and supply management.
I encourage all members of this House, particularly those of the NDP, to support this agreement and supply management.
That is why I move:
That the motion be amended by deleting all the words after the word "That" and substituting the following: "the First Report of the Standing Committee on Agriculture and Agri-Food, presented to the House on Thursday, March 27, 2014, be not now concurred in but that, in view of the subsequent conclusion of negotiations on the Comprehensive Economic and Trade Agreement and its final text having been published, the Report be referred back to the Standing Committee on Agriculture and Agri-Food with instruction that it amend the same so as to recommend that the Agreement represents an appropriate balance between creating opportunities for agricultural and food exporters and maintaining the system of supply management and, therefore, Canada's free trade agreement with the European Union should be implemented as negotiated.".
:
Mr. Speaker, after listening to the parliamentary secretary, I almost find myself almost at a loss for words. That is hard for the House to believe, and to be truthful, I think I can find my voice.
As the House leader quite correctly said in one of the few things he said that actually was correct, we did not have all of the details to study this matter. At committee we questioned why we were studying this when we did not even know what it was. We only knew that it was a CETA agreement and that we needed more details with respect to it so that we could pose questions to the folks who came before us from the agriculture sector. They included primary producers, processors, and the retail sector. There was a comprehensive number of witnesses, and I felt that there was a reasonable cross-section of folks who came before us to tell us what it was.
However, when we asked them specifically if they really knew what it was, the answer was that they thought so. Many had been at the table, but some had not. There was a sense that there might be some things they could win and that maybe there were not, but most said that overall they thought it was a good deal. The parliamentary secretary said that. The problem was whether they would be able to take advantage of those good things.
Unfortunately, one of the things missing in this report was the numbers. We talked about a nice big number—I think it was $2.4 billion—which is the value of wheat exports being sent to the EU now in the agriculture sector, but there is no number in here as to what the EU sends to us in the agriculture sector, which is actually greater than $2.4 billion. Even after we add in the numbers that the government talks about in this report—and the agriculture committee heard from different people—and add that number to the $2.4 billion, it is still less than what the EU ships here, so it is not as if we come out a winner over the EU. We can certainly say that we have come up, and there is no question about that. We have a cumulative number that is higher, and the EU got some extra stuff.
I agree with what my friend from Malpeque said when he talked about supply management. The government did not destroy the three pillars of supply management. Wally Smith, the president of the Dairy Farmers of Canada at that time, was quite clear about that. He said that it had not.
However, this is an overgrown mouse that is chewing away at supply management, especially the cheese section. That is what has happened, to the tune of millions of dollars.
My good friend, the deputy critic for agriculture for our party, comes from a great riding I can never pronounce because it always escapes me. I sit on the agriculture committee, and she does a wonderful job. It was quite clear in the motion that she presented to the House that we need to have some sort of transition plan for cheese producers.
If I remember, I think the government supported that idea. I do not think it has done much with it yet, but it did support it. It will be interesting to see what it does with that and if it actually works that through. It even agreed that there is an impact; otherwise, why would anyone support a motion for a transition program for a group of producers if we thought they were going to be winners? This government says it does not give away something for nothing, so it would not give money to farmers, or pretend to, if it did not think that somehow there was a loser.
That is what is in this agreement. That is what the report highlighted. That is why we added no dissenting report here. We added a supplementary piece because we heard from our friends in the agriculture sector, who said that there were opportunities for them.
As we have seen, there are opportunities there now. The Canadian Meat Council quite correctly pointed out that it has access now, but it does not use it, for a lot of legitimate reasons. The council says that additional access would enhance its ability to go ahead, and its members would probably take advantage of it.
However, if memory serves me right, that industry is looking for about $100 million in transitional costs so that it can move those factories and processors so that they can ship to the EU. The reason is that the EU is looking for red meat that is different. It wants it to be hormone-free and probably without antibiotics, so the meat has to be treated differently when it is processed. Different things have to be dealt with.
The problem ends up being the cost. Does the government intend to move that cost, or will the meat processors simply say that without the money, they will not do it? We do not know. The indirect benefits clearly are to those who say that they will feed those extra cattle, but that will happen only if the producers grow the extra cattle and send the meat down the chain.
In the committee report the barley producers talk about the net benefit to them. The problem is it is indirect, because they will not be selling barley to the EU. That is what the president of the Barley Council said. There is not really a big market for them to sell barley, because the EU has its own, but if we need another 500,000 head of cattle for that market, barley producers will be able to sell to the Canadian primary producers to raise that cap.
To go back to the beginning, if the processors do not develop a new line to take the cattle, then there are no cattle and there is no market for the barley producers. There is opportunity, but it is not a given. Unfortunately, my friend the parliamentary secretary always tells us that this will be so; well, it will not be so. It might be, but maybe not. We could point to other free trade agreements in which a lot of promises were made. Some of them happened.
It is not always the government's fault. We have to be truthful about that. If the opportunity is made available, someone has to take that opportunity. If they do not, then that is their choice. The issue is whether they can get all the things they want, and are we on a level playing field? It remains to be seen.
When we look at this situation, we see there are winners and losers. Some who came before the committee—and my friend did not talk about them—said they were not really sure if they are going to derive a benefit. Horticultural folks came before the committee and said they think they have some opportunities. They might have some winners, but they think they might have some losers too. Doing away with the tariffs is what it is about between the two, so they were wondering if the Dutch would dump all those red bell peppers on us, because right now they have a tariff. What happens if they decide to sell them in the horticultural sector? We will be swamped with bell peppers. We will be done. That is an impact no one in the government has talked about.
There is no transitional funding for the horticultural sector, by the way. At the moment the only reason there is one is that we moved a motion on this side to get Conservatives to talk about the cheese industry, and they finally accepted. There are none of those mitigating factors being taken into account.
