House of Commons Hansard #18 of the 36th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was wto.

Topics

Remembrance DayOral Question Period

3:15 p.m.

The Speaker

Is it irony that today we have our veterans, who I am going to introduce in just a minute, our merchant seamen and our artists and our writers, all in this House, the House of Canadians.

I am going to introduce the representatives of the various arms and some veterans and where they served. At the end of it, we are going to stand as a House, indeed I hope as a nation, for two minutes of silence as was asked of us by many members of this House and by our own Canadian legion.

Before I name these wonderful men and women, the veterans, the mariners and our artists, I want all of them at the end of these tributes today to join with us in Room 216 where we can meet them and spend some time with all of them together.

I draw the attention of hon. members to the presence of the following people in the gallery. When I call your names, please stand. I would ask my colleagues to withhold any applause until I have introduced everyone.

We have a veteran with us from the first world war, Paul Métivier. Paul, I hope you do not mind if I tell my colleagues that you are 99 years young. Please remain standing if you can, sir. If not, it is all right.

We also have with us Mr. Ken Cavers, a navy veteran of the second world war who served on North Atlantic convoy runs aboard corvettes, first HMCS

Hespeler and later HMCS Hawkesbury

; Mr. Ken Ewing, veteran of Hong Kong who spent almost four years as a prisoner of war; Mrs. Leena Jacques, who was a nursing sister in the second world war; Mr. Philip Jacques, who served with the Stormont, Dundas and Glengarry Highlanders in the second world war and also served in Korea; Mr. Bert Harper, a CANLOAN officer during the second world war who served with the British forces in our name; Mr. Harold True, a veteran of the Korean war who served with the medical corps; Mr. Andrew Garlicki, a veteran of the Polish forces who served alongside the Canadians in Europe; and Lieutenant Colonel Bill Aikman who was in Sarajevo during the Bosnian war.

I take the liberty of asking our merchant seamen to also stand please to receive our tributes.

These are the men and women who served us so well over this century. In the name of parliament, I thank you for what you have done for us.

Editor's Note: Members rose and applauded

Remembrance DayOral Question Period

3:20 p.m.

The Speaker

Now, I would ask that all the hon. members please remain standing, as we will observe two minutes of silence for those who gave their lives and made so many sacrifices for us in this century.

Editor's Note: The House stood in silence

Business Of The HouseOral Question Period

3:20 p.m.

Reform

Grant McNally Reform Dewdney—Alouette, BC

Mr. Speaker, it is my pleasure to ask the government House leader the very important question that we have every Thursday.

Could we know what the government might have in store for us for the remainder of this week and the week following the break? Could the government House leader also inform us as to whether or not he will be employing the Mulroney-like tactic of invoking closure and time allocation, as the government has done on Nisga'a, on the legislation that will be coming up in the near future?

Business Of The HouseOral Question Period

3:20 p.m.

Glengarry—Prescott—Russell Ontario

Liberal

Don Boudria LiberalLeader of the Government in the House of Commons

Mr. Speaker, tomorrow, the House shall begin the second reading of Bill C-10, the municipal grants legislation.

Should we complete this stage early in the day, it is not my intention to call other government orders tomorrow. Next week, the members will have the opportunity to work in their ridings and to attend Remembrance Day ceremonies.

When we return, on Monday, November 15, we shall take up second reading of Bill C-11, the Devco legislation. Tuesday, November 16 shall be an allotted day, and Wednesday, November 17 shall be the sixth and final day for consideration of the address in reply to the Speech from the Throne.

The hon. member asked me if the opposition was going to have more obstruction devices in response to government legislation. Frankly, I do not know and I hope not. I hope the usual progress can be accomplished without the partisanship and obstructionism that we do see every now and then. I will do my best to avoid it, I promise.

Business Of The HouseOral Question Period

3:25 p.m.

NDP

Bill Blaikie NDP Winnipeg—Transcona, MB

Mr. Speaker, this is a question I have asked the government House leader before but since I last asked him this question, there have been some developments.

