Thank you, Madam Chair.
Good afternoon, members of the Standing Committee on International Trade.
I'm here today to discuss the pressing issue of non-tariff barriers in international trade. As a former high commissioner to India, I was there when we initiated negotiations for a comprehensive economic partnership agreement with that country, which unfortunately did not come to fruition.
However, I'm pleased that we are now taking a more pragmatic approach, recognizing that an early progress agreement will yield more modest but achievable successes. I'm pleased for Saskatchewan farmers, who understand some of the impacts of non-tariff barriers on their business going into India.
As a former assistant deputy minister for international business, development, innovation and investment with what was then the Department of Foreign Affairs and International Trade, now Global Affairs Canada, I understand the critical role that strong trade agreements play in Canada's global trade development success. Additionally, as the CEO of the Asia Pacific Foundation of Canada, I have witnessed first-hand the importance of trade agreements in developing Canada's markets in Asia.
Non-tariff barriers have become a significant concern for global trade, and as we all know, they can take the form of technical standards, regulations, licensing requirements, quotas, subsidies and administrative procedures. In addition, the challenges associated with NTBs are numerous, including a lack of transparency and their deployment due to irritants in bilateral relationships. These factors make it difficult for Canadian businesses to navigate the regulatory and political environment, leading to increased costs and time complying with ever-changing regulations.
Protectionist NTBs, particularly in the developed world, are gaining increased prominence today, appearing in the form of technical regulations that challenge foreign producers to meet subsidies only available to domestic producers and licensing requirements that are more readily obtainable by the domestic producers.
Canada's economy relies heavily on the SME community, and we are particularly susceptible to NTBs. SMEs lack the resources to navigate complex regulatory environments, leading to disproportionate compliance costs and the creation of barriers to entry that increase the prices for Canadian products.
Negotiating and implementing agreements to reduce or eliminate NTBs is a complex process, as evidenced by the difficulty in concluding a free trade agreement with India. However, it is crucial to address these issues and to foster a more open and fair global trading system. I offer compliments to the committee for undertaking the study.
Finally, I would be remiss if I did not acknowledge that Canada is not exempt from the issue of NTBs. I have had criticism of our supply management system from many counterparts, as a trade commissioner, as a head of mission and as president and CEO of the Asia Pacific Foundation of Canada. While I understand the political imperative of protecting our market and our farmers, I believe it's essential to consider the potential benefits of competing with our respected, high-quality and safe products in Asian markets where the consumer middle class is rapidly growing.
Thank you for your attention. I look forward to answering any questions that you may have.