Mr. Speaker, as hon. members are aware, Canada and the United States started negotiations in December 1993 in an attempt to deal with a number of problems connected with bilateral trade in farm products. Although these questions were examined in their entirety, negotiations were conducted on each product. There was no compromise and there will be no compromise in this respect.
The latest memorandum of agreement on grain bears this out. The memorandum deals only with our grain exports to the United States and has absolutely no connection with questions still outstanding.
The memorandum of agreement benefits Canadian grain farmers by giving them stable and secure access to a U.S. market where the returns are high. In this memorandum, Canada obtains guaranteed access to the U.S. market for wheat at a level that is higher than average historical levels for Canadian exports. Furthermore, conventional wheat exports for which the CWB is not responsible are not subject to the U.S. restrictions. The level of access provided in the memorandum of agreement is far more attractive than the inevitable alternative, a highly restrictive measure that would have reduced our exports to about half the level provided in the agreement.
The memorandum of agreement also establishes a joint grain commission that will be asked to examine U.S. and Canadian grain marketing practices and their impact on the international grain market. The commission will do a critical study of the export incentives program, a U.S. export subsidy program that has caused imbalances in the market situation.
The memorandum of agreement also obliges the United States to withdraw the measure on wheat and barley taken under the provisions of GATT article XXVIII and prohibits them from imposing any other restrictive measures on grain that do not comply with NAFTA or GATT, during the twelve months the memorandum is in effect.
I can guarantee the House that a satisfactory settlement of the agriculture-related problems that still exist between Canada and the United States remains one of the government's absolute priorities. I would also like to emphasize that each question will be examined on its merits and that no deals will be struck.
Bilateral trade in farm and agri-food products is evaluated at $13.7 billion. Canada and the United States both have an interest in developing that trade in such a way that it benefits their respective countries.
Regarding the hon. member's allegation concerning the discussion he had with the Minister of Agriculture and the Minister for International Trade, I was not aware of that. The hon. member should write to both ministers to let them know that he intends to raise the matter in the House.