We know that at one point the government was going to bring in legislation having to do with the regulation of reproductive technologies and that fell by the wayside. Since then, particularly in recent weeks, we have seen developments with respect to the commercial sale of human eggs, et cetera. I wonder whether this has now prompted the government to speed up its schedule and whether or not there is any legislation coming forward in this area.

Business Of The HouseOral Question Period

3:25 p.m.

The Acting Speaker (Mr. McClelland)

I am not sure whether this is an appropriate question to be given to the government House leader but the government House leader may wish to respond.

Business Of The HouseOral Question Period

3:25 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, the best information I have at this time on such a measure is that it will be presented in the House of Commons early in the new year.

Business Of The HouseOral Question Period

3:25 p.m.

Progressive Conservative

André Harvey Progressive Conservative Chicoutimi, QC

Mr. Speaker, I might note that the minister did not mention whether the government was going to make its medical research intentions official. This was supposed to happen this week, or on our return. Is there any news on this?

Business Of The HouseOral Question Period

3:25 p.m.

The Acting Speaker (Mr. McClelland)

I am not exactly sure this is a road we want to go down. I want to assure people that this is not a precedent. Today the government House leader is being particularly generous in sticking around to respond to questions.

Business Of The HouseOral Question Period

3:25 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, thank you for saying that I am generous. I appreciate that. The health institutes bill was in fact introduced in the House this morning. I hope to have the co-operation of hon. members to send it to committee within the first couple of weeks after our return. I thank the hon. member for his interest in this matter.

Mr. Speaker, I have one more item. As a result of the Remembrance Day tributes held earlier this day, there was an all-party agreement that we would recover the time of the House. I would ask that you seek unanimous consent that the ordinary time of adjournment be delayed by some 20 minutes.

Business Of The HouseOral Question Period

3:25 p.m.

The Acting Speaker (Mr. McClelland)

Is there unanimous consent?

Business Of The HouseOral Question Period

3:25 p.m.

Some hon. members

Agreed.

The House resumed consideration of the motion.

SupplyGovernment Orders

3:25 p.m.

The Acting Speaker (Mr. McClelland)

When debate concluded before question period, the hon. member for Perth—Middlesex had five minutes remaining in his dissertation followed by questions and comments.

SupplyGovernment Orders

3:25 p.m.

Liberal

John Richardson Liberal Perth—Middlesex, ON

Mr. Speaker, Canada has a unified position that reflects the trade interests of the Canadian agriculture and agri-food sector as a whole across all commodities and across all regions, which is hardly a very undemocratic system. It is very democratic. This position will allow Canada to play a strong and active role in influencing the direction and eventual outcome of the important upcoming negotiations.

In the upcoming negotiations Canada and other countries will be looking to build on the WTO agreement in agriculture signed in 1994. We made real progress in the Uruguay round, bringing the world agriculture trade under a multilateral rules based system for the first time. Canada has reaped the benefits. The Uruguay round was a good start at decreasing distortions which characterized trade back in the 1980s, but much remains to be done.

Currently our farmers are faced with some of the lowest commodity prices seen for a long time. A worldwide problem of oversupply in some commodities has been aggravated by limited market access and prolonged by the persistent use of some export subsidies and trade distorting domestic support of some of our major trading partners, particularly the European Union.

The United States has also responded to low world prices with increasingly large payments to its farmers, further widening the disparity between the amount of assistance provided by the U.S. and EU and the assistance provided by other countries. It is not clear that these additional subsidies are helping U.S. farmers since there appears to be just as many concerns expressed by American farmers as there are with our farmers about low prices and low incomes.

This makes our efforts at the international negotiating table all the more critical. Taking a strong position at the WTO to lower subsidies and enforce the rules that are agreed to is one leg of our strategy to deal with the farm income situation.

Canada's initial negotiating position gives Canada an authoritative agenda, endorsed by industry and provinces, to work to level the playing field internationally for Canadian producers and exports.

A key component of this work is to have all agriculture export subsidies completely eliminated as quickly as possible. We will also be calling for substantial reductions in domestic support programs that distort production and trade, and for an overall limit on domestic support of all kinds.

