Industry Reactions to the Signing of the Trans-Pacific Partnership

Ministers involved in the TPP negotiations. Canada's Trade Minister, Ed Fast, third from left (source: Twitter, U.S. Trade Representative)

The Canadian ag sector has been quick to respond to the conclusion of the Trans-Pacific Partnership trade deal. Here’s a summary of industry and public reactions:

General | Dairy | Oilseeds & Specialty Crops | Grain | Beef |Pork | Poultry & Eggs

General

Canadian Federation of Agriculture

CFA is reviewing the details of the deal to better understand the varied outcomes for Canadian farmers.
“The Japanese market alone offers huge potential for our beef and pork producers,” noted Ron Bonnett, CFA President. “With our reputation for producing high products, Canadian farmers should be able to make substantial inroads into the Pacific Rim markets.”
“Certainly increased foreign access to our dairy, poultry and egg sectors was not the desired outcome in these negotiations, but we are encouraged to see the Canadian government has taken steps in announcing programs aimed at mitigating the negative repercussions to producers by means of compensation,” he continued.

Canadian Agri-Food Trade Alliance:

“This is an historic moment for the hundreds of thousands of Canadians who are employed by Canada’s export-based agriculture and agri-food sector,” said CAFTA president Brian Innes. “Whether you are a farm family who depends on world markets, a processor, exporter, or live in a community supported by agriculture or food processing, improved access to TPP markets bodes well for a stable and prosperous future.”

Full Press Release

Dairy

Dairy Farmers of Canada:

No new market access would have been better, but government fought hard and compensation seems fair.

“We obviously would have preferred that no additional market access be conceded in the dairy sector,” said DFC president Wally Smith. “However, we recognize that our government fought hard against other countries’ demands, and have lessened the burden by announcing mitigation measures and what seems to be a fair compensation package, to minimize the impact on Canadian dairy farmers and make up for cutting growth in the domestic market. We have come a long way from the threat of eliminating supply management. The government has clearly understood the importance of supply managed dairy farms in rural Canada and the economic activities they generate.”

“We intend to continue to diligently work to preserve a strong and sustainable Canadian dairy industry. Ensuring fair and predictable revenue for farmers has been at the heart of my mandate. Like my fellow dairy farmers, I am disappointed that additional access was granted in this deal. However, we remain as always, proud Canadian entrepreneurs and pillars in our communities, who are dedicated to producing high quality milk.”

Full Press Release

Twitter:

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Oilseeds & Specialty Crops

Canola Council of Canada:

Thumbs up, as canola oil and meal exports could grow by $780 million per year.

“Eliminating tariffs on canola oil in Japan is a huge benefit to the canola industry,” says Patti Miller, president of the Canola Council of Canada. “Once the agreement is fully implemented, the TPP will put us on a level playing field in one of our most valuable export markets.”

“Canada has a globally competitive canola processing sector,” says Miller. “By eliminating tariffs on value added products, the TPP will increase the value of our exports and bring benefits to the whole canola value chain. This increased value will flow through communities across the country.”

Full Press Release

Canadian Canola Growers Association:

“The TPP agreement for canola puts us back on track in this extremely important market,” says Brett Halstead, President of Canadian Canola Growers Association (CCGA).  “If Canada had not been a founding member of the TPP, canola’s market position in the region would have continued to erode over time, with other large oilseed-exporting nations receiving preferred status in many of Canada’s most important markets.”

Full Press Release

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Grain

Cereals Canada: 

“An enormous opportunity for export growth.”

“The counties in the TPP represent an enormous opportunity for export growth for Canada,” noted Cam Dahl, president of Cereals Canada.  “Many of the countries in the TPP are growing rapidly in income and population.  Being part of this agreement means that Canadian farmers and companies will be at the front of the line to meet this surging demand.”

“It is also important to recognize the cost of being left outside of the TPP,” continued Dahl. “Consider the markets we may have lost if our competitors in the U.S. and Australia gained preferential access to countries like Japan and Malaysia, Mexico, Peru and Chile.  Canada’s TPP participation means we will not be shut out of critical agricultural markets.  Canada simply could not have afforded to have been left out of this agreement.”

Western Canadian Wheat Growers Association:

“Terrific news”

“Gaining improved market access is crucially important for Canada’s export-oriented agriculture industry,” says Levi Wood, President of the Wheat Growers.“Allowing competitors to gain preferential access to key export markets would have been devastating for the grain, cattle and hog sectors.”

Full Press Release

Barley Council of Canada:

The future is brighter.

“The TPP is good news for Canada’s barley industry,” says BCC chair, Brian Otto. “It grants us additional market access opportunities, reduces and eliminates tariffs, and secures specific volume provisions in markets that would otherwise have cost us more concessions and less benefits if we had to negotiate our way back into the TPP at a later date.”

“Our entire barley value chain is eager to capture the opportunities that will now open up for Canadian barley.”

Full Press Release

Soy Canada:

“The TPP is a very good agreement for Canada’s soybean sector,” says Jim Everson, Executive Director of Soy Canada. “The agreement provides an open, predictable and competitive environment for our producers and exporters in key Pacific Rim countries.”

