Good morning. My name is Dan Paszkowski. I am the president and CEO of the Canadian Vintners Association, better known as the CVA. I'd like to thank everybody for the opportunity to provide the Canadian wine industry's perspective on the Trans-Pacific Partnership agreement.
As the national voice of the Canadian wine industry, our members are engaged in the entire value chain, including grape growing, farm management, grape harvesting, wine production, bottling, retail sales, research, and tourism.
Canada is a premium global wine producer, skilfully producing high-quality table wine, sparkling wine, and icewine. Canada's wine industry is robust and growing, contributing $6.8 billion to the national economy, supporting 31,000 jobs, and attracting more than three million tourist visitors every year.
Canadian vintners are actively engaged in the global economy, with $74 million in export sales shipped to 40 countries in 2015, up from $20 million in 2005. From Nova Scotia to British Columbia, vintners support a competitive and fair global trading environment, recognizing the numerous benefits to industry, customers, and the greater economy.
Under the TPP agreement, the Canadian wine industry widely anticipates developing preferential relationships with our largest trading partners, providing enhanced access to 800 million consumers, and nearly 40% of the world economy. While roughly 96% of our TPP wine export value is currently exported to the United States, Asia-Pacific consumers are rapidly increasing their interest and demand for premium wines, providing important new market potential for Canadian vintners.
TPP members are responsible for 98% of Canada's current wine export volume, in part because Canada already appreciates tariff-free access with the United States, Mexico, Chile, and Peru. Nonetheless, the proposed agreement will offer immediate and tangible benefits to the Canadian wine industry, reducing costly tariffs, providing greater protection for authentic icewine, and streamlining complex technical and administrative barriers to trade.
If Canada were excluded from the TPP, the sole benefit of these negotiations would go to some of the world's most ambitious wine-exporting countries, namely, Australia, Chile, New Zealand, and the United States, leaving Canadian vintners significantly disadvantaged.
Most importantly, today I want to emphasize that our export growth realization is tied to our domestic success. The Canadian wine industry is firmly rooted in Canada, yet our domestic market share is a mere 32%, 10% of which is for our premium wines, the lowest of any wine-producing region in the world.
For the Canadian wine industry to reach its full potential, decision makers and political leaders must recognize that TPP countries already represent 46% of total wine volume imported to Canada. Combined with CETA, this amounts to 89%. Our competitors are eager for even greater sales, investing millions annually to market their products in provincial liquor boards. Last week, The Globe and Mail reported that New Zealand wine export sales to Canada were up 18% in 2015, surpassing 92 million, and this is before the full implementation of import tariffs when the TPP enters into force.
All eyes are on Canada. We are the second largest wine-growing market in the world, with wine consumption growing three times faster than the global average. Canada is the sixth largest wine importer in the world and over the past decade, imports have captured 75% of Canada's 150 million litre wine sales growth. Looking ahead, Canadian wine demand is expected to grow by 50 million litres, or 11%, by 2018, making our country increasingly attractive to our import competition.
The Canadian wine industry looks forward to the removal of tariff and non-tariff barriers to trade with TPP countries, but given the front end competitive benefits that this agreement offers our competitors, ratification must include federal support to help the wine sector adjust, take advantage of, and prepare for trade agreements like TPP and CETA.
With 685 grape wineries operating across Canada, our future success in the global market remains intricately tied to our growth and success at home. A competitive tax system, support for private infrastructure investment, and the removal of interprovincial barriers to wine trade will help stimulate innovation and business investment, enhance our competitive position, capture greater domestic share, and help take advantage of these emerging export opportunities.
Thank you for your time. I look forward to your questions.