Mr. Speaker, I am pleased to rise to support Motion No. 496. Every day, the innovative dairy producers of Canada put safe and nutritious foods on our tables, while creating jobs and adding value to our economy in rural and urban areas of Canada.
The industry makes an important contribution to our economy with nearly $22 billion in both farm gate and processor sales. That has created thousands of jobs for Canadians.
This economic success is due in large part to our hard-working farm families and Canada's supply management system.
This system has served Canadian farmers, processors and consumers well over the years, which is why our government continues to support it.
At the same time, we are pursuing the most ambitious trade agenda in Canadian history. Canadian farmers depend on export markets to remain competitive and stimulate economic growth across the country. Our government and our farmers know that Canada's balanced trade position is working.
Over the past six years, we have concluded free trade agreements with 10 countries; announced an agreement in principle on a free trade agreement between Canada and the 28 countries of the European Union; and concluded negotiations with South Korea, Canada's first commercial presence on Asian soil. We are also in the process of negotiating agreements with nearly 30 countries.
This work is paying off for our economy. Last year was the best export year on record for the agriculture and food industry in Canada, with over $50 billion in trade activities for the first time in our country's history.
From dairy products to poultry, livestock to oilseeds, our government will continue to support a strong agricultural industry in Canada because our economy and our well-being depend on it.
As members know, our government recently reached an agreement in principle with the European Union on a new free trade agreement. It is the most comprehensive and ambitious trade agreement since NAFTA.
With the Canada-EU trade agreement and NAFTA, Canada will be one of the few countries in the world with preferential access to the two largest world economies, which represent nearly 800 million of the wealthiest consumers in the world.
In total, the Canada-EU trade agreement should generate $1.5 billion in earnings a year for Canada's agricultural sector. Canadian producers will have preferential access to the biggest and most lucrative market in the world.
Let me repeat: the Canada-EU trade agreement will retain the three main pillars of supply management—production, import limits and pricing.
In every trade agreement it has signed, our government has clearly indicated to its trade partners that it supports and protects its supply management system, and it will continue to do so.
We are working in the best interests of Canadians and farmers. The government will strongly defend the interests of supply managed sectors in all of its international trade negotiations.
That is why we are pleased to support this motion. I want to point out that we have already taken measures that address some of the key aspects of the motion.
The first part of the motion relates to compensation for the industry for losses incurred as a result of the increased access for cheese under the Canada EU free trade agreement. As publicly stated by the Prime Minister, our government is fully committed to monitoring the impact from the implementation of the agreement and, if needed, to provide compensation should a negative impact be realized.
We have been consulting with industry stakeholders on this issue over the past five months, and we are continuing to do so. This includes provincial dairy producer and processor associations, as well as individual cheeses processors, provincial governments, cheese importers and downstream stakeholders.
With respect to the urgency expressed in the motion, we are very focused on this issue and expect to have more details in the future.
As the motion states, the government has every intention of respecting its promise to dairy farmers that are affected by the trade agreement between Canada and the European Union. Our goal is to develop an approach that will effectively address impacts and ensure we can effectively monitor the impacts as the agreement is implemented.
Regarding the motion's second point on the implementation period, Canada continues to press for the longest implementation period possible for the Canadian cheese tariff rate quota to help to mitigate as much as possible the potential impact on Canadian dairy and cheese producers.
Regarding the third point on tightening up of controls at the border, we fully recognize that import controls are important to maintain the integrity of the supply management system. We are committed to ensuring that importers play by the rules.
For example, late last year we took action to address a loophole regarding the importation of cheese through pizza topping kits. We clarified the rules to ensure that for this category of products there would be consistent application at the border. This measure has been very effective.
A recent global agricultural information network report from the USDA on the impact of trade action on pizza topping kits showed $5.5 million worth of pizza kits entering Canada per month from the U.S. in 2013. That amount rapidly fell to $1 million per month after we closed the loophole.
In addition, it is important to note that the Canada-EU trade agreement in principle underscores our government's commitment to ensuring that our border controls are doing their job.
Regarding the fourth point on production standards of imported goods, the government has already acted to ensure that imports into Canada meet our high quality standards. All food sold in Canada is subject to the Food and Drugs Act, whether it is imported or produced locally. In addition, dairy products imported into Canada are required to meet the dairy products regulations.
While food production and processing requirements may not be exactly the same across foreign jurisdictions, Canada recognizes that the food safety systems of our major trading partners, such as the European Union, have equivalent food safety outcomes.
This system of recognizing equivalency allows goods to be imported into Canada, provided that the goods continue to meet Canadian food safety standards and regulatory requirements. Of course, it allows our products to be exported.
A year and a half ago, we passed a Safe Food for Canadians Act. Under this landmark legislation, we are proposing regulations that promote equivalency in food safety outcomes for domestic, imported and exported food products.
Finally, Motion No. 496 calls on the government to provide support for commercialization of innovative dairy products. We are already addressing this through our $3 billion, 5-year Growing Forward framework.
Growing Forward 2 is helping Canada's dairy industry capture new markets through a number of key initiatives, including the $12 million dairy research cluster, which almost doubles our previous investment under Growing Forward 1, focusing on milk's human nutrition and health benefits, sustainable milk production and genetic improvement, and investments of close to $1 million to help Canadian dairy farmers meet consumer demands for traceability, animal welfare, environmental sustainability, and food safety and quality.
My message today is this. Our government has always been, and continues to be, committed to keeping the Canadian supply management sector strong and profitable. Our long-standing support for supply management has not changed. We will continue to promote a balanced trade agenda for all sectors of our economy, to create jobs, growth and long-term prosperity.
We will continue to drive innovation and growth through our investments under Growing Forward 2 because, as we all know, a strong agriculture industry means a strong economy.
Our government puts farmers first, and we are pleased to support the motion.