We will be looking for improvements in market access, particularly for food products. Food products are leading the surge in growth in world agriculture trade. The Canadian industry has increased its emphasis on these new demands to capture new markets while preserving and enhancing existing markets in our traditional bulk exports.

Canada will work to preserve our right to choose how to market our agricultural products. This includes preserving our orderly marketing systems such as the Canadian Wheat Board and supply management for dairy and poultry products. With this position Canada will play a strong and active role in influencing the direction and eventual outcome of these important World Trade Organization negotiations.

Canada is not alone in its position either. There is much support internationally for the elimination of export subsidies. There has been much progress in bilateral negotiations with the United States for a more unified position. The Minister of Agriculture and Agri-Food has been diligent in pushing the U.S. secretary of agriculture to pursue a course which will allow us to build on our common goals and best interests.

The 21 APEC countries as well as members of the Cairns group, which comprises 15 like minded agricultural exporting countries such as Australia, South Africa, Brazil and Argentina, have all agreed that we should seek the elimination of export subsidies which are so detrimental to trade.

Canada is a leading player in Cairns and is working closely with other member countries to ensure that the WTO negotiations are launched quickly and cleanly so our common objectives can be met sooner rather than later.

The minister of agriculture recently hosted a meeting of Quint, an informal group of ministers that includes Australia, Japan, the EU and the United States. At that meeting earlier this fall all ministers agreed on the urgency of the WTO negotiations. Our work with Cairns and Quint also allows us to pursue our goal of reducing and eliminating trade distorting subsidies on a variety of fronts and provides Canada with a greater influence.

The Government of Canada has confidence in the ability of our producers to compete in a world marketplace. As producers they have confidence in themselves. We are laying the groundwork to ensure our trading partners enter the WTO negotiations with a commitment to a smooth launch, steadfast negotiations and meaningful results.

As the WTO negotiations proceed, the federal government will continue with the partnership approach that led to the development of a unified national negotiating position by ensuring that the industry and provinces are consulted closely throughout the process.

This is a team effort by the federal government, the provincial governments and industry as we seek greater access to more markets and a level playing field. Increased access to world markets means new opportunities for Canadian producers and processors, Canadian skills, Canadian research, and Canadian innovation and technology.

SupplyGovernment Orders

3:35 p.m.

NDP

Louise Hardy NDP Yukon, YT

Mr. Speaker, all day I have been listening to members of the Liberal Party say how wonderful free trade has been for the country, but I have not noticed the price of bread or milk, the price of clothes or the price of a vehicle go down. Prices have not gone down. They have gone up. The income of the average family has gone down. Wages have gone down. Teenagers in Yukon earn less than what I earned 20 years ago at minimum wage jobs. The minimum wage keeps people below the poverty line.

We keep hearing how good free trade is. What free trade has meant is that agribusiness can buy its wheat from Argentina cheaper than it can from Canadians, so we push our farmers right under.

With all the businesses that we are supposed to support so that they can invest in other countries, does that mean that Canadian workers will be lining up to go to work in Mexico for pennies a day? Just what are these benefits? As a person who has been at home with my family for 15 years before I came here, it was not easy to get by. I earned less money as an adult than I did as a teenager with the changes under free trade. Could the hon. member explain more clearly what are the benefits to the average family?

SupplyGovernment Orders

3:35 p.m.

Liberal

John Richardson Liberal Perth—Middlesex, ON

Mr. Speaker, certainly it is very evident the growth in employment in Canada directly resulted because of our export industry seeking new fields and buyers and producing quality products. We are at the highest level of employment in the history of Canada for the moment. That is a celebration. That is something that members of the New Democratic Party should salute once in a while instead of looking at the bare bottom.

Another thing that is so important in this kind of relationship is that we are doing it in a rules based operation with opportunities to grieve issues as they arise that do not comply with the rules based trading rules of the WTO. There is a point where we may think we are being wronged. We try to make use of that like any other member of the WTO. It is rules based. Everyone who breaks the rules is called on to justify the rationale or accept the punishments.

