The Trans-Pacific Partnership Provides Lasting Benefits for Canola

Winnipeg, Manitoba – November 1, 2017   The Trans-Pacific Partnership (TPP) offers progressive trade opportunities for canola. For Canada’s 43,000 canola farmers, the value of the Partnership remains whole, even with the withdrawal of the United States, so next week’s meeting of the 11 TPP members in Vietnam is a platform for Canada to advance these very important discussions.
“The TPP contains several significant prospects for canola,” explains Rick White, CEO of the Canadian Canola Growers Association (CCGA). “It provides a framework to diversify our export markets and expand Canada’s trade within the Asia-Pacific region, to establish more predictable rules of trade amongst the nations, and to recalibrate tariff rates which make Canadian canola competitive with oilseeds from other oilseed producing countries.”
Collectively, the 11 member nations of the TPP imported more than $2 billion of Canadian canola seed, oil and meal in 2016. Japan remained the most important market purchasing $1.2 billion of canola seed.
“Realizing the tariff reductions that have already been agreed to would spur the sale of more value-added canola products to TPP nations, shifting exports from mostly seed to more oil and meal,” says White. It is estimated that exports of Canadian canola oil and meal could increase by up to $780 million per year once tariffs in Japan and Vietnam are fully eliminated. Processing more canola in Canada means economic growth for the domestic economy, more jobs for Canadians, and growth opportunities for farmers, their families and their rural communities.
“Equally important to new market opportunities is maintaining our current markets,” says White. “The tariff rate structure established under a bilateral trade agreement between Japan and Australia leaves Canadian valued-added canola products disadvantaged.”
The Australia-Japan Economic Partnership provides Australia a preferential tariff rate on canola oil. Canada currently faces a 6% higher tariff rate than Australia, which jeopardizes our competitive position in this long-standing, stable market for canola.
While the TPP is stronger with U.S., their withdrawal from the Partnership could have positive repercussions for Canadian canola farmers. Canadian canola products compete globally with other vegetable oils such as U.S. soybean oil. Under the TPP, Canadian canola oil would have better access to markets in Japan and the Asia-Pacific region than its U.S. vegetable oil competitor.
Diversifying Canadian trade and ensuring new market access opportunities is critical for canola farmers who export nearly 90% of what they grow. CCGA fully supports an agreement with the 11 remaining countries and encourages Canada to be a leader in pursuing its timely conclusion and ratification.
CCGA represents more than 43,000 canola farmers on national and international issues, policies and programs that impact farm profitability.
Kelly Green, Director of Communications 
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