Today Canada will officially sign onto the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) in Santiago, Chile.

“This week is a very positive step towards enabling more sustainable growth from canola exports,” says Jim Everson, president of the Canola Council of Canada. “In today’s uncertain times, Canada’s signing of the CPTPP demonstrates how we can continue to be globally competitive by eliminating trade barriers through trade agreements.”

More than 90% of canola produced in Canada is exported, though the Canadian industry cannot export value-added products to countries like Japan because of the high tariffs they apply to canola oil.

When implemented, the CPTPP will open new markets for value-added canola products by eliminating canola oil and canola meal tariffs and establishing more effective rules to prevent non-tariff barriers. When tariffs are fully eliminated in Japan and Vietnam over five years, exports of Canadian canola oil and meal could increase by up to $780 million per year.

“When our value chain comes together around the board table, we look at what is required for our sector to continue supporting jobs and prosperity for Canadians across the country, including those in the middle class,” says Everson. “The CPTPP is critical for our sector, and we’re very pleased that the Government of Canada is committed to implementing this landmark agreement.”

Western Canadian Wheat Growers (WCWG) is also pleased about the CPTPP signing.

“The expansion of an international trade market is in grain growers best interest,” said President Levi Wood.

WCWG says the CPTPP will open up countries for agricultural trade that previously Canada had limited access to, specifically, new opportunities for high quality Canadian wheat.

Japan is the world’s third largest economy, and will now be open to a Canada specific wheat quota.  This is a new market valued at $598.6 million annually.

“The WCWG firmly believes in free and open trade and the CPTPP takes significant steps in this right direction.  Canada needs to be amongst the first to sign and use the CPTPP,” says Wood.

 

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