On balance, it looks as though there could be opportunities, but perhaps not. No one is suggesting a free trade agreement in which one side wins and the other side loses. There has to be a balance. There is back-and-forth at the bargaining session. I know how it works. For 25 years I have looked across the table at folks trying to bargain collective agreements. We give something and we get something. That is how it works. In good agreements, on balance, we get what we need and they get what they need. When people go away from the table, they are never the happiest people in the world, but they feel they got a deal.
In this case, the EU will still have more agricultural product coming to this market than we will have going there, even when we add all of the new things that the government says will happen and, to be fair, what the ag sector believes it can win.
At the end of the day, we did not catch up, yet by all accounts we are a great agricultural country. We are great producers. We have great processors. We have great folks who market around the world and great products to sell. There are a multitude of things that we do extremely well, but we will still come up short compared to what will happen over there. We will still be in a position of going onto a playing field that we are not really sure is going to be equal.
After the committee adjourned, I had a discussion with one of our friends who appeared before it. He talked about GMOs. He said, “You know, we thought we were going to get that fixed in about four years.” I asked when that was, and he said it was in 1993. He thought that by 1997 or 1998 at the latest, we and Europe would be finished with that issue.
However, he said that what he liked about this agreement was that they are going to get to talk about it.
I said, “Didn't you talk about it in 1993?” He said, “Yes.” I said, “How are you making out?”, and he said, “Well, we're not, yet.” I asked him what makes this any different. He said, “Well, they said there will be an agreement on phytosanitary and all these things would get put to bed.”
I have never heard the government say yet that it has an EU deal that says the EU will take GMOs from us. If there is such a deal, somebody can nod their head in the affirmative over there and correct me. Stand and tell me I have it wrong. If it is true that CETA says the EU will take GMOs tomorrow, please let me know, because I have never heard it. That is not changing.
Our folks were hoping it might, but it did not. What does that mean for producers? It means it is a market they cannot get to unless they change. That is their choice, and that is okay. They can choose to go in that direction or not.
However, as the government says, it is a market of 550 million people that those producers will give up on, so they have to figure out what they want to do. Do they want to look at someone else who would take that particular product?
I make no value judgments with this speech about a GMO product. That is the farmer's decision to use the product. The issue in growing that crop is entirely up to them. At the moment, the market does not take that particular product, so it eliminates it for them unless they switch. Maybe someone from the other side, during questions and comments, will tell me that somehow this is not true and I have it wrong. I will wait to hear if that is the case.
Clearly, for us, we listened to farm groups, farmers and processors, right across the country, of which there were many. On balance, they said that the agreement looked like a good deal for their industry. However, there were some who said it was not necessarily a good deal for them.
We have heard about the supply side and it may not get what it thought it would get. My colleague from introduced the sense of how it would be affected. Mr. Wally Smith said that the existing quota today would be 2.25% less after the agreement than before. If the market is not growing in Canada, because it is a closed market for them, and the quota shrinks by that amount, it impacts the ability of farmers and producers to make money, unless the Canadian milk market can swell, but it only grows at a certain level.
The New Democrats, and I am sure members on their side, would encourage folks that if they do not drink a lot of milk, they should. They should drink additional milk products and look for real milk products, not the pretend products, if they want to do things for farmers. It is really all about that.
This is an issue on the supply management side that makes it interesting.
The other part of it is that in my neck of the woods we have the wine industry. When representatives of the industry came before us, they said there was no impact on them. The fact is that wine basically comes into the EU anyway. There is no real import tariff on it. It is a minor amount and it has been reduced for the last number of years. It basically is not there anyway. Most of it is kind of a provincial piece as it is imported into what the taxation regime is. Those people have said that they needed help marketing themselves, because the Canadian wine industry is a small player internationally. Part of that is because we do not have a lot of cultivars in areas where they grow grapes. We have less of it in the ground than in the European nations. That is just the nature of it. Since we are physically smaller player, they said it did not really impact them. In a way there is a bit of an indirect piece that they need.
The representatives did say that the potential was there for them to import equipment in the wine industry. I have always found it unfortunate that we do not have a manufacturer. I am not suggesting the government is at fault for this because it is not. As somebody who grew up in Niagara, I have always wondered why there is not a machine company around the province that makes good wine making equipment for us, rather than having to buy it from Europe all the time. Every time we go to these places, the equipment is usually made in Italy or Germany. I wonder why we do not make it here. We have great machinists and machine operators, so why do we not make the stuff here for our home industry? Maybe that will be an indirect benefit, and it will be an industry that sprouts up. We never know, because it certainly would be one that would be welcome in Niagara, which is a great manufacturing place to be.
As we went through this, we decided we would add a supplementary piece to the agreement that talked about what we would like to have seen as well. We wanted to see that protection for dairy farmers, and we made that motion in the House.
The New Democrats want to thank the government for accepting and supporting the motion, but we also want to ask what it is going to do. We are looking for some action. The Conservatives always suggest that we are inactive about certain things, well we are looking for some action from the other side and it would be nice to see that happen. It is clearly something they have said.
My friend mentioned Mr. James Laws, who is the executive director of the Canadian Meat Council. He was concerned about reciprocity. The reciprocity is on something that is called parma ham or feta cheese. It is a geographical indicator. We gave the Europeans a whole whack of geographical indicators, a whole pile of GIs, but we did not get too many in the deal. They got 20-some odd, which really surprised me because I actually thought they would only get a handful. I thought we would be firm with them and not really allow them to have as many as they got. We got next to none and the one we actually tried to get was maple, which is really a traditional Canadian symbol.
We put a recommendation in our supplementary report, but the government did not answer our recommendations at the back. It answered the other recommendations. It was really surprising that the government would not say it was for maple.
When it gets close to winter when the leaves fall, they are maple leafs. I am not suggesting the hockey team. I am saying it is maple leafs that are falling. For all the Leafs fans out there, I hear they are doing better than normally. One would think that if we are going to protect anything in this country as an icon, it is the maple leaf and maple syrup.
