As the Canadian government continues to look outside of China for exports, Export Development Canada (EDC) has announced an additional $150 million to its insurance for Canadian canola exporters. According to a news release, the added money will help exporters manage the risks and uncertainties that come with exploring new markets.
“As Canada’s export credit agency, we have listened to canola exporters navigating this challenging environment. We understand that insurance coverage is critical for them to expand into new markets by protecting their sales and enabling them to access more working capital from their banks,” says Carl Burlock, executive vice-president and chief business officer for EDC.
During a news briefing, International Trade Minister Jim Carr was asked about why the move to look elsewhere, such as Pakistan and Bangladesh, when it comes to trade and what it means for the confidence the government has with resolving the issue with China.
“I just think it’s good, old fashioned common sense,” he replied. “When you see that 40 per cent of your export in one commodity goes to a particular (country) it makes sense in the long term to expand the possibility … it also makes sense to deepen those relationships as we have done now with Japan and South Korea.”
Agriculture and Agri-Food Minister Marie-Claude Bibeau wouldn’t comment if the government is thinking about adding extra insurance to soybean and pork exporters who are starting to take on the pressure from the trade spat between Canada and China.