Thank you, Chair.
Thank you to the members of the committee for inviting us.
My name is Kyle Larkin and I'm the executive director of Grain Growers of Canada, also known as GGC. We are the national voice for over 70,000 producers through our 14 national, provincial and regional grower groups. As the farmer-driven association for the grain sector, GGC champions federal policies that support the competitiveness and profitability of grain growers across Canada.
With over 70% of the grain grown in Canada exported, rules-based trade is critical to the livelihoods of family-run grain farms across the country. In fact, we export our grain and grain products to over 160 countries around the world, creating $45 billion in export value annually.
Unfortunately, the rules-based trading order and Canadian exports are being challenged today like never before. Trade uncertainty, tariffs and non-tariff barriers are on the rise, directly impacting grain producers across the country, who rely on international trade for their individual farm revenues.
Most concerning is the trade uncertainty that we are currently experiencing with our two largest trading partners. The United States, which accounted for over $17 billion of grain and grain product exports in 2023, has become an unreliable trading partner, with changes in their international trade policy on an almost daily basis. Fortunately, all grain and grain product exports continue to be tariff-free under the Canada-United States-Mexico Agreement. However, tariffs on steel and aluminum will have an impact on farm equipment pricing, and overall trade uncertainty has depressed markets for crops that family farms rely on.
Our second largest trading partner, China, which accounted for over $9 billion of grain and grain product exports in 2023, has directly targeted grain farmers in the current trade spat between our two countries. The 100% duties introduced earlier this year on canola oil, canola meal and peas, and the recently introduced 75.8% duties on canola seed, have had a detrimental impact on farm gate revenues. China has also begun a new anti-dumping investigation into pea starch, furthering the effects on producers across the country.
What can Canada do in this changing international trade landscape? We must first champion the rules-based trading order at home through our own domestic policies and decisions. As Michael Harvey from the Canadian Agri-Food Trade Alliance mentioned to this committee about two weeks ago, “Protectionist measures, both domestically and internationally, should be rejected, as they undermine the principles of free, fair and open trade.”
Second, with over $45 billion in grain and grain product exports to over 160 countries around the world, Canada continues to be an important supplier of food. However, we have taken this position for granted for too long, with global competitors quickly catching up and competing for market share. To ensure Canada remains one of the top agriculture and agri-food exporters in the world, we must champion the rules-based trading order globally, strengthen our market access engagement and invest in trade-enabling infrastructure to meet the demands of the 21st century.
Lastly, and most importantly, Canada must reset its key trading relationships. Trade uncertainty with our two largest trading partners is having a devastating impact on the livelihoods of family-run grain farms across Canada. The benefits of CUSMA to Canada, the United States and Mexico need to be continuously promoted and defended. Ongoing and increased engagement with China is critical in resolving trade irritants.
Canada must continue to instill, promote and defend the rules-based trading order, both domestically and internationally. Without it, our exports will shrink, impacting both grain farmers and Canada's national economy.
Thank you very much, and I'd be happy to take any questions.