The House of Commons International Trade Committee met to study Canada's potential trade agreement with Mercosur countries. Witnesses included Benoît Fontaine from Les Éleveurs de volailles du Québec, Tyler Fulton and Andrea Brocklebank from the Canadian Cattle Association, Paola Saad from the Brazil-Canada Chamber of Commerce, Ryan Greer from Canadian Manufacturers and Exporters, and René Roy and Stephen Heckbert from the Canadian Pork Council.
Benoît Fontaine, representing Quebec poultry farmers, argued that Brazil's dominance as the world's largest chicken exporter poses a structural threat to Canada's supply-managed sector. He insisted that no additional market access be granted to Mercosur for chicken or turkey, that over-quota tariffs be maintained, and that Bill C-202, which provides guidelines to protect supply management, be respected.
Tyler Fulton and Andrea Brocklebank of the Canadian Cattle Association opposed any expanded beef access to Mercosur, citing three main reasons: it would harm Canada's beef sector by disrupting price signals needed to rebuild herds; Mercosur beef does not meet Canadian standards for sustainability, animal welfare, and food safety; and it risks damaging Canada's integrated beef trade with the United States. They noted that imports from Mercosur have already risen sharply and that current tariffs do not deter them.
Paola Saad of the Brazil-Canada Chamber of Commerce supported a well-structured agreement, emphasizing that Canada and Brazil have substantial economic complementarities. She argued that the agreement must prioritize investment liberalization, strong investor protections, meaningful market access with robust rules of origin, and addressing non-tariff barriers and regulatory friction, particularly in Brazil's complex tax and licensing systems.
Ryan Greer of Canadian Manufacturers and Exporters said diversification gains with Mercosur are likely targeted, mainly in industrial inputs, machinery, and clean technology, rather than mass-market exports. He stressed that domestic competitiveness—lowering regulatory burden, energy costs, and improving productivity—is the foundation for any successful diversification strategy, and warned that urgency for regulatory reform is fading.
René Roy and Stephen Heckbert of the Canadian Pork Council urged extreme caution, noting that Mercosur countries have lower production standards and costs, creating unfair competition. They questioned how Canada would enforce quality and sanitary standards, manage potential dumping, and ensure effective safeguard clauses, and noted that Canada exports virtually no pork to Mercosur while those countries already have partial access to Canada.
During questioning, members explored differences in competitiveness and standards. Tyler Fulton and Andrea Brocklebank explained that Canada's beef industry is deeply integrated with the U.S. and that large Mercosur imports could be seen as a back door to the U.S. market, risking that relationship. Benoît Fontaine highlighted disparities in labour costs and climate, while René Roy noted that Brazil uses sanitizers banned in Canada and lacks equivalent animal welfare rules. Stephen Heckbert said the government does seek industry advice but that Canada is often too optimistic in negotiations. The committee agreed to ask Global Affairs to provide a single copy of form letters from dairy farmers rather than thousands, and to invite a CFIA representative to a future meeting to discuss sanitary and phytosanitary concerns.
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