It is a good news story. Implementing new programs is shied away from by people who are shy about getting in on the activity, but that is what is happening in the world. We are in the game and we are in the game in a big way.

SupplyGovernment Orders

3:35 p.m.

Bloc

Odina Desrochers Bloc Lotbinière, QC

Mr. Speaker, it is with pleasure that I rise today to take part in this debate on the whole question of the World Trade Organization.

Understandably, my remarks will focus on agriculture and all the possible repercussions of the WTO negotiations scheduled to begin late this month or early in December.

I became aware of the importance of international trade in April 1998, when I took part in a meeting of the Cairns Group, which gave me a bit of an idea of where Canada stood. As members know, the Cairns Group is made up of about 15 countries with a much more trade-oriented philosophy. A great deal has been said about market access, but we seem to be forgetting fundamental things like the environment or social issues.

Last week, I attended the 10th meeting of the Inter-American Board of Agriculture. Thirty-four countries from the three Americas were present at this meeting in Salvador, in the state of Bahia in Brazil. Here again, I saw that the program under which countries would normally be starting negotiations was far from ready.

Increasingly, we are seeing tensions developing between various growth poles in the world. For example, we were able to see firsthand that more and more Brazil is taking an aggressive approach and becoming an economic player that wants to impose its views on South American countries.

As I said earlier, Brazil is a member of the Cairns Group. Its philosophy is also very trade-oriented and it tends to ignore major priorities in the context of WTO negotiations.

Tension runs so high that, last week, WTO's ambassador in Geneva, Nestor Osorio, could not participate in the meetings held in Brazil because of problems with setting an agenda and getting WTO negotiations under way.

The situation is currently as follows: The United States, Brazil and several North American countries are refusing to include the concept of multifunctionality proposed by the European Union. This is very embarrassing for the WTO ambassador, because negotiations are at an impasse. It is very difficult to set an agenda and to clearly indicate what issues will be raised.

What is Canada's role in all this? What will it do? Canada should be a model, a unifier, or a moderator. We still do not know what its status will be. Yet, this is a unique opportunity for Canada to act as a leader in the integration of the three Americas.

At the present time, two trade powers seem to be emerging, Brazil and the United States. However, Canada could readily play the role of moderator-facilitator, intervening with either the United States or Brazil to get them to understand the importance in the context of negotiation of having a grasp of all the concepts which could help advance the issue worldwide.

Now I shall touch on the Canadian Food Inspection Agency, or the Canada food police if members prefer, that wonderful propaganda agency, which guarantees to other countries that food is Canada Proof, while systematically refusing within the country to provide elected representatives with information on such important issues as genetically modified foods when asked. What is one's reaction supposed to be when one contacts the food agency and is told “Contact Access to Information and pay for it”. That is why I call the agency the Canada food police.

If we ask questions on the agency here in the House, I can just hear the minister answering “Mr. Speaker, you know, this is an independent agency. I would not like to be accused by the government of interfering in the internal workings of an agency”.

Meanwhile, MPs still have no answers, and the public has no answers. The issue of food inspection control is so vital that, last week again, in Salvador and Brazil, there was much discussion of the whole issue of GMOs, which will be on the agenda.

Where does Canada fit in all this? Despite numerous speeches by my colleague from Louis-Hébert, there is no way of knowing. However, the recent throne speech gave me a few shivers. There is a little sentence in it that indicates quite clearly where the Liberal government is headed, and I will read it:

The government will protect the health of Canadians by strengthening Canada's food safety program, by taking further action on environment health issues, including the potential health risks presented by pesticides, and by modernizing overall health protection for a changing world.

What does that mean? It means that the government is preparing to create a super agency to include health, environment and food issues. We will again have a hard time in this House getting information.

The protests are so strong that the government has decided to back up with the bill it introduced in the last session, Bill C-80. But we know its intentions. I am sure they will come back later one with a more biting offensive to impose Bill C-80 and the new agency on us in 2000.

