Passage Of CPTPP By The House of Commons Means Better Value-Added Access To Asia Is Near
The Canola Council of Canada (CCC) welcomes the passing of Bill C-79, an act to implement the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), by the House of Commons today. This agreement represents a pivotal opportunity for the canola industry to increase value-added exports and benefit the entire canola value chain.
“The canola industry appreciates the House of Commons passing this landmark agreement in a timely way,” says Jim Everson, president of the CCC. “The urgency and cooperation shown in the past four weeks mirrors the importance of this agreement to increase value-added canola exports.”
The Canadian industry currently cannot export value-added products to countries like Japan because of the high tariffs they apply to Canadian canola oil. Australia already has a free trade agreement with Japan that is eliminating tariffs on Australian canola oil, putting Canadian canola oil at a competitive disadvantage. When tariffs are fully eliminated in Japan and Vietnam through the CPTPP over five years, exports of Canadian canola oil and meal could increase by up to $780¹ million per year.
“Considering the robust consultation process Canada has already undertaken, we urge the Senate to consider and pass Bill C-79 without delay, and ensure Canada does not fall further behind competitors,” says Everson.
The CPTPP will come into force 60 days after it is ratified by the first six countries – and as Mexico, Japan and Singapore have already ratified, and as Australia and others are on track to complete ratification soon, the race is on to be one of the first six nations to gain this competitive foothold. In order for tariffs to be reduced in 2018, the agreement needs to be ratified by six countries by November 1, 2018.
The Canola Council of Canada is a full value chain organization representing canola growers, processors, life science companies and exporters. Keep it Coming 2025 is the strategic plan to ensure the canola industry’s continued growth, demand, stability and success – achieving 52 bushels per acre to meet global market demand of 26 million metric tonnes by the year 2025.
Media may contact:
Heidi Dancho, Director, Communications