Thank you for that question.
To go back to your first question, there are two structural challenges for the sector and in that sense two opportunities. I talked earlier about investments in innovation. The other important component is the transformation of the markets for forestry.
We've seen significant—I may understate it by saying significant—growth in the Pacific basin's demand for Canadian forest products. It's my view that while that's very encouraging, there remain parts of Canada.... Again I go back to northwestern Ontario, where we, being somewhat landlocked, are continuing to develop and strengthen our position in markets in the Midwest of the United States and looking at opportunities from the east coast, as our friends in New Brunswick are seeing strong signals that the forest sector is rebounding. In their aggregate, they all point to the pursuit of market diversification for Canada's sustainably produced and high-quality forest products.
This program spending, to the tune of $1.8 billion since 2007, has significantly improved product demand for the Canadian forest sector overall. I'm pleased to highlight to the committee that budget 2015 confirmed $30 million over two years to the expanding market opportunities program. I believe strongly this will help Canadian forestry companies develop new markets and market segments for Canada's wood products.
I would say in closing, Mr. Chair, that my efforts in the Pacific basin in particular have been focused on, in the case of South Korea, looking at the free trade agreements and dealing with any residual issues like marking, translation, and capacity around Canada forest products, This is to ensure there are no technical barriers to the robust exercise Canada has made overall in terms of signing on to more than 38 free trade agreements. For the forest sector this has to mean increased demand. We've seen that in significant ways for China and we're very hopeful in Korea. As other agreements become ripe for discussion and advancement, we believe that the forest sector has probably not been for some time in a better overall position in terms of technology and expanding market opportunities to take full advantage of what that presents.