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Canola industry welcomes CPTPP agreement, enabling growth in value-added exports

The Canola Council of Canada (CCC) applauds International Trade Minister François-Philippe Champagne’s announcement that Canada and the 10 other member countries successfully concluded discussions on a new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 
“This agreement is great news for the Canadian canola industry and communities it helps support across the country,” says Jim Everson, president of the CCC. “By eliminating tariffs and establishing more effective rules to prevent non-tariff barriers, the CPTPP enables more value-added exports and benefits the entire canola value chain.”
Japan is a long-standing and consistent market for canola seed, valued at more than $1.2 billion annually, but tariffs of approximately 15% have prevented canola oil exports. Through the CPTPP, the canola industry estimates that when tariffs are fully eliminated in Japan and Vietnam over five years, exports of canola oil and meal could increase by up to $7801 million per year.
Implementing the CPTPP quickly is important to keep Canada from slipping behind competitors. Australia currently has preferential access to ship canola oil to Japan through their bi-lateral free trade agreement implemented in 2015. Once the CPTPP is fully implemented, Canadian canola will be on a level playing field with other oils into Japan.
“Leadership shown by the Government of Canada to ensure that Canada benefits from this deal provides a significant growth opportunity for the canola industry and the 250,000 jobs it supports across the country,” says Everson. “We thank the Government of Canada, Minister François-Philippe Champagne and Minister Lawrence MacAulay for this achievement and look forward to the official signing in March.”
Enabling the canola industry to increase value-added processing and productivity will also help achieve the government’s Budget 2017 goal to increase Canadian agri-food exports by $20 billion by 2025. “Achieving the canola industry’s goals, which include increased value-added processing, will deliver $3.5 billion in additional exports,” says Everson.
Source : CanolaCouncilCanada