Congratulations on your recent election as the leader of the Liberal Party of Canada and appointment as Prime Minister. On behalf of 15,000 pulse crop farmers in Saskatchewan producing peas, lentils, chickpeas and beans, we strongly urge your prompt action regarding the retaliatory tariffs on Canadian agricultural products that were recently announced by China.
The Canadian pulse industry contributes $6.3 billion to the Canadian economy, $3.1 billion to Canada’s GDP and 26,000 jobs, based on 2021 numbers. The importance of access to China cannot be overstated. China has been Canada’s largest market for peas over the past five years with 1.5 million tonnes of average annual exports, and a typical value of $800 million to $1 billion per year. The Canadian pulse sector and Saskatchewan farmers have worked for 30 years to build strong and reliable demand for Canadian peas in China. Tariffs of 100 per cent on peas would shut Canadian peas out of the market in China and dramatically reduce prices for farmers. Canada faces strong competition from other suppliers of peas into China. Once market share is lost to other suppliers, it is difficult to get back. Forward prices for the 2025 pea crop have already been impacted with many companies withdrawing from purchasing peas from farmers.
China’s announcement of retaliatory tariffs on peas, canola products, pork and seafood from Canada is an invitation and opportunity for the Government of Canada to engage and negotiate. As Canada’s new Prime Minister, you have the opportunity to send an immediate signal to chart a new course and rebuild relationships with Canada’s most important trading partners, starting with China. Saskatchewan grain farmers cannot pay the price of trade war between Canada and its two largest trading partners at the same time.
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