Canada Urged to Strengthen Trade Beyond China and U.S.
A recent survey by the Canadian Federation of Independent Business (CFIB) reveals that 88% of Canadian agri-businesses believe Canada should expand trade relations with countries beyond China and the U.S. due to increasing trade tensions.
The data highlights the impact of China’s retaliatory tariffs on Canadian agricultural and seafood exports, with 36% of Canadian agri-businesses affected and nearly 23% facing direct financial losses.
"While the focus has been on the U.S. tariff battle, Canadian agri-businesses have been even more deeply harmed by China’s tariffs on canola oil, canola meal and peas, as well as certain pork, fish and seafood products. These producers need greater attention and support," said Juliette Nicolaÿ, bilingual policy analyst at CFIB. "While about one in four agri-businesses have taken steps to mitigate tariff impacts, only 10% of agri-businesses say that governments have done enough to support affected firms."
In response to the trade disruptions, CFIB is urging the federal government to reduce tax and regulatory burdens on agri-businesses, ensure support programs adequately address current challenges, and help businesses explore new markets.
"Both the U.S. and China represent significant markets for agri-businesses. Combined, these two countries represent more than half of Canada's canola exports. China is Canada’s second largest fish and seafood export market. As a result of the trade disruptions, our agri-businesses risk having unsold inventory and some are already losing foreign buyers," said Jasmin Guénette, CFIB’s Vice-President of National Affairs. "The government needs to turn its focus to supporting the agriculture industry and adopting policies to improve the business climate for Canada’s SMEs."
Photo Credit:Jean Van Der Meulen