Agriculture is expected to be a winner as the new Parliament gets back to work, led by a majority government with a strong trade agenda.
Senior officials from the international trade department told the House of Commons trade committee Sept. 29 that trade deals negotiated but not yet passed by Parliament have potential benefits for agriculture.
Legislation to implement the deals was debated but not approved.
Kirsten Hillman, director general of the department’s trade negotiations bureau, told MPs that a free trade deal negotiated with Panama has some of the greatest potential. It is one of the fastest growing economies in the region and already has a two-way trade with Canada of more than $200 million.
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“Once in force, this agreement will provide important commercial gains for the Canadian economy by offering Canadian workers and businesses preferential access to this dynamic and growing market,” she said.
“Panama will eliminate tariffs on 99.9 percent of recent non-agricultural imports from Canada. Panamanian tariffs on 88 percent of Canadian agricultural imports will also be immediately eliminated.”
She said Panama has also negotiated free trade deals with the United States and the European Union.
“So it’s important that we implement this agreement to ensure that Canadian companies remain competitive in the Panamanian market and do not compete against their competitors on an uneven playing field,” she said.
Hillman said another priority is the Canada-Jordan free trade agreement, which remains unapproved. It was signed in June 2009 but still has not been ratified by Parliament.
Canada-Jordan trade is much smaller, valued at just $86 million in 2010, but it is an expanding market and offers a window on the broader Middle East market.
She said the deal will eliminate tariffs on 99 percent of products recently shipped by Canada. Tariffs are now 11 to 30 percent.
“Key Canadian sectors will benefit from duty-free access including forest products, machinery and agricultural exports such as pulses, frozen potato products and beef,” said Hillman.
