Mr. Speaker, I will be splitting my time with the Parliamentary Secretary to the Minister of International Trade, my wise colleague, the member for Durham.
Mr. Speaker, the creation of jobs and economic growth for the benefit of Canadian businesses, workers, farmers, and their families continues to be our focus. That is why I am honoured to take this opportunity to speak about the comprehensive economic and trade agreement between Canada and the European Union.
The EU is the largest economy in the world, with its 28 member states, over 500 million consumers, and annual economic activity at $17 trillion. The EU is the world's single-largest import market for goods. In fact, the EU's annual imports are worth more than Canada's total gross domestic product.
Last October, the Prime Minister announced that we had reached a historic agreement in principle with the EU. This September, at the Canada-EU summit, our government released the completed text of the agreement.
Yes, these are exciting times for Canadian farmers and processors. Thanks to this agreement, the future looks particularly bright for the industry's continued growth and success in the world market. A joint Canada-EU study that supported the launch of the negotiations concluded that a trade agreement between us would bring a 20% boost in bilateral trade and a $12-billion annual increase to Canada's economy. To put it in more general terms, that is the economic equivalent of adding $1,000 to the average Canadian family's income, or almost 80,000 new jobs to the Canadian economy.
In my home province of Saskatchewan, workers and businesses stand to benefit significantly from the preferred access to the EU market. The EU is the province's third-largest export destination and trading partner. However, the current tariffs on Canadian agricultural products prevent our producers and exporters from being able to compete on a level playing field with the EU market. As an example, the tariff currently applied by the EU to exports of oats has been estimated to add almost 52% to the price of a bushel of Canadian oats in the EU, and on common wheat the tariff can run up to $122 per tonne. These are not insignificant costs and represent serious barriers to market entry.
Our government recognizes that protectionist restrictions stifle our exporters and undermine Canada's competitiveness, which in turn adversely affect middle-class Canadian families.
When the Canadian-EU trade agreement is fully implemented, over 95% of the EU tariffs would be eliminated on our world-class agricultural exports, including oats, wheat, and canola oils. This would make all these products more competitive.
In Prince Edward Island, a significant portion of the province's world-class agricultural output is exported to the EU, which is the province's second-largest export destination and trading partner. As an example, the P.E.I.'s agricultural exports to the EU are worth an average of $4.5 million annually, but the average EU tariff on agriculture products is almost 14%. In the fish and seafood sector, tariffs peak at 25%.
On the first day the agreement comes into force, the deal would eliminate EU tariffs on the vast majority of fish and seafood, including PEI's renowned live lobsters. Also, agricultural products, like P.E.I.'s famous frozen French fries, which can currently face tariffs of almost 18%, would no longer be subject to these financial burdens.
When the P.E.I. exporters compete and win in the global markets, they create jobs for Islanders.
For Nova Scotia, the EU is already the province's second-largest trading partner and largest export destination. Nova Scotia's fish and seafood exports to the EU were worth nearly $160 million in 2013, making this sector the largest source of Nova Scotia's exports to the EU.
When the agriculture agreement comes into force, almost 96% of the EU tariff lines for fish and seafood would be duty-free. Seven years later, 100% of these tariff lines would be duty-free, making these world-class goods more competitive and creating the conditions for increased sales. Increased sales would directly benefit hard-working Nova Scotians through more jobs, higher wages, and greater long-term prosperity.
EU tariffs, for example, would be eliminated on live lobster, from the rate of 8%; on snow crab, from the rate of 7.5%; frozen scallops, from the rate of 8%; frozen shrimp, from the rate of 12%; and cooked and peeled shrimp, from the rate of 20%.
With its focus on quality, innovation, and value-added opportunities, Nova Scotia's agricultural and agrifood sector is well positioned to take advantage of these new opportunities.
There are more examples of these economic effects across the country. For example, the Canada-EU trade agreement would present new and expanded opportunities for Alberta producers. Agricultural products represent the second-largest source of Alberta's exports to the EU. The agreement would provide new market access opportunities for key Albertan exports of beef, pork, and bison.
Under CETA, Canadian farmers will have yearly duty-free access of up to 81,000 tonnes on pork, 50,000 tonnes on beef, and 3,000 on bison. Increased sales of these and other agricultural quantities will lead to more jobs, increased wages, and greater long-term prosperity.
In Quebec, producers will also benefit from these new opportunities in pork. As well, Quebec will be able to lock in duty-free sales of frozen blueberries and cranberries, which currently carry up to 17.5% duty.
Maple syrup producers will also benefit with the elimination of duties of 8%. Yes, even maple syrup producers will benefit. How could anyone oppose an agreement that allows Canadians to sell more maple syrup to the world and create more jobs here in Canada? In addition to the opportunities we have created for producers, we will work with the industry to help protect maple products against unfair competition from substitutes in the EU. We support the committee's recommendations on the issue.
As well, the Canada-EU trade agreement will establish a joint collaborative process where issues that impact trade can be raised and worked on jointly.
Trade has long been a powerful engine for Canada's economy, and even more so when there remain challenging times for this global economy. In fact, more than 60% of our gross domestic product is directly related to trade, and exports are directly linked to one in five Canadian jobs.
That is why our government is currently pursuing the most ambitious trade expansion plan in our country's history. By actively pursuing new trade and investment opportunities like this one with the EU, our Conservative government is providing Canadian workers and businesses with preferred access to the largest, most dynamic, and fastest-growing economies and regions in the world.
Our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. Thanks to the actions under our government's free trade leadership, Canadian workers, businesses, and exporters now have preferred access and a real competitive edge in more markets around the world than at any other time in our history.
We know that our Canadian exports can compete and win in the global marketplace. When our companies succeed abroad, jobs and growth are created here at home.
I had a round table in Tisdale this last weekend back in my riding in Saskatchewan. When I talk about trade agreements, producers and farmers are excited about having market access. They know what that means for them and their bottom line and to the communities they support, when they go to buy groceries, goods, and services. This is huge. This is a large market that we will be accessing, which will provide new opportunities. It is actually going to raise the price of grains by allowing our goods to be sold into those markets.
It is surprising when we look at wheat. At a tariff of $120 a tonne, we are still selling wheat into that market. However, when that tariff is eliminated, just think of how much more wheat we will be able to sell into that market. Also, if we look at the 52¢ a bushel tariff on oats and consider that an average farm in my area will grow 150 to 200 bushels an acre, it is a substantial amount of money that would return to farmers' pockets when we get access without the 52¢ a bushel tariff.
We are excited about this trade agreement. Saskatchewan is very excited about it and so are my producers. In fact, they are so excited about it they keep pressuring me and asking when we can get this done. They want it done now and ask why there is the delay and say that we should move it forward and get it done.
We look forward to seeing this deal move through this House, get completed, and get royal assent so that our producers, farmers, constituents, and communities can take advantage of all the benefits this deal has to offer.
We are very excited. I hope all the opposition parties and all the other members will be equally excited about such a great deal as this one here right now.