Agriculture Committee on Sept. 22nd, 2025

[The Chair, Liberal, Michael Coteau]

I'd like to call the meeting to order.

Welcome to meeting three of the House of Commons Standing Committee on Agriculture and Agri-Food. Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders. Members are attending in person in the room and remotely using the Zoom application.

Before we continue, I'd like to ask all in-person participants to consult the guidelines written on the cards on the table. These measures are in place to help prevent audio and feedback incidents and to protect the health and safety of all participants, including our interpreters. You will also notice a QR code on the cards with a link to a short video.

I'd like to make a few comments for the benefit of the witnesses and the members. Please wait until I recognize you by your name before speaking. For those participating by teleconference, click on the microphone icon to activate your mic. Please mute yourself when you are not speaking. For those on Zoom, at the bottom of your screen you can see a selection of the appropriate channels for interpretation—floor, English or French. For those in the room, you can use your earpiece and select the desired channel.

Just as a reminder, all comments should be addressed through the chair. For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can. We appreciate your patience and understanding in this regard.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, September 18, 2025, the committee is commencing its briefing on the impact of tariffs on Canada's agriculture and agri-food sector.

I would now like to welcome our witnesses today. They are with us in person. We have, from the Department of Agriculture and Agri-Food, Christine Moran and Tom Rosser; from the Department of Finance, Michael Mosier; and from the Department of Foreign Affairs, Trade and Development, Pierre Marier and Darren Smith.

Welcome, everyone. We appreciate your being here.

I think I'm turning it over to you first, Mr. Rosser. You have five minutes.

We'll do five minutes for the first panel and three minutes for the second panel.

Go ahead, sir.

[Tom Rosser, Assistant Deputy Minister, Market and Industry Services Branch, Department of Agriculture and Agri-Food]

Thank you so much, Mr. Chair.

Mr. Chair, members of the Committee, thank you for the opportunity to appear before you today to discuss Canada's agricultural trade interests and the challenges we face in a rapidly shifting global landscape.

At Agriculture and Agri-Food Canada, we work closely with Global Affairs Canada and Finance Canada as well as other departments to support farmers and food processors. Together our goal is to ensure the products our agricultural sector produces can succeed in international markets. Canada is, at its core, a trading nation and a major supplier of food globally. In 2024, Canada's agri-food and seafood exports were valued at over $100 billion. More than half of our production is exported, which means stable, predictable market access is vital for farmers, ranchers, and processors across the country.

The trading environment, however, has become more uncertain. Unilateral tariff measures—particularly from our two largest markets, the United States and China—have disrupted supply chains. Russia's ongoing war in Ukraine and instability in the Middle East have further increased volatility in global food and commodity markets.

Since March 2025, China has imposed 100% tariffs on Canadian canola oil and meal, and peas, as well as 25% on certain seafood and pork products. In addition, China is applying 75.8% duties on imports of Canadian canola seed as of August 14.

Unilateral tariff actions are also reshaping the trade environment. While CUSMA compliance provides important protections for the majority of agri-food trade, these actions are creating uncertainty. The upcoming CUSMA review in 2026 will be a critical opportunity to promote and to defend Canada's interests. AAFC will continue working with Global Affairs Canada to ensure farmers' voices are heard as part of the upcoming consultation process.

Given today's uncertainty, diversification is essential. Canada is expanding its presence in high-growth regions such as the Indo-Pacific, Latin America and north Africa. The new Indo-Pacific agriculture and agri-food office is already helping exporters navigate complex markets and build stronger relationships. Canada now benefits from 15 free trade agreements covering 51 countries. We're pursuing additional opportunities through ASEAN negotiations, CPTPP expansion and exploratory discussions with partners like the Philippines and Mercosur.

At the same time, our leadership in multilateral institutions, including the WTO, remains critical to defend rules-based trade and to push for the removal of unjustified barriers.

In closing, Canada's farmers and food processors are among the most resilient and innovative in the world, but to continue to thrive, they need stable rules and reliable access to markets so that they can plan, invest and grow with confidence. There's been steady and ongoing engagement with stakeholders, including at the highest official and political levels, following recent developments.

As we look ahead, we remain steadfast in advocating for fair and predictable market access. Ensuring that Canadian exporters can compete on a level playing field is essential, not only for the strength of our agricultural sector but also for the health of our entire economy.

