Mr. Speaker, certainly listening to some of the debate, I hear major concerns with regard to some of the issues as far as agriculture is concerned. Of course, young farmers have great opportunities and they are using all of the tools we have to make sure they have these opportunities when it comes to farm succession planning.
Our government is very much aware that a strong and vibrant farming and fishing sector benefits not only our rural communities but also the country as a whole. Our agricultural sector is a recognized leader in the development of new products using Canada's field crops, while our country's fish and seafood are among the largest food sectors exported by Canada.
I will begin by focusing on how our government is proud to partner with farmers in building a prosperous agricultural sector in Canada.
As members well know, the agriculture and agri-food sector in Canada accounts for over $100 billion in economic activity and provides employment to more than 2.1 million people. Throughout Canada's history, it has played an integral role in our country's economy. That is why our government has continued to do what is necessary to support farmers and processors.
As just one example, in April 2013, our government introduced the growing forward 2 policy framework, which is a $3 billion investment by federal, provincial, and territorial governments and the foundation for our government's agricultural programs and services, focusing on innovation, competitiveness, and market development.
At the same time, unlike the opposition, we know that our prosperity is strongly linked to reaching out beyond our borders and forging new trade agreements. Increasing our exports to the largest, most dynamic, and fastest-growing markets in the world is a key part of the economic action plan. We have acted to break down barriers that were preventing Canadian businesses from becoming more competitive on the world stage.
Since 2006, the government has concluded free trade agreements with 38 countries, bringing Canada's total to 43. Last September, the Government of Canada and the European Union released the complex text of the historic Canada-European Union Comprehensive Economic and Trade Agreement. The agreement opens the way to vastly increased trade, job creation, and greater prosperity, providing preferred access to the world's largest and most lucrative market with more than 500 million consumers in 28 countries.
On January 1, 2015, the landmark Canada-Korea Free Trade Agreement entered into force, giving Canadian businesses a gateway to the dynamic Asian region. Further, in October 2014, we confirmed a foreign investment promotion and protection agreement with China so that Canadian companies investing there are treated fairly and benefit from a more predictable, secure, and transparent investment climate.
This brings to 28 the number of investment agreements Canada has with countries around the world. Taken together, these agreements afford Canada preferential access to more than half of the world market.
With new trade agreements completed, and more soon to be in place, economic action plan 2015 proposes $152 million in trade promotion investments over the next five years to help Canadian businesses fully capitalize on global opportunities. That money would be used to create a new export market development program to share the costs as small businesses pursue new export opportunities around the world, as well as for new resources for the Canadian Trade Commissioner Service to support Canadian firms with on-the-ground intelligence and practical advice on foreign markets, to help them achieve their goals.
We are also creating a new internal trade promotion office to support federal, provincial, and territorial negotiations to strengthen the economy within Canada's borders, by comprehensively renewing the Agreement on Internal Trade.
In addition, the expansion of agriculture and agri-food sector marketing and promotion activities will continue to secure Canada's position as one of the largest exporters of agricultural and agri-food products globally.
I can assure members that we have a government that is working to set the right conditions for rural communities, farmers, and Canada's fishery to compete in Canada and around the world.
In doing so, we are building one of our nation's strengths. In 2014, Canada exported $4.9 billion of fish and seafood products, an increase of $530 million from 2013. Approximately 85% of all fish landed by Canadian harvesters is exported to foreign markets.
As members can see, our government is standing up for the interests of Canadian farmers, fishers and others who own and operate businesses in Canada. We have continued to act to ensure that they can count on their investments of a lifetime even when their working life has concluded.
In order to increase the potential rewards of investing in small business, farming and fishing, economic action plan 2013 increased the lifetime capital gains exemption, the LCGE, from $750,000 to $800,000 in 2014. To ensure that the real value of this exemption is not eroded over time, we indexed the $800,000 LCGE limit to inflation. The first indexation adjustment occurred this year, raising the limit to $813,600 for 2015. Economic action plan 2015 proposes to further increase the exemption to $1 million for qualified farming or fishing property disposed of on or after April 21, 2015.
In addition to increasing the exemption, last year the government simplified the tax rules relating to the lifetime capital gains exemption and the intergenerational rollover for taxpayers who carried on farming or fishing businesses in combination. To accomplish this, the government passed legislation to generally treat a taxpayer's combined farming and fishing business the same as a separate farming or fishing business conducted by the same taxpayer. This will ensure consistent treatment for taxpayers who conduct farming and fishing activities in different legal forms.
Similarly, in 2009 the government extended the rule that helped farmers who disposed of breeding livestock due to drought conditions existing in specific regions in a given year to farmers affected by excess moisture conditions. This rule allows farmers to exclude up to 90% of the net sale proceeds from their taxable income until the year following the sale or a later year if the conditions persist. Economic action plan 2014 extended this tax deferral also to bees and to all types of horses that were over 12 months of age that were kept for breeding, effective for the 2014 and subsequent taxation years.
Our government has made it our mission to put farmers and fishers first. We firmly believe that Canadian farmers and fishers should be strong and profitable and able to capitalize on market opportunities. That commitment extended to economic action plan 2015, which is why our government cannot support today's bill from the hon. member for Joliette.
Bill C-661 proposes a relieving incoming tax amendment to expand the scope of an exemption to an existing anti-avoidance rule. This exemption is available for spouses and their children as they are presumed to have a shared economic interest. In the farming and fishing context, tax-deferred transfers of assets are generally permitted between spouses, and parents can leave farming or fishing properties to their children without triggering capital gains tax. In contrast, siblings who are shareholders in the same business are considered to have separate economic interests and therefore they are not eligible for the exemption for closely related persons. This is consistent with many tax rules, which generally do not accommodate tax-deferred transfers of assets between siblings.
I am somewhat shocked that the NDP member would propose this considering the New Democrats' stance on income splitting. The hon. members opposite do not believe that a married couple is a single economic unit and are highly opposed to income splitting. Yet, the individual opposite argues that siblings are an economic unit and should be allowed an exemption for this purpose.
I wonder how NDP members can explain how they can remain consistent if they now believe that siblings are a single economic unit?
So that there is no confusion, let me be clear that if siblings separate their farming or fishing business in equal amounts, or their pro rata share of each type of property, they will continue to be able to take advantage of this exemption.
Given these examples, and many more, we cannot support the bill, and we encourage all members to vote against it.