Canada to expand canola exporting markets including Korea
May 3, 2019
Global Korean Post
Canada’s canola producers exported $11 billion in canola to more than 50 countries in 2018.
However, as China which is one of big markets has banned Canadian Canola, the Government of Canada is committed to maintaining full market access for Canadian canola seed exports to China.
On May 1, Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Minister of International Trade Diversification Jim Carr announced actions to support Canadian farm families.
Minister Bibeau announced that the Government intends to amend the Agricultural Marketing Programs Regulations to temporarily increase loan limits under the Advance Payments Program (APP). These changes will help ease cash flow pressures that farmers are facing and help them manage the impacts of market disruptions in key export countries.
The regulatory amendment would change the loan limits for the APP for the 2019 year as follows:
- Advances of up to $1 million will be available on all commodities, more than double the previous limit of $400,000.
- The first $100,000 will remain interest-free on all commodities, except canola. Canola advances will be eligible for up to $500,000 (total) interest-free.
As part of the Government of Canada’s trade diversification strategy, Minister Bibeau also announced that she will be heading to Japan in May to participate in the G20 Agriculture Ministers’ Meeting. While in Japan, she will meet with Japanese industry leaders and officials from several countries to advance Canada’s agricultural trade.
Minister Carr announced that he will be leading a canola trade mission to Japan and South Korea in early June. Minister Carr’s outreach will build on his work to engage other high-potential countries including: UAE, Thailand, Malaysia, Pakistan, Bangladesh, Mexico, Germany, and France. Trade missions open doors and provide on-the-ground support so that companies can compete and succeed on the international playing field.
With the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canadian farmers and producers now have preferential market access to an estimated 1.5 billion consumers in more than 50 countries.
On April 1, 2019, Agriculture and Agri-Food Canada announced the formation of the Government of Canada Canola Working Group, made up of representatives from both industry, and provincial and federal governments.
The working group was created after China suspended the licenses of two Canadian companies to export their canola seed to China, citing non-compliance with their plant health requirements. At the same time, China strengthened their inspection measures on all Canadian canola seed shipments.
Canada’s canola industry contributes almost $27 billion dollars annually to the country’s economy.