Canadian Canola Growers Association media release
Winnipeg, Manitoba – June 14, 2018 Canada’s canola farmers are extremely pleased that Bill C-79, the implementing legislation for the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), was introduced in the House of Commons earlier today. Canola farmers now urge all Parliamentarians to support a swift ratification process.
“The CPTPP is critical to maintaining Canada’s competitiveness with other oilseed exporters,” says Jack Froese, President of the Canadian Canola Growers Association (CCGA). “The previous form of the agreement – the Trans-Pacific Partnership – has already been carefully studied, so we ask Parliamentarians to direct their attention to passing this Bill promptly.”
“Today’s introduction gets the ball rolling for Canada to be part of the first wave of countries to benefit from the agreement,” explains Rick White, Chief Executive Officer of CCGA. The Partnership enters into force 60 days after six countries have ratified the CPTPP. “Canola farmers ask all Canadian political parties to support the Bill, and ensure its quick passage,” says White.
Under the CPTPP, Japan and Vietnam will eliminate their tariffs on canola oil and meal. According to a 2016 study completed by the Canola Council of Canada, once tariffs are removed, canola exports could increase by $780 million per year or roughly one million tonnes of additional canola oil and meal exports. A boost in value-added canola exports means more jobs for Canadian workers, a stronger domestic value-added sector and more grain marketing options for Canadian farmers.
“We are at a pivotal time with this agreement and implementation of the CPTTP will ensure canola remains competitive,” says White. Australian canola already benefits from lower tariffs through an existing free trade agreement with Japan and Japanese tariffs on Australian canola oil are close to half those currently applied to Canadian oil. “The tariff advantage is a significant incentive for Japanese buyers to choose Australian canola oil supplies, and this will continue to grow until CPTPP is implemented,” says White. Japan is a top market for Canadian canola with exports valued at $1.4 billion in 2017.
In an increasingly volatile trade environment, free trade agreements such as the CPTPP reduce uncertainty and risk for those growing and exporting agri-food products for international customers. With 90 percent of canola exported, the CPTPP plays a critical role in ensuring the long-term sustainability of the canola sector and will help Canada meet its target of $75 billion in agriculture and agri-food exports by 2025.
“We thank Minister Champagne for introducing Bill C-79 and championing this landmark agreement and Minister MacAulay for his support for Canadian farmers,” says Froese. “We look forward to maintaining this momentum and securing the agreement’s benefits for all Canadians.”
CCGA represents more than 43,000 canola farmers on national and international issues, policies and programs that impact farm profitability and is a member of Canadian Agri-Food Trade Alliance (CAFTA).
Kelly Green, Director of Communications
t: 204.789.8821 e: [email protected]
The Alberta Canola Producers Commission is a farmer directed organization representing Alberta’s 14,000 canola growers and is a member of the Canadian Canola Growers Association.