Winnipeg, Manitoba — The launch of consultations on a potential free trade agreement with China creates exciting new possibilities for growing canola exports in China’s rapidly growing market. With canola being Canada’s number one export to China, these consultations along with exploratory talks will be especially significant for Canadian canola farmers.
“China is an important growth market for canola,” says Rick White, CEO of the Canadian Canola Growers Association (CCGA). “With a rising middle class that is increasingly seeking out healthy food options, China is a market that Canadian canola farmers are well-positioned to capitalize on.”
During the last decade, Canadian canola exports to China have climbed sharply, rising from $465 million in 2007 to $2.7 billion in 2016. China is now the single largest importer of canola seed, consuming roughly 34% of Canadian seed exports in 2016.
“Exploratory discussions launched in September provide an entry point to expanding our trade with China,” says White. “A free trade agreement could result in significant benefits to canola farmers through elimination of tariffs on canola and canola products, as well as a platform to address various non-tariff barriers.”
Elimination of the current tariffs on canola seed, oil and meal would create a tangible advantage for Canadian canola. In addition, closer economic relationships with China could provide an anchor to solve market-impeding, non-tariff trade barriers such as slow approvals of inputs to canola production, as well as providing a mechanism for managing trade issues that may arise in the future. A recent study commissioned by the Canola Council of Canada estimated that the elimination of tariffs could generate up to an additional $1.2 billion in canola trade each year with China, stimulating 33,000 new jobs in the Canadian canola value chain.
Canola is not alone in agriculture sectors that could benefit from an agreement with China. The Canadian Agri-Food Trade Alliance’s study Chasing China - Expanding Canada’s Agri-Food Exports to China highlights the potential of expanded trade for Canada’s agriculture exports if tariffs and non-tariff barriers were eliminated. Canadian pork, beef, wheat, pulses and more all have potential for growth in an enhanced trading relationship with China.
“CCGA looks forward to participating in the Global Affairs Canada consultations and ensuring that the voices of canola farmers are well-represented throughout the process,” says White. “China presents an important growth market that can be realized if our trade issues can be brought forward and solved within this process.”
CCGA represents more than 43,000 canola farmers on national and international issues, policies and programs that impact farm profitability.
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Contact:
Kelly Green
t: (204) 789-8821
e: kellyg@ccga.ca