Thank you, Mr. Chairman, and good afternoon to members of the committee. Thank you for inviting me here to speak about the comprehensive economic and trade agreement with the EU.
The Canadian Canola Growers Association represents 43,000 canola growers here in Canada and is governed by a board of farmer directors representing the provinces from Ontario west to B.C.
One statistic I'd like to highlight is that canola is the highest-value agriculture commodity, contributing $8.2 billion to farm cash receipts last year. That's a pretty big number. Canola farmers rely on international markets. We export more than 85% of seed and canola products on an annual basis. Therefore, much of canola's current as well as future success is directly related to our ability to access and compete in global markets.
CETA is a significant opportunity for canola growers. Improved access to a market this large is impressive. The EU economy is worth $17 trillion. It represents one-sixth of global trade in goods and has a population of 500 million consumers with the financial means to buy our products. For Canadian canola, this agreement provides future market opportunities and a commitment to work through some of the market access barriers facing canola in the European market today.
Once this agreement is ratified, it will result in the immediate elimination of tariffs on canola oil, which could increase the exports of our oil to Europe by up to $90 million per year, year after year. That's about double what it is right now. This access will create new demand for farmers' canola seed, and support Canada's expanding crush capacity. Longer term, CETA will provide a more formal avenue to discuss long-standing issues farmers face with EU non-tariff trade barriers, particularly the regulations regarding genetically modified products, like canola.
The importance of establishing transparent and science-based regulatory policy cannot be overstated, and CETA represents an opportunity to advance access for biotech products in a meaningful way. In order to feed the world's growing population and at the same time ensure that Canadian canola growers remain profitable and contribute to the Canadian economy, farmers must continue to adopt new and innovative technologies. This includes new biotech traits that allow for increased production and various agronomic benefits.
In 2012, Canada had the fourth-largest area planted in biotech crops worldwide, with 97.5% of Canadian-grown canola planted with biotech varieties. Canola farmers quickly adopted the new technology, as it provides real economic benefits to their farms. Biotech canola has allowed for higher yields, more efficient weed control, and less reliance on crop inputs, while providing more opportunity for farmers to adopt no-till or minimum-till practices.
With respect to approval of new canola traits, we are especially encouraged that Canada was able to use the CETA negotiations to get an agreement with the EU on a parallel letter committing the EU to ensuring efficient processing of canola applications and their expeditious movement through the EU approval process. Speeding up this process will allow growers to take advantage of innovations, which will make us more competitive.
In order to fully capitalize on this agreement and export competitively, there will also need to be improvement in the Canadian regulatory process for exports of canola. We are pleased with the recent changes to the Canadian Grain Commission, but more is needed there if we are to remain competitive and capture the full benefit of freer trade.
Thank you for the opportunity to speak to this committee today. I look forward to taking your questions.