Thank you, Mr. Chair.
Thank you for inviting me to speak on behalf of the Canadian Agri-Food Trade Alliance, the voice of Canadian agriculture and agri-food exporters, and to make a presentation today regarding the Trans-Pacific Partnership.
CAFTA, the Canadian Agri-Food Trade Alliance, is a coalition of national and regional organizations that have come together to seek a more open and fair international trading environment for agriculture and agrifood. Our members represent farmers, producers, processors, and exporters from the major trade dependent commodities across Canada, which include beef, pork, grains, oilseeds, sugar, pulse, soya and malt.
Together, members account for over 90% of Canada's agriculture and agrifood exports, roughly $50 billion in exports annually, and an economic activity that supports hundreds of thousands of jobs in agriculture and food manufacturing. Because Canada enjoys such proverbial conditions for food production that far exceed the need of our population, the Canadian agrifood sector is primarily export oriented.
We export over half of everything we produce. That includes half of our beef, 65% of our soybeans, 70% of our pork, 75% of our wheat, 90% of our canola, 95% of our pulses, and 40% of our processed food products. About 65% of Canada's agriculture and agrifood exports go to the TPP markets.
CAFTA strongly supports the TPP and believes it is integral to the future viability of Canada's export oriented sector. It is paramount that the TPP be ratified and implemented quickly.
CAFTA has advocated for Canada's participation in the TPP and for outcomes that provide a level playing field with our global competitors in the region and real benefits for Canada's agriculture and agrifood exports.
The TPP region represents a market of 800 million people, absorbs 65% of our exports, and includes some of our top trading partners, the U.S., Mexico, and Japan. It also includes some of our largest competitors, the U.S., Mexico, and Australia, and several signatories already do have free trade agreements with one another.
The longer that TPP ratification drags on, the longer we fall behind. Specifically, Japan is our third priority export market and a premium market that demands $4 billion per year in Canadian agrifood products. That's roughly 10% of our total agrifood exports.
TPP countries also include fast growing emerging Pacific countries such as Vietnam, Singapore, and Malaysia. Outcomes are significant for Canadian agriculture despite the U.S. and Japan continuing to maintain restricted access and tariffs for sugar products. Additional access to the U.S., Japan, Vietnam, and Malaysia appear to be the major market gains for Canadian agriculture at this point.
Under a ratified TPP, tariffs will be removed or phased out upon entering into force on a wide ranging array of products. A sample of our members projections of the opportunities seen to be provided in the TPP include: for canola, better trade security, more value for their products, expanded exports by up to $708 million per year; for pork producers, preferential access ahead of non-TPP competitors, the ability to compete in the billion dollar Japanese market where exports can climb by $300 million; Canadian beef producers expect to double or triple annual exports to Japan to nearly $300 million; and Canadian barley producers could export an additional 400,000 to 500,000 tonnes of barley in various value-added forms worth about $100 million. Furthermore, the TPP will create new opportunities, provide a secure trading environment, level the playing field in countries that have FTAs with members but not Canada, and preserve current exports, including 1.5 million tonnes of premium wheat exported to Japan; $2.3 billion of grains and special crops to Japan, Malaysia, and Singapore; $848 million of soybean exports to TPP markets, and $340 million of pulse exports. Moreover, for Canada's sugar and sugar-containing products sector, the TPP will provide welcome, though small, quota increases into the restricted U.S. sugar market. The industry is currently analyzing the opportunities in Japan, Malaysia, and Vietnam. Beyond tariffs, the TPP also sets a new framework for trade with rules to increase co-operation and transparency on non-tariff barriers related to sanitary and phytosanitary measures, biotechnology, and plant health.
We recognize that this agreement may do more for some than others, and will not eliminate all trade barriers in the region, but all of our members are united in supporting the TPP as a significant improvement on the status quo for all Canadian agriculture exporters and for our broader economy.
Overall, the TPP preserves our access to our number-one trading partner, the U.S. It secures unprecedented access to the fast-growing Asia-Pacific region. It provides an opportunity to maintain and enhance our competitive position in the region. It also provides an opportunity to obtain more value from rapidly growing markets such as Vietnam and Malaysia, and high-value markets such as Japan. It also provides an opportunity to negotiate the terms of entry of potential future TPP countries such as South Korea, Taiwan, Thailand, the Philippines, and others. Most importantly, it puts us on an equal footing with our global competitors in the region.
Canadian agriculture, as you know, cannot relive the destructive experience with South Korea, which saw a billion dollar market virtually cut in half overnight as our competitors, namely the U.S., the European Union, and Australia, had their tariffs removed, and we did not. Ultimately, if we're not part of the TPP and others are, we will lose many of these important markets. The best way to implement the TPP quickly is to ratify it quickly.
In closing, we firmly believe that the TPP provides for our members the net national benefit to Canada that merits this agreement being implemented quickly.