Thank you, Madam Chair.
Thank you for the invitation. It's great to see agriculture as a focus of the international trade committee.
My name is Dustin Pike. It's great to be here in person. I'm here with my colleague, Brittany Wood, who is attending virtually from Winnipeg.
The Canadian Canola Growers Association represents 40,000 canola farmers driving issues, policies and programs that impact their farms' success. Developed in Canada, canola is a Canadian success story of research and innovation.
Canola is a strong economic contributor to family farms and our rural communities. In 2024, canola continued to be the number one source of revenue for farmers, earning $12.9 billion and accounting for 25% of the total crop receipts, with 90% of the crop being exported as seed, oil or meal. Annually, the canola sector contributes $43.7 billion to the Canadian economy, and it provides over 200,000 jobs.
The United States and China are the number one and number two most important markets, representing 87% of total canola exports. However, in 2025, this number dropped to 61%, largely due to the tariffs put in place in March and August 2025. Japan, Mexico, the United Arab Emirates and the EU have made up much of the additional export opportunity in recent years, but there is no denying the buying power of the U.S.A. and China.
Canola farmers were very encouraged to receive news, on January 16, of the agreement reached between Canada and China to provide significant tariff relief for Canadian canola seed and meal. We greatly appreciate the efforts and results of PM Carney, his cabinet and government officials, as well as Premier Scott Moe, to re-establish trade with our second-largest export market.
Under the agreement reached, tariffs on Canadian canola seed imports are expected to be reduced to a combined rate of 15%, down from 75.8%, as of March 1, 2026. The current 100% tariffs on canola meal are expected to be completely removed until at least the end of the calendar year. While this is significant progress, there is still work to do. One hundred per cent tariffs on canola oil remain in place, and long-term, predictable tariff relief on all canola products is a must. In 2024, exports of canola to China were valued at $4.9 billion, compared to only $2 billion last year. With much of the 2025 crop stored on the farm and planting of the 2026 crop quickly approaching, canola farmers are looking for predictability and confidence in their ability to market their canola. Ultimately, the measure of success will be reliable resumption of canola movement to China this spring.
Beyond China, Canadian farmers continue to value the open trading relationship with a renewed CUSMA. This has allowed canola seed, oil and meal to continue to be exported tariff-free to the U.S. and Mexico while also allowing for the import of critical inputs to the industry.
While the U.S. and China are critical markets for canola, our best opportunity for market diversification and stability is right here at home in the advancement of a competitive, made-in-Canada biofuel industry, by supplying canola feedstock to an expanding biofuel sector. This is very important. Currently, canola makes up just over 20% of feedstock for the biofuels industry, but we can do better.
On September 5, the Prime Minister announced potential biofuel support measures related to tariff action to assist Canada's canola industry, and they need to be taken seriously at Environment and Climate Change Canada. At present, the proposed amendments fail to include concrete proposals that will help secure additional domestic demand for canola as biofuel feedstock. Additionally, concerns remain about potential compliance risks within the CFR related to having used cooking oil from Asia account for a significant portion of Canadian feedstock.
Biofuel is a marriage of energy and agriculture, and we do both well. All we need is a government that recognizes farmers as playing a vital role in strengthening our energy security, driving rural economic growth and building a more sustainable future for our country.
Again, thank you for the invitation to appear on this very important issue for farmers. I look forward to the committee's further recognizing canola as a vitally important commodity for farmers as we strengthen and expand our market access.