Madam Speaker, before I begin my speech, I would like to point out that I farmed my ancestors' land for 40 years, so I too have experienced this sort of crisis first-hand.
I thank the members for Durham and Mégantic—L'Érable for their interest in this important issue for our canola farmers and our economy. The government is well aware of the concerns of farmers and their families regarding the current upheaval in international markets, particularly since it coincides with spring seeding. That is why, this morning, we announced two important measures that we are taking to support them at this difficult time.
First, we made changes to the advance payments program and the maximum loan amounts for 2019. The advance amounts for all agricultural products will increase from $400,000 to $1 million. The first $100,000 will remain interest-free for all producers, while the interest-free portion for canola farmers will increase to $500,000.
Second, we came to an agreement with the provincial and territorial governments to extend the application deadline for the AgriStability program by two months without penalty for 2019, from April 30 to July 2, 2019. This is a federal-provincial program that seeks to stabilize farm income whenever production margins experience significant decline. By giving farmers more time to register for the program and benefit from it, we are giving them another effective way of managing the risks associated with market volatility.
Canola is a symbol of agricultural innovation and prosperity for Canada. Today, the canola industry contributes nearly $27 billion to the Canadian economy, an amount that has tripled in the past 10 years.
Canada is the world's largest producer and exporter of canola. Canada's canola industry, producers and other stakeholders in the value chain have worked hard, and as a result, Canadian canola is recognized around the world as a top quality product. That is something we can be proud of.
Furthermore, we know that stable markets for our canola mean more money in producers' pockets and good jobs for the middle class. This is why the trade dispute with China over canola is a top priority for Canada. We take this issue very seriously and are working tirelessly to resume the trade of canola with China.
Canada has a strong, longstanding relationship with China. We are working on all fronts and are doing everything possible in China and here, in Canada. We are also working closely with the industry and the provinces. It is important to act based on science.
Canadian representatives inspected the canola seed shipments before they were exported to China. These inspections complied with all relevant procedures and analytical methods, and the representatives certified the shipments in accordance with the Chinese authorities' import requirements.
The data on the export samples and the investigations by the Canadian Food Inspection Agency support Canada's position that these pests were not present in the Canadian canola shipments. Our inspection system remains robust, and we will continue to stand up for the Canadian canola industry. We are looking to find a science-based solution as quickly as possible. Close collaboration and ongoing dialogue are absolutely essential to moving this issue forward.
A few weeks ago, the Minister of Agriculture and Agri-Food and the Minister of International Trade Diversification went to Saskatchewan to meet with their provincial counterparts and farm leaders. We set up a working group including the Canola Council of Canada, the Canadian Canola Growers Association, Richardson International, Viterra, and representatives from the federal government and the Alberta, Manitoba and Saskatchewan governments.
The group will ensure that a collaborative and coordinated approach is taken to resolve the matter. Meanwhile, it will be looking at other potential markets for the short and medium terms. We continue to diversify our trade on the global market to give our farmers greater access to more markets for their canola, and to help them mitigate the risks associated with the closure of the Chinese market.
Last year, Canada's agriculture and food trade hit a new record of $66.2 billion. A record part of that sum came from markets other than our traditional trading partners.
Diversifying our trade relationships is vitally important and Canada has a strategy for that.
Under the Canadian agricultural partnership, we are investing almost $300 million over five years to help the industry grow trade and expand market access.
In the past 18 months, we have signed two trade agreements with some of our top markets in the world: the European Union; and the countries party to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP. The latter is already showing some encouraging signs of success.
For example, Canadian beef exports to Japan doubled in the first two months of 2019. Our pork exports increased by 14%. We expect these numbers to go up as a growing number of Canadian exporters take advantage of the market opportunities provided by the CPTPP.
Under the CPTPP, when tariffs are fully eliminated in Japan and Vietnam, the industry expects exports of Canadian canola oil and meal could increase by up to $780 million per year. We are optimistic about the enormous potential that this agreement has to offer.
As well, the Canada-United States-Mexico agreement will secure our $31-billion trade in agriculture and agri-food products with the United States and Mexico, including almost $5 billion in canola alone.
Thanks to all our trade agreements, Canada's canola producers will benefit from a competitive advantage in two-thirds of the world's markets. The Conservatives had 10 years to take action, but they never managed to make real progress. We are also continuing our efforts to further diversify our canola markets.
The Minister of International Trade Diversification will soon be leaving on a trade mission to Japan and South Korea to promote our canola, and the Minister of Agriculture and Agri-Food will be attending the G20 agriculture ministers' meeting next week in Japan.
We stand firmly behind our canola producers at every opportunity. We also know that they are increasingly concerned about such issues as planting, storage and prices. As producers know, the government has two programs to help them manage risks and cash flow, and these were the subject of two announcements made today.
Canada's canola industry has ambitious plans for growth and innovation, which we actively support. The industry continues to develop new varieties of canola. The quality will be even better and the environmental footprint smaller. We are helping stimulate innovation in Canada's canola industry with a federal investment of $12 million in a canola research cluster.
Together with investments by canola producers themselves, the total investment will exceed $20 million.
Canada's canola industry has tremendous potential. To achieve that potential, we need to resolve trade disputes with China by fighting tooth and nail for our farmers. We will not stop fighting until the situation is resolved.
The opposition latched on to this issue just this week, but our government has been working very hard to take concrete steps. The government is collaborating with working groups and taking steps to diversify our markets. This issue continues to be a priority.
From the start, we have worked hand in hand with the industry and our provincial partners to find practical concrete solutions that will help our farmers now. We will do everything we can to resolve this trade dispute. Now that the members opposite have suddenly decided to take an interest in this issue, we hope we can count on their support in finding a solution.
We stand by canola producers and farm families across the country. We know Canada has the best canola in the world, and we are determined to resolve this issue.
Farmers are having a tough time right now, but we will get through it by having a frank and open dialogue and standing up for Canadian values and interests. There are lives at stake. Canada should take a single, consistent approach to these issues, not use these issues to score political points. We owe it to our farmers and their families.
In closing, I would like to tell the House what the Premier of Saskatchewan, Scott Moe, said this morning. He said that he appreciates the effort made by the federal government, which shows that it supports agriculture in western Canada and across the country. He also appreciates the fact that the government has moved forward with a plan for supporting these farmers as they go into spring seeding.
