Canada’s canola industry has a once-in-a-generation shot at bringing down barriers to exports of its canola seed.
The industry is using this round of negotiations under the World Trade Organization to set its crosshairs on import tariffs in countries such as China and Japan and domestic farm support in countries such as the United States and Europe.
“This is a once in a generation opportunity for us to get those things lowered,” said Tyler Bjornson, the Canola Council of Canada’s vice-president of corporate affairs.
“These talks don’t happen every day. They happen once every couple of decades.”
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The canola council has identified several oilseed importing countries with tariffs that discriminate against canola seed and oil.
For example, China’s import tariffs on canola are nine percent compared to three percent on soybeans while India has a 75 percent tariff on canola.
“We’re looking for big cuts,” said Robert Broeska, president of the Canadian Oilseed Processors Association. “Not only that but we’re pushing for big cuts out front. A lot of these negotiations end up giving you cuts, but they give them over time.”
Bjornon said negotiations could be completed in 2007, with the possibility of agreements being signed the same year on domestic farm supports and tariffs on agricultural products.
The benefits of those agreements could start to be felt as early as the following year, although Bjornson anticipates the changes will be phased in over time.
The Canadian Oilseed Processors Association is working with more than 30 seed crushing associations around the world to make the case for reforms on tariffs and domestic farm supports. A research group at Oxford, England, is doing a study on their behalf to illustrate the advantages of freer trade, Broeska said.
“Canada doesn’t have the same negotiating leverage as the U.S. does, which is why COPA is trying through the international seed crushers to link its fortunes to other oilseed processing industries, like those in Europe, Brazil and the U.S.A. We believe we have a stronger voice if we’re all linked together.”
Broeska said the benefits would not be only for producers and oilseed processors in developed countries such as Canada. Lower tariffs could make edible oil imports more affordable for consumers in countries such as India, China and Pakistan while also opening up market opportunities for growers in Brazil, Argentina, Malaysia and Indonesia.
“We just see a win-win all around.”
Canada last year produced about 7.7 million tonnes of canola on about 12 million acres of farmland. More than half of the crop is typically exported either as seed, oil or meal.
Bjornson could not predict how much exports could rise as trade barriers are brought down, because there are many countries involved with varying agendas regarding tariffs and farm supports.
“The canola industry is pushing hard for an ambitious outcome in this round of negotiations,” he said.
