Good afternoon, Madam Chair. Thanks for the opportunity to appear today.
My name is Tyler Fulton, and I am president of the Canadian Cattle Association.
Through our provincial members, CCA represents about 60,000 beef producers across Canada supporting jobs, the economy, rural communities and food security.
Today I'll be sharing the success story of the Canadian beef industry and Japan and the lessons from this positive relationship.
Japan is Canada's second-largest beef export market after the United States. It is a high-value, premium market that rewards consistent quality and long-term customer relationships. CCA leadership has had the privilege to travel to Japan to strengthen our partnerships and experience first-hand the success of Canadian beef.
In 2025, Canada exported $378 million in beef and beef products to Japan. The value of beef exports into this market has increased by roughly 76% from 2018 to 2025, despite significant global volatility. Through CPTPP, Canada gained meaningful beef market access into Japan. When CPTPP took effect in 2018, tariffs on Canadian beef went from 38.5% to the current 27.5% on fresh beef. Tariffs continue to lower annually. Japan's beef tariffs are scheduled to reach 9% by 2033. That predictable tariff schedule is essential for long-term market development. CPTPP is the gold standard for free trade agreements; it sets ambitious commitments, science-based standards and upholds rules-based trade.
The Indo-Pacific region, including Japan, represents the largest opportunity for the long term. I believe that the success of this trade relationship can provide three valuable lessons for Canada's trade diversification.
First, we need to uphold rules-based trade. Any new CPTPP member must match the ambition and high standards of the agreement. Canadian beef farmers and ranchers were deeply disappointed with the U.K.'s accession to CPTPP. The U.K. acceded to CPTPP with remaining non-tariff barriers against Canadian beef, and we did not use the leverage we had to resolve it. Therefore, it's essential that any CPTPP expansion should strengthen, not dilute, the ambition and standards of the agreement.
Second, we must not lose sight of what meaningful market access is. For producers, that means not only tariff reductions but the removal of non-tariff barriers so that trade can take place. Our success in Japan is not only due to tariff reductions but also to the removal of non-tariff barriers. Japan has been a reliable trade partner that abides by science and rules-based trade. This eliminates non-tariff barriers and other obstacles to trade.
Finally, trade diversification pursued without regard to outcomes does not serve Canadians. Canada's current negotiations with Mercosur illustrate this concern. There is no viable opportunity for Canadian beef in Mercosur countries, yet we are the number one bargaining chip on the negotiating table. Allowing increased access from countries with low standards displaces Canadian, sustainably produced beef and undermines domestic production at a time when the Canadian beef herd is rebuilding. Mercosur beef also has low standards in labour, animal health and environment, putting at risk our industry's biosecurity and hurting our reputation as a beef exporter with high standards in labour, environment and production.
For Canadian beef producers, that is not diversification; it's risk without reward. We need to ensure that trade agreements provide long-term benefits that encourage further production in Canada to meet global demand.
In closing, CCA supports trade diversification that is strategic, reciprocal and meaningful. Japan is a great example of diversification done right. It is a reliable, high-value and strategic market for Canadian beef.
Thanks. I look forward to your questions.