India, Canada propose protein centre, trade pact
India and Canada will aim to finalize a free trade pact by the end of this year said Prime Minister Mark Carney on Monday.
Carney visited Indian Prime Minister Narendra Modi in New Delhi in a bid to get economic ties back on track. In a joint media appearance with Carney, Modi said the two countries hope to increase bilateral trade to 50 billion US dollars by 2030. Trade value was about nine billion dollars, US, last year, or about 12.3 billion Canadian dollars.
Carney and Modi highlighted expanding opportunities for collaboration in things like agriculture technology and research. They welcomed a proposal for a Canada-India Pulse Protein Centre of Excellence in India.
The pulse protein centre would be a collaboration with the University of Saskatchewan.
India is a key market for Canadian pulses like lentils, and 80 per cent of those pulses are grown in Saskatchewan.
Saskatchewan Premier Scott Moe said the two countries would work together to accelerate innovation,
expand processing capabilities, and to meet demand for quality, sustainably-grown foods.
China, Canada confirm lower tariffs on canola, peas
China has suspended tariffs on Canadian canola meal and peas until the end of the year and lowered tariffs on canola seed. The federal government confirmed the move on Wednesday.
The effective tariff rate on canola seed is 14.9 per cent. That outcome broadly aligns with Prime Minister Mark Carney’s expectations. After his visit to Beijing in January, he said he anticipated a total tariff rate of around 15 per cent on canola.
In return, Canada has implemented a quota of 49,000 Chinese electric vehicles at a low tariff rate.
There’s been no indication that China will lower tariffs on Canadian pork or canola oil.
The Wheat Growers Association said the reduction is a positive development for Prairie farmers.
However, it said the disruptions highlight the importance of Canada’s trading relationship with the U.S.
It also called for accelerated development of the domestic biofuel sector.
Iran conflict drives up urea prices
Hostilities in and around Iran are having an impact on North American fertilizer prices, analysts reported earlier this week.
Iran has moved to restrict shipping through the Straight of Hormuz between Iran and Oman. Around a third of globally-traded urea passes through that strait.
On March 2, urea barges in New Orleans were trading 11 to 17 per cent higher compared to February 28, Argus Media reported. Middle Eastern urea producers had suspended offers and were grappling with shipping complications, said Argus analyst Calder Jett.
He added that if shipments are delayed or disrupted, that would mean a critical disruption to the American urea supply.
StoneX fertilizer analyst Josh Linville said the conflict couldn’t come at a worse time for North American farmers, who are gearing up for spring.
The urea market has also struggled to keep up with rising demand due to a lack of Chinese exports and reduced production in the European Union, Linville said. The conflict will disrupt natural gas shipments, which could also lead to higher fertilizer production costs.
