Imports/Exports
Collaboration, communication and co-ordination are front and centre as Canadian Pacific prepares to deliver best-in-class service in the 2017-18 crop year.
Canada and the United States (U.S.) benefit from a long-standing history of bilateral cooperation, especially in agricultural trade. The Government of Canada is working closely with the U.S. Administration, as well as state and local officials, to strengthen the robust Canada-U.S. partnership and to ensure continued support for millions of trade-dependent middle-class jobs on both sides of the border.

As part of these efforts, Minister Lawrence MacAulay travelled to Oregon and Idaho to promote the benefits of agricultural trade. The Minister's first stop was in Portland, where he took part in the Pacific Northwest Economic Region (PNWER) Summit, an annual event that brings together state and provincial representatives, as well as industry stakeholders, to discuss opportunities for growth and cooperation within the region. At PNWER, Minister MacAulay delivered a keynote address where he highlighted the almost $12 billion in Canada-U.S. agriculture and agri-food trade generated by PNWER member states and provinces in 2016.

The Minister also participated in the summit's feature agricultural session, where he emphasized that nearly nine million U.S. jobs depend on trade and investment with Canada. While in Portland, the Minister also got a first-hand look at the value of the Canada-U.S. integrated supply chain, touring the Canpotex facility at the Port of Portland, and visiting a local brewery that uses Canadian ingredients in several of its beers.

Minister MacAulay's next stop was Sun Valley, Idaho, where he gave a keynote address and met with state officials and industry representatives at the annual meeting for the Western Association of State Departments of Agriculture (WASDA). His final stop was in Boise, where he discussed bilateral agricultural trade opportunities with key members of the Idaho business and agriculture community.
Canada’s minister of agriculture and his Mexican counterpart say they’re looking to increase trade between the two countries despite concerns the U.S. wants to review the North American Free Trade Agreement (NAFTA).

“[There’s] many products they can produce on the fresh market side, and others that we need in this country, and there’s many products we have like canola and other products we want to export to Mexico. And that’s what we’re working on today,” said Agricultural Minister Lawrence MacAulay, after meeting with Mexico’s agriculture secretary. | READ MORE
Canada and the European Union have finally agreed on a date for provisional application of the oft-delayed Comprehensive Economic and Trade Agreement.

The provisional application of the massive deal will come into effect on Sept. 21, according to a joint-statement from Prime Minister Justin Trudeau and Jean-Claude Juncker, president of the European Commission, issued at the G20 summit meeting in Hamburg Saturday morning. | READ MORE
Weed control challenges have grown steadily worse since the first glyphosate-resistant weeds were discovered in 2001. According to a 2016 Stratus Ag Research study, resistant and tough weeds currently infest more than 100 million acres of North American farmland. For additional weed control solutions, the Enlist weed control system was developed.

Italy is proposing that pasta packaging show where the wheat was grown and milled.

Canadian exporters and farmers fear the move would depress prices in Canada, the biggest global durum exporter, as it would require Italian pasta makers to segregate supplies by country. Italy’s move comes as a Canada-Europe free trade deal moves to final stages of approval. | READ MORE

 

 

Leaders from the Canadian Federation of Agriculture (CFA) strengthened their Canada-U.S. connections and underscored the benefits of NAFTA last week during meetings with American Farm Bureau representatives in several states. The five-day tour included visits to California, Kansas, Iowa and Wisconsin.

“What we've learned from these discussions is that U.S. farmers depend on NAFTA as much as Canadian farmers do. No one wants to jeopardize the agreement for fear of losing the significant benefits accrued by all parties including well established markets for agriculture and agri-food products,” says CFA President Ron Bonnett.

Bonnett said that the Wisconsin Farmers Union also supports NAFTA and were in agreement that the diafiltered milk issue was a scapegoat for the larger problem, which is the current worldwide glut of milk on the market.

"The key take-away from our U.S. meetings is that we now have a good chance to resolve some of the ongoing barriers to trade that stand apart from tariff rules. Farm groups in Canada and U.S. have long called for harmonized regulations," said Bonnett.

The CFA will continue to work with its members and government officials to seek and implement actions that will modernize North American trade, leading to greater value for all NAFTA partners.
The Earth’s capacity to feed its growing population is limited – and unevenly distributed. An increase in cultivated land and the use of more efficient production technology are partly buffering the problem, but in many areas increasing food imports solves it. For the first time, researchers at Aalto University have been able to show a broad connection between resource scarcity, population pressure, and food imports, in a study published in Earth’s Future.

“Although this has been a topic of global discussion for a long time, previous research has not been able to demonstrate a clear connection between resource scarcity and food imports. We performed a global analysis focusing on regions where water availability restricts production, and examined them from 1961 until 2009, evaluating the extent to which the growing population pressure was met by increasing food imports,” explains postdoctoral researcher Miina Porkka.

The researchers’ work combined modelled data with FAO statistics and also took into consideration increases in production efficiency resulting from technological development. The analysis showed that in 75% of resource scarce regions, food imports began to rise as the region’s own production became insufficient.

Even less wealthy regions relied on the import strategy – but not always successfully. According to the research, the food security of about 1.4 billion people has become dependent on imports and an additional 460 million people live in areas where increased imports are not enough to compensate for the lack of local production.

Opportunities to sustainably improve food production

The big issue, says co-author Dr Joseph Guillaume, is that people may not even be aware that they have chosen dependency on imports over further investment in local production or curbing demand.