Full Press Release

Twitter:

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Beef

Canadian Cattlemen’s Association:

CCA President Dave Solverson called the agreement a game-changer for Canada’s beef industry — and Canadian agriculture as a whole.

“This is really fantastic news for Canada’s beef producers,” said CCA president Dave Solverson. “Canada’s beef producers have long needed to have equal access to these important markets in order to compete with Australian and U.S. beef. Now, through this agreement, Canada will receive the same preferential access to these markets as its competitors, leveling the playing field for Canadian beef producers once and for all.”

Full Press Release

Canada Beef:

“The TPP provides Canada the opportunity to finally be on a level playing field with other nations, and allows us service our brand partners through improved access into Japan and other Asian markets that are seeing a demand for Canadian beef,” said Jack Hextall, chair of Canada Beef.

The TPP will allow Canada to reduce its current 38.5 per cent tariff on beef in Japan to nine per cent over a span of 15 years, the same as other nations that previously held a tariff advantage over Canada.

Full Press Release

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Pork

Canadian Pork Council:

“While we look forward to seeing additional details in texts that become available in coming days, based on what was announced today, the CPC strongly supports Canada participating in the Trans-Pacific Partnership,” said Rick Bergmann, Chair of the Canadian Pork Council. “The TPP agreement provides important export growth potential which will encourage Canada’s 7,000 pork farmers to invest in their production facilities and to create new job opportunities for Canadians both on and off the farm.”

Full Press Release

Twitter:

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Poultry & Eggs

Turkey Farmers of Canada

Over the coming days and weeks, TFC will conduct a detailed evaluation of the challenges this agreement will bring to our farmers and the sector generally, as turkey production is displaced from Canadian farms. We will also undertake an evaluation of the mitigating steps offered to the Canadian turkey sector as a result of the concessions made at the Atlanta Ministerial meeting.

Speaking from Atlanta following the release of a closing statement from TPP Ministers’, TFC Chair, Mark Davies, commented on the outcome of the negotiations.

“Although the additional access granted to the Canadian turkey market will certainly be challenging, the finalization of the TPP agreement removes the cloud of uncertainty farmers have been living with over the last several years. We trust this will provide a stable, predictable trading environment moving forward, as the Government predicts.”

Full Press Release

Chicken Farmers of Canada

“The key part of yesterday’s announcement is the government’s firm commitment to immediately ending fraudulent import practices that have plagued the industry for over five years,” says Dave Janzen, CFC Chair.

“While we were unable to prevent important concessions on top of the substantial market access that Canada already provides to its chicken market, we appreciate the steadfast efforts of International Trade Minister Fast and Canada’s negotiators to blunt the irresponsible access demands of some key TPP members,” he continues.

As a result of the TPP agreement, Canada will be required to increase its market access for chicken by 28% to almost 10% of our consumption. This is a heavy hit. Given this additional access, we are counting on the government to cease the practice of regularly issuing supplementary import allocations.

Nonetheless, Chicken Farmers of Canada is pleased that the government announced that it will put in place long-term, meaningful fixes to end existing practices that have cost the chicken industry thousands of jobs, millions of kilograms in production, millions of dollars in revenues and millions of dollars in GDP contributions to the Canadian economy.

Full Press Release

Egg Farmers of Canada

The final agreement has granted additional access to the Canadian egg market in the order of 16.7 million dozen eggs, increasing to 18.8 million (or approximately 2.3% of production)

“We believe that supply management for eggs, poultry and dairy is both beneficial and essential to Canada, especially in the context of our solid domestic market-focused policy that allows us to produce eggs for Canadians that are among the best in the world ,” said Peter Clarke, Chairman of Egg Farmers of Canada. “Today’s agreement demonstrates that the Canadian egg industry will continue as an integral part of Canada’s agricultural future and will continue to deliver exceptional benefits to consumers in Canada while at the same time allowing other sectors to benefit from the export market.”

Additional time and analysis is required to fully understand the potential future impact of such a result on not just our farmers, but the entire value chain on which Canadian consumers depend. EFC, along with other supply-managed commodities, will work with government on the details of the agreement to ensure that the provisions agreed to do not jeopardize our Government’s commitment to maintain the integrity of the import control pillar of our system and to ensure our farmers can continue to deliver to our consumers the Canadian products they expect, need and enjoy

Full Press Release

Canadian Hatching Egg Producers

The concessions for broiler hatching eggs represent approximately 1.54% of the Canadian market. While necessary to secure a deal, it still represents a loss for Canadian hatching egg farmers. CHEP regrets the necessity of these concessions, while recognizing the opportunity that the Trans-Pacific Partnership represents for Canadian agriculture as a whole. CHEP is confident that the resiliency and innovative focus of Canadian farmers will lessen the impact of these concessions on the Canadian hatching egg industry.

Despite these concessions, Canadian hatching egg farmers will continue to invest in their operations and grow their businesses.

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The Trans-Pacific Partnership deal was signed early Monday morning, after years of negotiations. The agreement must still be ratified by the participating governments.

 

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