Canada's canola farmers mark a historic event today in Chile, as Canada joins a group of eleven trading nations in signing the Comprehensive and Progressive Trans Pacific Partnership (CPTPP). It has been a long process with many bumps in the road making today a milestone to be celebrated.
“Canola farmers rely on our government to maintain access to existing markets, while working to open new markets through trade agreements,” says Jack Froese, President of the Canadian Canola Growers Association (CCGA). “The CPTPP does both. It helps us regain competitiveness in our long-standing trade relationship with Japan, and serves to open new opportunities in the rapidly growing consumer markets within the Asia-Pacific region.”
Ninety percent of Canada’s canola crop is exported, so it is critical for Canada to be a part of the CPTPP. Without this agreement, Canada would fall further behind in our trade competitiveness. Australia, Mexico and Chile already have free trade agreements with Japan, and an agreement has recently been concluded between Japan and the European Union.
“The signing of CPTPP is a major step,” says Rick White, CEO at CCGA. “But the work does not stop here. To regain some already lost ground, canola farmers call upon all parties to ratify and implement the CPTPP as soon as possible.”
The deal will enter into force 60 days after six countries have ratified the agreement – something that could happen as early as this summer. “Canada should be with the first group of countries that ratify CPTPP promptly and take full advantage of the benefits the agreement has to offer,” says White.
Work conducted for the Canola Council of Canada demonstrates that once implemented, this agreement could increase canola exports by $780 million per year through elimination of canola oil and meal tariffs and establishment of more effective rules to prevent non-tariff barriers. By increasing value-added canola exports, more domestic delivery opportunities are created for farmers.
“We would like to recognize Ministers Francois-Phillipe Champagne and Lawrence MacAulay for their work and dedication in getting Canada to this milestone,” says Froese. “This agreement is a critical part of reaching Canada’s export target for agri-food exports of $75 billion by 2025 and we need to move it forward without delay.”
Source : Saskcanola