Thank you, Dan, and my thanks to the committee for having us here today.
Seed generally trades with zero or very low tariffs, and many of the TPP countries do not bind or apply any tariffs on seed for sowing. While this is an advantage for our commodity type, we experience issues with non-tariff trade barriers, such as variations in customs procedures at borders. Issues with exports of seed are much easier for us as a trade association to resolve for our members when there is a bilateral or multilateral trade agreement in place.
CSTA is a strong proponent of science-based decision-making and supports the provisions in the TPP that would commit signatory countries to science, transparency, and incorporating the concept of equivalence. These principles are critical when it comes to sanitary and phytosanitary requirements and the testing and sampling required for seed exports.
CSTA is pleased that Canada has secured provisions on products of biotechnology in the agreement. Canadian farmers are early adopters of new technology that improves productivity, provides health and environmental solutions, and enhances competitiveness.
The provisions of the TPP that require countries to make their science-based approval processes for biotechnology traits more transparent is a big step forward. It provides a greater sense of predictability and will foster increased investment and innovation.
The TPP also contains provisions on low-level presence, LLP, and it is the first agreement to do so. This provision essentially establishes a process to address instances where low-level presence occurs, which will significantly reduce trade disruptions and increase transparency.
Canada is a trading nation and agriculture is a global industry. As such, a multilateral agreement like the TPP that seeks to establish rules-based trade among major export markets is extremely important to the Canadian seed industry. It will be much more effective than a series of bilaterals.
To conclude, congratulations on the good work being done to study the TPP. We believe its ratification will be a significant achievement for our industry.
CSTA members, their farmer customers, and Canadians will benefit from reductions in tariffs and non-tariff trade barriers on seed exports, and we will see many positive gains from access to new markets and agricultural innovations.
Dan and I welcome any questions you have today.
Thank you.