I'm John Ross and I'm the executive director of the Canadian Pork Council. I'm pleased to speak on behalf of Canada's pork producers and the 31,000 jobs that are generated on our farms.
I would like to thank the committee for the invitation to discuss the Trans-Pacific Partnership agreement. The Canadian Pork Council has been a staunch supporter of Canada's participation in the negotiations. We are pleased to take this opportunity to indicate our strong support for Canada's ratification of the agreement.
We are a trade dependent sector. More than two-thirds of the hogs we produce in Canada are exported either as live hogs or as pork. Over the past five years, Canadian pork has been exported to more than 125 countries. In 2015 these exports were valued at $3.4 billion.
The Canadian Pork Council sees significant benefits for our industry from the TPP. According to an analysis conducted for the council, the Canadian pork industry would increase its exports by some $300 million and would generate 4,000 new jobs once TPP is fully implemented.
This growth is the result of Canada's having improved access into other TPP countries relative to our non-TPP pork competitors. This is particularly important in high value and high growth markets such as Japan and Vietnam.
The TPP also ensures that Canada maintains its access to Japan, a $950 million market for Canadian pork, on terms that are equal to other TPP pork exporters. The Japanese market for Canadian pork will be lost and the damage to our industry will be extreme if Canada is excluded.
As part of its global strategy, the Canadian pork sector relies on the Government of Canada to be as successful in securing equal access to global markets as the governments of our competitors.
Every time Canada falls behind other countries, it becomes more difficult to justify the raising and processing of livestock in Canada, and to maintain the associated jobs and economic activity.
Canada's experience with South Korea provides a concrete example. We were disappointed when the Canada-Korea trade negotiations appeared to stall in 2007. Our worries over the lack of a free trade agreement with Korea became very acute in 2011 when virtually all of our competitors started benefiting from their own FTAs with Korea. In the food business, with tariffs of well over 20%, Canadian pork exporters quickly found themselves unable to compete as others acquired huge tariff advantage.
In 2011, the year before the U.S.-Korea free trade agreement came into place, Canada was one of South Korea's most important suppliers. Within two years, our pork exports to that market fell by three-quarters from almost a quarter billion dollars to just $76 million.
We are pleased that Canada was able to complete its own bilateral deal with South Korea three years later, but we will continue to be at a disadvantage to U.S., European, and Chilean exporters.
In considering the TPP, we must avoid a repeat of the South Korean experience. Canada needs to take a leadership position in helping advance the ratification of the TPP. It would be risky for Canada to simply await the outcome of discussions in the U.S. and Japan. While we wait, some of the benefits of the TPP could erode should other non-TPP countries negotiate their own preferential agreements.
If it appears that the implementation of the TPP will be unduly delayed, we strongly recommend the Government of Canada undertake a vigorous strategy of bilateral or regional trade negotiations in high priority markets such as Japan and Vietnam.
Certainly, hog producers and processors benefit from improved market access. However, so do Canadians. Recent polling has showed that the top concerns of Canadian consumers are the rising cost of food and keeping healthy food affordable. A globally competitive Canadian hog and pork industry will ensure Canadians have access to locally produced, high quality, competitively priced, pork and pork products. However, we can't meet this obligation if we are locked into the domestic market.
In conclusion, we believe it's in Canada's best interest as one of the founding members of the trans-Pacific partnership to ratify the agreement as soon as possible.
Thank you very much for your attention.