On the export side, the real gain for Canada is the equal footing in the Japanese markets we will have with our competitors from the U.S., Australia, and Mexico. However, these gains only come about if Canada is a signatory to the TPP, as Australia already has a free trade agreement with Japan. As you know, if Canada does not ratify the TPP, these gains will be lost to the Australians.
The PEIFA is hearing reports from the U.S. suggesting that Congress wants to amend some of the provisions of the TPP or to introduce other legislation that would alter the TPP. This is not to mention the rhetoric coming out of the presidential election, where both candidates have publicly opposed the current version of the agreement.
It's important for us to remember that often the devil is in the details. Phytosanitary issues can act, and have acted, as a non-tariff barrier for agricultural products. The P.E.I. potato industry, our economy's largest agricultural economic contributor, is especially attuned to this. The PEIFA cautions the Canadian government to keep this in mind as the process moves forward. We ask that the Canadian government remain vigilant throughout the ratification process of the 12 TPP countries, ensuring that no changes are made that would undermine Canada's interests, and specifically those interests related to the ag sector.
Now that Canada has successfully negotiated trade agreements with the EU and the TPP, the PEIFA is advocating that government sit down with industry and develop an overarching export strategy that will identify what is needed for Canadian agriculture, including Prince Edward Island farmers, to take full advantage of these trade agreements.
Finally, we want to assure you that the PEIFA and our national partner the Canadian Federation of Agriculture are ready to work in collaboration and partnership with you and our government to further the interests of Canadian farmers.
Thank you for your time.