Good afternoon. My name is Fawn Jackson, and I'm the director of policy and international affairs for the CCA. With me is Jack Chaffe, who is the foreign trade committee co-chair and president of the Beef Farmers of Ontario. We are pleased to have the opportunity to provide input on opportunities for the Canadian beef sector in the Indo-Pacific region.
CCA represents 60,000 beef farms from coast to coast. The beef industry is a significant driver of our economy, as Canada’s second-largest single source of farm income, contributing $22 billion to GDP and supporting 347,000 jobs. Certainly, free and open trade is key to the beef industry’s success, with over 50% of Canadian beef being exported around the globe.
International trade adds significant value to the industry, as producers gain more than $1,000 per animal through selling in international markets in addition to the domestic market. Last year our industry hit a record high of $4.5 billion worth of beef exports, the sixth record in a row. This is largely attributed to access in the Indo-Pacific region.
With a growing middle class, GDP and food consumption, the region is a high-growth market and one of Canada’s best opportunities for agri-trade. About 20% of Canada’s beef exports are destined for the Indo-Pacific market, with the five top markets currently being Japan, China, South Korea, Vietnam and Hong Kong.
We’ve already seen some of the positive effects of gaining market access in countries located in the region. Through the CPTPP and the removal of tariffs that followed, the Canadian beef sector has seen considerable gains. Japan is our second-largest beef export market today, with exports reaching $116 million as of March of 2022—an increase of 45% from 2021 and a 73% increase since the start of the CPTPP agreement. Vietnam has also seen exciting growth, from $8 million in 2019 to $83 million in 2021, since the implementation of CPTPP.
Canada’s agreement with South Korea has seen similar growth. In 2021 beef exports to South Korea stood at $117 million, a significant increase from the previous year of $45 million and a more than 2,000% increase since the implementation of the Canada-Korea Free Trade Agreement in 2015.
As you can see by these examples, there is significant growth in the region when we attain meaningful market access. That is why we continue to encourage the government to attain further access. Specifically, the CCA supports securing further preferential market access through free trade agreements in the Indo-Pacific, including through ASEAN, through an FTA with Indonesia, and through accession of new economies to CPTPP.
I will now turn it over to Jack to further add to our remarks.