Members of my family who live in Scotland know to buy real maple syrup that comes from Canada. In fact, when they come to visit, we ensure they get some to take home. They say they can buy syrup in Europe, but it is not the real maple syrup. The real syrup that we get in Canada is iconic to our country. I am surprised the government did not say it agreed with that recommendation the New Democrats made as part of our supplementary report.
Clearly, there are some issues that the government has not addressed.
The Canadian Meat Council talked about it when it comes to GIs. It asked where that reciprocity was, where that ability was for us to stand up and ask why the Europeans were given all the ones they wanted. We understand that Europeans want to hang on to these sorts of indicators, that they really like the fact that this comes from a certain region, and they have a real attachment to it, especially when it comes to food products.
As much as we do not have quite the same attachment, one would have thought during bargaining we would have wanted to get something for that. If we were going to give them the GIs, why would we not then ensure they did not get as much cheese? Why did we not get something in return for that? That is what bargaining is about. It is about getting something for giving something. One does not just give stuff away for free. That is not bargaining, that is just giving up. For me, it was a real issue about not fighting to keep the things we need to keep.
On balance, I would be foolhardy to suggest that the folks who went before the agriculture committee did not say they felt there were opportunities here. Some felt there were very direct opportunities and could track it, but they were not really sure. There were some numbers used, some approximates, which were probably close to reality, but others were not. It really is quite often, as they say, not to pick on the pork industry, a bit of a pig in a poke, which is maybe it is and maybe it is not. One has to wait on those things.
Let me end by saying that the parliamentary secretary's amendment earlier I found strange at best, but then again I should never find anything coming from the other side too strange. There is this sense that the bill should be taken back to be re-studied with the additional information, which is actually a good piece. I do not know if subamendments can be made to these things, but I am not even going to try.
The bottom line is that now we have this additional information, maybe we should show the folks who went before the committee and ask them what they think. They may think it is better, they may think it is not so good. Giving an explicit instruction saying thou shall vote this way, means one really supports it. Let the Conservatives bring the bill to the House and then New Democrats will see if we want to support it.
:
Mr. Speaker, I will be splitting my time with the , my wise colleague, the member for .
Mr. Speaker, the creation of jobs and economic growth for the benefit of Canadian businesses, workers, farmers, and their families continues to be our focus. That is why I am honoured to take this opportunity to speak about the comprehensive economic and trade agreement between Canada and the European Union.
The EU is the largest economy in the world, with its 28 member states, over 500 million consumers, and annual economic activity at $17 trillion. The EU is the world's single-largest import market for goods. In fact, the EU's annual imports are worth more than Canada's total gross domestic product.
Last October, the announced that we had reached a historic agreement in principle with the EU. This September, at the Canada-EU summit, our government released the completed text of the agreement.
Yes, these are exciting times for Canadian farmers and processors. Thanks to this agreement, the future looks particularly bright for the industry's continued growth and success in the world market. A joint Canada-EU study that supported the launch of the negotiations concluded that a trade agreement between us would bring a 20% boost in bilateral trade and a $12-billion annual increase to Canada's economy. To put it in more general terms, that is the economic equivalent of adding $1,000 to the average Canadian family's income, or almost 80,000 new jobs to the Canadian economy.
In my home province of Saskatchewan, workers and businesses stand to benefit significantly from the preferred access to the EU market. The EU is the province's third-largest export destination and trading partner. However, the current tariffs on Canadian agricultural products prevent our producers and exporters from being able to compete on a level playing field with the EU market. As an example, the tariff currently applied by the EU to exports of oats has been estimated to add almost 52% to the price of a bushel of Canadian oats in the EU, and on common wheat the tariff can run up to $122 per tonne. These are not insignificant costs and represent serious barriers to market entry.
Our government recognizes that protectionist restrictions stifle our exporters and undermine Canada's competitiveness, which in turn adversely affect middle-class Canadian families.
When the Canadian-EU trade agreement is fully implemented, over 95% of the EU tariffs would be eliminated on our world-class agricultural exports, including oats, wheat, and canola oils. This would make all these products more competitive.
In Prince Edward Island, a significant portion of the province's world-class agricultural output is exported to the EU, which is the province's second-largest export destination and trading partner. As an example, the P.E.I.'s agricultural exports to the EU are worth an average of $4.5 million annually, but the average EU tariff on agriculture products is almost 14%. In the fish and seafood sector, tariffs peak at 25%.
On the first day the agreement comes into force, the deal would eliminate EU tariffs on the vast majority of fish and seafood, including PEI's renowned live lobsters. Also, agricultural products, like P.E.I.'s famous frozen French fries, which can currently face tariffs of almost 18%, would no longer be subject to these financial burdens.
When the P.E.I. exporters compete and win in the global markets, they create jobs for Islanders.
For Nova Scotia, the EU is already the province's second-largest trading partner and largest export destination. Nova Scotia's fish and seafood exports to the EU were worth nearly $160 million in 2013, making this sector the largest source of Nova Scotia's exports to the EU.
When the agriculture agreement comes into force, almost 96% of the EU tariff lines for fish and seafood would be duty-free. Seven years later, 100% of these tariff lines would be duty-free, making these world-class goods more competitive and creating the conditions for increased sales. Increased sales would directly benefit hard-working Nova Scotians through more jobs, higher wages, and greater long-term prosperity.
EU tariffs, for example, would be eliminated on live lobster, from the rate of 8%; on snow crab, from the rate of 7.5%; frozen scallops, from the rate of 8%; frozen shrimp, from the rate of 12%; and cooked and peeled shrimp, from the rate of 20%.
With its focus on quality, innovation, and value-added opportunities, Nova Scotia's agricultural and agrifood sector is well positioned to take advantage of these new opportunities.
There are more examples of these economic effects across the country. For example, the Canada-EU trade agreement would present new and expanded opportunities for Alberta producers. Agricultural products represent the second-largest source of Alberta's exports to the EU. The agreement would provide new market access opportunities for key Albertan exports of beef, pork, and bison.
