Thank you, Mr. Chairman.
Also, thank you to the committee for the opportunity to review and provide comment on the report on Canadian agriculture and the Canada-European Union comprehensive economic and trade agreement.
We appreciate the fact that the committee has provided a synopsis of the comments received from stakeholders at the meetings that were held in November and December of last year. Lisa Skierka, general manager of Alberta Barley and president of the Canadian Agri-Food Trade Alliance, and Brian Otto, the chairman of our national organization, had an opportunity to provide comment to the committee at that time as well.
World demand and trade in barley is growing. Demand is being driven largely by countries with rapidly expanding beer production, including China and Russia, and countries in Eastern Europe, South America, and Africa. Some 25% to 30% of Canada's barley production is used in the malting industry, both in Canada and overseas. About half of this barley is exported unprocessed for malting. The remaining product is malted in Canada and then sold either to the domestic brewing industry or to international customers around the world.
ln 2012 Canada's malt exports were over 595 million malt tonnes valued at $382.6 million. Canada is the largest individual country malt exporter in the world, after France. The EU member states together house 40% of global malt production capacity and are responsible for over 50% of world trade in malt, exporting over 2.2 million tonnes every year. The elimination of tariffs on Canadian barley into the European market will allow us to be competitive in that marketplace for the first time. The European Union is not currently the largest market for Canadian barley, but due to its size, consumption patterns, and generally high income per capita, we believe the EU shows a great deal of potential.
Tariffs have been an issue for agriculture and food exporters. EU tariffs on agriculture and processed food products have been high, particularly on products such as beef, pork, and grain. We know that under the agreement in principle the EU will eliminate all duties on 94% of agricultural tariff lines, and that tariffs on grains, including wheat, durum, rye, barley, and oats, will be eliminated over a seven-year period.
This agreement is also significant for Alberta's barley farmers because up to 80% of our crop goes into livestock feed, creating the high-quality products that Canada is known for worldwide. As you will hear from our colleagues at CAFTA and the Canadian Meat Council, the impact on our beef and pork sectors is significant.
This is why Alberta Barley supports the committee's first recommendation that would see the approval of the comprehensive economic and trade agreement in Parliament and that all provincial and territorial governments work “to expedite the economic benefits it will bring to Canada's agriculture and agri-food sector”.
Further to Mr. Sawyer's comments regarding the challenges faced not only by Canada's grain sector but by all sectors that rely on rail transportation to bring their products to international markets, we have to ensure that we address any barriers that could prevent this free trade agreement from reaching its full potential.
ln addition to eliminating the tariffs that currently serve as barriers to trade, CETA will also help to ensure that unnecessary or discriminatory regulatory requirements do not diminish the value of new market access for Canadians. While regulations are required for the establishment of safety measures, they can become problematic if they are overly burdensome or discriminatory.
CETA is the first bilateral trade agreement in which Canada will include provisions on regulatory cooperation. Alberta Barley is pleased to learn that a forum will exist whereby stakeholders in each country can work with the government not only to address issues relating to non-tariff trade barriers, but to work together towards regulatory cooperation between the two countries.
To reference stakeholder comments in the committee's report, some witnesses indicated that Canada and the EU should take advantage of this agreement to implement a synchronized approval process for new agricultural technologies and innovations. Witnesses confirmed that harmonization of the maximum residue limit, or MRL, for pest control products is an issue of critical importance for Canadian producers. We agree that producers need to be able to continue to use safe and effective pesticides approved by Health Canada without worrying that the EU will block their exports. It is for this reason that we support the committee's recommendation for the Government of Canada to take a proactive approach and to use CETA “to move toward harmonizing and synchronizing approval processes for new agriculture and agri-food technologies”.
As the first country in the developed world to enjoy preferential access to both the American and the European markets, Canada's agriculture and agrifood sector is in an ideal position to grow and prosper in the years ahead. That is why we support the committee's fifth and final recommendation “that the Government of Canada continue to pursue additional comprehensive trade agreements”—worldwide—“to open new markets and provide opportunities for growth” for Canadian agriculture and for food exporters.
On behalf of Alberta Barley, I would like to thank the committee for the opportunity to contribute to the process that ultimately led to the development of the agreement in principle that exists today and to review the recommendations brought forward by our industry colleagues as part of your consultation process.
Thank you.