Madam Speaker, I am pleased to have the opportunity to respond to the question of my hon. colleague vis-à-vis trade with India and the very unfortunate increase of up to 50% on specific commodities. In this case, I would like to focus our attention on peas and lentils.

This is a priority for our government. Canadian agricultural exports to India have been increasing over the past decade, which is fantastic news, from around half a billion dollars to trade in excess of $1 billion in 2016 and 2017. I would like to start by emphasizing that we are extremely disappointed and concerned with the measures put in place by the Government of India. In that context, I share my colleague's concerns.

These measures by India lack transparency and have created an unpredictable trade environment. Over the past few months, India has used several different types of measures that have negatively impacted Canada and the global pulse market.

The first relates to the fumigation requirement. Since 2004, Canada has been receiving a series of country-specific exemptions, called derogations, from India's requirement that pulses be fumigated prior to leaving Canada. Canada's position is that we can effectively meet India's plant health concerns without the need for fumigation. However, for the first time, on October 1, 2017, our country-specific derogation was not renewed. Trade with India can continue through a general derogation, which allows for agricultural products to be fumigated upon arrival, which of course is more expensive and time-consuming. The penalty for not meeting the fumigation requirements is cost-prohibitive and significantly impacts the competitiveness of our pulse sector in India. This general exemption expires on June 30, 2018.

The second measure is an increase in import duties. Since November 8, 2017, India has increased duties on dry peas to 50%, as referred to by my hon. colleague, lentils to 33%, and chickpeas to 66%. India's tariff increases are usually given without notice and are applied immediately to all shipments, including those in transit at the time of the increase.

The third measure was put in place on April 25, 2018. It is a limit on the volume of imports for pea shipments. This is not a ban on pea imports, but a limit of 100,000 tonnes allowed during a three-month period, which is applied to all countries.

These measures are designed to limit trade of foreign pulses to India and have created a lack of predictability and transparency in the global pulse market. They reflect an attempt by India to address domestic challenges, which include a bumper crop of pulses in 2017-18.

We have a deep concern with these measures, and we are taking a number of actions. Through high-level engagement, the government has expressed deep concern and disappointment with India's very restrictive policies. We take the commitment to resolve this issue seriously, and we will work with our Indian counterparts to ensure that they do the same. Of course, we have done an enormous amount of technical work to demonstrate that we have a rigorous inspection process that ensures that India's plant health concerns are met. We have also invited Indian officials to Canada in the coming months to review our grain handling system and to see for themselves that fumigation is not necessary.

On the issue of duties, although India is within its World Trade Organization rights to increase duties within certain constraints, Canada is concerned that no notification was given before implementation, and of course this impedes the free exchange of goods.

On the issue of limiting the volume of imports for pea shipments, we are reviewing whether India's—

Andrew Leslie

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