It's Jack Chaffe.

On behalf of the Canadian Cattle Association, the CCA, I'd like to thank you very much for the opportunity to speak to your committee today about the CUSMA review. My name is Jack Chaffe and I'm the officer at large for the CCA. I have a feedlot in southwestern Ontario, where I farm with my family. Joining me today is Dennis Laycraft, executive vice-president of the CCA, who will be here to answer questions later.

The CCA represents 60,000 beef producers across Canada, from cow-calf farms and ranches through to feedlots. Our sector generates $21.8 billion for Canada's GDP annually, and trade is key to our economic success. Of our beef production, approximately half is exported to international trade and adds about 40% of the value to each animal. Looking at North America, the U.S. is our largest trading partner, and Mexico is our third-largest partner, falling in behind Japan.

Historically, the CCA has been involved in the CUSMA negotiations and those of its predecessor, NAFTA, and its predecessor, the Canada-U.S. trade agreement. I mention this because historically, the North American trade of live cattle and beef has always been our highest priority. For our exports, we send 85% to the U.S. In 2023, the value of live cattle and beef exports to the U.S. and Mexico exceeded $6 billion.

It is essential that all three governments look at the CUSMA review with a “do no harm” approach, focusing on success for all three countries.

The CCA, together with our American and Mexican counterparts, holds three trilateral meetings annually. We work together to strengthen North American trade and combat global challenges. At our most recent meeting, we discussed the upcoming review. Our three national associations are united in ensuring a strong North American integrated beef supply chain. At our upcoming meeting this summer in Saskatoon, we will be reviewing the CUSMA and coming out of there with a unified statement moving into the 2026 review. The integration of the North American beef sector has demonstrated its resilience in challenges, such as working through the pandemic and during weather-related issues, and it has come up with a strong integrated supply chain.

As we discuss the 2026 CUSMA review today, I would be remiss if I did not mention the current challenge we are facing with the U.S.—its final ruling on voluntary “product of U.S.A.” labelling, which will also come into effect in 2026. The CCA and the Government of Canada submitted extensive comments to the USDA expressing our concerns about this ruling and suggesting that an alternative would be consistent with international practices, which the USDA's ruling clearly is not. Furthermore, the U.S. is making the ruling mandatory for federal procurement requirements.

The CCA continues to work on this file with the AAFC, Global Affairs Canada and the Canadian embassy in D.C., and we are monitoring closely the segregation of cattle, which would impact beef producers on both sides of the border. We remain concerned that the ruling will lead to discrimination against live cattle imports and undermine the beneficial integration of the North American supply chain.

In the context of today's study, it is key that your committee is aware of these trade tensions. We encourage the committee to take a team Canada approach as we look at the 2026 CUSMA review. There is a lot at risk, and we emphasize the “do no harm” approach. We echo the National Cattle Feeders Association, which was at your committee last week, in terms of focusing on regulatory co-operation and ensuring that trade-enabling measures are the goal rather than new tariffs and trade restrictions.

As we've seen in the past, our message is stronger when we work together with the federal and provincial governments and with industry. On behalf of Canadian beef farmers and ranchers, we remain committed to working with you for the best trade outcome in 2026.

Thank you.