Thank you very much, Mr. Chairman, and thank you to the committee members for having the Canola Council here today to talk about CETA. It's a pleasure to be here and to share with you how the Canola industry will benefit from the comprehensive economic and trade agreement with the European Union. It represents an opportunity to improve our market access and improve predictability around the regulation of biotechnology.
First I'll say a little bit about the Canola Council of Canada. The council is a value-chain organization representing the entire canola sector in Canada—the 43,000 canola growers, seed developers, the crushers that process seed into oil and meal, and the exporters who export canola for processing at its destination. The Canola Council is the vehicle through which the industry comes together to set objectives and implement plans for the entire sector.
For some basic numbers on our industry, canola returns the most income to farmers of any agricultural product in Canada. It contributes $19.3 billion to the Canadian economy annually, and supports 249,000 jobs. Our industry has doubled production in the last 10 years. This year a record 16 million tons were grown by Canadian farmers. This expansion has brought with it significant investment in rural communities. For example, there has been more than $1.6 billion invested in crushing and processing capacity in the last six years, which reflects confidence in the opportunity provided by the sector.
Importantly, this income and economic impact is generated mostly as a result of international trade. Canola export of the seed, oil, or meal brought in approximately $9.6 billion in exports in 2012. Just to put that in context, Canada's overall agrifood and seafood exports were $48 billion in 2012. Canola represents 20% of this value.
Since we export more than 85% of what we produce, we are very reliant on predictable access to markets. This is why agreements like CETA and others are so important to our industry. Our industry succeeds because we are competitive internationally. We've done best in markets that are free from tariffs and non-tariff barriers. Government, through diplomacy and trade negotiation, has a big role to play in growing and maintaining our market access. Efforts by the government to conclude CETA, particularly by agriculture minister Gerry Ritz and trade minister Ed Fast, are critical for the Canadian canola industry to continue prospering from international demand.
Let's talk a little bit about what CETA means directly for canola. Firstly, eliminating tariffs on canola oil will help us increase exports by up to $90 million. Eliminating tariffs on canola oil means our canola crushers and oil exporters will have privileged access to Europe. This increased access is occurring at an opportune time, as I illustrated with the $1.6 billion invested recently in crushing capacity in western Canada.
We're already serving the European market, and tariff-free access on oil will allow us to ship more value-added product. Our canola oil is a valuable feedstock for EU biodiesel production, reducing greenhouse gas emissions by 90% compared to conventional diesel. With the tariff-free environment now, our industry is well positioned to serve a larger portion of this market.
Secondly, CETA includes important provisions for biotechnology. The EU's regulatory system for biotechnology creates risk for exporters and creates uncertainty for seed developers looking to introduce new seed traits. Biotechnology is the key to making Canadian canola growers competitive in world markets, but the EU's regulatory environment creates real barriers to trade and innovation.
CETA includes provisions for cooperation in the area of biotechnology, and this is a significant development for our negotiators. CETA will enhance the existing forum for discussing issues around biotechnology and their impact on trade. This will help improve cooperation among regulators in areas of science-based approvals, low-level presence policies, and the minimization of trade impacts of regulatory practices.
This is a long-term opportunity. The success of this provision will depend on the ability of the two governments to arrive at solutions. We are hopeful that these working group discussions on low-level presence policies will reduce the potential for low levels of approved biotechnology traits to cause trade disruptions. This has the potential to significantly reduce risk for exporters, and thereby increase returns producers earn from the market.
Lastly, alongside CETA the Government of Canada was able to secure a commitment for the timely and efficient processing of canola trait applications. Canada's canola sector adheres to a voluntary market access policy to respect the regulatory requirements of our export markets.
New genetically modified seed traits are not introduced into Canada until they are approved in our major export markets, including the European Union. Commitment by the EU to process applications in a timely manner will help facilitate innovation by bringing predictability to seed developers and giving growers access to new technology earlier.
In conclusion, I thank you for the opportunity to explain the benefits of CETA. The canola industry supports the Government of Canada's sustained commitment to improve market access through ongoing negotiations. This includes seeking a multilateral solution through the WTO, the best solution for free, fair, and predictable trade. It also includes completing agreements with Korea, Japan, and the Trans-Pacific Partnership, and it includes increased engagement with China and the implementation of the Canada-European Union free trade agreement. These efforts will have major benefits for the 249,000 people supported by the canola industry from coast to coast.
Thank you very much.