Under CETA, Canadian farmers will have yearly duty-free access of up to 81,000 tonnes on pork, 50,000 tonnes on beef, and 3,000 on bison. Increased sales of these and other agricultural quantities will lead to more jobs, increased wages, and greater long-term prosperity.
In Quebec, producers will also benefit from these new opportunities in pork. As well, Quebec will be able to lock in duty-free sales of frozen blueberries and cranberries, which currently carry up to 17.5% duty.
Maple syrup producers will also benefit with the elimination of duties of 8%. Yes, even maple syrup producers will benefit. How could anyone oppose an agreement that allows Canadians to sell more maple syrup to the world and create more jobs here in Canada? In addition to the opportunities we have created for producers, we will work with the industry to help protect maple products against unfair competition from substitutes in the EU. We support the committee's recommendations on the issue.
As well, the Canada-EU trade agreement will establish a joint collaborative process where issues that impact trade can be raised and worked on jointly.
Trade has long been a powerful engine for Canada's economy, and even more so when there remain challenging times for this global economy. In fact, more than 60% of our gross domestic product is directly related to trade, and exports are directly linked to one in five Canadian jobs.
That is why our government is currently pursuing the most ambitious trade expansion plan in our country's history. By actively pursuing new trade and investment opportunities like this one with the EU, our Conservative government is providing Canadian workers and businesses with preferred access to the largest, most dynamic, and fastest-growing economies and regions in the world.
Our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. Thanks to the actions under our government's free trade leadership, Canadian workers, businesses, and exporters now have preferred access and a real competitive edge in more markets around the world than at any other time in our history.
We know that our Canadian exports can compete and win in the global marketplace. When our companies succeed abroad, jobs and growth are created here at home.
I had a round table in Tisdale this last weekend back in my riding in Saskatchewan. When I talk about trade agreements, producers and farmers are excited about having market access. They know what that means for them and their bottom line and to the communities they support, when they go to buy groceries, goods, and services. This is huge. This is a large market that we will be accessing, which will provide new opportunities. It is actually going to raise the price of grains by allowing our goods to be sold into those markets.
It is surprising when we look at wheat. At a tariff of $120 a tonne, we are still selling wheat into that market. However, when that tariff is eliminated, just think of how much more wheat we will be able to sell into that market. Also, if we look at the 52¢ a bushel tariff on oats and consider that an average farm in my area will grow 150 to 200 bushels an acre, it is a substantial amount of money that would return to farmers' pockets when we get access without the 52¢ a bushel tariff.
We are excited about this trade agreement. Saskatchewan is very excited about it and so are my producers. In fact, they are so excited about it they keep pressuring me and asking when we can get this done. They want it done now and ask why there is the delay and say that we should move it forward and get it done.
We look forward to seeing this deal move through this House, get completed, and get royal assent so that our producers, farmers, constituents, and communities can take advantage of all the benefits this deal has to offer.
We are very excited. I hope all the opposition parties and all the other members will be equally excited about such a great deal as this one here right now.
:
Mr. Speaker, it is my honour to rise tonight in this debate on the comprehensive economic and trade agreement with the European Union, negotiated by our government over several years in a form that is truly revolutionary for trade agreements. This agreement anticipates not only trade in mercantile goods and agricultural products but trade in services and sharing of professional services and professional recognition across the ocean, dipping into procurement and infrastructure projects. This is truly the 21st century benchmark for trade agreements.
As with all trade agreements that enter the House, one of the critical sectors for our negotiators has always been agriculture. The agriculture sector is well understood by this government, but more important, farming families across Canada are at the centre of much of what this government does on its trade policy work.
I would remind the House that Conservative governments have granted Canadian exporters, including our farmers, 98% of their market access around the world. Ninety-eight per cent of our trade opportunities have been negotiated by Conservative governments. In many ways, trade and our success in the last few years under the present is one of the hallmarks of our economic track record of success that is leading the G7.
At the focus of the reason these new markets and new opportunities are important are farming families. I am speaking of farming families like the Mustard family in my riding of Durham, sixth-generation dairy farmers, and that of my colleague from , who came to Parliament from a dairy background. We have farmers in our party. We heard from my colleague from . We have farmers in the House who bring their experience and their knowledge of what is important to farming families to the debate and to the negotiated outcomes of our trade agreements. We have always said we will not reach a trade agreement unless it is a win for all sectors, and that includes supply-managed sectors.
That 98% of market access that our government has secured was done while we have been able to maintain the four pillars of supply management. That, particularly in the global economy, is a real accomplishment, and it is an accomplishment because it is a priority. Our government set it out as a key priority when entering into these negotiations and obtaining outcomes that are wins for all sectors, including the supply-managed sector.
It is my privilege in my role as parliamentary secretary for international trade to meet with these sectors, including our supply-managed sectors. They see that we have been careful in our negotiations to secure wins for all agricultural commodities but, in particular, not sacrificing one for the other. We are proud of that.
The comprehensive economic and trade agreement, CETA, is an example of such success. When this agreement is implemented we would have 50,000 tonnes of access for our beef farmers. I have spoken to farmers in Alberta and Ontario who told me that they were struggling for many years, and only in the last two years have margins on beef become profitable. We have seen improper trade actions from our largest partner to the south, so those have encouraged us even more to get access for these farmers in global markets.
I am proud to be part of a government that has secured that with South Korea. It was so good that the NDP, after 50 years of opposing trade, had to acknowledge it was a great deal. Those members stood in the House to support it.
The European deal is equally ambitious, because our beef producers, some of the world's best, are effectively blocked by a huge 20% tariff. The Canadian Cattlemen's Association has estimated that CETA, when implemented for Canada, would represent a $600 million win in that industry alone. That is truly incredible.
