Good afternoon. Thank you for the opportunity to present to you some of the benefits that I and my fellow farmers see in the Trans-Pacific Partnership.
My name is Mark Huston. I live and work in Chatham-Kent on a seventh-generation family farm growing corn, soybeans, wheat, and pigs. I've been elected by my fellow farmers to represent them on the board of directors of the Grain Farmers of Ontario, or GFO, where I serve as vice-chair.
GFO is the province's largest commodity organization, representing Ontario's 28,000 barley, corn, oat, soybean, and wheat growers. The crops they grow cover six million acres of farmland across the province and generate over $2.5 billion in farm gate receipts. These result in $9 billion in economic output, and are responsible for over 40,000 jobs in the province.
From GFO, I was appointed to the board of Soy Canada, where I currently serve as chair. Soy Canada is the national association representing the full soybean value chain. Our members include producer associations representing farmers across Canada, seed development companies, soybean exporters, and soybean processors. We facilitate industry co-operation, and represent the industry on domestic and international issues affecting the growth and development of soybeans, the crop that I will be talking about the most today.
The soybean sector in Canada is growing. Since 2005 the area of seeded soybeans grew by 87% to five million acres, with production nearly doubling to 6.2 million tonnes last year. All this production needs to find a home. Since 2005 soybean exports have increased by roughly 250%, to 4.4 million tonnes, and about 65% of our production.
Domestic use, processing, and the export of Canadian soybeans contribute over $5.6 billion to Canada's annual GDP, and are linked to over 54,000 direct and indirect full-time jobs. We are a growing segment of the agriculture industry. With more expansion forecasted in the future, we see more reliance on export markets. This is why international trade is critical to our industry.
The Asia-Pacific region encompasses a large segment of our key markets, with roughly 40% of total Canadian soybean exports shipped to TPP nations, at a value of close to $1 billion in 2015. TPP provides a platform for our industry to access these growing markets and build on existing trade relationships with major soybean importers.
All members of the soybean value chain—producers, processors, exporters, seed companies, and other affiliates—directly or indirectly stand to benefit from the TPP. The agreement provides a more secure and equal trade environment free from tariffs and administrative quotas on all soybeans and soy products. Canada's participation in the agreement ensures that other oilseed-exporting nations do not have preferential access to TPP markets, allowing us to better compete against some major soybean-producing nations. This is a major advantage for Canada when combined with the increase in demand throughout the Pacific Rim for high-quality Canadian soybeans.
The TPP also includes important provisions relating to biotechnology. Innovation through the application of biotech to seed development has provided tremendous benefits to crop production, but it's also a frequent contributor to trade disruption. The application of zero tolerance regulatory frameworks and increasingly acute testing technologies in a world of increasing availability of biotechnology is a recipe for trade challenges.
Recognizing this, the TPP provides a working group to facilitate co-operation and information exchange on biotech issues, including regulation of the low-level presence of GM materials and regulation of new plant-breeding technologies. These are positive steps towards reducing disruption to trade in the grains and oilseeds industry and establishing predictable trading rules with TPP members.
The TPP is a modern and comprehensive agreement, and an important milestone in reforming international agriculture trade. Canada is a trading nation, and our grains and oilseeds sector is heavily reliant on international markets. With our many commodities, while access to export markets is very important, we do not have the size and export might of our competitive nations. In order to compete, Canada relies on predictable, rules-based trade. We need a predictable environment where all participants play by the same rules. The TPP and other trade agreements seek to establish these rules and support existing trade rules such as WTO agreements.
In conclusion, I'd like to thank the international trade committee for allowing me to speak on the importance of TPP to our industry, and to participate in your study of this topic. The groups that I am a part of support the implementation of TPP and urge the committee to recommend its ratification as soon as possible.
Thanks again. I look forward to your questions when the time comes.