What does the creation of this super agency mean? It will house all the disciplines required to control information and will Canada, abroad, to show its “Canada approved” seal more, a seal that here will become “Ottawa controlled”. The government will not just be controlling the information coming from the Canadian Food Inspection Agency, but all the information having to do with food, health and the environment.

As I said at the beginning of my speech, I intended to concentrate more on the issue of agriculture, which will be the focus of concerns when WTO negotiations begin, possibly in late November or early December, in Seattle.

The purpose of the meeting, it should be noted, is to agree on an agenda and negotiations, which will then begin in earnest, and move to Geneva, where they may go on for months and months, if not years. The whole issue of trade will be up for discussion.

Producers, all the stakeholders in the agricultural community, need to know, to be informed and, last March, with this in mind and with the help of the member for Louis-Hébert and the member for Saint-Hyacinthe—Bagot, I organized a symposium to look at this whole issue and really inform people.

It was attended by 125 people. They all left better informed but, at the same time, more worried, because they can see that the Canadian government does not have the necessary leadership to defend them in WTO talks.

Who is better placed than Quebec to defend the interests of farmers? As members know, Quebec is unique in Canada. We have two completely different income security systems. We have a broadly diversified agricultural sector.

So, if the government really wants to be consistent in all the partnership ideas that it has been promoting since the beginning of the session, it should give a seat to the Quebec government, so that Quebec's elected officials can closely follow WTO negotiations.

We asked the Canadian government to ensure that other countries do their homework. As things stand, the Canadian government has fulfilled most of the commitments it made during the Uruguay Round of negotiations. However, countries such as the United States, the European Community and Japan have not yet fulfilled theirs.

We asked here in this House that when the Minister of Agriculture and Agri-Food and the Minister for International Trade travel to Seattle later this month they demand, before negotiations begin, that their trading partners do their homework and comply with the commitments they made.

Right now, the situation is very distorted. Let us take a look. The president of the Canadian Federation of Agriculture, Bob Friesen, who was here this morning and who once again deplored the whole federal income security system, says that Ottawa went too far and that Canada reduced subsidies beyond what was expected of it. Mr. Friesen claims that Ottawa could do much more for farmers without violating trade agreements.

Here are some figures. For each dollar received by Canadian farmers, their American and European counterparts receive $2.50, and this does not include the $8.6 billion in assistance that the United States just gave to American farmers. And Canada is going to agree to begin negotiations in spite of such an injustice.

Here are more figures, which clearly demonstrate that the Canadian government is not standing up for our farmers. On the contrary, it has got down on its knees to please its trading partners. In 1998, the OECD estimated that total support provided by agricultural policies amounted to $140 U.S. per capita in Canada, compared to $360 U.S. in the United States and $380 U.S. in Europe. Again, one can see the distortion. One can see that Canada will arrive at the negotiation table and will be at a disadvantage, considering what it has already given up, unlike other countries.

We can see that the agriculture minister's argument about constraints imposed by the WTO does not hold. I should point out that following the GATT treaty signed in 1995—I have been referring to these signatures since the beginning—commitments were made by the various partners. In fact, it is during that meeting that the World Trade Organization was created.

In 1995, GATT members had to pledge to reduce their farm subsidies by 15%. Canada did so by giving only 50% of what it is allowed to give under international agreements. By contrast, the United States and Europe are giving 100% of what they are allowed to give. Again, these figures have a distorting effect on the current world market.

The farmers' plight in Canada and Quebec is not simply related to problems of subsidies. It clearly shows the federal government's failure in its farm income support policy.

Let us look together at the federal government's failure in the AIDA program. The federal government is largely responsible for the present situation. I know that the agriculture minister once again announced a program, earlier, but we do not know the terms of it, how it will be implemented or when it will take effect. In the meantime, the farm crisis in the west continues.

In the area of farm income, the current situation proves that AIDA does not work and cannot guarantee farmers a decent living standard. The government cannot deny responsibility for the situation, and it contributes to maintaining the farm income crisis.

