Mr. Speaker, the government has stated that the new tariff rate quota regime for agricultural products will include provisions for supplementary imports for various purposes. All stakeholders in the supply managed areas have agreed such access is necessary. However, legimitate questions have been raised as to the terms on which access for the specific purpose of preventing a market shortage should be allowed.
On the one hand, it is said that processors are increasingly able to control the level of production, especially in the poultry sectors, and so can artificially create a market shortage if they know they have guaranteed access to supplementary imports in such cases. Since this would reduce returns to primary producers, some argue there should be a higher duty on such supplemental imports than the one provided for within the tariff rate quota, so as to discourage such behaviour.
On the other hand, poultry and egg processors argue that they must guarantee price and supply to their costumers if they are not to lose contracts. They point out that their industries-including producers-face competition from other food products, and irregularities of price or supply will cost everyone market share.
There are also many misunderstandings about what is involved in the supplementary access scheme envisaged in Bill C-57. Perhaps I can dispel some of them.
First, current and prospective provisions of the Export and Import Permits Act enable supplementary imports but do not impose them. The government has no intention of letting in additional quantities at duty rates below the "high" MFN rate where this would be against the Canadian interest.
Second, imports for market shortages are not "within access commitment" under the proposed legislation, and will not result in permanent increases in market access. On the contrary, such imports are and will be let in at the discretion of the government.
Third, nothing in Bill C-57 prevents the government from examining the issue and introducing new rules.
In fact, Bill C-57 basically rolls the current system of supplementary access over in order to furnish an immediate means of allowing supplementary imports for a variety of reasons, including enhancing export competitiveness.
Finally, the situation calls for careful analysis and broad consultation. Should the government determine that additional duties on supplementary imports of supply managed products are advisable, we will take all appropriate measures to institute such a system, including legislation, if necessary. However, changing Bill C-57 to effect this would short-circuit the consultative process, and is not in the government's plans.