Federal budget supports ag trade and investment

April 22, 2015 – The canola industry is pleased with the renewed commitment to market access and Trans-Pacific Partnership (TPP) negotiations included in yesterday’s federal budget. The budget, tabled by Finance Minister Joe Oliver, included an $18.1 million increase in funding to the Market Access Secretariat as well as a renewed commitment to work towards concluding the TPP – a 12 country negotiation including key markets like Japan.

“The TPP is a tremendous opportunity for canola to have tariff free access for canola into Japan and other growing Pacific markets,” says Patti Miller, president of the Canola Council of Canada (CCC). “In fact, without a TPP agreement our industry will lose out on billions of increased value-added exports.”

Japan is a long standing, stable and valuable market for canola. Exports to Japan were worth $1.24 billion in 2014, comprised primarily of seed since high tariffs prevent significant oil exports.

Miller’s comments reflect how Australia has already secured preferential access to the Japanese canola oil market. “Without an agreement with Japan, the Canadian canola industry will continue to face higher tariffs on canola oil than Australian exporters, so these negotiations are very important,” says Miller.

“With 90% of Canada’s canola exported as seed, oil or meal, the increased investment in the Market Access Secretariat of Agriculture and Agri-Food Canada is also very positive for our industry,” says Miller. “We rely on the Secretariat as our partner to resolve market access issues – whether it’s blackleg in China, food safety certification in Taiwan or other priorities.”

The increased funding of $18.1 million is over two years, starting in 2016/17. It will support new agricultural trade commissioners who work on market access issues abroad and support a more active role in setting international science-based standards. There were also increased resources in the budget for trade commissioners abroad, who often work closely with agricultural trade commissioners at Canadian embassies and High Commissions in export markets.

“We are also pleased to see additional funds towards market development and manufacturing tax relief that will encourage continued investment in value-added processing,” says Miller. The budget allocates an additional $12 million to expand AAFC’s AgriMarketing Program, as well as an accelerated capital cost allowance rate on machinery and equipment.

The CCC 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. 

 

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Media may contact:                                                                                                                  

Heidi Rubeniuk, Director, Communications
204-227-5731
rubeniukh@canolacouncil.org