Thank you, Mr. Chair. My colleague Christine Moran and I, as well as officials from Global Affairs and the Department of Finance, will be pleased to respond to any questions members may have.

[The Chair, Liberal, Michael Coteau]

Thank you very much. I think that was well under five minutes.

I'll turn to Mr. Barlow first for six minutes. We're going to do a six-minute round.

Mr. Barlow.

[John Barlow, Conservative, Foothills, AB]

Thanks very much, Chair.

Thanks to the officials for being here.

I know this is a quick turnaround, but I think all of you understand how important this issue is. It's important to get a bit of an update, especially when we see the financial situation Canadian farmers are facing, with the numbers that were released last year.

Total farm operating expenses rose almost 3% to $78 billion in 2024, but for the second consecutive year, we saw interest expenses up 28.6% and producers taking on more debt. Farm debt rose 14% in 2024, which is the largest increase since 1981, so margins are already tight. When we have limited at-market prices for canola with these additional tariffs, that's making those margins even that much more difficult.

To Mr. Marier and Mr. Smith from Global Affairs, I know that on November 20 the former agriculture minister flew to China to address this matter. Can you tell me who the minister met with on the Chinese government side?

[Tom Rosser]

Mr. Chair, if I might, I think I may be in a position to respond.

It is, in fact, the case that the minister did travel to China in November 2024 to participate in meetings of the Canada China Business Council, but to my recollection, there were no formal engagements with representatives of the Chinese government.

[John Barlow, Conservative, Foothills, AB]

Thank you.

Earlier this summer, another former minister of agriculture, now the Parliamentary Secretary to the Prime Minister, also went to China. Did he have an opportunity to meet with the minister of agriculture from the Government of China or with any elected officials on that trip?

[Tom Rosser]

I'm not specifically aware of the full itinerary of the parliamentary secretary and the Premier of Saskatchewan. My understanding, though, is that they did have opportunities to meet with representatives of the Government of China, but I'm not certain which ones.

[John Barlow, Conservative, Foothills, AB]

Thank you.

It seems that we're having some difficulties. We want to try to address this tariff issue and get this resolved, and the current government is having some difficulty getting meetings with high-level officials, with their Chinese counterparts, which is a problem.

Again, maybe Mr. Rosser can answer this.

Are there plans for the Prime Minister or for the Canadian Minister of Agriculture to travel to Beijing to meet with their Chinese counterparts? Have those meetings been arranged?

[Tom Rosser]

Perhaps I'll turn to colleagues at Global Affairs.

I'm not aware of the minister having specific plans to travel to China at this time, but high-level engagement does occur regularly with Chinese officials at the embassy in Beijing and through the JETC meeting that took place a couple of weeks ago. There is regular, ongoing engagement with senior levels of the Chinese government.

[Darren Smith, Executive Director, Indo-Pacific Trade Policy Division, Department of Foreign Affairs, Trade and Development]

I can also confirm, with respect to the Minister of International Trade, that he has engaged with his interlocutor. There have, of course, been other senior-level discussions, including with the Prime Minister and Premier Li, for example. There are possibilities that there will be further engagement as we go through the fall.

I can't confirm at this point in time if those meetings have been scheduled, but I would say that there is engagement at all levels.

[John Barlow, Conservative, Foothills, AB]

That's what I need. Thank you.

From the most recent trip with Premier Moe and the parliamentary secretary, are you aware of any rationale or decisions by the Chinese on these tariffs and what it would take to get those eliminated? Was anything spelled out in terms of the rationale for why these tariffs were put on and what needs to happen for them to be removed?

Give specifics if you have them, please.

[Tom Rosser]

I should preface by saying that I have received no briefing on that trip beyond what's been reported in the media. I know that Premier Moe has been talking about the importance of continuous and ongoing engagement with China.

[Darren Smith]

I can say that there was an opportunity for Premier Moe as well as for the parliamentary secretary to reiterate Canada's concerns with a variety of different Chinese measures impacting Canadian exporters, including those from the agriculture and agri-food sector. The Chinese did use the opportunity to articulate some of their concerns with respect to actions undertaken by the Canadian government, but these are clearly well known and something that is part of an ongoing dialogue with them.

[John Barlow, Conservative, Foothills, AB]

Thank you. I have time for only one more question here.