Equally important is pork. We would be able to get 81,000 tonnes of tariff-free access for fresh or frozen pork products. I have met with the industry across the country, particularly in Brandon, Manitoba, where there is an underutilized facility needing new markets. If we can get the provincial government to address the moratorium on hog barns and get production levels up, we will have one of the world-class facilities there ready to ramp up to gain access to markets like South Korea and Europe for our pork products. It is another industry that has seen some challenges in the last decade, so securing new markets would be important.
Why is that important? It is because price would be assured, and a higher price is assured when there is more than one customer. Canada has been very lucky to sit on the border of a very large and hungry market, so we have been able to rely heavily on the U.S. trade relationship, which is still critical for our country, but having more markets secures better prices for our farmers and reduces risk by diversifying the markets into which we can export.
In debate tonight, members have already mentioned a range of other products, so I am not going to repeat a lot of them. I am going to focus on a couple that are very important to my riding of Durham in southern Ontario, which has some of the best agricultural land in Canada. Fresh apples have a 9% tariff rate that would come down with the European deal. The Kemp and Gibson families at Algoma Orchards in Bowmanville and Newcastle have been ramping up their operations, building a facility for processing. This would be a brand new market of 500 million consumers. Not far from them is the Stevens family, Charles, Judi, and Courtney, who are famous for creating the first blueberry marshmallows in the world. Fresh blueberries are at a 14% tariff.
When we start adding tariff rates like that to the cost of goods, they are essentially a wall to access. Through the work of this government in the last few years, we have been able to reach an agreement that would get rid of these tariff rates and allow these producers to gain access to a market that represents a bigger market than NAFTA, with some of the largest and most diverse economies in the world and with a strong middle class that wants world-class Canadian food products—across the board: meats, livestock, grain oil seeds, fruits, produce.
I met with the produce producers today, who are very bullish on the future due to trade, and this is an opportunity and a deal that represents a win from coast to coast on agriculture. We have heard about the wine and some of the fruits in British Columbia, through to the grain and oil seeds and durum wheat in the Prairies, to the beef and pork in Ontario, to fruits and maple syrup in Quebec, to frozen potato products, which have had a tariff rate as high as 17% for P.E.I. and parts of the Maritimes.
It is really once in a generation that we get such a tremendous opportunity for the agricultural sector as the CETA European trade deal represents. The last generational opportunity for Canadian exporters was the U.S. Free Trade Agreement negotiated with the vision of the Conservative government at that time. It really takes the Conservatives to open these new markets for our farmers, to allow them to diversify their markets and raise their average price.
It has been an honour for me as parliamentary secretary to meet with stakeholders from coast to coast to coast to work with them on their plans to get ready for the market access that CETA would represent. Whether it is the cattle or pork producers in western Canada or some of the fresh fruit and horticulture sectors here in Ontario, they are ambitious about this opportunity because we have some of the best agricultural businesses in the world and some of the best products to sell. Now we are giving our farmers more markets to sell them in. It is a huge opportunity, and I hope the NDP will finally get behind it.
:
Mr. Speaker, I am pleased to be sharing my time with my colleague from .
We would have liked the government to introduce a bill, but perhaps it will in the near future or a bit later, before the House rises in June, or maybe even on December 12.
During the study in committee, we heard from dozens of witnesses and we agreed on a few recommendations. Free trade is the cornerstone of economic development in the agriculture sector and will certainly provide exciting opportunities for many stakeholders in the sector. Technology now allows us to produce more, and faster. Nonetheless, we have to be able to deliver the goods. The more demand there is, the more we have to provide top-quality merchandise. Many provincial and federal sectors have welcomed this agreement with open arms. I sincerely hope it will help our farmers deliver the goods.
However, I cannot say that the government's response to our report is totally satisfactory. There are some contradictions in its responses with regard to what the report called for. I would like to clarify a small detail. The recommendations that we see here are the ones the committee adopted, but partisanship is commonplace in the committees and, as they do in Parliament, the Conservatives have a majority there. There were other recommendations that we wanted to adopt following the testimony we heard. Unfortunately, those requests by the NDP were rejected. That being said, I will come back to these recommendations.
My goal here is to show that the recommendations in the report arose from a Conservative consensus. I am surprised that the government is responding so weakly to its own recommendations. For example, on supply management, the government's response clearly indicates that it will continue to defend that system. However, I was expecting the government to do more than that.
The committee's report clearly states that the removal of tariff barriers could upset this management system, particularly for dairy products. I had many conversations with representatives of the Union des producteurs agricoles, egg producers, poultry producers and dairy producers. In the summer of 2013, I went on an agricultural tour of my riding, Joliette.
All of these people told me that the supply management system, which was chosen by the industry, is valid and effective and that the government must maintain it. The president of Dairy Farmers of Canada, Mr. Smith, said that the three pillars of supply management are still in place. These three pillars are production management, import controls and farm pricing based on production costs. I am concerned that CETA will weaken those three pillars, which is why we must make sure that the supply management system has the tools it needs to survive.
In its response to the committee's recommendation about that, the government says that Canada continues to strongly support the system on the international stage. That sounds like a good answer, but what does it really mean? As the committee indicated in the report, the dairy industry wants the government to strengthen the three pillars of supply management and to ensure a 10-year transition period to eliminate duties on milk protein isolates.
The most concrete measure in the government's response is about amending Canada's customs tariff to address the problem of goods packaged in such a way as to circumvent Canadian regulations. It would be interesting to hear more about that. That is certainly one way to circumvent our tariff barriers.
We saw this with the pizza kits that were disassembled when they got to Canada so that merchants could sell the cheese and get around the supply management system.
There were also problems in the poultry industry, when American exporters were selling us turkey as so-called mature chicken. When we go grocery shopping at Christmas, we may see the label “mature chicken”.
I was a farmer and I have never seen a mature chicken. A mature chicken is a hen or a rooster that is at the end of its reproductive years. However, it was shown that the mature chicken that is imported to Canada from the United States exceeds that country's entire production. Imagine how much poultry is not being accounted for in our supply management model.
