The CFFO Commentary: Canadian Agricultural Trade Policy from a Practical Perspective

By Nathan Stevens
May 11, 2012

Canadian trade policy is one of the more controversial issues that Ontario farmers live with every day. There are segments of Ontario agriculture that would benefit from more open trade and segments that would not reap the same rewards. A recent trade policy session held by the George Morris Centre brought in several experts on the intricacies of international trade deals and the challenges and opportunities that Canada and its farmers are currently facing as talk over joining the Trans-Pacific Partnership heats up.

First and Foremost, the multi-lateral approach is stalled at the moment and bilateral and regional deals are picking up steam. The Doha Round of the World Trade Organization negotiations is stuck. Instead, countries that see mutually advantageous situations are developing bi-lateral deals, such as the Canada-Europe Union CETA, or regional deals, like the Trans-Pacific Partnership.

Mark McConnell, a trade lawyer, shared his view on the perspective of the United States (US), the largest player in the Trans-Pacific Partnership. The U.S. is more concerned about Japan as a potential partner than either Canada or Mexico. He noted that the new Farm Bill appears to be heading towards serious cuts in support programs. Meanwhile, elements of the U.S. dairy sector are pushing towards a form of supply management, which will greatly impact U.S. views on the Canadian supply management system from a trade perspective.

Larry Herman, a trade lawyer who believes in an aggressive stance on trade, argued that the dairy industry should be developing transitioning options for the government to move forward on these deals. From his point of view, the system does not need to be dismantled, but aspects of it could be changed in order to further trade opportunities. He also noted that these deals aren’t just about agricultural interests, and that other sectors have mixed views of the deal as well.

From the perspective of Peter Gould, General Manager of Dairy Farmers of Ontario, the dairy supply management system is working well, is willing to discuss issues, but has no intention of offering transition options to the Canadian Government. The innovative dairy industry in Ontario is focused on expanding into new markets and finding new opportunities for milk producers.

There are many different perspectives on the future of agricultural trade policy and the impact that it will have on Ontario’s farmers. If Canada succeeds in joining the Trans Pacific Partnership, there will be opportunities and challenges that innovative farmers will need to prepare for in our increasingly global business environment.

Nathan Stevens is the Interim Manager and Director of Policy Development for the Christian Farmers Federation of Ontario. The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. The CFFO Commentary is heard weekly on CFCO Chatham, CKNX Wingham, and UCB Canada radio stations in Chatham, Belleville, Bancroft, Brockville and Kingston and in Brantford and Woodstock. It is also found on the CFFO website:www.christianfarmers.org. CFFO is supported by 4,200 family farmers across Ontario.

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Welcome to
Ontario Agriculture

Sign Up
or Sign In

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Low commodity prices and high input costs a double whammy for Manitoba farmers

Manitoba farmers are facing a perfect storm of low grain prices and soaring fertilizer costs that are threatening profitability for both the current harvest and next year’s crop. Current harvest delivery prices have fallen to $7 per bushel for hard red spring wheat, $13.25 for canola, $11 for soybeans and $4 for oats, representing harvest pricing typically seed at the lows of a pricing cycle. On the cost side, fertilizer costs have climbed significantly from the numbers used in Manitoba Ag’s 2025 crop cost of production guide, which was compiled last November. Urea has jumped to $850-900 per metric tonne, about 30 per cent higher than the $690 per tonne used in those calculations. Data from Manitoba Ag show a surge in crop production costs in 2022. Those have stayed elevated and, when combined with current grain prices, the cost pressure is particularly acute.

US wheat finds new markets in Asia

Flour millers in Asia have ramped up imports of U.S. wheat in recent weeks, driven by competitive prices from American suppliers and delays in shipments from the Black Sea. Indonesian importers have finalized deals for around 500,000 tons, while buyers in Bangladesh secured about 250,000 tons and millers in Sri Lanka acquired around 100,000 tons. Millers are taking both U.S. soft white wheat and hard red winter wheat varieties. Apparently, there were some weather issues which delayed cargoes from the Black Sea region, and U.S. prices have been pretty competitive. This is additional demand for U.S. wheat in Asia, complementing purchases by traditional buyers such as Thailand, the Philippines and Taiwan.

Federal, Provincial and Territorial Ministers of Agriculture (FPT) Meetings Highlight Farmer Concerns

Industry leaders and government officials kicked off the FPT meetings at a Manitoba farm. Farmers and representatives from the Canola Council of Canada (CCC), CCGA, and provincial commissions shared their concerns directly with Minister MacDonald and Parliamentary Secretary Kody Blois. A key message was clear: farmers cannot borrow their way through these trade disputes, they were not of their making. Farmers are feeling the damage directly in their pockets. With canola selling at a discount between $60-$100/tonne...on an average 20MMT crop, that translates to estimated losses of $1.2–2.0 billion from lost exports to China. Federal Announcements: Some Support, but Gaps Remain The federal government announced $370 million in biofuel funding and additional trade diversification support. While these measures are a step in the right direction, they fall short of addressing the direct impact on canola farmers and exporters in lost bookings. Concerns remain over the lack of timelines for re

The Last Word (For Now) on Rest Stops During Long-Distance Transport

When the Canadian Food Inspection Agency (CFIA) began to muse about requiring that cattle be unloaded and provided with a rest stop after 36 hours of transportation, Agriculture and Agri-Food Canada (AAFC) and Canada’s beef industry funded a series of research projects led by Karen Schwartzkopf-Genswein’s team at AAFC’s Lethbridge Research Station to determine whether a rest stop would benefit weaned calves. The research began before the regulations were revised, but the regulations were revised before the research could be completed. Three consecutive research trials conducted in 2018, 2019 and 2020 found that providing a rest stop during long haul transportation offered no consistent, measurable benefits for animal welfare. A companion project led by Trevor Alexander at AAFC Lethbridge looked at bacterial populations in the respiratory tract of those same calves. In September 2023, this column described how microbiological testing from the 2018 transportation trial found that rested

Federal Plastics Registry has new compliance requirement

The federal government has created new reporting requirements under its new Federal Plastics Registry. The registry is being phased in over a few years, however phase 1 requires Canadian brand owners to report on plastic packaging placed on the market by September 29, 2025, for the 2024 calendar year.

More…

Badges | Report an Issue | Terms of Service