The recent signing of the Comprehensive and Progressive Trans-Pacific Trade Agreement (CPTPP) in Santiago, Chile, is generally being seen as a positive occurrence for Canadian farmers, at least on the grain side of things.
Among the supporters is the Canola Council of Canada.
In an online posting, the organization noted in a meeting that the board of directors for the Canola Council of Canada discussed how critical it is for Canada to implement the CPTPP in order for the canola industry to continue thriving. The agreement will enable a significant increase in value-added canola exports.
“This week is a very positive step towards enabling more sustainable growth from canola exports,” said Jim Everson, president of the Canola Council of Canada in the prepared release. “In today’s uncertain times, Canada’s signing of the CPTPP demonstrates how we can continue to be globally competitive by eliminating trade barriers through trade agreements.”
The release went on to detail how Canada’s canola industry has grown into a world leader because of competitive access to world markets. More than 90 per cent of canola produced in Canada is exported, though the Canadian industry cannot export value-added products to countries like Japan because of the high tariffs they apply to canola oil.
“When our value chain comes together around the board table, we look at what is required for our sector to continue supporting jobs and prosperity for Canadians across the country, including those in the middle class,” said Everson.
“The CPTPP is critical for our sector, and we’re very pleased that the Government of Canada is committed to implementing this landmark agreement.”
Grain farmers in general appeared to be supportive of the recent deal.
Representing some of our most lucrative and fastest growing markets for grains, pulses, and oilseeds, participation in this new trade agreement is an important step in meeting the Government’s ambitious target of $75 billion in agri-food exports by 2025, detailed a release from Grain Growers of Canada. “Signing CPTPP, as well as the investments in Asian trade in Budget 2018, show the Government understands the importance of Asian markets to Canadian agriculture,” said Grain Growers of Canada President, Jeff Nielsen in the release. “We look forward to working with Ministers Champagne and MacAulay to ensure that we get the agreement ratified as soon as possible.”
But like most wide-ranging agreements, the CPTPP is not as favourable to all sectors.
In another sector release, Canadian egg farmers voiced disappointment in the CPTPP deal for its failure to protect the future of Canada’s egg farms.
“Importantly, it also represents a hit on Canadian consumers, who want and expect fresh, local, high-quality eggs,” the release stated at www.eggfarmers.ca
“The outcome of the CPTPP agreement means difficult challenges for Canada’s egg farmers, their communities and many farms and businesses they support,” according to Roger Pelissero, Chairman of Egg Farmers of Canada in the release. Once fully implemented, Canadian egg farmers will have lost the right to produce close to 291 million dozen eggs, with an additional 19 million dozen eggs added each year after the implementation phase. The total value of the trade deal represents close to $1 billion dollars in lost farm family income.
The Turkey Farmers of Canada (TFC) also came out as being troubled about the signing of the CPTPP.
“We believe this deal will harm the turkey sector,” said TFC Chair Mark Davies in a release from the organization. “There was no need to maintain the market access levels of the original TPP, which were made in response to demands by the U.S., which is no longer part of the agreement.”
This deal will increase import access to the Canadian turkey market by 71 per cent, representing $270 million in lost farm cash receipts over the next 19 years, and a farm output loss of at least 4.5 per cent.
The problem with deals such as this, only time allows a full understanding of which sectors win, and which suffers.
Calvin Daniels is Editor with Yorkton This Week.
