Bill C-282

An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management)

This enactment amends the Department of Foreign Affairs, Trade and Development Act so that the Minister of Foreign Affairs cannot make certain commitments with respect to international trade regarding certain goods.

Department of Foreign Affairs, Trade and Development Act

[John Nater, Conservative, Perth—Wellington, ON]

Madam Speaker, it is indeed a great honour to rise in the House to contribute to the second reading debate on Bill C-282, an act to amend the Department of Foreign Affairs, Trade and Development Act (supply management).

It is a particular honour any time I get to speak to a bill where I can highlight the work that the hard-working farmers and farm families in Perth—Wellington and across Canada are doing not only to feed Canadians, but quite literally to feed the world.

Bill C-282 may sound familiar to some members and to some Canadians because it is an identical copy of Bill C-216 from the previous Parliament, which was introduced by another Bloc Québécois member of Parliament, the dean of the House of Commons, the hon. member for Bécancour—Nicolet—Saurel. Members will recall that the bill died on the Order Paper when Parliament was dissolved for the unnecessary summer election.

I recognize that both members who introduced this bill have a strong commitment to the supply management industry, which this party and many Canadians across the country certainly support.

I know there are some in this country who may not have the same vigour in supporting supply management, but I think it is important in a bill such as this one that we have a nuanced and thoughtful discussion on its strengths and weaknesses, how it may contribute to the situation, and how it may affect, negatively or positively, future trade deals in decades to come.

I want to talk briefly about food security. If we have learned anything during the past two and a half years of the pandemic, it is the importance of food security. When we have seen broken supply chains and shortages of goods on shelves across the country, it reinforces the necessity of a strong domestic production system.

We need to be able to feed the citizens in our country, but also to export the products that are created here in Canada across the world. I might add that when we have a country that is agriculturally as rich as Canada is, it is a crying shame that there are still Canadians who are food insecure. No Canadian, no person living in this great country of Canada, should be food insecure when we have the great natural benefits of our food production system here in Canada.

I have the honour of representing perhaps the greatest agricultural riding in this country. Perth—Wellington is home to the most dairy farmers of any electoral district in the country. It is home to the most chicken farmers of any electoral district in the country. It is home to the most pork producers of any area in Ontario, and it is in the top five for beef production as well.

Perth—Wellington has some of the most fertile farmland anywhere in the world. It is some of the most productive farmland that we will find anywhere in the country. The cost of that farmland reflects that, as we are now seeing land sales of over $35,000 per acre in Perth—Wellington and across southern Ontario.

I say that to emphasize the importance of the supply managed commodities, but also the non-supply managed commodities as well. Canadians and Canadian agriculture have certainly benefited from supply management, but there are also benefits from the world market that comes with international trade.

I would note that Perth—Wellington is home to more than 62,000 dairy cows, which is more than the number of people who voted in Perth—Wellington in the last election.

According to Statistics Canada, Perth—Wellington has over 350 chicken and egg farmers and produces over 28 million eggs. That is enough to make 9.3 million omelettes if one uses three eggs to make an omelette. We produce, in the combined counties of Huron and Perth, 542,270,559 litres of milk each year. That is enough milk for each Canadian to have a glass of milk for 56 consecutive mornings.

Those same dairy farmers and farm families provide over $1.2 billion to our national gross domestic product, and that is only in the counties of Perth and Huron. If we combine the counties of Wellington, Dufferin, Peel and Simcoe, which produce 385 million litres of milk, that is another $800 million added to Canada's GDP.

Let us remember as well the great influence of new technology on our agriculture sector. Agriculture is at the leading and cutting edge of technology. We have robotic milkers that have made advances in the dairy industry. We see folks in the beef industry making concrete efforts to increase sustainability and decrease greenhouse gas emissions within the industry. They are doing it on their own. They are doing it because it is the right thing to do. It is beneficial to farmers and the industry, who know the benefit and know they are the closest to the environment, the closest to the land on which they are stewards.

