International Trade Committee on April 19th, 2016

[D'Arcy Hilgartner]

Right now in Canada we export 75% of the pulses we grow. Canada is not world leader in the marketing of many products, but we are do lead in pulses. The world looks to us to give direction to where the next year's production is going to be. Land is land, and farmers are businessmen. They will adjust to where the market suggests they should go. It gives us opportunities for more rotation with our other commodities, and we welcome opportunities such as fractionation and flowers. It allows increased efficiencies where you're exporting pea protein or starch to a market that's looking specifically for that product.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

If Canada was not a member country in TPP, how would that impact your operations?

[D'Arcy Hilgartner]

Then we're at a disadvantage. Crops that grow in southern Alberta and southern Saskatchewan also grow in the northern United States. So if they ratify and we don't, they have preferential treatment.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Would you also be for protecting significant job losses?

[Greg Sears]

It's almost like a chronic illness versus an acute illness. Is it going to kill agriculture in Canada? No. But it is going to significantly downgrade it. It's a steady path down to the point where it becomes not economically sustainable for the farmers. Fortunately, it's something we can address through this agreement.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Thank you.

[Leanne Fischbuch]

We had an example of this in the past. It was a later signing on South Korea. In that agreement the U.S. was already into the marketplace, and it cost the pulse industry a lot getting in. For us to be late in signing or have the U.S. go ahead of us would bring us more of the same disadvantages. We see the potential with the TPP and we think it's an opportunity for us to be leaders.

[Kevin Bender]

We would be playing catch-up. If we are late to the game or don't sign on at all, we're going to face the same tariffs we have now, tariffs that would come off under the agreement. So countries that import our products, they're going to buy a cheaper product that doesn't have the tariffs we would have on our product.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Thank you very much.

[The Chair, Liberal, Mark Eyking]

Thank you.

We've finished that round.

We're going to start the next round with the Liberals.

Mr. Dhaliwal, five minutes.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Thank you, Mr. Chair. Thank you to the panel members.

Mr. Sears, you mentioned in your presentation that when the tariffs are fully eliminated in five years with Japan and Vietnam, the canola exports will rise by $780 million per year—that's what you mentioned. How did you come up with those numbers? Could you tell us, please.

[Greg Sears]

If you don't mind, I'll defer to Janelle on that one.

[Janelle Whitley]

We arrived at the $780 million from the analysis done by the Canola Council of Canada, the value chain organization in the canola sector, that we hired as a consultant to do some economic modelling and assumption analysis. They looked at different scenarios under TPP and what the potential gains and potential losses would be. That number is from their economic impact study.

[Greg Sears]

I believe the Canola Council is one of your witnesses in the Winnipeg session as well.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Ms. Whitley, Mr. Fonseca asked a question about quantifying the number of new jobs that you will create, but you did not address that. Would you be able to do that, or no?

[Janelle Whitley]

Perfect. While we don't have a study that says how many jobs would be created through TPP, we do have a study that shows how many jobs are created by the canola sector and its contribution to the Canadian economy. Right now we create about 250,000 jobs in Canada throughout our complete value chain, from input suppliers to sales and marketing. That's the contribution right now, but we don't have a study that says how many new jobs would be created through TPP.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

I was recently in India, and lots of business people approached me. As you mentioned, 27% of the export market is to India these days. India is not a TPP country, so I'd ask everyone on the panel if it would be beneficial if India joined the TPP?

[D'Arcy Hilgartner]

Anytime you have a trade agreement with another country that facilitates trade, and thus eliminate barriers and set standards, we'd always welcome that. Obviously, that's a choice India would like to make. India, for pulses, is obviously a huge market for us. Anytime we can increase our trade with another country, absolutely....

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Isn't the demand in India basically going to continue apart from all these agreements? The way I see it out there, right now, is that they are very hungry to find out how they can import expeditiously and, of course, economically, all those commodities they need. That is what I'd like to see. What has to be done so we can help, even if the TPP is not ratified? In the meantime, what is it that government can do to facilitate this so that the farmers can get the benefits they would love to have?

[D'Arcy Hilgartner]

I had the opportunity to travel to India in February of this year and meet with various pulse millers and people in the trade there. There's lots of interest. They want to increase imports of our product. They love our product. It's a high-quality product they can use readily.

The big question I have is related to transportation and the availability of supply. Infrastructure is key to the ability to get that product.

The two biggest questions I was asked was, number one, how can they buy it directly from my farm? Again, they're looking for those efficiencies.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

They were asking me the same question.

[D'Arcy Hilgartner]

Exactly. How do I get it from your farm? They just don't understand the concept that it's 1,300 or 1,600 kilometres to the water. That's key. Anything that can facilitate transportation to get that product there, that's a key part for us.

[The Chair, Liberal, Mark Eyking]

Your time's up, sir.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Thank you, Mr. Chair.

[The Chair, Liberal, Mark Eyking]

Those were good questions.

We'll now go to the Conservatives for five minutes.

Mr. Hoback.