CANCUN, Mexico – Four Canadian commodity groups are considering setting up a permanent trade office in Mexico.
The Canadian Special Crops Association, Pulse Canada, the Canola Council of Canada and the Flax Council of Canada would share the costs of operating the proposed bureau.
Francois Catellier, executive director of the CSCA, said so far his board of directors is the only one to sanction the idea.
“It still needs to be ratified by the other three potential members,” he said during the association’s 17th annual convention.
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It would be the first international office for the CSCA, which has a long way to go to catch up to groups such as the U.S.A. Dry Pea and Lentil Council, which operates seven trade offices around the world.
Catellier said it’s important to establish a permanent presence in Mexico, which is Canada’s third largest trading partner for crop and livestock exports. The country bought $420 million of Canadian agricultural goods in 2002.
Business will improve because as of Jan. 1, 2003, the tariff phase-out period with Mexico ended under the North American Free Trade Agreement. That means most agricultural goods are now flowing freely between Canada, the United States and Mexico.
Tariffs have been steadily declining over the past 10 years and trade has been rising accordingly. Mexico bought $253 million of Canadian oilseeds (excluding soybeans) and $17 million worth of dry peas and beans last year, according to federal government statistics.
Catellier said the special crops and oilseed groups feel a permanent trade office in Mexico would foster continued growth in sales of those commodities. Delegates at the conference were especially excited by the potential for beans.
He said trade missions can be effective, but all too often groups visit a country, put on some food shows and technical seminars and leave.
“It could be another year or two before they see a representative from Canada again.”
A permanent trade office would be able to answer questions from buyers and work with the Canadian embassy.
Tenders have already gone out to management companies, which will bid on the right to operate the office. The commodity groups will review the tenders in May.
The groups have set a ratification deadline of April 2004.
Pulse Canada and the Canola Council of Canada would be the deal’s main players.
“There’s some bigger fish that need to make a decision on this one,” Catellier said.
