Madam Speaker, I welcome the review of Canada's foreign policy and international trade. I anticipate that we are going to have a great deal of interest in the review process and I encourage Canadians from coast to coast to be part of that greater debate.
The upcoming national policy forum is both timely and important. The cold war has ended. The foreign policy of many countries is drifting and needs to be reviewed. Most industrial countries are reviewing their policy on foreign affairs as a result of what has happened in a rapidly changing world.
I have concerns about the foreign policy, specifically CIDA. We will have speakers later today who will deal specifically with that so I will comment mainly in the area of international trade.
International trade perspective to me means opportunities to develop our trade with other countries. It means opportunities for our businesses to take advantage of these important trading deals that we have just concluded.
One such opportunity is the expanding trade with Mexico through NAFTA. I look forward to Canada participating in that very important trade pact as well as the discussion that is going to take place about the expansion of NAFTA. As we know, Chile is one of the countries that is looking to expand or to become part of the NAFTA arrangement. I would encourage our trading partners to accept Chile as part of this greater trading pact.
Currently 80 per cent of our exports are to the United States, our most important trading partner. I want to emphasize that we do not want to lose the United States as our most important trading partner. I think it is a natural relationship that is going to continue. But I do think we have to look for new opportunities as well.
New opportunities exist in southeast Asia where dynamic growth is being experienced. Growth forecasts for this area are in excess of 8 per cent annually. That compares with less than 3 per cent for OECD countries. Southeast Asia is the one place in the world where trade is booming.
Canada is well positioned to export to this area. Our western provinces, particularly British Columbia, have a natural advantage in water transportation, a very cheap method of transportation.
Canada has already had some success in selling into the Pacific area. Japan is our second most important trading partner and South Korea, of course, rates right up there as number six. Among the top 25 markets for Canadian goods are six nations from southeast Asia: Singapore, China, Taiwan, Hong Kong, Indonesia and Thailand. However, our total merchandise exports to these six countries only amounts to 2.7 per cent of Canada's total trade. I see this as being a real area for growth opportunity for Canada. We can and should be doing better in this area.
We have a large untapped resource. I am talking specifically about the one million Canadians of Asian origin who possess knowledge of the language and the culture. They know what the consumer habits are in these countries. They know the business norms, the conventions that need to take place. They often have family ties in that region. This invaluable knowledge is not found in a textbook, but it is very real and should be used.
We could be looking at encouraging Asian language training in our universities and encouraging our businesses to support that. We should also be looking at encouraging our trade department to hire more people with a background in that area to take advantage of these natural ties.
I want to speak specifically about some projections from Canadian business. The Canadian Cattle Commission is a good example of an organization that plans to take advantage of this very rich trading area. It estimates that by the year 2000, which is only six years away, exports will increase twelvefold to this area, from 6,000 tonnes to 75,000 tonnes of beef annually.
The Canadian Wheat Board is projecting steady growth in that area. South Korea now accounts for a significant amount of our feed grains.
Canada is a trading nation. Twenty-five per cent of our gross domestic product is accountable to our exports in goods and services and that sustains over two million jobs in Canada.
Our present recovery is being led by solid increases in our export trade. Canada has a very good reputation as a leader in the trade area. Our Department of Foreign Affairs and International Trade has been doing an excellent job of developing markets
abroad. Canada gained a good reputation as a leader in helping to establish the GATT after World War II and now the new world trade organization.
I believe the trade component of the Department of Foreign Affairs and International Trade should not be downsized. It should be streamlined to become more cost effective. We need a strong department promoting Canadian interests abroad. That is one way we are going to continue to grow.
We heard the minister speak this morning about the review that is under way in the department. I encourage him in that review. I would also like to encourage him to make our business community, our private sector, more a part of our trade organization. It should be taken into account in a lot higher degree.
New emphasis should be placed on putting in place people of Asian background specifically in our trade department, as I said, to promote trade in southeast Asia. Opening trade consulates in emerging countries such as southeast Asia should be examined. The joint ventures that were talked about earlier today I would certainly encourage in order to make it the most cost effective method of promoting our interests abroad.
Problems at home must be corrected before we can be effective traders. We cannot expect our businesses to operate with one hand tied behind their backs. If we cannot give our industries a fair chance to compete our efforts are really futile. Our companies, small, medium and large which have to break into and develop these foreign markets cannot do so effectively. They are hampered by disappointing results at home because our government will not act responsibly on fiscal management.
Taxes must be reduced. Deficits must be eliminated and government overspending must be stopped. A greater emphasis has to be placed on removing internal trade barriers. We have to create the proper climate in Canada to promote business. I believe that we must put into place realistic tariffs so that we do not invite challenges from our trading partners as a result of the very important negotiations concluded at GATT.
In closing, I would certainly welcome a review of our foreign policy, our defence policy and our trade policy. These are all happening at the same time.
There is merit in having some joint meetings of defence and foreign affairs in order to dovetail these as much as possible. It is very important because the policies we are putting in place this year will determine where we stand as a nation when we reach the 21st century.
In my mind it is a very important review. I look forward to the process. I hope that as many Canadians as possible will participate in this review.
I also have some concerns, as does my colleague, as to the make-up of the joint committee. I look forward to travelling across the country and taking this hearing process to the very people who have to make representations instead of having them come to Ottawa. That is a very important part of this process as well.
In closing this is a very important time in Canada's history, with the two reviews that are going on. It is not an easy time. All countries are facing some kind of a review as a result of what is happening internationally with globalization. I hope we can meet that challenge.