As I said this morning, in December 1998, all parties pulled together to find a title for a report. They talked about a farm crisis. A crisis means specific and speedy action is necessary to help people. Today, November 4, 1999, statistics continue to be bandied about, figures are being brought out to help people, but the situation is unresolved.

The main problem comes from the fact that AIDA, as it stands today, denies benefits to a number of the producers it was intended to help originally. As it now stands, the program will not be paying out in the next two years the $900 million the federal government had announced with great pomp last December. The government will not be able to keep its promises of assistance.

I would like the Minister of Agriculture and Agri-Food to tell us how much of the $900 million has been used up. What became of this money?

Why does the minister not want to be of more assistance to people in a time of crisis? The problems with AIDA in its present form are many and show that the federal government does not really want to come to the assistance of those going through this crisis.

I will give another example. We hear that the forms are very complicated, and so forth. The answer I was given this morning contained a mountain of statistics. I would not have liked to have seen any farmers listening in at the agriculture committee meeting this morning. I think they would have gone away furious. Politicians would not have had much credibility with them, particularly those in the Liberal Party of Canada. We are told that administering a program is a hard task. Yet it was announced in December 1998.

I will give an example. At the time the federal government announced its program on December 12, 1998, the U.S. administration also announced a special emergency program for American farmers, bringing to over $5 billion the additional funding put into agriculture in 1998-1999.

Despite some delays, American farmers got their payments more promptly than their Canadian counterparts. Here again, the technocracy and bureaucracy has put Quebec farmers in a position of weakness, less able to compete.

It is high time this government woke up to reality. First of all, I will come back to a point I have already made: the federal government ought to accept the presence of representatives of the Government of Quebec because of their type of agricultural production. It is completely different from that of the rest of Canada. That is the first point. There are two completely different income security systems. In some areas, we are more proactive. We have a far more diversified agricultural industry.

If the Canadian government has any desire to prove its willingness to become a reliable partner with Quebec, it must give Quebec a seat at the WTO meeting in Seattle, not only in Seattle, but throughout the negotiations, because we need to monitor what this government plans to do. We need to know what is going to happen. We need to be kept informed of the various stages to the negotiations, so as to ensure that the hard-won advances of Quebec agricultural producers are maintained. As Bloc Quebecois MPs, my colleagues and I will defend Quebec to the very end.

SupplyGovernment Orders

3:55 p.m.

Egmont P.E.I.

Liberal

Joe McGuire LiberalParliamentary Secretary to Minister of Agriculture and Agri-Food

Mr. Speaker, I wonder if the hon. member who just spoke would respond to a suggestion that Quebec, instead of being at WTO meetings in Seattle, might take the lead within Canada to reduce the trade barriers within the provinces.

We are told that there is freer trade with Canada and the rest of the world than there is between the provinces within Canada.

Maybe the member could turn his line to that and maybe Quebec could take a leading role in reducing trade barriers within our own country.

SupplyGovernment Orders

3:55 p.m.

Bloc

Odina Desrochers Bloc Lotbinière, QC

Mr. Speaker, I understand very well that there are difficulties between Quebec and the other provinces in Canada. The government is not complying with the Constitution.

When it tries to accuse the Government of Quebec of being the bad player in this situation, I hope it carefully listened to or read the economic statement given yesterday by the Minister of Finance and the throne speech. There was talk of setting standards for mobility between provinces. The government is still trying to establish national standards. It is really having a hard time understanding the Quebec reality.

It is not up to Quebec to take the leadership role, to call for a reduction in the problems. The federal government must show leadership. It is up to the Liberal government to lead. It is up to the Liberal government to realize that a Canadian Constitution exists and that each province has jurisdictions. It is up to the Liberal government to get out of jurisdictions belonging to Quebec and the other provinces and to do its job within its own jurisdictions.

I am convinced that, if that happened, the problems between provinces would be solved.

SupplyGovernment Orders

4 p.m.

Egmont P.E.I.

