Export Development Canada is increasing its insurance for canola exporters
By Diego Flammini
The federal government is taking additional measures to support the canola industry while it faces trade uncertainty with China.
Today, International Trade Diversification Minister Jim Carr, Agriculture and Agri-Food Minister Marie-Claude Bibeau and Carl Burlock, executive vice-president and chief business officer with Export Development Canada (EDC), announced that EDC will provide more credit insurance for grain companies exporting canola.
“EDC is pleased to participate in the government of Canada’s initiatives to provide support for the (canola) sector,” Burlock told reporters. “EDC’s commitment is to make available an additional $150 million in insurance support for Canadian canola exporters.”
By insuring with EDC, exporters can mitigate the risks of shipping abroad and make it easier to access capital from banking partners, Burlock added.
EDC is also assisting with finding new markets for Canadian canola.
The federal government has identified Pakistan and Bangladesh, for example, as two possible canola trading partners.
Diversifying trade markets is important to making sure Canadian products are sought after, Minister Carr said.
“I think it’s good old-fashioned common sense,” he said to reporters. “When you see that 40 per cent of your export in one commodity goes to a particular nation, it makes sense to in the long-term to expand the possibility” of trade with other countries.
Changing consumer habits paired with Canadian canola quality will help the industry in current and new markets, Carr said.
The canola industry appreciates the government's additional support.
But details of the announcement will determine how helpful the insurance will be, said Brian Innes, vice-president of public affairs with the Canola Council of Canada.
"It's unclear at this point how the announcement will help," he told Farms.com. "We'll be looking at the details. We've been talking with EDC about how its services can better help the canola export community. This includes providing better and more cost-effective risk coverage for transactions are not completed."