Mr. Speaker, it is a great privilege to speak in the House today on this debate on agricultural issues. I am conscious of the fact that I represent an urban riding but I remind the members of the House that not only are the members of urban ridings consumers of agricultural products but we are all interested in a healthy farm community.
It is in the interest of all of us and there are many of us in Rosedale riding, those for example who work at the University of Toronto in the research area and others, who make in their own way a contribution to the health of the important agricultural community in this country.
Since the last election probably the single most important and dominant issue for our government for Canada's agri-food industry has been international trade. That is a matter of great concern to the foreign affairs and international trade committee of which I happen to be the vice-chairman. As was pointed out by the members for Haldimand-Norfolk, Glengarry-Prescott-Russell and Peace River this has been a very intense and challenging period in that area.
I think it is important for us to bear in mind that 1.5 million Canadians, that is one in five, depend directly on exports for
their livelihood. Trade in goods and services is equal almost to half our GDP and in the agri-food sector for every dollar that is earned at the farm gate exports generate about 45 cents.
Mr. Speaker, international trade in this sector has become increasingly important for the province of Quebec. In 1991, exports from this province amounted to 9 per cent of the Canadian total. Today they are 13 per cent, an increase of 49 per cent, for a total value of 1.8 billion Canadian dollars.
Exports to the United States are extremely important and new markets and new jobs will arise from our entry into new international markets. Although we are presently engaged in difficult negotiations with the United States over trade in some agri-food products which we hope to resolve over the coming months, the bulk of our trade remains free of dispute and continues to expand. Once a settlement with the United States is reached we will have a more secure environment in which all sectors can plan for the future.
I would like to take the opportunity today to look at some of the impacts of the new trading arrangements and how our government is working to assist Canada's agri-food sector with its market development activities.
The Organization for Economic Co-operation and Development has forecast that the new GATT agreement will give the Canadian economy an additional $8 billion boost by the year 2002. This government is determined to ensure that Canada's agri-food sector is a major participant in that economic growth.
The new development brings agriculture under effective trade rules for the first time in history and will ensure that these rules apply equally to all countries. Under the GATT as a result of the Uruguay round members have agreed to cut agri-food export subsidies by 21 per cent by volume and 36 per cent by value over six years. Export subsidy programs like the European Communities' CAP and the U.S. export enhancement program which the member for Haldimand-Norfolk referred to this afternoon are curtailed and international grains and oilseed prices will gradually rise.
It is hard to describe the importance of these changes. The anomalies that were created by agricultural subsidies in world trade were absolutely extraordinary. We had this crazy situation in the United States for example in which its export subsidies encouraged its farmers to export wheat to Turkey. The Turks, not being crazy, turned this wheat into pasta and sent it back to the United States which then competed with the pasta manufacturers in the United States which had to import Canadian wheat. Meanwhile Canadians were selling subsidized wheat to Italy which the Italians were turning into pasta and shipping back to Canada.
These anomalies created by subsides riddled agricultural trade. They have to some extent been brought under discipline under the new GATT rules. The importance of this cannot be under emphasized.
In that context we have to recognize that our supply management system which will be preserved as a result of our high tariffs came under attack under article XI, but this government was able to negotiate those high protective tariffs which will preserve the benefits of our farm management system.
As the member for Glengarry-Prescott-Russell pointed out we do not live in an isolated world. We are one member of the GATT and 115 other members insisted that we change from the type of quotas which we had used up to this time to a new and different type of system.
This government recognizes that changes will be needed. Changes will be needed to help the sector. To this end, the Parliamentary Secretary to the Minister of Agriculture and Agri-Food is heading a six member federal-provincial industry task force on orderly marketing. Its mandate is to consult with all supply management stakeholders to identify the issues that need to be addressed and suggest co-operative decision making processes to deal with those in anticipation of the GATT implementation in 1995.
Amendment to the GATT rules will allow for more competition. But of themselves the rules will not ensure that we take advantage of those markets. We have to work for those markets and this government recognizes that. To help the agri-food sector capitalize on these advantages, Agriculture and Agri-Food Canada has a new branch, market and industry services, with offices in all of the provinces. This branch is specifically designated to work with the industry on enhancing its global competitiveness and increasing its share of domestic and international markets.
As well, the federal government has 55 trade commissioners and commercial officers working on agri-food trade and developing more than 150 foreign markets. This includes 18 agri-food specialists, five of whom were recently named to our diplomatic posts in Taipei, Seoul, Singapore, Osaka and Mexico City.
Here at home, an agri-food industry council will be established to advise on all matters related to improving Canada's market position, promoting economic growth and creating jobs.
In addition, Agriculture and Agri-Food Canada will be working with other federal departments and the provinces to establish a single window marketing service for Canadian industry. This
will help facilitate access to programs such as the new getting ready to go global program, which gives cost shared assistance to food and beverage processors in developing competitiveness strategies and initiatives, and the agri-food industry marketing strategy program which helps agri-food associations develop and implement marketing plans.
The government's plan is to concentrate marketing on those areas of the globe which have the greatest potential for economic growth and market expansion in the future. In that context, the government is putting particular emphasis on the Asia Pacific and Mexican markets.
The minister of agriculture and the Governor General are presently on a trip to China and to Asia with industry representatives to sell our agricultural products. I hope, having heard the member for Peace River today speak of the importance of international trade in agricultural products, he may bring some discipline to bear on the member for Wild Rose when he questions the costs of these trips and the Governor General attending when important marketing initiatives can be made by such initiatives.
The Asia Pacific region is the fastest growing economic region in the world and it offers tremendous opportunities for Canadian agri-food exporters. This government intends to exploit that market and is doing so at this time. This represents a potential for jobs. They are good jobs, high paying jobs based on real markets in a growing part of the world.
Jobs, Mr. Speaker and other members of the House, I remind you, in the export area involve not only the farm marketers themselves but support services, banking and other areas, which those who live in urban communities benefit from as well. That is why the Minister of Agriculture and Agri-Food is in Asia today and 15 leaders in the agri-food sector thought it was important enough to be there with him.
With growing access to new markets around the world, it is clear that the future of Canada's agri-food industry is full of opportunities, the opportunity for growth and opportunity to contribute to economic activity and jobs in all parts of the country.
By working in close co-operation with the provinces, industry and other stakeholders, and by continuing to support the trade and marketing initiatives of Agriculture and Agri-Food Canada and other federal departments I am confident that we can help the industry make Canada agriculture and agri-food number one in the world.
In so doing, we will be ensuring not only the wellbeing of our farm community but the overall economic health of our country which includes important interests in our urban community as well.