Mr. Speaker, in response to the hon. member, the North American Free Trade Agreement, with improvements secured by this government, provides improved access to the Mexican market and builds on the Canada-U.S. free trade agreement in enhancing Canadian access to the United States.
Canada and the United States are each other's largest trading partners. In 1993 the total bilateral trade between our two countries was $256 billion. This trade was in Canada's favour by nearly $30 billion. Given such a large volume of trade, it can be expected that differences may arise. What is important to remember is that 95 per cent of this trade is undisputed.
I can assure the House and the member across that a satisfactory resolution of the agricultural negotiations with the United States is a top priority of the government. The issue has been raised at the highest level in discussions between the Prime Minister and the President of the United States. As well, the Minister for International Trade and the Minister of Agriculture and Agri-Food have been working very hard in negotiations with the U.S. in order to conclude an agreement that respects the interests of the Canadian agricultural industry.
The Minister for International Trade has just returned from meetings in Washington with members of the U.S. administration where he again vigorously underscored the Canadian position. With respect to grains, the United States has chosen to pursue the matter of Canadian exports to the United States under the GATT and not NAFTA.
On May 3 the United States officially notified the GATT of its intentions to renegotiate tariffs on wheat and barley under the GATT article XXVIII. This notification triggers a 90-day period in which Canada and the United States will continue to attempt to reach a mutually satisfactory settlement of several agriculture trade issues.
If no agreement is reached following the 90-day period and the United States does proceed with restrictions on Canadian wheat and barley, Canada has the right under GATT to retaliate. If necessary we will exercise our GATT rights in response to the U.S. trade action.
I wish to emphasize that the government remains committed to reaching a negotiated solution to these issues and will continue to work toward that objective during the 90-day period to ensure that the best interests of the Canadian agri-food industry are served. The Minister for International Trade and the minister of agriculture will be meeting with their U.S. counterparts next month in an effort to resolve.
In conclusion, I want to remind everyone that in bilateral trade in agricultural and agri-food products between Canada and the United States, that portion alone is worth several billion dollars. It is in the interest of both Canada and the U.S. to ensure that this trade grows in both directions to the benefit of both countries.