Mr. Speaker, before I begin, I will be sharing my time with the member for Kitchener South—Hespeler.
I represent Surrey, and Surrey Centre in particular. It is a port city and major logistics centre for goods, particularly trade, and home to some of the most amazing produce, berries, dairy and poultry in the country. I am pleased to stand today to talk about the Government of Canada's unwavering support for supply management in our dairy, egg and poultry industries in the context of the new Canada-U.S.-Mexico agreement and our other international trade deals.
These industries are pivotal. I have met many hard-working Canadians in this sector, whether it be Donia Farms, which has been continuously family-run since 1955 and produces high quality grass-fed milk, or Gurpreet Arneja and Vineet Taneja, who had humble beginnings and launched Nanak Foods in Surrey, a large specialty dairy processor that now exports Canadian dairy products to over 15 countries around the globe. These are real people who have worked hard. As a new member on the Standing Committee on International Trade, I hope to ensure that our government prioritizes their needs.
Let me begin by stating that the future of supply management in Canada is not in question. Our supply management system is fundamental to the overall success of Canada's agriculture and agri-food industry. Our dairy, poultry and egg farmers provide high quality, delicious and nutritious food to Canadians at an affordable price.
Combined, the sectors drive a strong economy, with almost $34 billion in sales and tens of thousands of jobs. They are vital to the prosperity of our nation. That is why in our negotiations for the new NAFTA, the CUSMA, the government fought hard to maintain the three pillars of Canada's supply management system: production control, pricing mechanisms and import control.
The same commitment to Canada's supply-managed sector also guided Canada in negotiations for CETA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The new NAFTA, like Canada's other trade agreements, preserves and maintains Canada's supply management system. Canadian dairy farmers will continue to supply the vast majority of the Canadian market. As well, Canada has negotiated reciprocal access to the U.S. dairy market, including tonne-for-tonne access to most dairy products.
We are united in our goal to help the dairy sector innovate and drive the economy for future generations. Across Canada, we are helping dairy producers purchase state-of-the-art equipment to boost productivity and efficiency. Innovation is driving significant growth in chicken and egg production across Canada. Canadian egg producers like to talk about the tale of the three 50s: Over the past 50 years, they have increased their production by 50%, while reducing their environmental footprint by 50%. That is all thanks to innovation.
We continue to roll out investments to support innovation in our supply-managed sectors. Our government has clearly recognized the great value of the supply management system. Canada will continue to defend this system at home and abroad.
Our government has committed to fully and fairly supporting the supply-managed industry. This support will help chart a path forward so our supply-managed farmers can continue to innovate, grow and remain competitive and sustainable for future generations.
In the fall of 2018, the government announced the formation of supply management working groups. These groups were tasked with looking at providing support and helping the industries adjust to recent trade agreements, including the new NAFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP. The overall goal is to ensure Canada maintains its robust dairy, poultry and egg industries now and in the future.
Together with industry, we have one common goal and that is a strong Canadian supply management system. For our farmers and food processors, the new NAFTA will protect and secure our $30-billion agri-food exports to the United States.
In addition to preserving key aspects of the original NAFTA, the new agreement helps open new market access opportunities in the U.S. market. This agreement provides Canadian exporters with new market access into the U.S. in the form of tariff rate quotas for refined sugar and products containing sugar, as well as certain dairy products, including cheese, cream, milk beverages and butter. It also eliminates U.S. tariffs for whey products and margarine, and provides a more liberal rule of origin for margarine.
As my hon. colleagues well understand, trade is vital to Canada and Canada is a trading nation. Our farmers depend on trade. They export about half the value of their production. That is why the government is seeking to expand market opportunities and promote the interests of Canadian farmers by negotiating new trade agreements and modernizing existing ones. This is why our government has big plans for agriculture trade.
Our exports hit a new record in 2018, but we are not stopping there. We set our sights on $75 billion in agriculture exports by 2025. A 2018 report of the agri-food economic strategy table has challenged us to think even bigger, proposing a target of $85 billion.
In addition to preserving Canada's supply management system, Canada's existing trade agreements play a key role in realizing these export goals.
CETA has provided Canadians with preferential access to the European market since September 2017. Canadian farmers and food processors are already taking advantage of access to the world's single largest market for food. From 2018-2019, Canadian agriculture exports to the European Union increased by 24%.
While it is still too early to measure the full impact of CPTPP since it came into force December 30, 2018, there are early signs of success for Canada's agriculture sector.
For example, Canada's exports of pork to Japan increased by 11% and exports of beef grew by 68% during the first 11 months of 2019, compared to the same period in 2018.
We are advancing Canadian agriculture in international markets, while preserving and protecting our supply managed systems.
I am proud of the federal government's incredible achievements in this regard. We will continue to support and defend our dairy, egg and poultry industries, while ensuring a strong and competitive future for Canada's agriculture and food sector.
With this new agreement, we will be helping Canada's farmers and food processors harvest the benefits of what the Canada-United States-Mexico Agreement has to offer. I urge all hon. members to support this bill.