Mr. Speaker, on behalf of wine producers of Ontario I thank the member for his tough stands on the issue. He always lets us know the views of his constituents, in particular wine producers in Ontario.
Canadian wine producers are making world class wines, as the member would know. We are exporting many of these wines to the United States and Europe. They are very important markets for us.
With respect to market access to the European Union, let me assure the hon. member that this is a priority of the Government of Canada. We are making every effort to obtain improved access to European markets for Canadian wines, including ice wines from his region.
I am fully aware of the frustration which exists in the industry and at the provincial level about the significant imbalance of market access. We are making every effort to address this situation.
The Minister for International Trade raised this issue directly with many ministers of trade in the European Union and will continue to do so. At the departmental level over the past few months we have been discussing both wine and spirits issues with the European commission to determine the possibility of reaching a bilateral agreement that would be beneficial to these producers.
Officials addressed such subjects as how both sides make wine and improving the protection of geographical indications. The latest meeting in March showed that there were significant differences between our two jurisdictions on the issue. We remain optimistic that agreements can be reached if we focus our efforts on a limited, realistic agenda.
We will continue to consult with the industry and provinces in an effort to develop possible ways to bridge the existing differences between the two sides.
Canadian wines, I might add, are doing well in the United States. Exports have grown to $2.7 million in 1999, an increase of some 200% over the last two years. The Americans are waking up to the great wines we have here in Canada.
The wine, beer and spirit sector tends to be more regulated than most others and is marked by a myriad of rules and regulations governing the trade, sale and distribution of these products. Some of these rules and regulations fall within the scope of Canada's trade agreements, others do not. For example, some states have technical and labelling requirements. These are often beyond the reach of trade agreements as they apply equally to in state and out of state as well as imported wines. As well, it is normal for subnational jurisdictions, provinces or states, to create local regulations on access and handling, typically relenting to revenue protection and social responsibility.
I want to thank the hon. member by recognizing the hard work of the hon. member on behalf of the wine industry. I assure him, on behalf of the Government of Canada, that we take this issue very seriously and we will continue to fight on behalf of these producers.