U.S. protectionism poses threat to Canadian canola

Biden needs to press for international trade reform.Ottawa—Buy America and other protection measures being considered in Washington pose a threat to Canadian farmers who export to the U.S., says Dave Carey, Vice-President of Government and Industry Relations for the Canadian Canola Growers Association (CCGA).Canadian agriculture is heavily export oriented and that makes balanced international trade rules essential, he told the Commons committee on Canadian-American relations. “We rely on the United States as a global partner to promote rules-based trade. We rely on it to promote the World Trade Organization (WTO). We rely on it to promote that, post-COVID, we cannot have the rise of protectionism.”Buy America and President Biden's plan to tighten import restrictions create a worrisome precedent, he said. “If our biggest trading partner no longer respects rules-based trade, that's a really strong signal as we're trying to reform the appellate body of the WTO.”There has been a rise of trade protectionism around the world during the pandemic, he said. “We need to make sure that we get back to what makes Canada great, which is being an exporting nation. We don't want to alienate the United States, but we also need to make sure that we take them to task. We can't hold China responsible for its trade issues if the United States isn't willing to step up.”Farmers require stable and clear trade rules. “They establish certainty in markets and the requirements for doing business, enable investment and reduce risk as well as cost. Stable market access also includes streamlined and aligned regulatory processes, particularly for crop protection products and seed varieties enhanced through biotechnology.”At present, canola, Canada's largest export commodity, faces little in the way of U.S. trade barriers and sales have grown creating a lot of processing plants, Carey said. “Canola is sold into the private market, and our larger sector has no direct involvement with government procurement or assistance.”American demand for canola has helped drive development of the sector in Canada. “A network of 14 oilseed facilities processes seed here at home. Maintaining value added in Canada is an integral component of canola's $29.9-billion contribution to the Canadian economy. Furthermore, many of these processing facilities are in rural Canada, supporting local communities, sustaining rural employment and providing sales opportunities for our farmers.”North America is an integrated agriculture market, with many companies operating in both Canada and the United States. If Canada isn't exempted from any U.S. protectionist measures, it will certainly make life more difficult in terms of these processing plants and their operating costs will certainly increase. Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.