I have had the great honour and privilege to visit so many local farms in my community. I know the commitment these farmers and farm families have not only to feeding our communities, but also to playing their part in the great global supply chain and contributing to increased sustainability. It is important that these farmers have a fair and predictable marketplace where they can compete domestically and, for those who export, internationally.

All is not well in the agriculture industry. Certainly, farmers and farm families are facing the brunt of the inflation crisis and the challenges within the supply chain failures that have been caused by the Liberal government. Fuel, heat, feed, fertilizer, equipment, all of these costs are increasing at a rate that is not sustainable. One proposal from this official opposition is doing one small part to make that better. Bill C-234, an act to amend the Greenhouse Gas Pollution Pricing Act, would exempt natural gas and propane from the carbon tax for on-farm use. Canadians know that when farmers are drying their grains they need those things and for the government to apply the carbon tax just does not make sense. I am pleased that bill has finally made it out of committee and will be returning to this House for report stage and third reading debate. I am very pleased that my friend and colleague from Huron—Bruce was the one who was able to shepherd the bill through.

What we are seeing as well are the fertilizer tariffs. We still have not seen meaningful action from the government regarding the costs that were imposed on Canadian farmers for fertilizer purchased before March 2. In fact, just today I received another letter from the Minister of Agriculture, as I had begged her to address this, and once again she has failed to provide an encouraging response on this matter.

Farmers and farm families need support and reassurance from the federal government, not ongoing challenges, including, I might add, the unfair, unscientific approach to front-of-pack labelling labelling. The government was finally forced to back down from having it on ground beef and other single ingredient products.

The Liberal government unfortunately neglects too many farmers and farm families in the agriculture industry. In fact, if anyone had listened to the fall economic statement earlier this month, they would have found that a focus on agriculture was sorely lacking.

I recognize that this bill, Bill C-282, is largely a reaction to concessions that the Liberal government made in the Canada-United States-Mexico agreement, the CUSMA, in which further concessions were made for dairy, poultry and eggs. I would note that it was under our Conservative government, under the strong leadership of the former minister, the member for Abbotsford, that Canada committed to trade deals with dozens of international countries, where we expanded our foreign markets, all while ensuring the supply management industry was properly protected. That is the approach the Conservative government has taken in the past and one that would be taken in the future.

Certainly, this bill has some challenges in how it would be implemented and how it would be dealt with at the negotiation table, but that is something that could be considered at the committee stage. It is important that the bill be given a thorough examination at the Standing Committee on Agriculture and Agri-Food.

Recognizing that my time is dwindling, I shall move on to the final point, which is the importance of our agriculture and agri-food industry, which not only feeds our country, but helps to feed the world.

[Luc Thériault, Bloc, Montcalm, QC]

moved that Bill C‑282, An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management), be read the second time and referred to a committee.

Madam Speaker, it is a privilege for me to rise in the House to speak on behalf of supply-managed producers. I will present the main reasons why we, as lawmakers, should guarantee our producers a sustainable future by passing Bill C‑282.

I just want to take a moment to thank farmers in the riding of Montcalm who operate 87 supply-managed farms. Over 70% of the riding is agricultural. Its main industry is agriculture and agri-food.

Given that a number of Bloc Québécois motions to protect the integrity of supply management have been adopted unanimously, some members think it would be inconsistent not to pass this bill in principle and refer it to a committee for study. I thank them for that.

It is also a privilege for me to sponsor this bill, which I should note is identical to Bill C‑216. If memory serves, that bill won the support of a significant majority of 250 MPs in the previous Parliament thanks to my colleagues' amazing work.

I want to mention the work done by the member for Berthier—Maskinongé, a brilliant and staunch defender of the interests of the agricultural sector. I also salute the contribution of my young and eloquent colleague from Saint‑Hyacinthe—Bagot, the Bloc Québécois critic for international trade. Not to mention the member for Bécancour—Nicolet—Saurel, who sponsored Bill C‑216 in the last Parliament, a bill that would already be in effect if not for the useless election in August 2021. He is the dean of the House, the one who has seen the flood of good intentions in the ocean of promises to protect supply management.

