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Fall
2017
Grains
West
10
THE
FARMGATE
MASSIVEMARKETINGPOTENTIAL
REQUIRESACTION
FREE TRADE AGREEMENTWITHCHINACOULDSECURECANADA’S
POSITIONAS TOPGLOBAL PROVIDER INAGRI-FOOD
STAKEHOLDERS IN THE CANADIAN
ag industry are optimistic that a potential
free trade agreement (FTA) with China
could vastly increase value, predictabili-
ty and competitive edge in export. With
other countries—including Australia, New
Zealand and Chile—already securing FTAs
with China, the potential for Canada to do
so looks promising.
Members of the industry predict
negotiations will begin by the end of this
year, but in order to exceed other existing
agreements and fully address all potential
issues, including non-tariff barriers and
conflict resolution processes, completing
an agreement could take up to four years.
“The timeline will depend on the level
of ambition, and I think that level should
be high on Canada’s part,” said Phil de
Kemp, executive director of the Barley
Council of Canada (BCC). “China is the
largest market in the world right now, and
will continue to be into the future with
their growing middle class.”
As Canada’s second-largest export
market, our trade relationships with the
Chinese are already well established.
However, agri-food exporters have experi-
enced challenges in light of China’s defen-
sive protection of its domestic producers.
Certain industries, such as canola and
wheat, have been subject to high tariffs,
fluctuations in demand and low tariff-rate
quotas (where only specified amounts of a
product are allowed at a lower rate of duty
and anything beyond the allowance is
subject to a much higher rate).
With canola seed currently subjected
to a nine per cent tariff, the canola sector
sees massive potential in an FTA with
China. Rick White, CEO of the Canadi-
an Canola Growers Association, said an
Photo:Michael Interisano
National agri-food organizations are researching potential export gains in securing a free trade agreement with China. For example, such a deal may open big opportunities for
Canadian feed barley and increase canola exports by $1.2 billion annually.