Mr. Speaker, it is a pleasure to rise today to speak to the Canada-Korea free trade agreement. When I think what this free trade agreement would mean to our riding of Huron—Bruce, it is very significant. There is no doubt about it. In Huron and in Bruce counties, agriculture, light manufacturing and tourism are really the key pillars. Energy as well is another huge contributor to our local economy.
When we think of agriculture, we produce everything that Korea wants and everything it needs. That is why it was so significant when the Prime Minister made his announcement in September that we were going to be able to move forward on the deal.
The Korean economy is the 15th largest in the world. It is the fourth largest in Asia. It has 50 million people who know and understand the quality products that are made right here in our country. Agricultural exports, just in Ontario alone at this juncture, are $68 million. Definitely, in no time at all we would see that grow and grow and quite likely double, triple and quadruple.
There are products grown right in the riding of Huron—Bruce that have tariffs on them today. Let us just pick off the easy ones. Pork and beef are pretty obvious ones. There are identity-preserved soybeans, white beans, adzuki beans, navy beans, kidney beans, and the list goes on and on. All together, the average tariff rate is 52.5%. Put in context in terms of what the Canadian dollar looked like two years ago, a year ago and what it is today, currency has very little impact. It does have some, but when we factor in some of the tariff rates on some of these products, it makes it terribly uncompetitive when dealing against the United States and the European Union. This is a great deal for producers from one coast to the other, but certainly in Huron—Bruce.
The market for pork in Korea is $1.1 billion annually. The market for beef in Korea is $1.3 billion annually. In the last number of years our market share has continued to decrease. We have a very small share of the market relative to the U.S. and the European Union. By putting this deal together, ratifying it and getting it moving, we would have the ability to change the momentum and start growing into that market, taking away some of the market share from both the EU and the American deal.
From 2010 to 2013, our pork market share went from 14% to a little under 9%, at 8.9%. That represented a $22 million decrease. In the same period of time, the U.S. and the EU market share increased 10% to over three-quarters of the market. The duties on pork, averaged out, on fresh, chilled and frozen, is 25%. Those would decrease over the next 13 years. As of January 1, that would allow our producers to trend with both the U.S. and EU. It is very important.
In Huron—Bruce and in Perth county, which is right beside Huron and into Wellington, there are a huge number of pork producers. They have experienced many difficult times. They are starting to recover and this year will be one of the better years they have had in a decade. A deal such as this helps to increase that momentum and helps to allow the economy to grow and expand in a riding such as mine.
Beef has seen the same trajectory as pork in the last number of years, going from $9.6 million to $6.7 million. Their duties are actually higher than pork. They are 40% to 72%. They would decrease over the next 15 years, which is important as well.
Beef producers in Huron, in Bruce, and in our neighbouring counties in both Wellington and Perth, have struggled, certainly with the price of land and other issues that contribute to the profitability of the beef market. They have had their struggles, but again, like pork, the last couple of years in the red meat sector they have had better years. The price of their fat cattle is if not at, then near all-time highs.
Deals such as this allow the red meat sector to continue to grow. If we look at the hundreds and thousands of acres of corn grown in Huron, Bruce, Perth, Middlesex and Wellington counties, the corn input has certainly provided a huge input into the beef and pork. It is vitally important and helps the agriculture economy grow.
Another one that people may not think about but where it certainly does have an impact is in the spirits industry. Spirits Canada President Jan Westcott has probably been quoted by many people in the House. There are smaller distilleries. There are certainly the large ones that Jan represents, but there are the smaller ones as well. Barry Stein and Barry Bernstein of Still Waters Distillery, one that I have toured in Concord, Ontario, have a 100% rye whiskey. The tariffs on that product are 20% if they want to sell it in the Korean market. That will be eliminated. The tariff will be at zero.
The beautiful thing about that is that small distilleries such as theirs, or even the large ones, can continue to work with Canadian rye growers. Whether it is in Alberta or southwestern Ontario, companies such as Still Waters Distillery, when they have those tariffs eliminated, can become competitive in a market such as Korea.
Since 2008, when the ratification of both the EU and the American deal came into place, the Canadian market share for spirits was cut in half. This is a chance for them to once again gain momentum. Like I said, when those distilleries can work with growers, it helps to diversify their economy. It helps to diversify their crop rotation. That is very exciting for farmers, as well.
Especially in Huron County and now getting into Bruce County as well, the specialization around identity-preserved beans is really becoming a science. It is really becoming perfected. Companies like Thompsons, P and H, Huron Commodities, and Snobelen, out of Lucknow, have really worked with growers to perfect this identity-preserved bean.
Koreans want this bean more than they want American beans. They know it is a higher quality. It is our climate and our soil. The premiums that farmers get, just the premium for growing it, forget the price, can be over $2 and in some cases as high as $3.50 a bushel. Some fields are 50 bushels to the acre, times 100 acres, that is a lot of premium. That is a lot of dollars in the pockets of farmers. That is a positive thing.
The tariff on those IP beans is almost 500%. Let us think of the impact when that tariff is reduced to zero. It is going to allow companies such as Huron Commodities to compete and succeed in this market. These are big deals.
Some of the beneficiaries of these deals are farmers, obviously. There will be higher prices for everything they grow and everything they sell. Farm machinery dealerships will benefit as farmers will have more dollars in their pockets to reinvest in their equipment and operations. Processors, such as Huron Commodities, will have a chance to grow, expand and develop, as well as all the companies that supply them.
Farmers will also have the profits to reinvest in R and D. Just one example is GPS systems in the tractors that work with planters and combines. These are all things that five or six years ago growers in my area did not have the ability to use, the technology or the profit.
In addition to that, here is something that over the last five years I did not think we would see. Pork producers are actually starting to build new barns again. This is good for cement companies, people who own gravel pits, builders, steel and so on. They are starting to have a rebirth of building pork barns, so that is important. Nuhn Industries in Sebringville in the member for Perth—Wellington's riding has grown and doubled in size. Trucking companies, rail lines, ports and harbours will all benefit from this deal. It is very exciting.
I would be happy to take any questions.
