Thank you very much.
Chair Sgro and members of the committee, thank you for the opportunity to be with you today and to join you with my fellow panellists. As was mentioned, my name is Chris Davison, and I'm the vice-president of stakeholder and industry relations with the Canola Council of Canada.
The Canola Council encompasses all links in the canola value chain. Our members include canola growers, life science companies, grain handlers, exporters, processors and others. Our shared goal is to ensure the industry's continued growth and success, and to do this by meeting global demand for canola and canola-based products, which include food, feed and fuel.
Canola's success is Canada's success. Our industry represents almost $30 billion in economic activity annually, 207,000 jobs, $12 billion in wages and the largest share of farm cash receipts in the country. Our strategic plan is built on three key pillars: sustainable and reliable supply, differentiated value, and stable and open trade.
Today, 90% of Canadian canola is consumed in export markets. However, there remains about 40% of the world economy where Canada does not have a free trade agreement, with the result that canola faces tariffs in many of these countries, including in the Indo-Pacific region. We also face non-tariff barriers, NTBs, which can create unnecessary barriers to Canadian canola exports.
At the same time, we see opportunity in a number of the countries in the region. That, in part, explains our interest in trade negotiations under way, as well as a recent collaboration that we undertook with colleagues from Cereals Canada and Pulse Canada to commission a report on agricultural strategy for the Indo-Pacific, with a focus on best practices to address agricultural trade barriers.
With this report in mind, I am pleased to be joined today by colleagues from Cereals Canada and Pulse Canada. Together, our three value chain organizations represent over $45 billion in economic activity annually and account for over 77% of principal field crop production in Canada.
The objectives of our recently completed report were to gain a better understanding of agriculture trade policy and market access and market development capacity in the region. We undertook this work with a view to supporting improved approaches to the design and delivery of agriculture trade policy and market access and development capacity supporting Canadian trade in agriculture.
The study did this by assessing on-the-ground capacity and programming available to Canadian agri-food exporters in the region, examining on-the-ground approaches and programming undertaken by some of our competitors, and assessing gaps, opportunities and priorities for the improved design and delivery of Canadian government support for agriculture in the region.
I will make a few comments about the market dynamics in the region and then turn things over to my colleagues to speak to other aspects of the report.
While each of our industries typically identifies and prioritizes market opportunities based on factors including import demand and product-specific opportunities, the intersection of positive demographics and income growth trends has galvanized agri-food market interest in the Indo-Pacific. However, I can tell you that interest is not limited to Canadian agri-food interests. We have stiff competition in the region, with a number of competitors who have had a long-term presence. Our report indicates that the Indo-Pacific is being courted by 70 or more countries. While the main subregions of the Indo-Pacific are approximately equal in terms of magnitude, we recognize that the challenges and opportunities with each are not the same.
At the same time, while there's variability in the frequency, coverage and prevalence of NTBs by country and industry, there is broad recognition of their use in the agricultural sector in Indo-Pacific countries, and a keen interest in doing a better job of addressing them from a Canadian agricultural trade, market access and market development perspective.
In this regard, one of the things highlighted in the report is the changing market dynamics in the region over the last several years, inclusive of more sustained efforts toward greater self-sufficiency and local value-add opportunities, which have been accompanied by protectionism and the use of NTBs to modulate imports, even as free trade agreements transform the landscape.
Let me close by saying that as a trade-dependent industry, ensuring stable and open access to markets is a critical success factor to Canadian canola. The Indo-Pacific region includes several markets of interest and importance to us, but it also comes with some unique challenges. That has encouraged us, together with other agri-food sector colleagues, to think critically and creatively about both the industry's role and the government's role in realizing our market access goals in this region.
As it relates to the government's role in supporting international market access and providing infrastructure to support markets, we are calling for the creation of an Indo-Pacific diversification office that is aligned with the intent of Canada's evolving Indo-Pacific strategy and will be an important catalyst in realizing significant growth potential in agri-food exports.
Thank you for your time today. I look forward to our discussion.