Mr. Speaker, I am thankful for the opportunity to address the House on this very important issue.
I would first like to underline the work that is being done by both the Minister of Agriculture and Agri-Food and the parliamentary secretary to the Minister of Agriculture and Agri-Food.
I want to thank all the members of the Liberal caucus, and rural members. They are working very hard. I want to assure the members that the parliamentary secretary, especially, is working so hard that he has done much more than was done by the other government over the last five years.
Canada has always depended heavily on international trade and investment for its economic well-being. We live in a vast country with a relatively small population, and we enjoy a high standard of living. We produce more goods and services than Canadians consume. As a result, we sell our products and services abroad, which helps maintain a strong economy.
We strive to maintain and expand access to foreign markets, since an open trade and investment environment allows companies to prosper and provide better middle-class jobs. The government is committed to developing trade in Canada and attracting investment that creates jobs in our country.
In Canada, one in five jobs is generated by trade. In 2014, Canadian exports of goods and services represented just under one third of our GDP. More than 40,000 Canadian companies, mostly small and medium-sized companies, are exporters. Canadian consumers also reap the benefits of international trade, which gives them a greater variety of goods at better prices. Furthermore, we know that companies that participate in international trade are more innovative and have higher productivity.
Against a backdrop of slowing global economic growth, it is important for Canada to continue to strengthen our competitive position and extend our reach, including to new markets. The competitiveness of Canadian businesses in the international marketplace will be enhanced by breaking down barriers to trade, both internal and abroad, and providing the appropriate tools and policy framework that allow Canadian exporters to take advantage of new trade opportunities.
Canada employs a variety of trade policy tools to do this. These trade tools improve operating conditions for our firms by committing countries to transparent, rules-based systems. This helps establish a more predictable environment for trade and investment.
Free trade agreements open markets to new opportunities but also give rise to concerns, sometimes about the concessions that have to be made. It is important to remember that Canada has always been a trading nation, and the government will continue to pursue opportunities while protecting Canada's interests. This government has not wavered in its commitment to supply management or the people who earn their livelihoods in these sectors—far from it.
The three pillars of our domestic system of supply management—namely, production controls, import controls, and price controls—have been maintained in all our free trade agreements. In addition, the Minister of International Trade has been tasked by the Prime Minister himself to continue to promote Canadian agricultural interests during future trade negotiations.
We are very aware of the issues with enforcement of our rules surrounding supply management. As my colleague, the Minister of Agriculture and Agri-Food, has repeated numerous times in the House and elsewhere, this government supports supply management, and we are working hard with the industry to find a long-term solution to this question.
Let me say a few words about CETA.
The European Union is Canada's second-largest trade and investment partner and its relationship with our country is of fundamental importance. The European Union is the largest market in the world, with 500 million people in 28 countries and a combined GDP of about $20 trillion.
The Canada–Europe Comprehensive and Economic Trade Agreement is a benchmark model. We also addressed Canadians' concerns regarding investment protection and dispute resolution by establishing in the agreement stronger provisions on the right to regulate of all levels of government and creating a dispute resolution system that is fairer, more transparent, and more objective. We are pleased that this progressive agreement is now moving towards implementation next year.
Canada will be a leader that respects the guiding principles of international investment in the 21st century, and the comprehensive economic trade agreement has laid a solid foundation to that end.
The government believes that the agreement will have many positive spinoffs for the Canadian economy, including the agricultural sector, and for all Canadians.
When the agreement takes effect, 98% of EU tariff lines on Canadian goods will be duty-free. Once the tariffs have been phased out, seven years after the agreement comes into effect, this percentage will be 99%, including more than 95% of the tariff lines on agricultural products. Eliminating duties will increase export opportunities in the European Union for Canadian producers, including exporters of agricultural and agri-food products.
Furthermore, as mentioned by the Prime Minister in the mandate letter for the Minister of International Trade, this government understands that it is important to work with departments as well as the provinces and territories in order to support necessary adjustments in sectors such as agriculture, which is supply-managed.
This issue is very important to the minister and the government as a whole. The minister has already met with the representatives of the five supply-managed groups, and she will continue to work closely with this sector.
We will ensure that the implementation of the agreement provides maximum benefits to Canadians across the country.
On the trans-Pacific partnership, our focus is to ensure that Canadians can have a good look at the TPP and that they can ask questions and express their views on whether the outcomes of this agreement are in the best interests of Canadians.
The government has made a commitment to consult Canadians before taking a decision on ratification, and that is exactly what we have been doing since we have taken office.
The Minister of International Trade has undertaken an extensive consultation process to offer Canadians the opportunity to provide their views on the agreement, and Canada's participation in it, before the government makes a decision on whether or not to ratify it.
The minister is also working closely with colleagues whose portfolios are implicated by the TPP to engage Canadian stakeholders and hear what they have to say. Since the Minister of International Trade was sworn in last November, the government has been part of more than 250 interactions with over 400 stakeholders to discuss the TPP, including all the provinces and territories, industry, civil society organizations, think tanks, academics, and the general public.
Parliament now has a sense of the consultations the minister has undertaken thus far. The engagement with Canadians will continue in weeks and months to come.
The government's TPP engagement has already touched many areas of Canada. Consultations are a good vehicle not only to learn about views on the TPP but also to have a constructive conversation on broader issues of importance to Canadians.
The government understands the fundamental nature of the agricultural and agri-food sector to our economy. That is why, as I mentioned already, the Minister of International Trade has wasted no time in meeting with representatives of all the supply-managed groups after taking office.
This government fully supports supply management, and we know that if a decision is made to ratify the TPP, we will need to work with sectors affected in the transition.
We are also pleased, as members know, that the House Standing Committee on International Trade is currently studying the TPP and in fact is beginning to consult Canadians in its own way.
As mentioned, this government is committed to being fully transparent and hearing the views of Canadians on the merits of the TPP before deciding whether to ratify the agreement.
On this motion, in conclusion, trade agreements are good for Canada, provided they provide benefits to Canadians. We think CETA is a good one; we are studying the TPP to see whether it is or not.
With respect to diafiltered milk, we are working with other members of the government and with farmers in the sector, knowing the complexity of the issue, in order to find a just and equitable solution for Canadian farmers.