Mr. Speaker, I would like to thank the member for Central Okanagan—Similkameen—Nicola for raising this important issue before the House.
I am pleased to rise to speak to the significant benefits that internal trade brings to Canada's agriculture and food industries. We are talking about a sector that drives over $60 billion of Canada's exports, generates over $108 billion, accounts for almost 7% of Canada's GDP, and creates jobs for over 2.3 million Canadians.
We are talking about an incredibly productive and innovative industry. Canadian farmers today can produce twice as much output compared to 1961 with the same level of input. On the other hand, with the value chain, the Canadian food processing sector has doubled its sales in the span of two decades to over $100 billion. Science and technological innovation are a big reason for these leaps in productivity and efficiency.
Advancement in genomics and biotechnology are helping to drive productivity and competitiveness in the agriculture sector in many ways, including increasing yields of crops and animals, strengthening disease and pest resistance, and reducing inputs like fertilizers and herbicides. Technology is allowing us to develop new varieties of crops, which are better for consumers, more efficient to grow, and more adaptable to our changing environment.
I want to remind the hon. members that the government is absolutely pro-trade. The Government of Canada supports trade as a way to open markets to Canadian agriculture and food producers, to grow Canadian farm businesses, create good-paying jobs for Canadians, and provide choice and lower prices to Canadian consumers.
Canada is a trading nation. Canada has always depended heavily on international trade and investment for its economic well-being. We live in a vast country with a relatively small population, and we enjoy a high standard of living. We sell our products and services abroad, which helps maintain a strong economy. We strive to maintain and expand access to foreign markets, since an open trade and investment environment allows companies to prosper and provide better middle-class jobs.
The government is committed to developing trade in Canada and attracting investments that create jobs in our country. In Canada, one in five jobs is generated by trade. In 2014, Canadian exports of goods and services represented just under one-third of our GDP. Canadian consumers also reap the benefits of international trade, which gives them a greater variety of goods at better prices.
Trade is equally vital to our agriculture and agrifood industry. About half of the value of Canada's agricultural production is exported. Over a third of our wheat crop is exported, two-thirds of our pork, 85% of our canola, and 90% of our pulse crops. Trade agreements help Canada's agriculture and food sector build on its stellar export performance for the good of our nation and our economy. That is why we are consulting Canadians on the trans-Pacific partnership, and moving forward on ratifying the Canada-EU comprehensive economic and trade agreement, which will open up the world's most lucrative market for food to Canada's farmers and food processors.
Once the tariffs have been phased out, seven years after the agreement comes into effect, more than 95% of the tariff lines on agricultural products will be duty free. Eliminating duties will increase export opportunities in the European Union for Canadian producers, including exporters of agricultural and agrifood products.
Similarly, the domestic market is vital to a large number of agricultural and agrifood related products. We have seen in the news how consumers have a growing interest in local products. We also know that a strong domestic market is a great springboard for companies to compete in the global arena. Agriculture and food trade within Canada is significant. According to the latest figures, over $40 billion dollars in agricultural and agrifood products are traded between provinces. We know that number can and should grow. However, there are still some barriers to internal trade.
Agriculture is a shared jurisdiction between the provinces and territories, and this sometimes creates bottlenecks. The federal government is responsible for interprovincial and international trade, while the provinces are responsible for the production and domestic marketing of agriculture and agrifood products. For example, certain products, such as meat, must comply with federal standards to be traded between the provinces or internationally. In addition to the federal standards, the provinces may have their own rules and regulations regarding the foods produced and sold within their borders.
Depending on the product, some industries must comply with a patchwork of rules, which can impede the free movement of products from one province to another. These barriers can lead to losses or shortfalls for some segments of the agrifood sector, for example, the distilled spirits industry.
The Agreement on Internal Trade can help provinces and territories enhance interprovincial trade. The purpose of the agreement is to eliminate interprovincial barriers that impede the free movement of workers, goods, services, and investments. It is also encouraging to note that provinces themselves are collaborating to facilitate greater trade in both western and eastern Canada.
There is no doubt that the domestic market is critical to the success and growth of Canada's agriculture and agrifood sector. We need to do all we can to facilitate internal trade and remove barriers to the interprovincial movement of goods and services. This work will only be done with the collaborative approach that this government is taking.
Industry stakeholders often say that it is easier to export outside of Canada than to another province. With the conclusion of recent international trade negotiations with, for example, the European Union, there have been calls for business associations, consumer groups, and academics on the need to modernize the Agreement on Internal Trade to ensure that internal trade does not lag behind international trade liberalization, and that Canada's market should be as open internally as it is to our external trading partners. The federal government, the provinces, and the territories are now working together to renew the Agreement on Internal Trade.
We are at a time of tremendous opportunity for Canada's agriculture and agrifood sector. Agriculture exports are at record high levels. Agriculture and food is one of the top five fastest-growing export sectors of Canada. With our small population and huge production capacity, Canada is the world's leading agriculture trader on a per capita basis.
Meanwhile, global demand for food is projected to increase by 65% by 2050. Our farmers have the responsibility and the ability to feed the world. The future is bright for Canadian farmers and food processors, with growing demand for the great products we grow in Canada.
The government will work hard to open new markets for them, while working hard to strengthen agrifood trade within our borders. A better integrated internal market supports a competitive and innovative agriculture and agrifood sector. Improving internal trade will also reduce costs of production and increase productivity. It is a natural complement to Canada's intense involvement in international trade.
While the member opposite may prefer the antagonistic approach of the former government, this government recognizes that we need constructive collaboration to achieve our goals of creating a strong, more innovative economy.