Liberal

Joe McGuire LiberalParliamentary Secretary to Minister of Agriculture and Agri-Food

Mr. Speaker, I will direct my remarks to the fourth paragraph of today's motion which reads in part:

That the government should take action to remedy its over-zealous and irresponsible pursuit of greater trade liberalization, which has caused extreme hardship for Canadian farmers,

This opposition motion takes the extremely misguided position that trade is bad for Canadian farmers; that it has caused, in other words, extreme hardship for our producers. It is that supposition that I would like to tackle during my time here today.

In fact, trade, rather than creating an extreme hardship, is the very cornerstone on which Canada's agricultural economy and the nation's economy overall has developed and thrived. We have an agriculture industry in the country that generated some $95 billion in domestic sales last year and over $22.5 billion in exports to markets around the world.

This is a record export performance. I might add that these sales were made in 1998, a year when financial markets were in chaos and commodity prices were driven down. However, because of our access to markets around the globe, Canada's agrifood industry was able to actually improve on its export performance of 1997, which, incidentally, was also a record-breaking year.

This export success obviously plays no small part in helping to build a strong agricultural industry, an industry that contributes more than 8% of the country's gross domestic product, an industry that provides jobs for nearly one in seven people, from the farmer in the field to the person in the processing plant, to the research scientist who is constantly looking for ways to improve our crops and develop new crops that the world will be glad to buy from us. It is also the industry which provides jobs for over one-half of Canada's young people entering the workforce for the first time.

Trade is good for our agricultural industry. We have a small population and we have a large agricultural output. We must trade in order to survive.

A recent analysis by Agriculture and Agri-Food Canada indicates that for every billion dollar increase in agrifood exports, net cash income on the farm can be expected to rise somewhere between $250 million to $310 million.

Some of my colleagues on the other side would argue that is not good enough. They seem to think that agricultural trade is only good if the benefits to the producer are dollar for dollar. In other words, a billion dollar increase in agricultural trade has to bring a billion dollars back to the primary producers or else we should just forget it and that we should forget trying to increase trade.

That is just silly. It is silly because that billion dollar increase will lead to something like $250 million or more of additional money in farmers' pockets. They can reinvest that money in their operations. They can use it to buy a new combine or to upgrade and expand their barns. When they do that, the benefits are passed on.

When a livestock producer decides to expand his capacity, he puts money into the hands of the local farm equipment dealer and his veterinarian. Maybe he will pay his grain-growing neighbour down the road to supply him with some additional feed. Pretty soon everybody is feeling the effects all because of trade.

Meanwhile, beyond the primary producer level, the benefits of that $1 billion increase in trade go to other players in the agrifood system. More and more of Canada's agrifood exports are value-added. Farmers' bulk products are processed and prepared for the direct-to-consumer market, a highly valuable market. This means some of that $1 billion in exports goes to food manufacturers, processors and transporters who also create jobs and economic growth for our country.

The benefits of trade are very clear and that is why the federal government does all it can to expand our trade opportunities. Since Canada started liberalizing trade with its partners around the world, our exports have exploded. In the last decade, as we have pursued freer trade with partners all over the globe, our exports to the world have more than doubled.

In North America alone, our exports have nearly quadrupled in the last 10 years, with more than $13 billion worth of agrifood products going to Mexico and the United States last year. If anyone thinks we would have made these kinds of gains without liberalization, they are dead wrong.

Mr. Speaker, I will be splitting my time with the member for Ottawa—Vanier.

We have been trying to increase our exports to the emerging markets of the Asia-Pacific countries as well. Now, because of what happened in some financial markets in the last year or so and because of some phenomenally good harvests around the world, I admit some of these Asian markets have dropped off a bit. However, we have made gains and we have a foothold in those markets now. As they evolve, we will be able to take advantage of the foothold and build on it.

We would not have made these gains without making efforts to liberalize trade. We free up trade by working with our partners and various associations like the Asia-Pacific Economic Co-operation forum, APEC, or WTO, or NAFTA. We build freer and fairer trade when we put more dollars into producers' products and into rural businesses at home.

