Madam Speaker, I am proud to rise in the House today to speak in support of the trans-Pacific partnership.
Our former Conservative government was committed to continuing to defend our system of supply management in the trans-Pacific partnership, just as we did in all previous trade agreements.
We also wanted to ensure that the Canadian agriculture sector, businesses, and our economy gained from the benefits that are part of the trans-Pacific partnership, one of the largest free trade agreements in the world's history.
As we pursued this goal, the then prime minister, the member for Calgary Heritage, was always clear that we would only participate in an agreement that served Canada's best interests. The former Conservative government consulted extensively with stakeholders, provinces, and territories in areas of specific interest and jurisdiction in the TPP.
Our former trade minister, the member for Abbotsford, who gave a great speech this morning, consulted every one of his provincial and territorial partners, and together they understood the importance of the TPP, which is why they have supported it.
Since 2006, the previous Conservative government signed free trade agreements with 46 countries, compared to only five by the previous Liberal government. This included South Korea, Ukraine, and the European Union. The TPP countries represent a market of almost 800 million new customers, with a combined GDP of $29 trillion, more than 35% of global GDP.
The TPP also includes some of the fastest growing markets in the world, as well as two of the largest economies, the United States and Japan. Canada has the potential to be one of the only major economies in the world with a free trade access to Europe, our NAFTA partners, and the Asia-Pacific region. That would represent more than 60% of the world's economy.
The TPP region would also be a source of some of the world's fastest growing economies over the next generation.
Canadian workers and businesses in every region of our country, working with fish, seafood, forestry and wood products, industrial goods, agriculture and agrifood, just to name a few, would benefit from increased access to high-value markets through the TPP agreement.
This agreement would protect and create jobs, economic opportunities, and financial security for workers and businesses in all regions of Canada. For example, recent studies by the Peterson Institute for International Economics and the Fraser Institute have said the TPP could boost Canadian exports to $15.7 billion and could increase Canada's GDP by $9.9 billion annually.
With one in five jobs in Canada and 60% of our nation's wealth directly linked to exports, Canada is and must remain a trading nation. Canada's small and medium-sized enterprises make up the vast majority of Canadian businesses and employ 7.5 million Canadians, or 70% of our private sector labour force. For the first time in any Canadian free trade agreement, the TPP includes a dedicated chapter with specific measures to assist our small and medium-size businesses to help them take full advantage of the opportunities in this free trade agreement. This illustrates the former Conservative government's commitment to significantly increase the number of Canadian small and medium-size businesses that have an opportunity to take advantage of these emerging export markets, setting them up to succeed.
Ratifying the TPP would send a clear message to Canadian businesses, and would allow exporters the opportunity to prepare and take advantage of this preferential market access, with lower tariffs and further integration into global supply chains.
We are the party that is standing up for small businesses. We are not the party that reneged on our promise to cut small business taxes. We are not the party that is actually increasing taxes on small businesses by $2.2 billion.
This is our opportunity to sign this free trade agreement to ensure that there are opportunities for small businesses across Canada and to give them access to these new emerging markets.
My riding of Foothills is a largely agricultural riding in southern Alberta. In fact, Foothills is in the heart of Canada's cattle country. However, it also has a healthy mix of grain and dairy farms. Producers in southern Alberta are global suppliers of some of the highest quality agricultural products around the world. Through the TPP, Foothills farmers and ranchers would have access to 800 million new customers. This would give them outstanding opportunities in new and emerging markets.
Alberta's farmers and ranchers would have duty-free market access for most agricultural and agrifood products, such as canola oil, feed wheat and barley, beef, and pork, just to name a few. They would have an enhanced market. The TPP would eliminate tariffs on canola oil in Japan and Vietnam within five years, and on canola seed upon entry into force.
Feed wheat and barley would be duty-free and quota-free in Japan upon the entry into force of this agreement, while markups would be reduced by 45% within eight years.
Canadian farmers would gain access to a TPP-wide quota for food barley, which starts at 25,000 tonnes and grows to 65,000 tonnes within eight years.
Canadian farmers and ranchers would have new markets for Canadian beef and pork. For example, tariffs on beef exported to Japan would be reduced, from 38.5% on fresh/chilled and frozen beef and 50% on certain offal, down to 9% within 15 years.
In Vietnam, the tariffs are 31% on fresh/chilled and frozen beef, and these would be completely eliminated within two years.
All of this means exciting new markets and opportunities for Canadian agriculture and agrifood producers and processors. We cannot underestimate the impact free trade has on our Canadian agricultural producers and processors.
I just want to take a walk down memory lane. For example, prior to reaching a free trade agreement with South Korea, Canadian beef exports to South Korea totalled about $9 million a year. They accounted for less than 10% of South Korea's beef imports, which were about $1.3 billion annually. The reason for that is that we could not compete with the United States and the European Union who had free trade agreements already with South Korea.
Since that free trade agreement has been signed and South Korea started bringing Canadian beef back into its country, as of 2014, beef exports from Canada into South Korea have increased to $25.8 million, triple what they were prior to our signing a free trade agreement with South Korea.
There would be the same sort of results with the TPP. Let us take a look at the potential. Japan is the jewel of the trans-Pacific partnership when it comes to Canadian agriculture products. As of right now, Canadian beef exports into Japan are about $100 million a year. It is anticipated that, once the TPP is ratified, that number would triple to $300 million a year for Canadian beef being exported into the Japanese market.
Our ranchers and farmers know how important this agreement is. For example, the Canadian Cattlemen's Association president, Dave Solverson, called the agreement a game-changer for Canada's beef industry and Canadian agriculture as a whole, saying, “This is fantastic news for Canada's beef producers”.
Patti Miller, president of the Canola Council of Canada said:
Leadership shown by the Government of Canada to make sure that Canada benefits from this landmark agreement will help the canola industry to continue growing and supporting communities. We...hope all parties will recognize the importance of implementing this agreement as quickly as possible so that the benefits can be realized.
The former Conservative government also adamantly protected Canada's supply management system. We announced a series of new programs and initiatives for supply-managed producers and processors to support them throughout the implementation of the TPP and the Canada-EU trade agreements.
Through programs such as the income guarantee program, the quota value guarantee program, the processor modernization program, and the market development initiative, Canada has defended the three pillars of supply management and ensured that they would remain protected.
Wally Smith, president of the Dairy Farmers of Canada said:
...we recognize that our government fought hard against other countries' demands, and [has] lessened the burden by announcing mitigation measures and what seems to be a fair compensation package, to minimize the impact on Canadian dairy farmers and make up for cutting growth in the domestic market.... We have come a long way from the threat of eliminating supply management.
However, the new Liberal government has been very mum on the compensation package in the trans-Pacific partnership agreement, raising fears among the industry that this compensation package may no longer be on the table.
Why is the government not doing whatever it can to facilitate further growth by supporting the trans-Pacific partnership? There was nothing in the Liberal budget about agriculture, and in fact there was no funding for the compensation package negotiated and supported by the supply management industry.
Ranchers and farmers throughout my riding have said that the markets they have domestically have stagnated. If they are going to grow, they need access to new markets. Their message is very clear. On a level playing field, they can compete with anyone in the world. We have the best products anywhere in the world.
What they are asking for is a chance to compete, and for the government to ratify the trans-Pacific partnership.
