Trade Agreements and Diversification Drive Growth in Canola ExportsNovember 14, 2018Hub ArticleUSMCA and CPTPP Over the past 6 weeks, Canada has achieved two historic milestones on trade: the United States Mexico Canada Agreement (USMCA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).Read October 1 press release: New Trilateral Agreement (USMCA) Continues Long-Standing History of Building a Strong North American Trade NetworkRead October 25 press release: Royal Assent to CPTPP Bill Celebrated by Canola FarmersThese milestones are great news for Canada’s canola farmers. They are key to maintaining and opening new markets for canola seed, as well as oil and meal. Ninety per cent of our canola is exported; USMCA and CPTPP together cover 60% of our 2017 exports. Naturally, trade is a top priority for Canadian Canola Growers Association and an important part of the advocacy work we do on behalf of farmers. BenefitsUSMCA strengthens Canada’s trading relationship with two of its largest customers, USA and Mexico. CCGA’s priorities were largely met: duty-free access for canola seed, oil and meal was maintained; language on agricultural biotechnology was added; and our quality assurance/variety registration system was upheld. Better market access for margarine was also achieved.With Royal Assent to CPTPP, Canada will be one of the first six countries to implement the Partnership, giving us “first-mover advantage”. A December 30th implementation means that canola farmers will benefit from two rounds of tariff reductions in the first few months of implementation. These scheduled reductions will reverse, and eventually eliminate, Australia’s tariff advantage (over Canada) which resulted from its earlier agreement with Japan. With our agri-exporting partners, we were involved throughout both negotiations to secure benefits for canola farmers. We were active in communicating the importance of trade to canola’s success, in ensuring that both agreements benefited canola, and in pushing for satisfactory conclusions. China And, the trade journey continues. This week, Canada and China held an Economic and Financial Strategic Dialogue in Beijing. The outcomes included doubling agriculture trade by 2025, carrying out agriculture biotech approvals and strengthening scientific cooperation, while still considering a comprehensive trade agreement. Canola leads our country’s exports to China and could benefit substantially from an agreement. The outcomes of the Dialogue put us in the right direction. Read November 13 press release: Canola Growers Welcome Results of Canada-China Dialogue.