Because of our efforts on the trade front, Canada has made progress in a number of areas over the last year or two. We have worked with the European Union to get them to modify their grain import regime and reduce the duties on some grades of Canadian durum wheat.

We have gained access to the Japanese market for our tomatoes by working with officials there to get them to reduce their extremely time consuming approval process which required that each and every tomato variety had to be tested separately for pest risk.

We were successful in persuading Thai officials to reduce their tariffs on canola meal and alfalfa products earlier this year, opening a sizeable market for Canadian feed exports.

As a result of our efforts in Korea, the Korean government announced earlier this year that its applied tariff on canola would be reduced from 15% to 10%.

In Indonesia, agriculture tariffs were reduced to a maximum of 5% on all food products.

In the Philippines, sanitary import protocols were maintained or updated to ensure we had continued market access for Canadian pork, beef, poultry and other agricultural items like bovine embryos.

Canada also gained access to the Vietnam market for grain and fertilizers.

All this is trade progress that leads to a stronger agrifood industry here in Canada.

No, trade liberalization is not the cause of Canadian farmers' problems. On the contrary, trade is the answer. On average, across the country, about half of farm gate income comes from trade. On the prairies, trade is responsible for the majority of producer income.

Members should think for a moment about what would have happened to our prairie provinces if they had no international markets where they could sell their wheat and canola and beef. They would not be better off. Far from it. It is international trade that sustains our agricultural regions and the Government of Canada is working to improve our trade opportunities all the time. We are doing it by mounting trade missions, by finding ways to build partnerships and alliances around the world and by working with like-minded countries to get better, fairer and more enforceable trade rules that will assist our producers.

We want to increase trade, not reduce it. We are working with our producers, our processors and our counterparts in governments at other levels to ensure we reap the benefits.

SupplyGovernment Orders

4:05 p.m.

Reform

Grant McNally Reform Dewdney—Alouette, BC

Mr. Speaker, that was quite an interesting departmental speech handed to the member so he could just rattle off a bunch of things that have absolutely no impact on what is happening here in Canada today.

There is a farm income crisis and this parliamentary secretary does not even seem to notice that. He talks about farmers having money to buy combines. They do not have money to put food on the table. When he is going to wake up?

When is the government going to wake up and address some real problems like input taxes that farmers are paying and by developing a real AIDA program where the money gets off the cabinet table and is delivered to farmers to help them out at this crucial time? When is it going to fight high foreign subsidies by the Europeans and Americans that will have a real impact on farmers in our country?

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4:10 p.m.

Liberal

Joe McGuire Liberal Egmont, PE

Mr. Speaker, we waited a little while to have some silly accusations made by the Reform Party and now we have them.

We just finished saying what international trade does for the prairie farmer and what kind of condition the prairie farmer would be in if we did not have trade and the member stands up and harps about high input taxes.

As of today, the federal government alone has put $1.1 billion into a native program. Trade and assistance from the government when it is needed is what is keeping farmers on the farm.

SupplyGovernment Orders

4:10 p.m.

Reform

Deepak Obhrai Reform Calgary East, AB

Mr. Speaker, I listened with interest when the parliamentary secretary spoke about the benefits of trade and that trade was the answer. I agree with him.

He then went on to state that trade brings economic benefits to the farmers and the sub-industries that feed the farmers. However, as he knows, there is a crisis in the agriculture industry. Would it not be prudent for his government to reduce taxes, as we have been calling for, so that there is more income in the hands of farmers and the farm supporting industries? We see this as a number one priority but the minister, in his economic statement, has totally neglected it. Perhaps he can comment on that.

SupplyGovernment Orders

4:10 p.m.

Liberal

Joe McGuire Liberal Egmont, PE

Mr. Speaker, if what the hon. member and the previous speaker were saying about the prairie farmer not making any money is true, then to reduce taxes when they are not making any money would be very silly.

What he should be doing is talking to his provincial counterparts from the prairie provinces. He should ask the provincial governments that have control over the taxation regime, which farmers are paying taxes to, to reduce those taxes.