Canada has removed a major trade impediment with its fifth largest wheat customer.
Colombia has agreed to remove phytosanitary import restrictions that were making Canadian exporters antsy about shipping product to that market.
The country’s plant protection organization no longer requires Canadian wheat shipments be certified free of dwarf bunt disease and other types of seeds.
Cam Dahl, president of Cereals Canada, said the agreement puts Canada on equal footing with other exporters, such as the United States and Argentina.
“We can pursue the opening up of that market. It is really good news.”
Read Also
Green lentil market oversupplied
Farmers in Western Canada can expect price pressure on their new crop of green lentils, as the available supplies among the world’s major lentil-growing nations increase significantly.
Colombia is already a substantial buyer of Canadian wheat, ranking fifth behind the U.S., Japan, Indonesia and Peru.
The country bought 1.07 million tonnes of Canadian wheat last calendar year. They were worth $335 million, which is up from $209 million in 2013.
Dahl said Colombia is a growth market that is hungry for wheat, and Canada will now be better able to service the demand.
“I do expect over time that we’re going to see significant increases in shipments to Colombia,” he said.
Canada has a free trade agreement with Colombia that came into effect in 2011, but it didn’t resolve the phytosanitary issue.
Dahl said it was a serious trade impediment, which caused Canadian wheat ships to be held up in port last year.
“It was really difficult to try to carry on doing business shipping wheat to Colombia,” he said. “It was significantly increasing the risk.”
He credited embassy officials, the Canadian Grain Commission and the industry for pressuring the government to change its regulations.
Dahl said the agreement could have a ripple effect with other countries in the region.
“They have a tendency to follow some of Colombia’s regulatory initiatives, so it’s an important country.”
