Mr. Speaker, by the sound of the heckling, they do not like the truth.
The Liberals took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets. In fact, the last time the Liberals tried to talk seriously about trade, they campaigned to rip up the North American Free Trade Agreement.
Canada's prosperity requires expansion beyond our borders into new markets for economic opportunities that serve to grow Canada's exports and investment. As Canada's first FTA with an Asian market, the Canada-Korea free trade agreement is truly a landmark achievement.
With average Canadian exports from 2011 to 2013 of agriculture and agri-food to South Korea reaching almost $644 million, Canada is one of South Korea's largest suppliers. This agreement would further deepen our trade ties by improving market access for all of Canada's key agricultural export interests.
In general, South Korea would eliminate tariffs on around 70% of Canadian agricultural exports within five years. Within 15 years, 97% of exports would be duty free. This would lead to substantial gains for agriculture given that this sector is so heavily protected in South Korea. For example, South Korea's average applied agricultural tariff is 52.7% compared to 6.8% for non-agricultural goods.
The Canada-Korea FTA is critical to re-establishing a level playing field for Canadian agriculture and agri-food producers competing in the South Korean market, where major competitors from the United States and the European Union currently benefit from preferential access under their free trade agreements. Australia signed an FTA with South Korea in April 2014, and is expected to enter into force in the coming months.
While these are just some of the broad benefits for the overall sector, there are also significant gains for key agricultural products, including in meats, grains, pulses, oilseeds, fur skins, animal feeds, processed foods, alcoholic beverages, and fruits and vegetables.
In particular, beef and pork were Canada's two top priorities and among the most challenging areas of the negotiation. Under the Canada-Korea FTA, tariffs as high as 40% on fresh, chilled and frozen beef and pork would be eliminated over periods ranging from five to fifteen years.
Importantly, the Canada-Korea free trade agreement rules of origin reflect the integration of the North American livestock industry, which is a key result for us.
This agreement also aims to further Canada's position as a global supplier of grain and grain products by opening new markets in South Korea. Our grain exports would benefit from the immediate elimination of South Korean tariffs on some of Canada's high-quality grains and special crops, including wheat, rye, oats, mustard seed, and canary seed.
Wheat flour would benefit from tariffs eliminated over five years, while Canada's exports of barley malt to South Korea would be immediately duty-free under large commercially significant transitional quota volumes and will gain unlimited duty-free access after 15 years.
This agreement also holds tremendous potential for Canada's oilseeds and oilseed products sector. Tariffs on canola would be eliminated immediately upon implementation, while the current tariff of 5% on refined and crude canola oil would be eliminated over three to five years. Canadian exports to South Korea of identity preserved soybeans would see immediate duty-free access under permanent quota volumes. This is a product of particular interest to Ontario and Quebec.
Other key sectors that would benefit are Canada's fruits, vegetables and pulse sectors. Under the agreement, current tariffs of 30% on frozen blueberries would be eliminated within seven years, while tariffs on pulses, such as kidney beans, lentils and chickpeas, would be eliminated over five years. Tariffs on feed peas would be eliminated immediately upon entry into force.
This agreement also includes notable benefits for processed foods and alcoholic beverages. Upon entry into force, duties on icewine would be eliminated from current duties of 15%. This is significant, as icewine makes up 90% of Canada's white wine exports to South Korea. Furthermore, duties on rye whiskey would be eliminated upon entry into force.
Canada would receive immediate duty-free access on Canada's key processed food exports, including frozen french fries, maple syrup, maple sugar and golden roasted flaxseed. Other products that would see their tariffs eliminated during a phase-out period include baked goods, chocolate, sugar, confectionery, and cranberry and blueberry juices.
These are just some examples of the types of agricultural sectors and products that would benefit from the Canada-Korea free trade agreement. Given this positive outcome, a wide range of agriculture and agri-food stakeholders, such as the Canadian Cattlemen's Association, the Canadian Pork Council, the Canadian Agri-food Trade Alliance, the Canola Council of Canada and Pulse Canada, to name a few, have strongly and publicly supported this agreement.
To ensure that Canadian farmers and food processors benefit fully from this groundbreaking agreement, the Minister of Agriculture and Agri-Food continues to work closely with the Canadian agriculture industry to open new doors in South Korea.
I would like to take this time to thank the Minister of Agriculture and Minister of International Trade for the great work that they have done in the past number of years in getting not just the Canada-Korea free trade agreement but all the other ones that the government has signed. There are more to come.
In April, the minister led a delegation of 30 agriculture associations and companies to seize on the opportunities for agriculture trade heralded by this agreement. The visit successfully strengthened agricultural trade ties between Canadian exporters and South Korean importers. As our competitors in the European Union, the United States, Austria, Chile and other countries have already signed or implemented agreements with South Korea, Canada's farmers and food processors are currently at a major disadvantage to access this market. This disadvantage would widen further if Canada delays in ratifying this agreement.
I know that I am running out of time, but I would like to emphasize the great importance of this deal for all Canadian business, and particularly agriculture. With that, I welcome questions.