Madam Speaker, it is a pleasure to be able to speak to the motion today as it includes both agriculture and fisheries, two of the main industries in my province of Prince Edward Island. I have probably spent as much time on the fisheries committee as I have on the agricultural committee, so I have been asked today to address the part of the motion dealing with the amount of agricultural subsidies and subsidization that is going on in the world today.
We know about the root causes of the financial problems facing some of our farmers today, namely adverse weather and worldwide low prices for some commodities. These low prices are primarily a result of oversupply which has led to reduced demand in key markets such as Asia and Latin America. The oversupply has come about not just because of unfair trade practices but also because of some incredibly good harvests worldwide over the past few years which have put a great deal of high quality product on the market. Those inventories are still quite high.
This situation has been aggravated by the persistent use of trade distorting support by some of our major training partners, especially the United States and the European Community. Farmers are not encouraged to grow crops in response to the realities of the marketplace in those countries and our farmers, as well as producers in other countries, are feeling the effects.
The motion before us suggests that the government has not been doing anything to address the serious issue of subsidies being provided to our competitors in the agricultural sector. I have to take issue with that for the government and the Minister of Agriculture and Agri-Food, in particular, have put much of their energy and resources over the past two years into developing a strong initial negotiating position to take to the world trade talks that are about to begin in Seattle. Those talks are absolutely crucial to our ability to bring about a fair and level playing field in which our producers can compete.
There is absolutely no doubt that Canadian producers are some of the most efficient, productive and innovative in the world. They have the business savvy to compete with the best and they can compete and win when the trading environment is fair. If we can rid the agricultural world of trade distorting subsidies, particularly export subsidies, Canadian farmers would be able to produce and invest with greater confidence.
While the Minister of Agriculture and Agri-Food has been working to address the economic and weather related problems of Canadian farmers, he has also devoted a great deal of time and energy to working with our trading partners, with the objective of bringing some order and stability into the world marketplace. He has taken every opportunity to remind his counterparts from major trading nations, particularly the European Community and the United States, that their actions can only prolong the serious problems faced by farmers.
It is not clear that the subsidies being provided by our competitors such as the United States are even helping those farmers all that much in the short term. There seem to be just as many concerns expressed by American producers about low prices and low incomes as we are hearing in Canada. As a matter of fact a witness this morning in the agriculture standing committee verified those facts.
The need to get rid of trade distorting subsidies is a critically important message for our trading partners to hear as we head into the WTO negotiations which start in Seattle in a couple of weeks. It is the message that we have been delivering every chance we get. I know the Minister of Agriculture and Agri-Food raised it, for example, when he hosted ministers from Japan, Australia, the European Union and the United States at a meeting in Montreal in September.
Going into the WTO talks Canada has been a world leader in setting out its goals for what needs to be accomplished in agriculture. That position includes the complete elimination of export subsidies, a substantial reduction of trade and production distorting domestic support including an overall limit and domestic support of all types, and real and substantial market access improvements for all agriculture and food products. As well we are defending Canada's right to maintain domestic orderly marketing systems such as the Canadian Wheat Board and supply and management for dairy and poultry products.
This position was arrived at after two years of extensive consultations with a broad cross-section of representatives from the agricultural and food industries and the provinces. This position reflects the trade interests of the Canadian agriculture and food sector as a whole across all commodities and all regions. It is a solid, unified initial position which I am confident will help to garner a better deal at the international trade table. By the way, I am sharing my time with the hon. member for Mississauga West.
With this position Canada will play a strong and active role in influencing the direction and eventual outcome of the WTO negotiations. In fact we already have.
Shortly after announcing the Canadian position the Minister of Agriculture and Agri-food met with the 15 agricultural exporting countries which make up the Cairns group. This group also included countries like Australia, South Africa, Brazil and Argentina. Coming out of that meeting the minister indicated that Cairns members had agreed to a common WTO negotiating front, namely, freer, fairer and more market oriented trade conditions.
In addition, both APEC and the Free Trade Area of the Americas, and Canada is a member of both those groups, have come out with resolutions calling for the elimination of export subsidies. This is what Canada and its allies will be pushing for when the negotiations get started in Seattle.
It is in Seattle that Canada will be cranking up the heat even more to convince all our trading partners of the need to let farmers make their decisions based on market signals rather than on government support levels. In this way we have been laying the groundwork for meaningful negotiations, negotiations that start smoothly and allow our negotiators to work with clear direction and steadfast commitment to the needs of our producers and that achieve good results.
I do not deny that we are getting into a long process. The WTO talks will not deliver changes overnight, but they are crucial to building a strong and competitive Canadian agricultural sector. The government is committed to reforming trade in the agricultural sector. It is something we have been building toward over the past several years and our efforts will only intensify from here on in.
As the WTO negotiations proceed the federal government will continue the partnership approach that led to the development of a unified national negotiation position by ensuring that industry and the provinces are consulted closely throughout the process. We are in this together, the federal government, the provincial governments and industry, in seeking solutions to the income problems of farmers over the long term.