International Trade Committee on April 30th, 2026

[Alexa Young]

Decades of investment have allowed us to grow capacity. Just to give you an example, over the past 15 years alone, we've increased capacity at the port of Vancouver across a whole bunch of different commodities and to a whole bunch of different markets by 70%. That's significant, but there's no doubt, as we look to double exports, that it's going to take much more capacity and optimization, as I discussed previously.

Number one, let's get Roberts Bank terminal 2 up and running. That's going to increase capacity by $100 billion annually. It's also going to relieve some of the congestion that we're seeing in the Burrard Inlet. That's going to allow us to build capacity for other commodities.

Again, Japan is looking increasingly at more bulk commodities. That's the number one interest that they have. All of these are connected in terms of building capacity more broadly, optimizing it with digital tools and tech and things like the Second Narrows dredging. Let's get the domestic stuff right to actually continue to grow capacity and meet this critical moment in time.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

In your opinion, you would be able to do this with the investments made over the next few years. Do you think the Japanese market is capable of doubling imports?

[Alexa Young]

This is why the work that the government is doing in the trade missions to Japan is going to be so critical in understanding what the demand profile is on any commodity and in working in tandem as we identify the opportunities for trade growth and partnership so that we're able to best figure out what's going to be needed to maximize the opportunity from an import perspective.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Okay.

As I understand it, by investing, we have the logistical capacity to achieve our goals over the next few years.

Earlier, you talked about terminal permitting. How many terminal permit applications do you currently have pending?

[Alexa Young]

Are you talking about the permits for which we are responsible?

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Well, do you have any new applications pending?

[Alexa Young]

Yes, absolutely. We always have—

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

How many are there?

[Alexa Young]

I don't know the exact number.

I can provide you with that soon.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Yes, I would like to know, as well as the exact sector affected by those applications.

I have another question for you. We're in the eastern part of the country. At the outset, I said that Quebec City has a port that has just been certified to handle international containers. That said, we are a very long way from what the other five ports in Canada are doing. At best, this port is going to remain a very minor player.

Do you receive a lot of cargo from central and eastern Canada that's bound for the Asia-Pacific region, or does it come mainly central-western and western Canada?

[Alexa Young]

The vast majority, certainly coming from the western provinces of Saskatchewan, Manitoba, Alberta and B.C.—and lots from Ontario as well with machinery and equipment—are still shipping some product east. There's a very significant demand in the Indo-Pacific region for things like seafood coming out of Atlantic Canada. That would be the route that makes most sense—coming from the west coast. That's also a reflection of the history of dependence on the U.S. market.

You see that a lot of the trade-enabling infrastructure has been built to be north-south and south-north instead of east-west. These are some of the things that we're looking at. There are still tons of opportunities in the EU and elsewhere.

Certainly, with 50% of GDP residing in the Indo-Pacific in the next 20 years, that's where the crux of the opportunity is, as we see it.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Savard-Tremblay has the floor for six minutes, please.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Thank you, Madam Chair.

Thank you to both presenters for their very insightful opening remarks.

My first question is for Mr. Fulton.

Even though the study focuses on Japan, you brought up the United Kingdom, a good example that comes up all the time. The idea is that there are sanitary, phytosanitary and non-tariff barriers, even if, on paper, products can enter the country. That's understandable. For example, in the agri-food sector, there can obviously be disease risks and conditions that would not be considered sufficiently sanitary from another country's point of view.

On paper, I think we all agree that we never want to risk the safety of people who might consume these products. Now, of course, this must be genuinely justified and not just an excuse.

You talked about this. In the case of Japan, we know that its regulations are extremely strict and that this can complicate your exports. In your case, what is the biggest challenge? Is it the additional costs involved? Is it certification, traceability, inspection, labelling or distribution?

In short, I'd appreciate it if you could fill in the details.

Thank you.

[Tyler Fulton]

To give some context here, Japan has been a developing market for more than three decades. We have worked through many of the SPS-related issues early on.

Where the focus lies for the beef industry is largely in competing with other global providers of beef. That's why the CPTPP has been so effective. We actually achieved, for a short term, a benefit over our American counterparts in tariff rate advantage, but now I think it is at parity with the Americans.

I would say that, broadly, we understand the Japanese market very well. Now we have been able to really meet their threshold with our existing food safety systems that are in place.

I can't stress enough that Canada's food safety systems are second to none in the world. That makes it easy for us to gain access to some of these countries.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

From what I understand, things aren't going too badly.

Do you feel that you get enough guidance from the government?

Are you getting enough information to help you overcome the few obstacles?

Are the trade commissioners also sufficiently available to you? In other words, are you keeping your bearings?

[Tyler Fulton]

Yes. The addition of the Indo-Pacific office really helped build capacity to address issues in other markets, for example, Indonesia and the Philippines. As Japan is such a mature market for us, I think our focus has been on improving our marketing. We've recently been provided with some additional AgriMarketing funds to promote Canadian beef, not only within Japan but also throughout the Indo-Pacific region, which helps that trade diversification. It's so critical, because that diversification adds value to Canadian beef that wouldn't otherwise accrue.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Could you also give us a brief overview of what is exported mainly?

For example, which cut of beef is most popular in Japan? Which province does it come from, given that each province has its own expertise and methods?

[Tyler Fulton]

Yes, absolutely.

In particular, Japan is very competitive on chuck rolls and short plate. Those are very popular in local Japanese restaurants, as well as yakiniku, a hot pot-type of preparation and another uniquely Japanese thinly sliced beef prepared option.

What's critical about that is they are willing to pay more. It really sends a market signal back to Canadian farmers that we can produce more than enough for the domestic marketplace and add value by sending the cuts that are not as popular. Those short plates are not in high demand here in Canada, but they add significant value to the beef carcass because they bring a premium in Japan.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

I understand that these producers have their own expertise and that they primarily export products tailored to the Japanese market, like extremely thin-sliced beef, which we ourselves probably consume very little of. Conversely, we're familiar with Japanese specialties exported here, such as Wagyu beef. I imagine that product doesn't really have any local competition.

[The Chair, Liberal, Judy Sgro]

Give a brief answer, please, Mr. Fulton.

[Tyler Fulton]

There is competition for Wagyu beef in Canada. There is local production here in Canada right across the country.

To address the earlier question, there's beef that moves from Ontario, Manitoba and Alberta, right across the country, to Japan.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

It's on to Mr. McKenzie.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Thank you, Madam Chair.

Mr. Fulton, picking up on the questions of my colleague, it seems to me that the trade relationship for beef products into Japan is an excellent mutually beneficial relationship. I wonder if you can contrast that with what we will face should we drop tariff barriers and enter into a freer trade relationship with Mercosur.

[Tyler Fulton]

The contrast is stark. We are very concerned with the signals we are getting from the government with regard to the Mercosur negotiations. Quite simply, it is a completely different product. It is of lower quality, of lower standard on the labour side, on the environmental side and on the food safety side. Quite simply, it represents a disease risk that we haven't quantified yet.

To boil it right down, we don't see an opportunity in that market for our beef. The local demand in those South American countries is not for that high-quality grain-fed beef that Canada is so known for. It's not a reciprocal opportunity, and it represents significant risks.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Thank you very much.

Ms. Young, you mentioned something of great interest to me with respect to Roberts Bank terminal 2 or the expansion there, and that was the agreement and support from coastal first nations communities. Can you talk a little bit about that?