Thank you very much, Mr. Chair.
Good afternoon, everyone.
I'm pleased to be back at the committee today. I'm joined by Deputy Minister Chris Forbes and by Assistant Deputy Minister Pierre Corriveau of the corporate management branch.
I want to thank the committee for its outstanding work in support of the Canadian agricultural sector. You have been tackling some very important issues for Canadian farmers, including a food policy for Canada, non-tariff barriers, climate change, and water and soil conservation issues.
My message to you today is that the government will continue to work with you to grow Canada's agriculture and food sector. Today, I'd like to touch on three key points: our progress since we last met, our priorities ahead, and challenges and opportunities.
Mr. Chair, Canada's agriculture and agrifood industry continues to grow. Last year, the industry generated over $111 billion of our GDP. The sector is not stopping there, and neither are we. The estimates you have before you show the government's increased investment of $23 million to support programs in competitiveness, market development, and innovation. That brings our total allocation for the department to $2.4 billion.
As you know, Growing Forward 2 is ending on March 31. We are now working with the provinces and the territories on the new Canadian agricultural partnership. Beginning on April 1, 2018, the Canadian agricultural partnership will drive investments of $3 billion over five years. This agreement will build on the future of our great industry. It will support the growth and potential of the Canadian agriculture and food sector. It will help farmers innovate, grow, and prosper.
At Agribition last week in Regina, I announced federal programs under the partnership. Backed by a federal investment of over $1 billion, these programs will help farmers and processors expand into new markets, be more efficient and environmentally sustainable through agriculture research and technology, and build better consumer confidence.
Trade continues to be a strong focus for our government. We aim at increasing our agricultural exports to $75 billion by 2025. Trade with China will help us get there. This is a vital market for our farmers. China is our second-largest trading partner in agrifood. Their middle class grows by the population of Canada every year.
I was in China two weeks ago with a delegation over a hundred strong. I can tell you, Mr. Chair, that Chinese consumers are looking for the safety and top quality that our farmers can deliver. More and more, they're buying groceries on their smartphones and tablets. I have to say that we had a very successful trip. Industry signed deals for new business worth nearly $300 million, from wild blueberries and barley to swine genetics and ice wine.
We promoted e-commerce to sell our great Canadian food and beverages, and I sat down with my counterparts, Minister Han and Minister Zhi of AQSIQ to explore further ways to develop our trade. We also signed an agreement to collaborate on biotechnology.
Also, we were in Europe in October to help our industry maximize its opportunities under CETA. This historic and progressive agreement will help boost agricultural exports to Europe by approximately $1.5 billion a year.
There is still much more work to be done, and that is why our mission to Europe was so important. We helped open doors for our exporters and made many great connections with European importers. We also held bilateral meetings with many senior EU officials. We want to maximize the opportunities that CETA provides our farmers.
Here at home, we continue to support a strong and modernized NAFTA. Over the past few months, I have met with many government and industry people from the U.S. and Mexico. I can tell you that everyone I've spoken to recognizes the benefits that NAFTA has brought to our industry, our farmers, and the economies in the three countries. Canada will continue to work hard to grow our trading partnership across North America, and we will continue to defend our supply management system and our dairy, poultry, and egg farmers.
We're also investing $350 million in programs to make sure our dairy farmers and processors stay on the cutting edge through new technologies.
To ensure that our products get to the consumers around the world, we're also strengthening our grain transportation system through measures in Bill C-49, the transportation modernization act.
Just yesterday, we announced that Canada successfully restored market access for Canadian pork exports to Argentina, effective immediately. This could put another $16 million a year into the pockets of our farmers.
I want to say, Mr. Chair, that we're deeply concerned by and disappointed with the recent regulatory and tariff decisions made by the Government of India that are affecting the Canadian pulse trade. We've been working together with our farmers to find a mutually acceptable way forward with the Government of India to provide stable, sustainable access for Canadian pulse exports to India.
I've raised these issues with my counterparts in India. Recently, the Minister of International Trade led a mission to India, and the recent increase of tariffs on pea imports was raised at every opportunity. Canada and the rest of the world have been hit with a 50% tariff on peas, and this was a decision that India made without any advance notice. We stand ready to work constructively with the Government of India and our pulse farmers to resolve these issues, thus helping to ensure India's long-term food security.
Mr. Chair, I would now like to take a brief look at our priorities over the coming months.
On the Canadian agricultural partnership, CAP, we continue to work closely with our provincial and territorial partners to finalize the bilateral agreements. Our government is committed to supporting our farmers with strategic investments that expand growth and create well-paid middle-class jobs.
As I mentioned, last Friday I announced federal-only investments of $1 billion under CAP. These investments will focus on key priorities: growing trade and expanding markets; the innovative and sustainable growth of the sector; and, supporting the sector by better reflecting diversity and enhancing public trust.
This is an exciting new chapter in Canadian agriculture, and the Canadian agricultural partnership will help ensure that farmers and food processors can meet the world's growing demand for our high-quality products. My deputy minister will be pleased to provide the committee with further updates on the Canadian agricultural partnership during the second half of this meeting.
Governments fully realize that we must continue to make sure that our business risk management programs respond to farmers' needs. Along with my colleagues from the provinces and territories, we have made changes to strengthen these programs. We also announced a comprehensive review of the BRM programs in partnership with our Canadian farmers.
Innovation is certainly a priority for the Canadian agricultural partnership. It will give our farmers a competitive edge on the world stage. We will continue the great work of our agricultural clusters under the Canadian agricultural partnership. We will collaborate with the private sector to help the industry grow and help feed the world. Our government has identified the agrifood sector as one of six industries that can make Canada a global leader in innovation, and that is exactly what we intend to do.
Action on the environment is key to keeping the sector meeting the global demand for food sustainably. Our government is investing in programs to help farmers adapt to climate change. We have invested $27 million in the agricultural greenhouse gases program, which will help ensure that our farmers are the world leaders in the use and development of clean and sustainable technology and processes.
We have invested $70 million in agricultural science through budget 2017, which will focus on addressing emerging priorities such as climate change and water and soil conservation. We are encouraging industry across the country to take a national approach to the environmental farm plans. These have been tremendously successful, and they have a great potential to build the Canadian brand in global markets.
We look forward to placing an increased focus on environmental sustainability under CAP. I know that your committee has undertaken a study on some of these issues, and I certainly look forward to the results of these studies and how you can inform the government on these issues going forward.
We continue to work towards a food policy for Canada, based on our consultations, which reached tens of thousands of Canadians and industry stakeholders across the country. This policy will be our shared vision for the future of food in Canada. I look forward to the results of your recent study on the food policy.
Mr. Chair, there will always be challenges in agriculture, whether it's tough competition on the global stage, protectionism, or changing consumer demands. At the same time, Canada has the competitive advantages that will help turn these challenges into opportunities. We are blessed with huge resources of farmland and water and the best farmers and ranchers in the world.
The time is right for the Canadian agriculture and food industry to increase its presence on the global stage. Through smart investments and continued collaboration, I'm confident that we're up to any challenge that lies ahead.
Thank you for the great work.
Thank you.
