Canada’s grain farmers and other export-oriented producers have issued statements praising the Canadian government for quickly passing legislation ratifying the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) paving the way for Canadian farmers to see increased export volumes that could result in higher farm revenues as early as next spring.
Alberta Wheat and Barley Commissions
“Canadian wheat is highly dependent on our global export markets,” Alberta Wheat Commission chair Kevin Bender said. “The CPTPP not only levels the playing field with our major competitors but also provides opportunity for better returns for farmers.”
New market opportunities for Canadian wheat and barley exports within the CPTPP zone include:
- Gaining a major advantage over U.S. wheat entering into Japan – one of Canada’s biggest markets – since the U.S. is no longer part of the agreement.
- The CPTPP levels the playing field between Canada and Australia and New Zealand for exports to Japan since they have bilateral agreements with Japan.
- Canadian barley will see increased demand within domestic markets since Canadian beef exports are one of the largest projected export gains.
Canadian Cattlemen’s Association
“It’s great news for beef producers that the deal will be coming into effect this year,” CCA president David Haywood-Farmer said. “The long years of recovering lost market access are firmly behind us now, and we have the bonus of seeing new markets open up to high-quality Canadian beef.
“I expect that exports of Canadian beef to Japan can easily double in 2019 with this lower and more predictable tariff.”
In 2017, Canada exported $160 million of beef to Japan with the 38.5 per cent regular tariff on fresh and a 50 per cent safeguard tariff on frozen beef. With CPTPP, Canadian beef will be exempt from the Japanese safeguard.
Canadian Pork Council
“Canadian pork producers would like to thank all those involved in this process, including all members of the House of Commons and the Senate, along with Minister Carr,” said Canadian Pork Council chair Rick Bergmann.
When the deal is implemented, Canadian pork producers will benefit from immediate tariff reductions of an estimated $51 million on fresh chilled pork.
Global Affairs Canada estimates Canadian pork exports to Japan will increase by $639 million, or 36 per cent.
Canadian Agri-Food Trade Alliance
“Canada’s agri-food exporters are thrilled that CPTPP legislation has received royal assent bringing official ratification of the pact one step closer to completion, said CAFTA president Brian Innes.
“For our members in the beef, pork, grains, cereals, pulses, soybeans, canola as well as the malt, sugar, and food-manufacturing industries this ensures Canadian exporters will benefit on Day 1 from tariff reductions. It’s the first step to eliminating many tariffs that have prevented meaningful market access to key Asian markets. These new opportunities in fast-growing markets will be transformative for the agri-food sector.
Grain Growers of Canada
“Today is a great day for grain farmers,” said Grain Growers of Canada president Jeff Nielsen. “I would like to thank the prime minister, Ministers Carr and MacAulay, as well as all parliamentarians for moving so quickly to ratify the agreement.”
“The government’s ambitious trade agenda is making a real difference in the lives of grain farmers,” said Margaret Hansen, chair of the GGC Trade and Markets Committee. “This deal, along with CETA and the USMCA gives grain farmers unprecedented preferential access to over one billion consumers.”
“The CPTPP will help increase incomes for all parts of the value chain, including farmers, while supporting jobs and economic growth,” Cereals Canada president Cam Dahl said. “This is good news for Canada. The CPTPP will expand Canadian access to countries like Japan, which are essential for Canada to achieve the target of $75 billion of agri-food exports in 2025, the growth target set in the 2017 federal budget.
“Asian markets are a key to the future growth of the agri-food sector. Japan already imports $4 billion in Canadian agri-food exports annually. The passing of C-79 and subsequent ratification of the CPTPP will allow for the opportunity to transform our Asian footprint,” continued Dahl.
Canadian Federation of Agriculture
“The Canadian Federation of Agriculture is very pleased to see the CPTPP receive royal assent so quickly, as ratification allows Canadian farmers to have a ‘first-movers advantage’ in entering these new markets and capturing export opportunities,” said CFA president Ron Bonnett.
CFA insists that the federal government help mitigate potential damages to supply-managed sectors from various trade deals such as CETA (Comprehensive Economic Trade Agreement with the European Union), the USMCA (United States-Mexico-Canada Agreement) and the CPTPP. Each trade agreement has allowed for further market access to these products, which has eroded their domestic market share.”