The federal government has announced that Export Development Canada will provide extra insurance to canola exporters as they diversify to new markets.
EDC will cover an additional $150 million in export volume to “mitigate the risk of selling into new markets and make it more likely they can access working capital from their partners,” said executive vice-president Carl Burlock.
“That need has never been more critical for Canada’s canola exporters.”
Burlock said EDC has been working with the canola working group, set up after China limited Canadian imports in March, and has identified Pakistan and Bangladesh in particular as possibilities.
International Trade Minister Jim Carr said the insurance is typically available for exports to familiar markets and buyers rather than new ones.
Asked by reporters if focusing on new markets means the government has lost confidence it can resolve its issues with China, Carr said diversification is “good, old-fashioned common sense.”
Agriculture Minister Marie-Claude Bateau said the first priority is to re-open the Chinese market, but diversification is also important.
Contact karen.briere@producer.com