I therefore hope that the government has done its homework on this and that that is what we are talking about here. I would even ask the government to clarify this issue.
What amendments are we talking about? When were they made? Frankly, the word “recently” does not correspond to a date on a calendar and I would like to know more.
In my riding of Joliette there are many dairy farmers, some artisanal cheese makers and a winery. These industries are among those that will have the most difficulty competing with European imports, which are often heavily subsidized. Indeed, last Sunday on La semaine verte, we learned that sheep producers in Iceland are subsidized.
That is why the NDP recommended that the government keep its promise to dairy and cheese producers. Unfortunately, our Conservative colleagues did not follow that recommendation, and I would like to know more about why since producers in those industries will need help to adapt and remain competitive.
CETA will no doubt provide many business opportunities in a number of industries and thus benefit the Canadian economy. However, it could cause a net loss for some industries that are quite prominent in the riding of Joliette, such as the dairy and cheese industries.
Could the government be more clear about the compensation these producers will receive? It is all well and good to say that they will be compensated, but how much will they get? Earlier, it was said that they would be compensated on the basis of their losses, but all that remains to be seen.
Since I used to be a farmer, I know that it helps to know where you are going, and the fact that the government is stalling right now must have producers in a cold sweat.
Another recommendation that the NDP would have liked to see in the report involves ensuring transparency in the harmonization of health standards. It is a major problem. Think about the listeriosis crisis. Quebec's artisan cheese producers lost millions of dollars in production because of preventative measures, while imported cheese arrived by the tonne and was not subjected to the same treatment.
It was said that the exporting country's food safety rules prevailed. However, in the interest of public safety, is it not important to take this more seriously and include that concern in our trade agreements?
The government recently cut the Canadian Food Inspection Agency's budget by $45 million. In the wake of the XL Foods scandal, I cannot say that I, as a Canadian, feel protected.
In a world that is increasingly interdependent trade-wise, basic common sense tells us that we should work to make our trade agreements more responsible and accountable to the people.
Earlier, I spoke about partisanship in committee. Let us look at recommendation number 5 in the government's response:
...that the Government of Canada continue to pursue additional comprehensive trade agreements to open new markets...
It is all well and good to say that, but then what happens?
Free trade became the new global economic reality more than 20 years ago. Should we not be concerned by the fact that there will be other agreements?
What is needed is a better framework and more transparency to ensure that these agreements are truly beneficial to those who matter most to us in the House: Canadians.
To conclude, I know that I did not speak to all of the recommendations, but I wanted to express my views and those of my constituents on certain parts of the report.
I would like to commend the government for supporting sugar maple growers. Quebec alone accounts for 96% of maple syrup sales abroad. It makes sense to ensure that the phrase “maple syrup” appears only on the original product, not on imitation products.
If the European Union has the necessary tools to monitor that, I would suggest that this recommendation be included in other potential agreements, notably in Asia, where we have seen the proliferation of counterfeit maple syrup.
:
Mr. Speaker, it is a distinct pleasure to rise in the House to talk about this report and the amendment put to it. It is truly an honour to represent a riding of farmers. It will come as no surprise to the majority of people in the House that Pontiac is mainly an agricultural riding. All along the Gatineau River and the Ottawa River are farms. Settlers, whether they were Irish, Scottish, or French, picked this part of the country to settle because of the quality of its farmland.
They are worried. We cannot hide that, and they are right to be worried. It is not only the dairy farmers in my riding who are worried, but also the beef producers. It is mainly because of the lack of information. It is also because there are certain assumptions made, due to messaging from the government at the very beginning of the negotiations of CETA, about supply management that have, frankly, proven to be false.
In fact, supply management is being undermined by the measures of the Conservative government. It is called importation of a certain amount of product, which actually affects the supply management chain. One would think that before launching something of this magnitude, we would do the fundamental market research necessary to determine where our strengths and weaknesses are. When we go to the negotiating table, we would have that information with us to ensure that we negotiate a good deal for Canadians. That is just fundamental work.
I happened to have the privilege of being part of the original committee that went to Europe to study the free trade agreement. There were a couple of issues brought up by the Europeans. For example, back then they were worried about having their geographic indicators respected. We met with some of the agricultural industry in France. It spoke with particular concern about this. It also talked about the possibility of having Canadian beef flooding its market. It talked about GMO products. All of my colleagues on that committee across the way who joined me will recall those words.
That was the picture then. This is now. What seems obvious to me is that we have caved in on every single one of those worries that our European counterparts had. I do not call that negotiating. I call that lying down and allowing them to step all over us, and for what reason? All of us have to ask that question. What agricultural industry is pushing the Conservative government hard enough to put into question some pretty fundamental measures in place in our economic structures to protect our family farms and, particularly in Quebec, supply management?
There is another elephant in the room with regard to CETA, and many of the European colleagues brought this up. I remember asking this very pointed question of the negotiators that we met in Europe. I asked what guarantees there were that this agreement would go through all of the different legislatures that make up the European Union. There was not a single person we met during that trip who could answer how and if that were going to happen.
Does it surprise me that we do not have a bill dealing with CETA in front of us? No, because one thing that the Conservative government fundamentally did not take into consideration was the reaction of the national state members of the EU. We saw how that reaction blew up for the government when Germany suddenly decided that maybe it was not such a good deal. That is Germany, a major player in the European Union, but we have not dealt with the vast majority of the countries that are part of the European Union.
How can the government guarantee us today that all the member states are going to approve this agreement and it will go forward? That is the elephant in the room. That is probably why we have not seen anything come forward. Conservatives expect us to agree to this agreement without actually seeing the bill come to Parliament.
