The House of Commons Standing Committee on Agriculture and Agri-Food met to study the impact of tariffs on Canada's agriculture and agri-food sector, hearing from departmental officials and industry representatives. Appearing were Tom Rosser, Darren Smith, Christine Moran, and Michael Mosier from the federal departments, followed by Rick White, Tyler Fulton, Sylvain Fournaise, René Roy, Chris Davison, Kristina Farrell, Greg Cherewyk, and Martin Caron from industry organizations.
Tom Rosser, from Agriculture and Agri-Food Canada, outlined the challenging trade environment, noting that over half of Canada's agri-food production is exported and that unilateral tariffs from the U.S. and China, along with global instability, have disrupted supply chains. He highlighted that 96.5% of exports to the U.S. are duty-free under CUSMA, but emphasized the need for diversification into the Indo-Pacific and other regions, supported by 15 free trade agreements and new programs like increased AgriMarketing funding.
Darren Smith, from Global Affairs Canada, confirmed ongoing high-level engagement with China, including discussions between the Prime Minister and Premier Li, and noted that Canada is pursuing WTO litigation alongside diplomatic efforts. He stressed that while no specific timeline exists for resolving the canola tariff dispute, officials are working diligently through multiple channels to defend Canadian interests.
Christine Moran, from the Canadian Food Inspection Agency, added that non-tariff barriers are compounding tariff challenges, particularly for canola, and that the new Indo-Pacific office in Manila is helping exporters navigate complex markets. She noted strong industry interest in trade shows and new markets, with spaces filling quickly due to available funding.
Michael Mosier, from the Department of Finance, deferred questions on the clean fuel standard's impact on farmers, stating it was outside his expertise, but offered to follow up with the committee.
Rick White, from the Canadian Canola Growers Association, stressed that China is the largest market for canola seed, with $4.9 billion in exports in 2024, and that the loss of this market is causing an estimated $1.6 billion hit to farmers. He called for urgent political engagement to reopen the Chinese market and for compensation commensurate with losses, while also supporting domestic biofuels as a long-term diversification strategy.
Tyler Fulton, from the Canadian Cattle Association, described the highly integrated North American beef supply chain and warned that U.S. tariffs would cost the industry $500 million annually and drive down cattle prices by 15%. He emphasized that no other markets can replace the U.S., though Japan and Vietnam offer growth potential under CPTPP, and noted that Canada remains blocked from China since 2021 with no direct relief provided.
Sylvain Fournaise, from the Canadian Meat Council, reported that U.S. tariffs on pork are reducing processor margins by $8.80 per hog, costing the sector $177 million annually, and that China's 25% tariff on pork continues to erode competitiveness. He warned that prolonged tariffs could delay investments and force difficult decisions, with Olymel alone facing $30 million in losses by 2026.
René Roy, from the Canadian Pork Council, highlighted three impacts: direct tariffs from China, higher input costs from tariffs on steel and aluminum, and uncertainty hindering investment. He called for a fair CUSMA negotiation and acknowledged increased AgriMarketing funding but said additional support is needed, noting that Japan has become the largest export market through sustained diversification efforts.
Chris Davison, from the Canola Council of Canada, stated that the closure of the Chinese market, valued at $4.9 billion in 2024, is causing widespread impacts across the value chain, with farmers facing uncertain marketing options and lower prices. He noted that while other markets exist, they cannot replace China in volume or value, and urged government support for domestic biofuels to de-risk trade.
Kristina Farrell, from Food and Beverage Canada, argued that existing support programs are too narrow, slow, and complex for many manufacturers, and that the $200 million domestic processing fund is insufficient for Canada's largest manufacturing sector. She recommended extending work permits, ensuring pathways to permanent residency, reducing regulatory burdens, and exempting food from Bill C-5 to maintain competitiveness and food sovereignty.
Greg Cherewyk, from Pulse Canada, reported that China's 100% tariff on peas has caused a 43% drop in yellow pea prices and an estimated $637 million net loss at the farm gate, with no ready alternative market to replace China's 1.5-million tonne demand. He stressed that loans are not the answer and called for greater urgency from the government to restore market access, noting that the pulse industry cannot afford to be collateral damage in unrelated disputes.
Martin Caron, from the Union des producteurs agricoles, thanked the committee for passing Bill C-202 to protect supply management and noted that Quebec's canola and pork sectors are directly impacted by Chinese tariffs. He called for an action plan on diversification, support for private forestry producers excluded from softwood lumber measures, and adaptation of programs like the Canada Infrastructure Bank to better serve small and medium-sized farms.
During the question period, members pressed officials on the lack of high-level meetings with China and the absence of projected data for new markets, with John Barlow citing an Order Paper response showing no such projections exist. Rick White and Chris Davison confirmed that the 2019 canola crisis caused losses of $1.5 to $2.3 billion, and that the current situation is worse, with an estimated $80 per tonne hit to farmers. Tyler Fulton noted that no direct relief was provided to cattle producers blocked from China since 2021, and René Roy confirmed the same for pork farmers. The committee agreed to extend the meeting for a brief additional round of questions.
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