Canola industry welcomes CPTPP agreement, enabling growth in value-added exports

January 24, 2018 – The Canola Council of Canada (CCC) applauds International Trade Minister François-Philippe Champagne’s announcement that Canada and the 10 other member countries successfully concluded discussions on a new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“This agreement is great news for the Canadian canola industry and communities it helps support across the country,” says Jim Everson, president of the CCC. “By eliminating tariffs and establishing more effective rules to prevent non-tariff barriers, the CPTPP enables more value-added exports and benefits the entire canola value chain.”

Japan is a long-standing and consistent market for canola seed, valued at more than $1.2 billion annually, but tariffs of approximately 15% have prevented canola oil exports. Through the CPTPP, the canola industry estimates that when tariffs are fully eliminated in Japan and Vietnam over five years, exports of canola oil and meal could increase by up to $780 million per year.

Implementing the CPTPP quickly is important to keep Canada from slipping behind competitors. Australia currently has preferential access to ship canola oil to Japan through their bi-lateral free trade agreement implemented in 2015. Once the CPTPP is fully implemented, Canadian canola will be on a level playing field with other oils into Japan.

“Leadership shown by the Government of Canada to ensure that Canada benefits from this deal provides a significant growth opportunity for the canola industry and the 250,000 jobs it supports across the country,” says Everson. “We thank the Government of Canada, Minister François-Philippe Champagne and Minister Lawrence MacAulay for this achievement and look forward to the official signing in March.”

Enabling the canola industry to increase value-added processing and productivity will also help achieve the government’s Budget 2017 goal to increase Canadian agri-food exports by $20 billion by 2025. “Achieving the canola industry’s goals, which include increased value-added processing, will deliver $3.5 billion in additional exports,” says Everson.

The Canola Council of Canada is a full value chain organization representing canola growers, processors, life science companies and exporters. Keep it Coming 2025 is the strategic plan to ensure the canola industry’s continued growth, demand, stability and success –  achieving 52 bushels per acre to meet global market demand of 26 million metric tonnes by the year 2025. Visit to learn more. 

Potential impacts of tariff elimination reflect a consensus of the canola value chain – which includes processors and exporters with in-depth knowledge of international market dynamics. Members were informed by research incorporating general equilibrium modeling that examined impacts of a TPP on each sector of the 12 countries’ economies under alternative scenarios. The study was completed by Dan Ciuriak, a former deputy chief economist for the Federal government’s department of Foreign Affairs and International Trade. For more information, view the report titled “Canola Market Impacts under Alternative TPP Scenarios”.


Media may contact:
Heidi Dancho, Director, Communications

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