I will give a bit of context to this. I do not recall, but it has to be a couple of years since the Conservatives began this negotiation. Did we ever see a single text? We actually had to get the Europeans to leak a draft text to us so we could see it. What kind of transparency is that? They are touting it as the most fundamental, greatest, most magnificent trade deal ever in the history of Canada, well beyond NAFTA. When did we get the draft of NAFTA? If we go back and check the history, we will see that the process of NAFTA was 90% more transparent than this one. Therefore, I do not understand why, fundamentally, they did not make this information available to Canadians sooner.
Members can understand why farmers in my riding, in that kind of context, would be extremely skeptical with regard to the impact this would have on their lives. We have to take into consideration that there are not all that many family farms left in Canada. There is nothing wrong with industrial farming, but it has fundamentally taken over our agricultural market. There are very few family farms.
A family farm is not just an economic unit. A family farm is a community. A family farm is truly the heart of communities like Shawville, Campbell's Bay, Fort-Coulonge, or Gracefield. What is allowing these family farms to survive is a very reasonable, cost-effective, and very efficient supply management system. The Europeans subsidize their farmers massively. They would not stop doing that under this trade agreement. Therefore, tit for tat, we have to make sure our farmers remain competitive.
Let us talk about beef, because the Conservatives are touting that this would have a fundamental impact on the amount of beef that would hit the European market. The beef producers would actually have to modify the way they produce beef, particularly with hormones. Hormones have an incidence on growth rates, so we have to keep that in mind with regard to the amount of production that can go forward. We have to check that with the amount of beef that can actually be exported. Also, if that transformation is going to occur, where would the transitional money come from to allow those producers to go forward, change the way they do their production, and export. Fundamentally, that is a change that matters to the farmers of the Pontiac.
Because the member of Parliament opposite suggested that perhaps this report should go back to the committee, I would like to move the following subamendment. I move:
That the amendment be amended by adding after the word “negotiated” the following:
“and the Committee only report back to the House following the introduction in the House of Commons of all implementing legislation and the announcement by the government of all transitional measures, including financial compensation.”
:
Mr. Speaker, it is an opportunity and a pleasure to speak tonight on CETA. I will be splitting my time with the hon. member for , and I look forward to hearing his intervention, following mine.
As chairman of the agriculture committee, I want to first thank all the members of all parties for their interventions and the work that was put into coming forward with the report on the economic trade agreement with Europe.
The historic agreement with Canada and Europe came about because there had been an incredible amount of consultation with farmers, which I am pleased to say has been my life occupation. When we talk about dairy, I lived that for a few decades. Thankfully, I still have the opportunity to be in farming by having someone to help manage it.
What we did as a government was make sure that we had a full impact, whether it was with farmers or processors. I guess we can talk about all the stakeholders. We did that because we wanted to make sure that when we got to the negotiating table, we had the support and the concerns of each and every one of those stakeholders.
We are at the stage now where we have the report. I am pleased to say that we have the committee's recommendations, and our government supports those. Basically there are five. It recommends that we approve the agreement to expedite the economic benefits it would bring to Canada's agriculture and agri-food sector; that we continue our strong defence of supply management, which seems to have captured a lot of the discussion here tonight; that we leverage this agreement to harmonize approvals for new agriculture and agri-food technologies; that we work with industry to protect maple products from unfair competition from substitutes in the EU; and that we continue to pursue additional comprehensive trade agreements. That last one is key to what our agriculture and agri-food industry wants us to do.
This, without a doubt, is one of the most exciting times to be in agriculture. This is an exciting time for farmers and processors. It is an exciting time for those in the agri-food industry. It is because of the 24 agreements with 43 countries that have been negotiated and finalized. What it means to our producers and our industry is that we have opened opportunities. We can produce and sell into markets and invest in our technology and innovation so that our industry looks forward.
I talk to the young farmers and the farmers who are coming along in Lambton—Kent—Middlesex and Southwestern Ontario.
I am very fortunate to represent my riding, which is not unlike that of my colleague across the way from . We talked earlier today, and we have similar ridings, very rural and agricultural with small towns, which means small family-oriented businesses. There is a diversity of livestock, supply management, grains and oil seeds as well as horticulture and greenhouses across my riding. There is incredible diversity, and each and every one of these businesses sees the opportunities in this trade agreement.
However, we are hearing from the other side: what about supply management? It is sort of an interesting comment, because everybody has their quotes, but for supply management, we must look in terms of the amount of imports that would come from this agreement, which I believe is around some 17,000 tonnes for cheeses.
Canadian cheeses are so popular. In fact, during the debates and witness testimonies in committee, we had a cheese producer from Quebec come in with some samples of cheese. I have to say that it was incredible cheese. The owner of the company commented that she did not have a concern with the agreement and actually saw an opportunity to market her product. She saw an opportunity to grow the market for these great cheeses.
We love cheese in Canada. The growth in cheese consumption in Canada is somewhere in the range of 8,000 tonnes per year. It seems to me that, when I listened to those producers and processors, they were saying that they have an opportunity and wondered why they could not meet that demand domestically in Canada. Those of us who are in the dairy industry and understand it know that it is true entrepreneurism. Those entrepreneurs think that this is a challenge and an opportunity.
When I talk to the young farmers in my riding, they are excited. The industry of agriculture is not unlike any other industry, such as high technology, and there is innovation and opportunity. This agreement talks about all of that. It talks about our farming generation that wants opportunity. The members of this generation want us to give them access to markets and then let them go.
Will they be able to provide hormone-free beef? Give them the opportunity and they will. Will there be processing plants to deal with the pork? We have had those conversations with the member from Manitoba, and we respect the concerns in Manitoba for that growth. However, we have opportunities in Alberta, where they want to build or expand a plant to process hormone-free beef. Why? It is because this agreement gives them the opportunity to sell it in a new market.
In closing, with almost half of Canada's total agriculture production exported, we have potential for growth in the sector, which lies in its ability to expand its markets abroad, making market access a key priority for this great industry that I am involved in along with many others across the country.
