Today’s conclusion of negotiations on the Trans-Pacific Partnership (TPP) is a big achievement for canola farmers in Canada. The agreement announced today by the 12 member countries means Canadian canola will compete on equal footing with other oilseed-producing countries in the TPP.
“The TPP agreement for canola puts us back on track in this extremely important market,” says Brett Halstead, President of Canadian Canola Growers Association (CCGA). “If Canada had not been a founding member of the TPP, canola’s market position in the region would have continued to erode over time, with other large oilseed-exporting nations receiving preferred status in many of Canada’s most important markets.”
The announcement is pivotal for export-dependent canola farmers who rely on the region for over 60 percent of their export sales (valued at $5.7 billion in 2014). “Ninety percent of canola grown in Canada is exported as seed, oil or meal, and the TPP region is a critical market for these sales,” says Rick White, CEO of CCGA.
“The agreement reached in Atlanta is vital to the long-term competitiveness of the canola industry,” says White. “When tariffs are fully phased out in Japan and Vietnam over five years, exports of canola oil and meal could grow by as much as $780 million per year.”
In addition to eliminating tariffs, the agreement is especially unique, since it addresses non-tariff barriers associated with the trade of genetically modified crops. A more transparent and cooperative trading regime will reduce business risk and trade irritants, ensuring a more transparent and predictable environment for canola exports.
Ratifying TPP has valuable benefits, both for agriculture and for the Canadian economy. “Along with growth in exports, improved market access for oil and meal will support expansion in domestic crushing, creating more processing jobs and more domestic delivery options for canola farmers,” says White.
CCGA joins other members of the Canadian Agri-Food Trade Alliance in underscoring just how important TPP is to Canada’s agriculture sector. The 800 million people who live in the TPP region consume 65 percent of Canada’s total annual agri-food exports, valued at $56 billion per year. Furthermore, the agreement establishes a new standard in modern trade agreements that all future entrants to the TPP must agree to.
“We commend Canada’s trade negotiators for their efforts in reaching this TPP milestone,” says Halstead. “Now, efforts must continue to bring this agreement to fruition through timely ratification and implementation by all TPP nations.” Canola farmers encourage all political parties to support TPP so the negotiated benefits can become a reality for Canada’s canola farmers.
CCGA represents more than 43,000 canola farmers on national and international issues, policies and programs that impact farm profitability. CCGA is a member of the Canadian Agri-Food Trade Alliance.
Source : CCGA