Mr. Speaker, it is my pleasure to make a contribution to today's debate. It is a significant event for us to talk about the success stories of the past, beginning with the team Canada visit to Japan, the benefits of the Chile-Canada free trade agreement and the objectives of Canada and other world trade members.
According to the motion, it is apparent that hon. members opposite are prepared to turn back the clock in a world that has evidently left them far behind. However, I must say that is not true for all members opposite.
It is true that the Government of Canada has pursued greater trade liberalization. Unlike that which the hon. members would have us believe, the government has been responsible and democratic in its pursuit of greater trade liberalization for the benefit of the overall Canadian economy and the agriculture and agri-food sector.
First, Canada is a trading nation that relies on international trade to the extent of 40% of its gross domestic product. Could we imagine what it would be like without that, or with half of that? Canada is no longer a country comprised of hewers of wood and drawers of water. The world has become smaller and we live in a global economy. I say to hon. members, welcome to the future because the future is now.
Overall in the agriculture and agri-food sector farmers have adjusted to a constantly changing international market. Their success is obvious when looking at our export numbers. Agriculture exports have risen from $13 billion to $22 billion over the past five years. Even with the economic challenges of the past year, they were up slightly from 1997, which was a record year.
Trade is important to the growth of the sector. About half of the average Canadian farm gate income is the result of trade. That is why this government is committed to working on the international front to bring order and stability to the world marketplace and provide better access to world markets.
Despite the commodity market challenges, the outlook of Canada's agriculture and agri-food sector is positive. The Canadian agriculture and agri-food industry has also met the evolving demand for specialized food products. Our exports of value added goods and processed products are surging. In fact they grew by almost 9% last year. Processed goods mean processing plant investment and jobs, jobs which add to the sustainability of our rural communities.
Members should not just take my word for it. The industry itself has a lot of confidence in its own capabilities on the world market. Already Canada has about 3.3% of the world's agri-food trade, and the Canadian Agri-Food Marketing Council, or CAMC, which is made up of agriculture and agri-food industry representatives, has set a goal to increase that to 4% by the year 2005. It has also set a target for increasing processed agricultural exports over and above bulk commodity exports. By all current indications there is no reason to think this goal will not be met.
There is a lot of opportunity out there. The European Union, for instance, is the world's largest market for agri-food products. Ten of the world's top 12 food retailers are based there. I believe it is obvious why we have to be there.
Yes, there are trade distortions that exist among our trading partners, especial in the EU. Achieving substantial reductions in these disparities is a key objective for Canadian producers and exporters. That is why the Minister of Agriculture and Agri-Food will be aggressively seeking greater world markets abroad for our products at the World Trade Organization talks, which will be launched at a ministerial meeting in Seattle at the end of this month. He will be pressing hard for reductions in domestic subsidies and the elimination of exports.