It will be my pleasure.
I'm pleased to be here today on behalf of the Canadian Agri-Food Trade Alliance, CAFTA, to speak on the subject of a food policy for Canada.
CAFTA is a coalition of national organizations that have a major stake in international trade and seek a more open and fair international trading environment for Canadian agriculture and agrifood products.
Our members represent producers, processors, and exporters from the major trade-dependent sectors: beef, pork, meat, grains, cereals, pulses, soybeans, canola, as well as sugar, malt and food industries. Together, our members account for over 90% of Canada's agriculture and agrifood exports, which last year exceeded $55 billion, and supports hundreds of thousands of jobs in communities across the country.
Canada is one of the few countries that can not only feed its population, but also has an obligation to produce, trade, and sell food to the rest of the world for its agricultural sector to thrive and grow. Canada's agriculture food processing industry is much larger than if we were only serving our domestic market. In Canada, nine out of 10 farmers rely on exports for their livelihood, which is a result of production exceeding domestic needs and consumption. One in two jobs in crop production depends on exports, and it is one in four in food manufacturing.
Canadian agriculture produces what the world needs and is well positioned to continue to do so, but Canadian agriculture cannot be competitive without commercially viable access to export markets. CAFTA welcomes the four pillars proposed by the government for a food policy for Canada, but believes that success will require commitments that extend beyond the mandate of Canada's Minister of Agriculture and Agri-Food. International trade is crucial for Canadian agriculture and agrifood as 58% of its total value is generated through exports. We export over half of the agrifood products that we grow, and Canadian agriculture has already made great strides over the past 10 years as our exports have grown by over 100%, from $30 billion to over $60 billion, boosting farm cash receipts by 61% over the same time frame.
An effective food policy should include a strong trade component and outline the conditions that will allow Canadian agriculture to thrive and build on the export growth forecast by the Prime Minister's Advisory Council on Economic Growth of $75 billion in exports by 2025. This is an ambitious goal, but one the industry believes is completely achievable, given the immense potential for growth.
The policy should include a focus on negotiating and implementing free trade agreements with key markets and the markets our competitors are also after, as well as removing tariffs and non-tariff barriers to enable more production and exports.
We offer the following to the committee for consideration:
First, the policy should ensure that proper resources are allocated to departments and agencies in charge of negotiating free trade agreements, specifically maintaining the free and fair trade we have through NAFTA, the North American Free Trade Agreement, and improving it where possible; implementing free trade agreements with countries in the Asia-Pacific region, like the TPP, the trans-pacific partnership. This remains today the best option for Canada to secure favourable market access to Japan and many fast-growing countries in Asia.
Second, the policy should also ensure that proper resources are allocated to the functions in charge of implementing free trade agreements. Specifically in the European Union, while there is a huge potential to make greater inroads in that region, in particular through the Comprehensive Economic and Trade Agreement, CETA, which was implemented exactly one week ago, the results for many of our sectors won't be felt immediately as technical issues remain outstanding.
Third, the policy should also ensure that adequate funding is allocated to functions in charge of resolving market access issues, so the Government of Canada can continue its work of minimizing technical barriers to trade and ensuring real access for exporters. The proliferation of non-tariff barriers in agriculture over past decades has significantly increased the number of market access barriers our exporters face as they diversify their export profile, and for farmers, producers, and exporters of all sizes, this has a direct commercial impact on export revenues, risk management, and predictability of operations.
Our fourth recommendation for the policy is to allocate proper resources to the network of Canadian representatives abroad, notably embassies and trade commissioners, because Canada's ability to build a competitive industry depends in large part on how well the country opens doors abroad.
In closing, Canada's food policy should place a strong emphasis on creating the most competitive business environment possible in order to continue to grow high-quality foods and meaningfully increase agriculture's contribution to the Canadian economy.
Thank you.