The announcement this June of the launch of free trade negotiations between Canada and Indonesia has put a spotlight on the Asian market. For Canadian wheat farmers and exporters, the prospect of greater trade with Indonesia is worth close attention.
In recent years, China has hastily established barriers to Canadian imports that have created trade uncertainty. Canadian farmers have begun to see Chinese policy for what it is, a fragmented approach void of certainty that spurns the norms of regional and international trade agreements. Simply put, trading with China is like bartering on the black market; there is no recourse if you are ripped off. In order to ensure the livelihoods of Canadian farmers are not tied to the whims of Chinese politics Canada needs to take advantage of new markets that embody rules-based trade. If this occurs, farmers can expect predictability, the main ingredient of good business and trade.
With the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada will now have better access to international markets comprised of 495 million people, representing a $13.5 trillion chunk of the global gross domestic product (GDP).