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Canola Farmers Express Renewed Confidence In Chinese Exports With New Agreement

From Saskatchewan Canola       www.saskcanola.com
 
With a good portion of their 2016 canola crop already in the bin, canola farmers across Canada were pleased to hear the outcome of Chinese Premier Li Keqiang’s visit to Canada means more stable canola trade with China. 
 
Last week, Prime Minister Justin Trudeau announced that “a predictable, science-based and stable solution” had been found, ensuring continued access to the Chinese market for Canadian canola. Canola exports were at risk from a Chinese policy set to be implemented September 1.  The policy was delayed during the Prime Minister’s visit to China earlier this month until a solution could be found. 
 
Under the new agreement, canola shipments to China will continue to flow until 2020, under the same terms that existed in August 2016. “For canola farmers that means more stable and predictable trade with one of our largest customers,” says Brett Halstead, President of the Canadian Canola Growers Association (CCGA) and farmer from Saskatchewan. “This agreement means we can continue to harvest our canola knowing with confidence that it has a place to go.”    
 
In 2015, exports of Canadian canola seed to China were valued at $2 billion. China is the largest market for canola seed, representing 40% of total canola seed exports.   
 
“We thank the Prime Minister, the Minister of International Trade Chrystia Freeland and the Minister of Agriculture and Agri-Food Lawrence MacAulay for their continued hard work in addressing this very important issue,” says Halstead. “With 90% of our crop exported, maintaining access to existing markets and further enhancing that access is essential to the livelihood of the 43,000 farms that grow canola across this country.”
 
In addition to the canola-specific announcement, Prime Minister Trudeau also launched exploratory talks on a potential free trade agreement with China, some additional good news for canola farmers. Freer trade that addresses tariffs as well as non-tariff barriers is key to provide predictable access. 
 
“China is a growing market and we want Canadian farmers to be part of that growth,” says Rick White, CEO of CCGA. “With China being a market of 1.36 billion people and the world’s second largest economy, discussions on freer trade that result in clearer rules, science-based trade, and predictable markets is very positive for long-term growth of the canola industry.”
 
Source : Saskcanola

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