Mr. Speaker, it is a privilege to stand in the House today to speak on behalf of CETA and Bill C-30, the Canada-European Union comprehensive economic and trade agreement implementation bill.
Canada is an exporting nation. From the voyagers to the Hudson's Bay Company to the cod fisheries of our east coast, Canada has been a place of abundant natural resources that have been harvested for exports.
As a grand nation that spans the Atlantic and the Pacific Oceans, that was united by bands of steel through our national railway, our identity as Canadians has been shaped by our export economy.
Whether it is beaver pelts, cod, grain, beef, minerals, oil and gas, or cars and trucks, all these products helped build our great nation into the prosperous land we call home today.
For those who might be hesitant to support CETA, here are some contextual facts about the importance of exports to Canada, the country we love and serve.
International trade represents more than 60% of Canada's gross domestic product. One in five Canadian jobs is linked to exports. This means there would be three million fewer jobs without international trade, and that is a big deal. This then would drive up Canada's unemployment rate to more than 25% if we were to all of a sudden stop exporting tomorrow.
Clearly our shared prosperity as a nation is very dependent on opportunities to get our goods to international markets, which is why it is so important for us to enter into free trade agreements.
This is why the Canada-EU free trade agreement will give Canada unprecedented access to 500 million EU customers. The size of the European Union's combined economy is $18 trillion, an economy that Canada's businesses will now have barrier-free access to. The European Union is the world's largest importing market for goods, with annual imports that are worth more than Canada's total GDP. The European Union is already the fourth-largest export market for Alberta agriculture after the United States, China and Japan.
A joint Canada-EU study that supported the launch of negotiations concluded that a trade agreement with the EU could bring a 20% boost in bilateral trade, and a $12 billion annual increase to Canada's economy. This represents the economic equivalent of adding $1,000 to every family's income or almost 80,000 new jobs to the Canadian economy.
CETA is in fact good news for our country.
The Canadian Agri-Food Trade Alliance estimates that when fully implemented, this trade agreement could result in $1.5 billion in new Canadian agrifood exports to the EU. When this trade agreement comes into force, 98% of EU tariffs on Canadian goods will be entirely eliminated.
Every region of Canada stands to benefit from the opportunities contained in this agreement. Of course I am very interested in my riding of Lethbridge.
Lethbridge is a hub for agricultural exports, from grains and oilseeds, to poultry and beef, the fertile soil of southern Alberta provides an abundance of food that is available to be sold around the world. In conversations with many of my local agricultural processors, I have heard overwhelming optimism and support for the CETA agreement. Traditionally, EU tariffs on agriculture and processed food products have been quite high, particularly on products such as beef, pork and wheat.
Canada has also faced many non-tariff barriers in the European market. This is why the elimination of tariffs and non-tariff barriers creates fantastic opportunities for Canadian agricultural producers, again, particularly affects my riding.
This agreement establishes a joint committee that will ensure that sanitary and phytosanitary measures to protect human, animal, and plant life do not unnecessarily harm trade. This is very important. This body will determine which certifications and standards should be deemed as equivalent. These non-tariff barriers have been the primary obstacles that in the past have stopped Canadian agricultural exports.
Our Conservative caucus will be paying close attention to the non-tariff barriers and will be holding the present government to account with regard to advocating on behalf of our Canadian producers.
For the grains and oilseeds producers in Lethbridge, this agreement would completely open up a market that was previously blocked by very high tariffs. Here are some examples of the EU tariffs that would be eliminated for grains and oilseeds producers once the agreement is fully implemented: the $114-per-tonne tariff on grains, including oats; the $122-per-tonne tariff on low to medium-quality common wheat, a product that currently sells for only $225 in the EU; the $120-per-tonne tariff on barley and rye; the tariff of up $190 per tonne on durum; and the tariff of 9.6% on oils, including canola oil, a crop that currently sells for $540 a tonne in the EU. All of these tariffs would be eliminated by the CETA agreement. Alberta Barley estimates that an additional $100 million in grains and oilseeds exports would result from signing CETA.
Lethbridge also has a sugar beet industry and the Rogers Sugar refinery plant is very nearby. The Canadian Agri-Food Trade Alliance estimates that this agreement would boost exports of sugar-containing products, such as sugar beets, by $100 million per year. Again, that is excellent news for the producers in my riding.
Canada is also a major meat exporting country, a significant amount of which is produced and processed in southern Alberta. The Canadian Meat Council reports that Canada currently exports $1.3 billion worth of beef, $3.2 billion worth of pork, and $5.7 million worth of bison. Sixty-five thousand Canadians depend on this industry for their job each and every.
For the agricultural producers in my riding, 94% of goods would be tariff-free once CETA is signed, sealed, and delivered.
Lethbridge is also a hub for the Maple Leaf Foods processing plant, which, of course, is processing pork, to a great extent. The Canadian Pork Council has projected that for specific cuts of pork, this deal could create sales of $400 million per year. This is excellent for the pork producers in Lethbridge.
Lethbridge is also home to a large number of beef producers in Canada. In fact, we are known by the nickname “Feedlot Alley”.
Canada has some of the greatest beef genetics in the world and our breeds are known for their excellent quality of meat. Canada has world-leading safety systems, including complete traceability of each and every animal.
Once CETA is fully implemented in three to seven years from now, 65,000 tonnes of beef would be allowed to flow into the European markets duty-free, which would represent more than $600 million in new exports.
That said, reaching an agreement on the equivalency of phytosanitary measures is absolutely critical for this agreement to benefit the producers in my riding and the producers across this country. Phytosanitary measures is simply a fancy way of saying “measures to protect human and animal health in the farming process”. Because of our different climates and the different scale of industry, Canada uses different methods from the EU to ensure the safety of meat. These methods are backed by the latest science and technology. The challenge for the government in negotiating this agreement would be to ensure that science-based equivalencies are negotiated before this agreement comes into full effect.
In summary, this trade deal is excellent news for Canadian exporters. It would create jobs, it would help to grow our economy, and it would increase Canada's standing on the world stage.
I am thankful for former Prime Minister Harper and the members for Abbotsford and Battlefords—Lloydminster for all the work they did in the previous government to negotiate and seal this deal through to it signature.
The farmers, agricultural businesses, and exporters in my riding of would enjoy a more prosperous future because of CETA.Lethbridge
