Thank you very much for the opportunity to present to this committee on behalf of the National Cattle Feeders' Association. NCFA is the national voice for cattle feeders and a critical component of the beef value chain.
At approximately one year of age, calves move from a cow-calf farm to feedlots, where they're fed a high-energy ration that brings them very quickly to market weight. Feedlots are important to efficiently produce consistent, high-quality beef in quantities that are required for domestic and export markets year-round.
Canada's beef industry contributes around $21.8 billion to the national GDP. Our beef sector is very export-dependent. Each year, we export approximately half of the cattle we raise, and the United States accounts for around 75% of those exports. While our sector works to diversify in other global markets, the current geopolitical environment can often make this quite challenging. Over the last 10 years, our Canadian live cattle and beef exports have seen tremendous growth, with the United States being behind the majority of that. While this is good news, our sector is disproportionately dependent on the American market. Thus, the 2026 CUSMA review is of great importance to us.
Our interest in the CUSMA 2026 review is rooted in the highly integrated North American beef industry. It provides benefits to both sides of the border. In practicality, the Canadian and U.S. beef industries operate within a single North American market, where processed beef and live cattle move across the border relatively unimpeded and tariff-free. Imports for feed are also a critical part of this integrated market with the U.S. Increasingly volatile political environments, not only in the U.S. but also globally, make CUSMA and the predictability it provides more important than ever.
I'll go directly into the CUSMA review. The NCFA calls on the Canadian government to do three things: do no harm, improve market access where possible and focus on regulatory co-operation.
We call upon the Canadian government to ensure that there are no new tariffs or trade-restricting measures result from this review. With skyrocketing input costs, unpredictable supply chains and extreme weather conditions, the beef industry is simply not positioned to sustain a trade disruption with any of our trading partners.
Canada must enter the CUSMA review with a strong and clear position that's not limited by the interests of one sector. Both countries have trade-sensitive commodities, but the goal of this review must be to increase access to each other's markets.
In an integrated North American industry, we call for an increased focus on regulatory alignment and co-operation. This can include aligning rules on transportation, disease control measures and inspection requirements so that trade within North America can be unimpeded and consistent with rules.
An equal commitment to the delivery of timely border services is essential to meet required inspections by the USDA officials and vets when shipping live cattle. We need to push for an increase of USDA border crossings, not closings or reductions of these services.
Finally, it's important that we have equivalency in rules for the approval and use of new products, so Canadian and American farmers have access to the same tools at the same time and can move live animals freely across the border, knowing that products are accepted on both sides.
We urge the committee to ensure the government protects the economic and competitive benefits that live within the CUSMA agreement.
Thank you.