Western Canola & Pulse Crops Producer 2011

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Trade winds blow in Ottawa By Barry Wilson Western Producer staff

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hen Parliament breaks for a holiday, ministers in the federal government typically hit the road to promote trade. Canada’s canola industry couldn’t be happier with that arrangement. Now, with a solid majority and no fear of losing a House of Commons vote, travel by Conservative miisters will not be restricted to parliamentary down weeks. “The fact that the government does have a pretty aggressive trade agenda is a good thing, good for the canola industry,” said Jim Everson, corporate affairs manager for the Canola Council of Canada. “With 85 percent of our product going to export markets, the more we can open up markets, the better it is for the industry.” For the crop year that ended July 31, 2011, the value of canola industry sales was $7.53 billion. More than $6 billion was in

exports of seed and oil. In October, trade minister Ed Fast was in China while agriculture minister Gerry Ritz was promoting Canadian products in Germany. Everson said the government’s increasing emphasis on trade talks with major markets is a good sign. The past three years have been dominated by agreements with smaller potential markets such as Colombia, Panama and Jordan. Now, attention has switched to major markets such as the European Union, Japan and India. “Those are all markets where we market canola seed or products now and the issue in these markets is not only tariffs,” he said. “It’s also non-tariff trade barriers and the predictability of market access.” Negotiations with the EU are the most advanced with an early 2012 deadline. Central to discussions is the potential for significantly increased canola sales into the

European biodiesel market. “They have a pretty progressive renewable energy policy there and I think if they implement the types of targets they are looking at for biofuels, they are going to create a lot more demand for oilseed feedstock and canola is an excellent oilseed for biodiesel,” said Everson. “We will always target the food market first but there is potential there and the European issue with GMO (genetically modified organisms) does not apply much in the fuel market.” Everson said the issue of blackleg that blocked canola from the Chinese market has been largely resolved and research is being funded with the Chinese to study the impact of the disease. For the canola industry, the issue in trade negotiations is not always lower tariffs. It also is setting clear rules and a process to settle disputes including in the established United States market. v

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