Thank you, Mr. Chair.
On behalf of the Canadian Agri-Food Trade Alliance, or CAFTA, which is the voice of the Canadian Agriculture and Agri-Food exporters of Canada, I thank you for having invited me today to speak to you about the Trans-Pacific Partnership.
CAFTA is a coalition of national and regional organizations that seek a more open and fair international trading environment for agriculture.
Our members represent farmers, producers, processors, and exporters from major trade-dependent sectors including the beef, pork, grain, oilseeds, sugar, pulse, soy, and malt sectors. Together that's roughly 80% of Canada's agriculture and agrifood exports, about $50 billion annually in exports, and an economic activity that supports hundreds of thousands of jobs across the country.
As you know, Canada has one of the most trade-dependent agriculture sectors in the world. We export over half of everything that we produce, and 60% of that goes to TPP markets. CAFTA strongly supports the TPP and believes that it is integral to the future viability of Canada's export-oriented agriculture sector. It is essential that the TPP be ratified and implemented quickly.
The TPP region represents a market of 800 million people and absorbs 65% of our exports. It includes some of our top trading partners: the U.S., Mexico, and Japan. But it also includes some of our largest competitors: the U.S., Mexico, and Australia. Some signatories already do have trade agreements with one another.
Specifically, Japan is our third priority export market and a premium market that demands $4 billion per year in Canadian agrifood products. That's roughly 10% of our total agrifood exports. TPP countries also include fast growing markets in Asia such as Vietnam, Singapore, and Malaysia.
Additional access to the U.S., Japan, Vietnam, and Malaysia appears to be the major market gain for Canadian agriculture and agrifood exporters under a ratified TPP. Tariffs will be removed or phased out of a number of export commodities in key markets. Outcomes are significant for Canadian agriculture and agrifood exporters despite the fact that the U.S. and Japan remain highly restrictive on their sugar market.
I would like to share with you a sample of CAFTA members' projections of the opportunities that seem to be provided in the TPP. For canola these include better trade security, more value for their products, and increased exports by up to $780 million per year. For pork producers, the opportunities are preferential access ahead of non-TPP competitors and the ability to compete in the billion-dollar Japanese markets, where exports could climb to $300 million. Canadian beef producers expect to double or triple annual exports to Japan to nearly $300 million. Canadian barley producers could export an additional 400,000 to 500,000 tonnes of barley in various forms, worth about $100 million.
The TPP will create new opportunities, provide a secure trading environment, level the playing field, and preserve current exports for a lot of our products. This applies to our 1.5 million tonnes of premium wheat exported to Japan; our $2.3 billion in grains and special crops going to Japan, Malaysia, and Singapore; our $884 million in soybean exports to TPP markets, and our $340 million in pulse exports to TPP markets.
As for Canada's sugar and sugar-containing products, the TPP provides welcome, though small, increases into the restricted U.S. market. The industry is currently looking at doing an analysis of what the opportunities in Japan, Vietnam, and Malaysia will mean for their sector.
Beyond tariffs, the TPP also sets a new Asia-Pacific framework for trade with rules to increase co-operation and transparency on non-tariff barriers related to sanitary and phytosanitary measures, biotechnology, and plant health.
We recognize that this agreement may do more for some than others and will certainly not eliminate all tariff barriers in the region, but all our members are united in supporting the TPP as a significant improvement on the status quo for all Canadian agrifood exporters and our broader economy in general.
Overall, the TPP preserves our privileged access to our number one trading partner, the U.S. It secures unprecedented access to fast-growing Asia-Pacific markets, and it provides an opportunity to enhance our competitive position in the region and obtain more value for our products. It also provides an opportunity to negotiate the terms of entry of potential future countries such as South Korea, Taiwan, Thailand, the Philippines, and others.
Most importantly, the TPP puts us on an equal footing with our global competitors in the region. Canadian agriculture cannot afford to relive the destructive experience of South Korea, which saw a billion-dollar market virtually cut in half overnight when our competitors, namely the U.S. and Australia, had access to this market and we did not.
Ultimately, if we're not part of the TPP and other signatories are, we will fall behind, so the best way to implement the TPP quickly is to ratify it quickly. The TPP will substantially increase opportunities for hundreds of thousands of farmers, producers, and exporters who depend on trade. Without such an agreement, Canada would be ceding market share to global competitors in the region.