Question Period Note: INDO-PACIFIC AGRICULTURE STRATEGY

Q1 – How will Canada’s Indo-Pacific Strategy and the new Indo-Pacific Agriculture and Agri-Food Office benefit Canadian farmers and stakeholders?
Q2 – Why was Manila, Philippines chosen as the location of the Office?
Q3 – Will Manila, Philippines be the only location?
Q4 – When will the Office be operational?
Q5 – How does India currently fit into the Indo-Pacific Strategy?

R1 - The establishment of Canada’s first regional Agriculture and Agri-Food Office will expand our presence in the Indo-Pacific region, help deepen relationships, foster new partnerships, and help Canadian farmers, food processors and exporters diversify their exports and maximize their business opportunities. R2 - The decision to establish the office in Manila, the Philippines, was based on a number of factors, including space availability, transportation links in the region, access to highly skilled and available workforce, strong people-to-people ties, and shared bilateral values.

In addition, industry identified Manila as a market that holds promise in terms of agriculture and agri-food opportunities. R3 -Manila is the hub of the Office, but the team will work in close partnership with other Government of Canada resources in the region. It is important to note that the team will be mobile – to be ready to move into other markets to take advantage of emerging opportunities or address market access issues as they are developing.
R4 - We are anticipating to have the first members on the ground in Manila as soon as possible with the objective of launching the Office shortly after. R5 - Agriculture and Agri-Food Canada continues to monitor the geopolitical situation closely for any impact on Canadian producers. India is an important partner and we remain committed to helping Canadian companies succeed in this market.

While we remain committed to advancing our priority agriculture market access issues with India, including stable and predictable access for pulses, the current reduced footprint will impact the capacity to deliver services and undertake market development activities such as trade shows and trade missions.

Once in place, IPAAO resources will provide support to our trade commissioners in India on high priority issues while we continue to monitor the situation and look at more viable options.

The Government of Canada released the Indo-Pacific Strategy (“the Strategy”) last fall - a whole-of-government shift to Canada’s international approach with implications across all sectors. As part of the Strategy, Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) have a joint initiative of $31.8 million over five years, and $6.9 million ongoing, to establish an Indo-Pacific Agriculture and Agri-Food Office (the Office).

The Strategy was developed to position Canada to seize growing opportunities in the region by intensifying regional engagement and deepening diplomatic, security, economic, and sustainable development partnerships across five objectives:

• Promote peace, resilience and security;
• Expand trade, investment and supply chain resilience;
• Invest in and connect people;
• Build a sustainable and green future; and
• Canada as an active and engaged partner to the Indo-Pacific.

The Indo-Pacific is the fastest growing economic region of the world, and Canada’s second largest regional export market and trading partner (after the United States). Agriculture and agri-food is a significant part of this trade, representing 27% of all exports and totaling over $21 billion exports to the region in 2022, a 6.8% increase from 2018. Canada’s competitors such as China, Brazil, United States, Australia and the European Union are increasing their investments in not only marketing efforts but also in-market capacity, which has resulted in these players strengthening brand recognition and increasing market share in the region.

Through the Office, AAFC and CFIA remain committed to advancing Canada’s agricultural interests by diversifying exports and increasing market share in established markets, while pursuing high growth emerging market opportunities, addressing market access issues and considering alternate markets for overexposed exports.

There has been ongoing engagement with industry as well as provinces/territories and internal federal agency and departments on the operationalization of the Office. To date, stakeholders are enthusiastic about the initiative and look forward to continued engagement and future collaboration.

• The Government of Canada’s Indo-Pacific Strategy is about strengthening our relationships and investment in the region at all levels across government and industry.
• Under the Strategy, an Indo-Pacific Agriculture and Agri-Food Office is being established – the first of its kind to take a strategic regional lens for agricultural trade.
• The objectives of the Office are to enhance market access and technical cooperation, identify new business opportunities for Canadian exporters, and help to position Canada as a preferred supplier of high quality, agri-food products in the region.
• The Office itself will be located in the Embassy of Canada in Manila, Philippines and staffed with a mobile team of experts from the Canadian Food Inspection Agency and Agriculture and Agri-Food Canada.
• The Office will work hand in hand with Government of Canada resources already in place within the Indo-Pacific and with Canadian diplomatic missions, Canadian stakeholders, provinces and territories, and foreign decision makers to advance mutual trade objectives for the sector.