These promises resulted in irreversible breaches in three major free trade agreements that unfortunately did permanent damage because the supply management system wrongly became a bargaining chip, as Gérard Bérubé wrote in Le Devoir on August 30, 2018:

Canada's supply management system has found itself in the crosshairs many times in the context of free trade and, unfortunately, has become a bargaining chip for Ottawa in the the past three major negotiations. From breach to fault, the crack continues to grow dangerously bigger.

I believe in parliamentary democracy and refuse to become a cynic, although I hold no naive beliefs about the ability of the legislative power to not let itself be subordinate to the executive, especially for those on the government benches.

As MPs, we are representatives of the people and we are legislators. We are the ones who must make the voice of the people heard and defend their interests against an executive power that all too often governs like a supreme ruler and that sometimes breaks its promises and goes against the unanimous will of the House, as expressed in the motions it adopts.

Some might think that Bill C‑282 is not necessary. They will swear, hand on heart, that they will protect supply management from now on. However, history tends to repeat itself, so I would humbly point out, by way of example, that, in the context of the Trans-Pacific Partnership negotiations, the Bloc Québécois moved a motion on February 7, 2018, which said, and I quote: “That the House call on the government to ensure that there is no breach in supply management as part of the new Trans-Pacific Partnership.” This motion was unanimously adopted.

A month later, on March 8, 2018, the Liberal government went back on its word by signing the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

In the context of the renegotiation of NAFTA, the Bloc also moved a motion on September 26, 2017, for the government to protect supply-managed markets. I will read it:

That the House reiterate its desire to fully preserve supply management during the NAFTA renegotiations.

One month later, on November 30, 2018, the Liberal government went back on its word by signing CUSMA, an agreement meant to replace NAFTA. Unfortunately, despite the promise made to Parliament, several concessions were made, putting the financial stability of Quebec's agricultural businesses in jeopardy. Four times the House unanimously expressed its desire to fully protect the supply management system. However, both Liberal and Conservative governments clearly did not feel bound by that commitment when they signed the last three free trade agreements.

These agreements have been disastrous when it comes to the concessions that were made at the expense of supply-managed agricultural producers and processors. Without the guarantee that Bill C‑282 offers to exclude supply management from free trade agreements, many are now questioning their future.

Bill C‑282 is very simple. It amends the Department of Foreign Affairs, Trade and Development Act to expand the minister's list of responsibilities to include protecting the supply management system. Section 10 of the act would be amended to add supply management to the list of directives that the minister must take into account when conducting Canada's external affairs, including international trade. Once this bill is fully implemented, the minister responsible for international trade will have to defend supply-managed farmers to our trading partners. It will now be part of the minister's mandate to negotiate without creating loopholes in the system, as has been the case with the last three agreements. Bill C‑282 has become necessary because the loopholes that have been created are preventing the system from working effectively. They undermine the integrity of the principles that make up the system: price, production and border controls.

Supply management is an essential strategic tool in preserving our food autonomy, regional development and land use. It is also a pan-Canadian risk management tool designed to protect agricultural markets against price fluctuations. This system is based on three main principles, on three pillars.

The first pillar is supply management via a production quota system derived from research on consumption, that is, consumer demand for dairy products. The Canadian Dairy Commission distributes quota to each province. The provinces' marketing boards, also known as producer associations, sell quota to their own farmers to ensure that production is aligned with domestic demand.

The second pillar is price controls. A floor price and a ceiling price are set to ensure that each link in the supply chain gets its fair share.

The third pillar is border control.

Supply management is a model envied around the world, especially in countries that have abolished it. Dairy producers in countries that dropped supply management are lobbying to have it reinstated. Increasingly, American dairy producers are questioning their government's decision to abolish supply management for their sector in the early 1990s. For almost a decade now, the price of milk has been plummeting, and small farms are no longer able to cover production costs.

This price level is generally attributed to overproduction. Every year, millions of gallons of milk are dumped in ditches. In 2016, it was over 100 million gallons. In the state of Wisconsin, for example, nearly 500 farms per week were shutting down in 2018.

