Good afternoon, Mr. Chair.
Thank you for the invitation.
I also want to thank the committee members for their work on this issue.
My name is René Roy, and I'm the chair of the Canadian Pork Council. With me this morning is Katerina Kolemishevska, who is our director of policy and sustainable development.
I will outline the key concerns of the pork industry regarding the introduction of the border carbon adjustment and reciprocity of standards, as well as our recommendations to ensure a balanced and effective approach.
I'll inform members that the Canadian Pork Council will be submitting a brief after our appearance to give a more extensive response. We cannot do everything in this hour.
Here are some of our key concerns.
The first concern is trade retaliation and the export market risk. A major risk is that these measures could trigger retaliatory measures from Canada's key trading partners, such as tariffs or restrictions on pork exports. This is particularly important and concerning, given that 70% of our Canadian pork is exported.
The second concern is the increased compliance and administrative burdens. Introducing BCAs and reciprocity of standards will impose additional administrative burdens on our producers, particularly regarding reporting and verifying compliance with environmental regulation. These increased burdens, which do not always translate into financial value, could disproportionately affect producers, raising their operational costs and making it more difficult for them to operate and compete.
When we increase regulatory burden, we reduce the number of pork producers, because it is often the operator who takes on the burden of reporting and implementing these additional regulations at the expense of the operation of their business. Reducing the number of producers also reduces the economic activity in our rural areas and the resilience of our industry.
There are other concerns, such as questions around higher production and input costs, as well as harmonization and trade disruption, but let me close with some recommendations.
The first recommendation is gradual implementation and transitional support. We urge the government to adopt a phased approached to implementing BCAs, allowing both producers and international partners time to adjust to such regulations.
Also, provide financial and technical assistance for producers. Support mechanisms such as subsidies or low-cost financing will ease the financial burden on producers and encourage innovation in sustainable farming practices. Indeed, the study's benchmark from the EU and the U.S. did not address the difference in financial support in the analysis. That's a really important point.
We have other recommendations, including some on international harmonization and trade diplomacy and on the establishment of clear guidelines and simplified reporting processes, but we will share those thoughts in our brief.
While BCAs and reciprocity of standards present important opportunities for levelling the playing field and promoting sustainability, it is critical to consider the potential risks to trade, compliance costs and the competitiveness of Canadian pork producers.
We urge the government to adopt a balanced approach to ensure Canadian agriculture's successful and sustainable future.
Thank you.
We're ready to answer questions.