Madam Speaker, a few weeks ago, I questioned the Minister for International Trade about the trade dispute between the U.S. and Canada over goods subject to quotas, such as poultry, eggs and dairy. At the time, the trade minister was unable to give farm producers the assurance that Canada's position will prevail over that of the U.S. Canada's position, according to which the GATT Accord takes precedence over NAFTA regarding agricultural commodities subject to quotas is steadfast and flawless.
Since the Americans never challenged the tariff structure submitted by Canada during the Uruguay Round, particularly with respect to yogurt and ice cream, it would be very difficult for them to come and ask Canada for tariff concessions for these commodities now.
That being said, the restructuring necessitated by the shift from a quota system to a tariff system will particularly affect dairy producers, 50 per cent of which are found in Quebec.
Throughout this transition period, dairy producers will have to contend with the federal government's decommitment in several areas. Of course, this decommitment will have a major impact on them, as it will affect their competitiveness in the short, medium and long term.
First, in the short term, the federal government's decision to reduce by 30 per cent, over the next two years, its subsidies to industrial milk producers will result in significant losses for these producers.
Indeed, the Quebec federation of dairy producers estimates that these cuts will result in a 15 per cent loss of revenue for industrial milk producers. This translates into a loss of $3,775 for a medium-sized dairy farm producing 25,000 hectolitres of milk.
These losses, which will result in a shortfall of close to $34 million for the Quebec industry, will also be felt when, as is the case now, there is a need to invest in modern infrastructures to compete with American producers.
Incidentally, dairy producers, unlike western farmers, will not benefit from any compensatory measure following this reduced federal assistance. Again, this shows the double standard applied by the federal government.
The withdrawal of federal support to the dairy industry will also have an impact in the middle and in the long term, since several so-called green programs, under the GATT, will be eliminated. These programs deal with genetic evaluation, milk recording, dairy animal improvement, and research.
Reducing or eliminating funding for these various programs will have very serious repercussions, because these moves not only threaten the programs that already exist, but they also affect Quebec's and Canada's ability to remain leading innovators in the dairy industry on the world scene.
While we are cutting that which would allow us to stay on the cutting edge in this sector at the very centre of our economy, the Americans are planning to invest more than $600 million over the next five years in so-called green farming programs under the terms of the Uruguay Round agreements.
What logic did the federal government use when it decided to cut research and development programs in the dairy sector, although studies show that for each dollar invested in genetic improvement or in quality control in the dairy sector, Quebec and Canada taxpayers reap seven dollars in benefits?
No, dairy producers vigorously oppose any funding cuts to so-called green programs because the industry regards them as a priority. Obviously, there is no way that I or the Bloc Quebecois can support such acts on the part of the government and that is
why I am behind the dairy producers all the way when they petition the federal government to stop dismantling their industry.
Not only is the government jeopardizing the future of our dairy producers, but it also seems that its incompetence is robbing the dairy industry of its means to grow in an increasingly competitive world market.