Mr. Speaker, I too am pleased to speak in favour of the original motion put forward by my colleague opposite regarding an assistance policy for the textile and apparel industries.
Both these industries are dynamic players in the modern Canadian economy. With combined shipments of $13 billion annually, both industries continue to contribute to the Canadian manufacturing landscape. Moreover, both the apparel and textile industries contribute to the social landscape of the country.
The textile industry is a major employer of quality jobs in many smaller towns across Quebec, Ontario and the Maritimes. The apparel industry provides a source of employment for Canadians in cities such as Montreal, Toronto, Vancouver and my city of Winnipeg.
Throughout the second half of the 1990s both industries have made efforts to reduce costs, achieve productivity gains and increase their exports to the United States to ensure their continued viability and contribution within the Canadian economy.
Irrespective of these strengths, members on both sides of the House are nevertheless aware that the Canadian textile and apparel industries are currently facing an unprecedented period of trade liberalization. This liberalization is primarily the result of international obligations under the WTO to remove all import quotas on textile and apparel goods on January 1 of this year.
As members of both sides of the House are aware, apparel and textiles did not fall under the normal trading rules of the WTO's general agreement on tariffs and trades for the two decades prior to 1994. Instead, trade in these industries was governed by the multi-fibre arrangement, MFA, which allowed quantitative restrictions on imports of apparel and textiles to be negotiated bilaterally between member countries.
The MFA was replaced in 1995 with the agreement on textiles and clothing. This agreement committed countries to integrate textile and apparel products into the normal GATT trading rules over a 10 year period that began January 1, 1995. Over the last decade three phases of quota removal occurred in 1995, 1998 and the year 2002 with a final reduction occurring on January 1 of this year.
This has been a major change to the global environment in which Canadian apparel and textile industries operate. However, as my hon. colleagues are well aware, the tremendous unknown behind the removal of import quotas have been our domestic industry's ability to compete with increasingly stiff competition from countries such as China and India, particularly with respect to the possible displacement of Canadian exports destined for the U.S. market.
Against such a backdrop, a host of factors that are affecting all sectors of the economy, factors such as new technologies and products, changing consumption patterns, increased global competition and individual decisions taken by Canadian firms are having a significant impact on both these industries. As a result, both the domestic apparel and textile industries are facing considerable restructuring challenges that are affecting their future viability.
While it is true, as I noted earlier, that the Canadian textile and apparel industries have improved their competitiveness in the 1990s through increased exports to the U.S. and the use of technologies and cost reductions, these challenges remain nevertheless.
Let me turn my attention to the critical part of the original motion in question, Motion No. 164 which reads as follows:
That, in the opinion of this House, the government should establish, in compliance with international agreements, a policy of assistance to the textile and clothing industries in order to enable the industries to compete throughout the world...
As members on this side of the House are aware, the government is not only aware of the particular challenges facing these industries but has taken the necessary steps to strengthen them in face of the economic challenges. In so doing we believe the government is already working toward the objectives highlighted by the hon. member.
Now I will turn my attention to what the government has undertaken.
The most recent set of measures was announced on behalf of the government by the Minister of Finance and the Minister of Industry in December 2004. They were designed to address important policy considerations and remove tariff impediments to the competitiveness of both industries.
Included in these measures was the announcement of additional funding for the textile industry to refocus its production toward innovative products. Specifically, this is an increase of $50 million over five years to the funding support available through the textile production efficiency initiative, better known as CANtex, administered by Industry Canada in cooperation with Canada Economic Development for Quebec Regions. In total, the implementation of these measures is making available almost $77 million in direct financial assistance to the textile industry. Increasing CANtex funding will help the Canadian textile manufacturers diversify production toward new product lines and growing niche markets.
Also among the measures announced on December 14, 2004 is the elimination of certain tariffs on the products imported by the textile and apparel industries for further production in Canada. In the case of the textile industry, this action is aimed at eliminating tariffs on certain fibre and yarn imports for Canadian manufacturers to a value of $15 million per year.
To help ensure that this tariff relief does not adversely affect current domestic production, tariffs will remain on imports of fibres, yarns and textiles produced in Canada. Toward this end, the Minister of Finance has asked the Canadian International Trade Tribunal, an independent body responsible for providing advice on economic and tariff related matters, to consult with the textile industry to identify textile products currently produced in Canada.
Finally, the government announced the extension of existing duty remission orders in council that benefit the Canadian textile and apparel manufacturers. These duty remission orders were introduced in the late 1990s as a series of temporary measures to assist domestic textile and apparel firms in adjusting to a more competitive trade environment. The extension of these duty remission orders will allow these benefits to continue to flow to domestic manufacturers.
These measures do not simply stand on their own. In fact, they are only the latest actions taken by the government. They build on a number of transition adjustment measures already announced by the government since 2002, with a value of almost $100 million in support of the apparel and textile industries. These previous measures include: the $33 million Canadian apparel and textile industries program implemented in January 2003; funding of $10.9 million for the Canadian Border Services Agency to monitor illegal transshipments; the February 2004 creation of CANtex, as I mentioned, initially valued at $26.75 million over three years; and previously announced action to reduce tariffs to the apparel industry on textile imports.
The government continues to work to address the challenges facing domestic textile and apparel manufacturers. The measures announced over the past three years demonstrate that the government is listening to the industries and taking the steps it can to help ensure their continued viability in the Canadian economy.
Therefore, I am expressing my support for the original motion. As I have already articulated, the government is and remains committed to listening to the issues raised by both apparel and textile manufacturers, as well as those raised by members on both sides of the House.
Moreover, the government is listening to Canadians, who know that well-paying Canadian jobs in these sectors will only come from the competitive and strong industry these actions are meant to facilitate.