Good morning. I would like to thank the committee for allowing us to speak to it.
My name is Bob Lowe. I'm a rancher and feedlot operator in southern Alberta. I'm also the current vice-president of the Canadian Cattlemen's Association, the national voice of Canada's 60,000 beef operations.
The CCA has long been an advocate for free trade, open markets and, of particular relevance today, CUSMA. Under both NAFTA and CUSMA, the beef industries of Canada, the United States and Mexico have and will enjoy reciprocal duty-free trade between our countries. This is how free trade should work. Preservation of this trade access was a high priority for the Canadian beef industry in the NAFTA renegotiation process.
The experience of the North American beef cattle industries under NAFTA is testament to the value of trade agreements. Canada exports approximately half of its beef production, and usually the U.S. is the destination for 70% to 75% of those exports.
Under NAFTA, Canadian beef exports to the U.S. have quadrupled in total value from $500 million in 1995 to $2 billion in 2018, plus another $1.2 billion in live cattle exports.
Beef exports to Mexico have grown nearly 30-fold in value from $3.7 million in 1995 to $110 million in 2018.
On the import side, Canada imported 943 million dollars' worth of U.S. beef and 37 million dollars' worth of Mexican beef in 2018.
The Canada-U.S.-Mexico agreement will allow beef producers across all three of our countries to continue to grow and prosper. In fact, we have jointly submitted a letter of support for swift CUSMA ratification to our three governments.
I would like to give an example of how CAFTA helps me on my own operation. When I sell my cattle, I seek bids from packer buyers in both the U.S. and Canada. Even if I sell at home, I know I have received the best price because the Canadian buyers know I have an option to sell into the U.S. market. If that border weren't open, it's not for me to imagine getting $500 less per animal.
Furthermore, access to markets around the world ensures that the meat packer is able to sell to the customers willing to pay the most for each beef cut, which in turn maximizes the value I get from my cattle. For example, skirt meats might not be a product you know of, but it is one that sells extremely well into the southern U.S. and Mexico. If the packer sells those cuts for more, then they can pay more for my cattle.
Access to global markets, including the North American market, means on average that each carcass is worth $600 more than it would be if we were only able to sell into the Canadian market.
Of course, trade must go two ways, and here in Canada we import products that Canadians like, such as steaks, roasts and ground beef, from the U.S. and Mexico.
The value of NAFTA and the future implementation of CUSMA cannot be overstated in regard to the positive impact on the Canadian economy. Today, the Canadian beef industry, Canada's largest ag sector, contributes $17 billion to the GDP while generating 228,000 jobs, with further growth on the horizon. Every job in the beef sector yields another 3.56 jobs elsewhere in the economy.
I'd like now to ask John to describe some of the more specific aspects of the agreement.