I ask the NDP in particular to stand and support this agreement, because not only will it be good across Canada, but it will actually also be good for those in Quebec the members keep taking about and are concerned it will harm. It will not. It is good for Canadian agriculture.
:
Mr. Speaker, I am pleased to rise today to join in this important debate on the Canada-European Union comprehensive economic and trade agreement, or CETA. As someone who formerly chaired the Standing Committee on Agriculture and Agri-Food, I want to compliment the members of the committee for the work they have done in putting together this report and allowing us this opportunity for debate. I want to thank the parliamentary secretary for his amendment to have the committee revisit this report and make sure that everything has been properly considered before the signing of the final agreement.
As many in the House know, I am a cattle producer and someone who still feels very passionate about agriculture. Being from a riding that has a diversified agriculture background with grain, oilseed, and supply-managed farms, as well as a very large and vibrant ranching community, I can say that this agreement is well endorsed and supported by the producers in my riding. They are just ecstatic about the opportunity to expand their markets.
I have listened carefully to the debate and I am a little concerned that some members have suggested that maybe we do not need this agreement or that the markets are not there. As someone who lived through the BSE crisis, I and my friends and even my family had to endure some significantly difficult years. We saw the result of not being able to market our products around the world. We saw what happened to the prices of livestock in this country as markets all over the world shut their doors. Every effort that is made to open up those doors and to diversify market share for our agriculture producers is something that every farmer across this country supports. We cannot have all our eggs in one basket.
When I ran for election back in 2004 in the heat of the BSE crisis, the one thing that farmers were telling me—not just in my riding but right across the country, because of my former involvement with the Manitoba Cattle Producers Association and the Canadian Cattlemen's Association—was that we have to diversify our markets and not be so dependent on the United States. The United States is next door and is easy to access, but at the same time we need opportunities to market. Therefore, moving to more free trade agreements, as our government has done, is something that is well regarded and very much appreciated by farmers across Canada.
Our agricultural goods and food exports have continued to grow over the past five years and have increased by 30%. Farmers are capitalizing on those opportunities and farmers are the ones benefiting from that expanded market. In the last year, we broke the $50 billion mark in the export threshold for the first time in our nation's history. That is huge. It is providing more dollars into the farming economy, it is creating jobs, it is creating prosperity, and it is something that continues to drive our overall economy and GDP as a country.
Today Canada is the world's largest agricultural trader on a per capita basis, according to Farm Credit Canada. What has led to this remarkable success? It is because this government and our believe in free trade and in having as many countries as we can to do business with. It is because of the hard work that we have seen from our trade minister and our agriculture minister as they continue to travel around the world, knocking on doors and creating sales opportunities for producers and manufacturers from coast to coast to coast. The has already led over 40 trade missions with industry, and each one has resulted in increased opportunities for our industry and benefited the economy. In fact, the minister just returned from his 11th mission to China, where he accompanied the to build on our trade relationship there and to continue to grow that lucrative market.
Agriculture, and the trade component of it, is not just about shipping cows and shipping bushels of wheat and canola. It is about technology now. It is about added value. It is about complete integrated systems where supply chains are met from one end to the other, and providing products that consumers want.
The opposition members say that we will be unable to move our beef into Europe because it has phytosanitary restrictions such as non-hormone beef. Guess what? If the market is there, our producers will raise those types of animals, and it is easy to do and it can happen very quickly. Even though there might be some production losses, if the dollars are more lucrative and there are more dollars in their pocket at the end of the day, they will not hesitate to jump on that opportunity.
As a case in point, my brother and my dad do a bit of organic farming. On the lands that they have certified for organic production, they do not get the same production that they get off the conventional part of the farm. They do not have the same quality of crops, in some cases, that they would under conventional farming. However, they do it because there is a market for it and it is lucrative. That is what motivates producers to make changes in production practices to meet the market. That is what this is about: creating more of those opportunities.
When the , the and the were in China, they saw some great deals being signed. One was with the canola industry in China, using more canola oil from Canada, at $1 billion. That is significant. It is $1 billion in just one country with that trade deal. Those are the types of things we are trying to accomplish with the CETA deal.
We are seeing all sorts of commodities benefiting from these increased opportunities in China. On the China trip there was a cherry deal signed worth over $20 million. There were $400 million in new market access gains in the minister's trip back in June, plus they signed $280 million worth of agriculture contracts. When we add it all up, over the past five years, just in China—never mind what we are trying to do in Europe—that has increased our sales by $5.6 billion in Canada. We are getting beef access into the China market, increasing beef sales back into Taiwan, which is the very last market to open up to us after the BSE crisis.
These are the things that really help promote agriculture, that provide the opportunity for that intergenerational transfer of farms from father and mother to sons and daughters. If we do not have dollars in our pockets, if we do not have the opportunity to make money, those transfers do not happen to the next generation.
When we took government, one thing we did was establish Canada's Market Access Secretariat just to concentrate on developing trade opportunities. That has brought industry together with federal government and the provinces, and it has built bridges with our trading partners. This type of coordinated approach allows us to identify and resolve trade irritants aggressively and strategically. It allows us, when we are putting together our trade agreements, to talk about what are the best practices in our experience with other trade agreements and to implement that so we have proper dispute resolution systems. Also, it allows us to build upon our competitiveness and where we have strength within the trade sectors.
As a result, we have identified target markets, which accounted for 85% of our total exports last year. When we take in the conclusion of CETA, add in the South Korean deal and add in Honduras, we realize that all of a sudden we have preferential market access in Europe, Asia and across the Americas. That is 38 countries that we now have trade agreements with, and when we add in the increase and continue to grow those, we will have access to over 44% of the world's agriculture and agri-food markets. That trade potential more than doubles when we take into account countries with which we are still negotiating. We will peak at 63% market access and we will have almost two-thirds of the world's agriculture import market.
We have trade agreements with more than half of the entire global marketplace, and that, just within the European context, is worth more than $138 billion.