Mr. Speaker, it is my pleasure to rise in the House to join in the debate on Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states and to provide for certain other measures.
I must admit that, at first, I was worried for certain sectors of the economy in my riding, dairy production in particular. I want to congratulate the Minister of International Trade and the Minister of Agriculture and Agri-Food for their work in responding to the concerns stemming from this agreement. It is only a start, but I will get back to that a little later in my speech.
For the past year, I have met with multiple stakeholders from the agricultural sector and heard various points of view. One consistent point is that food production must increase by at least 50% by 2050. Canada has a unique opportunity to position itself as the go-to supplier for world demand for food. But in order to do that, we will need to provide our farmers, our processors, and the agrifood supply chain a competitive advantage. That is where CETA comes in. While not perfect, it would provide a greater opportunity for our farmers and the agrifood sector to position themselves as key players in the European market. The EU is among the world's largest markets for food. Removing barriers for our agricultural sector would be part of this agreement.
We need to consider these important facts: almost half of the value of Canada's agricultural production is exported; and two-thirds of our pork, 80% of our canola and canola products, and 90% of our pulse crops are exported.
Let us consider this, then: tariff barriers currently stand at approximately 14%, on average. That means that Canadian agricultural businesses are at a competitive disadvantage compared with those in the European Union. CETA will allow them to be as competitive as European farm operations. When the agreement comes into force, nearly 94% of tariff barriers will be eliminated. This is good news.
However, I would encourage my colleagues not to take my word for it, but rather that of the experts at Cereals Canada, which includes the Producteurs de grains du Québec and the Grain Farmers of Ontario, the Canadian Cattlemen's Association and the Canadian Pork Council, to name a few. They all support this agreement. This is good news for agriculture.
What is more, we intend to stay the course. We will continue to fight so that Canadian agriculture can thrive and the supply management system is maintained. It is true that the agreement is not perfect, but the Prime Minister, the Minister of Agriculture and Agri-Food, my colleagues and I have worked relentlessly to ensure that our dairy sector can continue to prosper.
Several meetings were held with Canadian dairy farmers, processors, provincial associations, and many young farmers. Discussions focused on the best way to strengthen the sector so that it can face the national and international challenges that lie ahead, and on the transition assistance in light of new market access under CETA.
Our government has been clear from the beginning regarding the need to help dairy farmers and processors make the transition with respect to CETA. That is why we announced a $350-million investment in two new programs aimed at enhancing the competitiveness of our dairy industry in anticipation of CETA's implementation. The government is committed to preserving the vitality of the dairy industry by contributing to farmers' and processors' continued ability to innovate and increase productivity.
The first program is the dairy farm investment program. This five-year, $250-million program will provide targeted contributions to help Canadian dairy farmers update farm technologies and systems and improve productivity by upgrading their equipment.
The second program is the dairy processing investment fund. This four-year, $100-million program aims to help dairy processors modernize their operations and thereby increase their productivity and efficiency, and also diversify their product lines so as to profit from new market opportunities.
These programs will complement the dairy sector's ongoing investment efforts, helping both current and future generations of dairy farmers and processors to remain competitive for the long term within a strong supply management system.
We have already seen the positive impact of this announcement. Already, Gay Lea Foods in Ontario has announced an investment of $140 million to create an ingredient plant.
However, that is not all. We have heard loud and clear about the ongoing problems that negatively impact our supply-managed sectors, particularly our dairy and chicken farmers. We need to address the duties relief program and spent fowl. Consultations will be launched with industry stakeholders regarding potential changes to the duty relief program and the import for re-export program.
We are exploring measures regarding inventory reporting in an effort to improve the predictability of these imports. Our government will also look at specific options regarding certification requirements for imports of spent fowl while ensuring that any such requirements would be fully consistent with Canada's international trade obligations. These are key concerns for our supply-managed industry, and our government is taking action to support these sectors.
With regard to the allocation of CETA cheese quotas, the government is currently reviewing the results of the public engagement process that concluded at the end of August. The Minister of International Trade's decision will take stakeholders' views and interests into consideration in determining how to allocate the new CETA cheese quotas. The allocation policy for cheese tariff rate quotas will be finalized following the passage of the CETA implementation legislation and before the agreement's entry into force.
These are the actions of a government that is committed to the people it represents. Some will say we are taking too much time, but as my mother used to say, “better late than never”. One is better off making the right decision than the wrong one.
Although there are challenges, the Canadian dairy sector continues to be progressive and innovative. Canadian dairy producers are doing an excellent job meeting the needs of consumers, whether in terms of food quality, animal welfare, the environment, or good products with high nutritional value.
Consumers like Canadian dairy products. Production continues to grow every year. Butter consumption increased by 10% over the last decade. Yogurt consumption increased by over 60% during the same period, and should continue to rise.
Canada’s dairy producers are among the industry’s world leaders with respect to the environment.
Canada’s dairy industry has a smaller ecological footprint for carbon, water and earth than most of the other big dairy producers worldwide. This is good news.
Today’s dairy producers are able to produce 14% more milk than 20 years ago, thanks to better genetics, better nutrition and better farming practices. They are able to do this with 24% fewer cows, while generating 20% less greenhouse gas. This is reason to be proud of our dairy producers.
The announcement of November 10 contributes to the industry’s success by further modernizing our dairy sector. Much progress has been made, but we must always continue to innovate.
The Prime Minister and the Minister of Agriculture and Agri-Food have heard our dairy producers loud and clear, and they will continue to listen to them, while the government will continue to consult other industry players to get their advice and thereby orient the program’s design and help to ensure that these programs meet the needs of producers and processors in tangible ways.
I undertake to do the same, continuing to work closely with producers and processors in Glengarry—Prescott—Russell, the riding I represent.
Supply management is a system that works, and it is through collaboration that we will ensure its sustainability. When I was little, it was “Never without my milk”. I will never forget those who produce that milk.
