Canola still faces “systematic discrimination” in overseas markets, but the industry hopes to get the oilseed fairer treatment.
Canola Council of Canada president Barb Isman said she hopes the prime minister’s recent trip to India and China causes those countries to lower the tariffs on canola that make soybean imports more attractive.
Soybean import tariffs were lowered by the Chinese government last year after the United States and China negotiated a new rate, but Isman knows the canola industry will have to work harder than the soybean industry to get the same result.
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“I have no doubt that (lower soybean tariffs) are due to the greater influence of the United States in negotiating with countries that have a stronger interest in moving product into the U.S. than Canada and so are more amenable to providing concessions,” said Isman.
Import tariffs only become a major problem for an industry when it faces higher tariffs than competitors.
That’s the case in China and India right now, where soybeans import tariffs are lower than those charged on canola.
Importers have to pay a three percent tariff on soybeans, but a nine percent tariff on canola. That works out to about $18 per tonne more in tariffs for canola than soybeans and effectively cuts canola out of the Chinese market.
“In a market like this, that’s a huge amount of money that we can’t overcome,” said Isman.
“When there are soybeans wall to wall, it makes it even more difficult for us.”
Isman said the canola industry needs to open up markets like China and India to create the demand needed to absorb and pay for the industry’s hopes of producing consistently larger crops. Years ago these developing country markets were not considered important, but they are now needed if the industry wants to convince farmers to produce seven or 10 million tonnes per year.
“We as an industry have not focused on this in the past,” said Isman.
“Now we make sure we’re in contact with the Canadian government so that they can represent our interests.”
Isman said the Canadian embassy in China has told her that it plans to push the issue forward again, following the visit of Canada’s international trade minister.