The canola growers said quite strongly that the assistance offered by the Liberal government isn't enough. As they said, canola farmers can't “borrow their way out” of this crisis. It looks like this could be a long-term, ongoing issue as farmers get ready to plan for next season's crop.

What other assistance is the Liberal government planning to assist canola farmers if this tariff issue goes on long term?

[Tom Rosser]

Minister MacDonald is in regular, ongoing engagement with the canola sector. Indeed, the Prime Minister held a round table with them last week.

The initial programs announced September 5 were meant to be part of a broader solution. One element of that is continuous engagement with China, with a view to trying to seek relief from the tariff situation. Dialogue continues, and we'll continue to discuss with the canola growers and other affected stakeholders what measures they might need to support them should the situation persist.

[John Barlow, Conservative, Foothills, AB]

Thank you.

In conclusion, I would just hope that this government is able to get high-level meetings with their Chinese counterparts to get this resolved. These trips with no results and no meetings are not consequential and not effective. I'm hoping that's something that will be changed in the very near future.

[The Chair, Liberal, Michael Coteau]

Thank you, Mr. Barlow.

I'll go to Mr. Connors for six minutes.

[Paul Connors, Liberal, Avalon, NL]

Thank you.

I want to welcome you here, same as in previous times. I come from an agricultural background. I was executive director of the Newfoundland and Labrador Federation of Agriculture for the past 14 years before I came to this position. I think I recognize a couple of faces. It's great to be back at this table, especially on this side of the table, where we can look for some solutions to move our agricultural industry forward.

I want to get an update on the state of international trade with a focus on the impact of tariffs on Canada's agricultural industry and agri-food industry. What specific feedback are you hearing from the agricultural producers and farmers in Canada who have been navigating the current tariff situation? Can you give us some examples of what you've been hearing?

[Tom Rosser]

Mr. Chair, perhaps I can offer an initial reply, and then we'll turn to Chris or other colleagues to add what they will.

I know the committee will be hearing shortly from the producers directly. Certainly in our conversations with them, I would characterize anxiety as being one of the top-of-mind reactions. It's entirely understandable in these circumstances where they're facing, in some cases, prohibitive tariffs into major markets. In this situation, as in others I'm familiar with, it's the uncertainty of how long the situation will persist and what it means for the future. I think that is probably one of my key take-aways from the dialogue we've had with them to date.

[Christine Moran, Assistant Deputy Minister, International Affairs and Vice-President, Canadian Food Inspection Agency, Department of Agriculture and Agri-Food]

Coupled with the tariff concerns, there are significant concerns about some of the other challenges that face canola producers with respect to regulatory barriers and non-tariff barriers. That is becoming more and more difficult to resolve in the current context as we're engaging with our interlocutors.

[Paul Connors, Liberal, Avalon, NL]

Could you give us some details on what has already been provided, for the record? Can you talk about the supports in place for farmers and producers who have been impacted by the tariffs?

[Tom Rosser]

In terms of those programs targeted specifically at the canola sector, there are several. One was an increase in funding to our AgriMarketing program, which will support agri-food stakeholders and their efforts to develop and diversify markets. It will support them in their participation in trade shows and other promotional activities. There was an increase in the interest-free portion of our advance payments program for canola producers for up to half a million dollars in interest-free funding. It's available to support them, given the potential for volatile prices in the months ahead.

There were also programs that weren't specific to the canola sector, but nonetheless could benefit value-chain stakeholders, specifically the regional tariff response and the strategic response initiatives, which are being administered by the regional development agencies. They are available to businesses that are adversely impacted by tariffs.

[Paul Connors, Liberal, Avalon, NL]

Given Newfoundland and Labrador's unique agricultural landscape and its growing interest in food self-sufficiency, how is the department working with local producers to ensure that they can benefit from federal trade diversification efforts, like AgriMarketing, despite limited exports in our province?

[Tom Rosser]

We are in regular dialogue with provincial and national associations across the country. In the design and delivery of our programs, an important consideration for us is to ensure that they are accessible to smaller businesses and smaller associations. Making sure that the programs are widely available to producers and producer representative organizations of different sizes in the full value chain is something we take seriously. We are continuously seeking feedback from stakeholders.

[Paul Connors, Liberal, Avalon, NL]

We know that members have been to China. Outside of China, what other countries have members been to with which we are engaging to diversify our agricultural industry?