Thank you, Mr. Chairman.
On behalf of our 28,000 farmer members in Grain Farmers of Ontario, I want to thank you for this opportunity to provide our views on the Canada EU trade agreement. Over the past 10 to 12 years, the Ontario grain industry has increasingly outgrown the Ontario and Canadian markets. The domestic market remains the primary market for most of our production, but the development of international markets is an ongoing critical task. This is particularly true of Ontario soybeans. Two-thirds of our production is exported. As an association of farmers our mission is to develop an innovative and successful business environment that will allow our farmer members the opportunity for profitable growth. The path to achieve this requires the reduction of trade barriers and the expansion of markets for corn, soybeans, and wheat. For these reasons, Grain Farmers of Ontario is very supportive of the government's efforts to secure foreign markets for our products.
Given the importance of the European Union as a market for Ontario grain, we are particularly supportive of CETA. The EU is an already important market for Ontario and Canadian grain and oilseed producers. Between 2008 and 2012, Canadian soybean exports to the EU increased 113%, going from half a million metric tonnes in 2008 to 1.3 million metric tonnes in 2012. The value of these exported soybeans is around $740 million and accounts for over one-quarter of the Canadian soybean crop. Within the top 10 export markets by volume in 2012, four of the top destinations were European countries: the Netherlands, Belgium, Germany, and Italy. This year for the first time in several years, we also exported corn to the EU, a total of 175,000 tonnes were exported at a value of $46 million.
Additionally, over the last several years, Ontario wheat has been exported, although only 38,800 tonnes, because wheat exports have been constrained by the EU quota for Canadian low protein wheat at less than 13.5% protein. Upon implementation of CETA, the quota for Canadian low protein wheat will immediately rise to 100,000 tonnes from the current 38,800 tonnes. Further, the current in-quota tariff of 12 euros per tonne will disappear, and over the seven-year implementation period of the agreement the over-quota duty rate of 95 euros per tonne will be reduced in equal amounts. In the eighth year the EU market will be entirely open for our wheat, an exceptional market opportunity for our farmers and one that they look forward to selling into.
Financially, Grain Farmers of Ontario also foresees a lot of benefit within the domestic industry. A large portion of our Ontario grains is sold to companies and industries in Canada that will benefit from improved access to the EU. Upon implementation of the agreement, the tariffs on products like bakery goods, spirits, soybean oil, soymeal, and numerous other products produced from Ontario grain will either be substantially reduced or eliminated entirely.
Another important element of the value chain for Ontario grain is livestock producers. Grain Farmers of Ontario is encouraged by the fact that Canadian beef and pork producers have secured increased access to the EU as these two industries are major users of Ontario grains. In fact, livestock feed remains the primary use for corn in our province, and we look forward to increasing our supply to livestock as the demand for their products increases internationally.
Above all this, one of the most important challenges facing exports of our soybeans and corn into the EU is the slow pace of the EU approvals for genetically modified grains. As previously mentioned, our farmers operate in an innovative business environment and are high adapters of new technology. The EU however, maintains a very low tolerance level for unapproved GM grains destined for feed use and has a zero tolerance for unapproved GM grains for food use. One of the most promising points under the agreement is that Canada and the EU will establish a working group to examine biotech issues and ensure that they do not disrupt trade.
This open dialogue and collaboration on the issue of genetically modified grains is an exceptional step forward in our relationship with the EU, and we look forward to contributing to this working group.
We see immense opportunity for Ontario grain farmers with the implementation of CETA. This agreement will reduce trade barriers for Ontario corn, soybeans, and wheat, reduce tariffs for our end-users in the industry, and increase market access for Ontario livestock producers. All these components will help drive the grain industry in Ontario and across Canada toward increased competitiveness in a global market with sustainable and profitable market opportunities. For these reasons, GFO strongly supports the government's efforts in securing CETA.
Thank you.