Thank you, Chair.
Thanks for the opportunity to present here on behalf of the Canadian Cattle Association, or CCA, for your study on carbon border adjustments and impacts on the ag sector.
My name is Jack Chaffe. I'm an officer at large with the CCA. Along with my family, I own and operate a beef feedlot in southern Ontario. I'm joined here today by Jennifer Babcock, senior director of government and public affairs.
CCA is a national organization representing Canada's 60,000 beef producers. The Canadian beef industry is a significant driver of our economy and a global leader in sustainability, contributing $21.8 billion to Canada's GDP and supporting approximately 350,000 full-time equivalent jobs. A prosperous and thriving beef industry generates considerable economic, environment and social opportunities and benefits for Canada.
As you may have heard, the Canadian beef industry has set ambitious 2030 goals that will drive the future for economic and environmental sustainability. Beef producers are significant positive contributors to Canada's environment in sequestering carbon while conserving biodiversity. We already lead the world with less than half the global average in greenhouse gas emissions intensity, and we're not resting on those laurels.
Several of our 2030 goals include a 33% further reduction in greenhouse gas emissions; preserving our 1.5 billion tonnes of carbon sequestered in Canadian grasslands; sequestering an additional 3.4 million tonnes annually; and preserving Canada's remaining 35 million acres of native grasslands.
When we look at government programs and policies, we need to look at the whole picture to ensure we're not in unintended consequences. This is where the border carbon adjustments, or BCAs, raise concerns in our sector, particularly on trade perspectives. With the rise of protectionist measures around the world, how do BCAs impact the global trade dynamics?
The Canadian beef sector exports around the world approximately 50% of our production of live cattle and beef. Trade is essential to achieving global food security, as well as sustainable development.
It's worth noting that at the World Trade Organization's recent public forum, where sustainability was a central theme, BCAs and other similar policies were flagged as non-tariff trade barriers. The WTO notes that these types of policies have a negative impact on developing countries. With so much international discussion blending sustainability and trade policy, the CCA urges that any domestic sustainability policies are consistent with our WTO obligation to consider international trade implications before implementing.
I'm going to highlight a few of our recommendations focusing on regulations, costs to producers and competitiveness.
One is regulatory harmonization. We continue to seek further regulatory alignment with trusted partners. The implementation of sustainable policies should not add regulatory burdens to producers but instead look at how to align regulatory systems and reduce red tape that impacts the flow of trade.
Two is additional costs to producers. Producers are price-takers. When additional compliance and administration costs are incurred, producers are disproportionately affected, making it more difficult to compete. As new policies are developed, the cost to producers must be addressed.
Three is competitiveness. Canada's current domestic carbon policies have led to increased costs for producers, which puts us at a competitive disadvantage with producers around the world. We encourage the government to ensure that there are not unintended impacts to our global competitiveness through new policies.
We urge policy-makers to consider potential trade impacts to the agriculture sector, of which 90% relies on trade. Canada should be proud of beef production across the country. Not only are we leaders in world sustainability practices, but we are always looking for continuous improvement. Canada will naturally be at a competitive advantage. We need to ensure that government policies enable us to grow our sector.
Thank you. We'll be looking forward to questions.