“It seems obvious to look elsewhere when local production is not sufficient, and our analysis clearly shows that is what happens. Perhaps that is the right choice, but it should not be taken for granted.”

The international food system is sensitive and price and production shocks can spread widely and undermine food security – especially in poorer countries that are dependent on imports. As a result, further investments in raising production capacity could be a viable alternative. Especially in sub-Saharan Africa and India, there are opportunities to sustainably improve food production by, for example, more efficient use of nutrients and better irrigation systems. Miina Porkka emphasises that the solutions will ultimately require more than just increasing food production.

“Keeping food demand in check is the key issue. Controlling population growth plays an essential role in this work, but it would also be important to enhance production chains by reducing food waste and meat consumption. Since one quarter of all the food produced in the world is wasted, reducing this would be really significant on a global level.”
While making the rounds at industry events this winter, I noticed one topic was sure to draw a crowd every time. It seems producers, suppliers and other industry stakeholders are eager to soak up whatever information they can on international markets and trade – and with good reason.
Premier Brad Wall is travelling to Washington D.C. next week to raise awareness of the importance of Canada-U.S. trade and the benefits of the North American Free Trade Agreement (NAFTA).

“With a new administration in place in Washington, it is vital that we highlight the value of free trade and the risks associated with protectionism.  Saskatchewan is a trade dependent province.  We need to do everything we can to ensure our exporters have access to our most important market,” says Wall in a press release.

The visit will last from April 3 to April 6, where Wall will meet with Senators, members of the House of Representatives, and senior administration officials.

On April 5 Wall will deliver a keynote address at the Heritage Foundation, where he will also participate in a round table discussion on trade, energy and economic policy.

The United States is Saskatchewan’s largest customer, accounting for about half of the province’s total exports, shipments valued at $12.9 billion in 2016.  Last year, the value of Saskatchewan’s exports to just two states – Minnesota and Illinois – surpassed what the province exported to China.  Meanwhile, the U.S. was the source of 83 per cent of Saskatchewan imports in 2016.

Last year, the U.S. had a trade surplus with Canada, the only trade surplus it posted among its five largest customers.

In addition to promoting the importance of trade, Wall will tell the Saskatchewan story, emphasizing the province’s role as one of the world’s top producers of energy, food and fertilizer and its status as a research leader in energy, carbon capture and storage and biosciences.
The Canadian Agri-Food Trade Alliance (CAFTA) has released a report that outlines the potential for expanding trade in China: a market that accounted for $5.6 billion in Canadian agri-food and agri-food exports last year. China is Canada’s second-largest two-way trading partner (after the U.S.) and is projected to be the world’s largest agri-food importer by 2021.

The report, entitled “Chasing China - Expanding Canada’s Agri-Food Exports to China,” describes the growing opportunity in the country for Canada’s agri-food exports. Currently, agri-food exports to China are already significant – China demands one third of Canada’s canola exports and represents an important market for soybeans, pulses, wheat, barley, beef and pork.

Despite the large and growing demand for Canadian agri-food products in China, the report points out that Canadian exporters continue to face serious barriers that are hampering growth. For example, tariffs and non-tariff barriers reduce the range of products that can be exported and raise uncertainty for exporting businesses.

While overcoming the barriers will be tough for many agri-food commodities and value-added food products Chinese production can’t keep up with demand and there are opportunities to improve trade.

Tariff elimination and tariff quota expansion for wheat, barley, pulses, soybean, canola as well as sugar and sugar-containing products would provide opportunity for the Canadian industry. In some cases, Canada faces a significant trade imbalance with China, particularly in value-added prepared foods and is at a competitive disadvantage compared to other countries like Australia who have signed free trade agreements.

The full report can be found here.
The European Union has voted to ratify the Comprehensive Economic Trade Agreement (CETA) while asking the Canadian government to address important outstanding issues.

“Getting the CETA through the European Parliament is a tremendous step forward the farm and food sector that is growing through exports – it’s good news for trade and speaks to the Canadian government’s efforts so far,” said Brian Innes, president of the Canadian Agri-Food Trade Alliance (CAFTA). “But we need to make sure that the agreement delivers on its promises. Non-tariff barriers will prevent a large part of the agri-food sector from using the agreement if they are not resolved.”

The agreement holds huge potential for growth and has been supported by CAFTA since negotiations began eight years ago. It will eliminate EU tariffs on 94 per cent of Canada’s agri- food products, and could drive additional exports of up to $1.5 billion, including $600 million in beef, $400 million in pork, $100 million in grains and oilseeds, $100 million in sugar-containing products and a further $300 million in processed foods, fruits and vegetables.

Sticking points remain, related to EU treatment of crop input products, such as biotechnology, which need to be addressed before the agreement comes into force.

In addition, CAFTA wants the government to commit to a strong advocacy strategy and a comprehensive implementation plan for agriculture and agri-food exporters that will deliver real access for Canadian companies once the trade doors are opened.
On Oct. 30, Prime Minister Justin Trudeau, Donald Tusk, president of the European Council, and Jean-Claude Juncker, president of the European Commission, signed the Comprehensive Economic and Trade Agreement (CETA) between the European Union (EU) and Canada.
The Canadian Agri-Food Trade Alliance (CAFTA) is applauding the Government of Canada for signing the Comprehensive Economic and Trade Agreement (CETA) with the European Union.
The Canadian Federation of Agriculture (CFA) has submitted recommendations to a consultation on a Canadian Transportation Agency review, urging federal Transport Minister Marc Garneau to commit to meeting with western farm leaders to hear their concerns about grain transportation.
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