Trade in beef and live cattle between the U.S. and Canada has created a highly integrated North American market that benefits the beef sector on both sides of the border. For all practical purposes, Canadian and U.S. beef industries operate within a single North American market where processed beef and live cattle move across the border in a relatively unimpeded and tariff-free manner.
Cattle feeding is the most valuable production component within the Canadian and U.S. beef value chain and both countries enjoy a tremendous benefit from a very high level of integration.
Even though the Canadian beef industry is approximately one-tenth the size of the U.S. industry, there is still a tremendous amount of reciprocal trade that occurs between the two countries in terms of processed beef, and even more with respect to live cattle.
The U.S. is Canada's largest export customer and Canada is the single-largest import supplier. Canada consumes about one-tenth of the U.S. exports and satisfies one-fifth of the U.S. required imports.
Each year, Canada processes three million head of cattle and yields about one million tonnes of beef. Canada exports 45% of all beef production annually, and about 75% to 80% of these exports are destined for the U.S.
The NCFA supports a swift ratification of this agreement and calls upon all MPs to ensure the quick passage of Bill C-4.
Our sector is not in a position to sustain any further trade disruptions with any of our trading partners, and the U.S. in particular. There is no room for reopening or amending the CUSMA at this stage if agriculture is to have any hope of growth and sustainability.
The FTA that occurred in 1988 and then NAFTA in the 1990s show beef as a good example of how free trade has strengthened industries on both sides of the border. These agreements inject a high degree of competition in the industry and have made North American industry a truly integrated market. Competition drove down input costs and increased productivity. This has allowed the North American beef industry to compete globally.
Going into CUSMA negotiations, the Canadian cattle feeders had four priorities: first, do no harm; second, improve market access where possible; third, include a specific commitment on regulatory co-operation; and fourth, no return of country-of-origin labelling, or COOL, in any form.
CUSMA builds on the success of NAFTA and restores long-term predictability to the North American supply chain. This is exceedingly important during this time of ongoing unpredictability in global markets.
Key benefits to CUSMA for the cattle feeders include no new tariffs or trade-restricting measures, meaningful progress on regulatory alignment and co-operation, and modernizing elements that will help bring NAFTA into the digital age.
CUSMA preserves and secures duty-free access upon which the North American beef cattle sector has been built over the past quarter of a century.
Producers appreciate that there is nothing in the agreement on mandatory U.S. country-of-origin labelling for meat or livestock, and that there is ongoing interest to address regulatory matters affecting cattle and beef trade, and to continuously improve the competitiveness of the North American beef sector.
In conclusion, our message is simple. We call on members from all parties to facilitate the timely ratification of CUSMA. Please pass Bill C-4 and bring CUSMA into force so that cattle feeders can capture the economic and competitive benefits as soon as possible
Thank you.