Yesterday’s signing of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union is a positive step to improving market access for canola to one of the world’s largest markets. The landmark signing by Prime Minister Justin Trudeau, Donald Tusk, President of the European Council, and Jean-Claude Juncker, President of the European Commission, concludes seven years of negotiations between Canada and the European Union.
“Ninety percent of canola grown on Canadian farms is exported,” says Brett Halstead, President of the Canadian Canola Growers Association. “The signing of CETA is an excellent example of how the Government of Canada is helping Canadian farmers achieve export success and, in turn, strengthen
Canada’s economy.”
The CETA, which has been under negotiation since 2009, is a comprehensive trade agreement that eliminates tariffs on a wide range of goods and services and establishes frameworks to address non-tariff barriers to trade. The successful conclusion to the CETA will expand European market opportunities for value-added canola products including canola oil for biofuels.
In 2015, Canada exported $188 million of canola products to European Union countries. “By eliminating oil tariffs, exports of Canadian canola oil to Europe could increase in value by up to $90 million per year, creating new demand for canola seed to feed our expanding oilseed crushing capacity here in Canada,” says Rick White, CEO of CCGA.
The European Union is a world leader in biodiesel consumption and Canadian canola is a sustainable input into biodiesel production. With CETA, the tariff on canola oil will be eliminated upon implementation.
To capitalize on the benefits CETA provides, reduced tariffs need to be complemented with a timely and predictable European Union regulatory approval process for crop inputs. “The CETA incorporates commitments to cooperate on issues related to biotechnology,” says White.
By embracing innovative farming technologies, including biotechnology, Canada’s canola farmers have become some of the most productive and environmentally conscientious producers. “We look forward to the European Union adopting more timely and science-based policies related to the approval of seed traits and other inputs to crop production,” says White.
“Canola farmers recognize the commitment of Canada’s Trade Minister Chrystia Freeland in bringing these long and difficult negotiations to a conclusion,” says Halstead. “We look forward to the day that CETA is ratified by all signatories to the agreement.”
Source : Saskcanola