Producers can simply no longer afford to produce for so little income. One of the problems is that the dairy sector is organized around overproduction, particularly with the aim of exporting surplus production at low prices. As a former U.S. secretary of agriculture himself admitted, when you overproduce, only the biggest can survive.

Of course, there is another possible argument. Some people might think that, since producers and processors have finally been compensated, although four years later in some cases, and they are satisfied, small breaches can continue from one agreement to another by compensating people afterwards.

Of course, no amount of compensation, no temporary one-off cheque, will cover the permanent structural damage and losses caused by the breaches in the agreements with Europe, the Pacific countries, the U.S. and Mexico. Supply management is not perfect, but the advantages outweigh the disadvantages, especially in allowing all links in the chain to produce and to have fair and equitable incomes for everyone in the entire production chain.

In closing, the question we need to ask ourselves is this: Do we want to protect certain segments of our agricultural industry from foreign competition while abiding by the rules of the WTO agreements?

The answer to that question should be yes, especially since the supply management system follows those rules. We have the right to do so, and many countries avail themselves of those provisions. We are not the only ones that protect certain products. Everyone does it, even the countries that are criticizing us for doing so.

It is important to remember that Canada has signed 16 free trade agreements that do not affect supply management in any way. It is therefore possible to discuss and negotiate without touching supply management.

We cannot allow the United States or other countries to force us to abandon our agricultural policies and practices. What are we really trying to protect our production from? We want to protect it from unfair competition.

Our main partner, the United States, is breaking many international trade rules while constantly asking us to give them more access. The U.S. is providing its agricultural industry with billions of dollars in illegal subsidies a year, which cuts production costs for farmers and enables them to resell their products locally or elsewhere at a lower cost. That is strictly prohibited by the WTO.

There is no question that Quebec and Canada are exporting nations. This is not about increasing protectionism. What we want is to maintain a system that has proven its worth for almost 50 years.

Since 2015, I have had the opportunity to introduce two bills, which were rejected. This is my third attempt. If the House were to adopt Bill C‑282, I would share my pride with all parliamentarians from all parties, and with all those who care about protecting an agricultural model that provides our producers with the predictability required to look to the future with dignity, to grow their businesses in the hope of proudly passing on their passion to the next generation with human-scale farms, while always ensuring that they produce high-quality products ethically. This model ensures that everyone wins, from producers to processors to consumers.

By adopting Bill C‑282, we will ensure that never again will supply management be sacrificed on the altar of free trade.

Global Food Insecurity

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Madam Chair, the “sundae with the cherry on top” would love to answer that question. I will not address the other things my colleague said because it could become a bit of a slippery slope.

She asked me to talk about our success stories. Every chance I get, I talk about supply management. A great example is the COVID-19 crisis. Some milk was thrown away at first, but that was a very temporary situation. Farmers adjusted very quickly. They had much less difficulty than other producers, overall, because the quantity and the price are controlled. That is how you control quality.

However, in order to succeed and continue to manage this system, we have to continue to control imports. If too many foreign products start coming into the country, if our local farmers decide to reduce the quantity they produce, if products continue to come in by the truckload from abroad, the system will no longer work.

As for not repeating the mistakes of the past, we should never again give away a single share of the supply management market. We should promote it abroad, especially in African countries, where I think it would work really well. We should protect it with the Bill C-282, a fine bill. Do not forget the number, it is going to make an impact.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Mr. Chair, I thank my colleague for his statement. I respect him and I have had the opportunity to work with him several times.

I agree with several aspects of his speech, with some reservations, which the future groom opposite may share. Generally, he is right in saying that we must protect our sectors that are doing well and help our farmers rather than hinder them.

Speaking of protecting sectors that are doing well, I have one that is very important to me. Last week, the Bloc Québécois introduced Bill C-282 to protect the supply management system, which works extremely well, but has been undermined by recent concessions. Does my colleague believe that we should protect this system for years to come?