It was the trade agreement that almost wasn’t, but now that the Trans-Pacific Partnership is headed towards completion, Canadian commodity groups are tallying up the potential impact the deal will have on trade in the coming years.
Rick White, CEO of the Canadian Canola Growers Association, recently sat down with Shaun Haney to talk TPP11, now dubbed CPTPP, and its potential impact on not just tariff rates, but also on Prairie processing, canola acres, and more.
CPTPP is good news for Canada’s canola industry as tariffs on oil into Japan, specifically, will drop and be phased out over time. This could mean more Canadian canola moving overseas as a processed good vs. the raw product, keeping more of the value on this side of the ocean, says White.
While the CPTPP deal is an important one, there’s still more work being done on the trade file, including exploring a bilateral deal with China. “They’re a big customer that one year can be in the market and another year be out,” says White. A bilateral deal could create more consistency in demand and help ensure production from all those canola acres. Watch for more: