Canada should work at reducing Asia-Pacific barriers to its soybean exports

A lot more soy could be shipped to those countries.Ottawa—Canada could be exporting a lot more soybeans to Asian countries if the federal government would address overseas tariffs and other barriers to shipments of them, says Brian Innes, Executive Director of Soy Canada.Soybeans are the 3rd most valuable crop in Canada, with exports worth $3 billion in 2021, he told the Commons international trade committee. “With more than 70 per cent of our production exported, we are very focused on global markets.” Asian and Pacific countries present an opportunity for significantly more growth for Canadian soy exports.A good example of the demand for Canadian soybeans and soy products has been the 12 per cent annual growth in shipments to the Philippines during the last five years, Innes said. “The question facing us is how do we get the most of current demand, and the demand growth that's happening. For our sector, this will happen by improving our access to these markets.”To accomplish that, Canada needs to eliminate foreign tariffs and establish ongoing regulatory collaboration on plant, animal and environmental health issues as part of a free trade agreement with countries such as Indonesia. “Under its current commitments, Indonesia could raise tariffs on soybeans to 27 per cent.”Another important step would be addressing non-tariff barriers like sanitary and phytosanitary issues related to plant, animal and human health, he said. “These issues can appear suddenly, create costs, create risk and even stop exports.”He told the MPs that he is still trying to find out when was the last time there had been a discussions between plant health regulators in Canada and Indonesia and Canada.Canada should also been pushing for access to India for food grade soybeans. That would a real growth opportunity if Canadian shipments did not face 45 per cent tariffs that are “very unpredictable and could be raised to 100 per cent at a moment's notice.” At the same time, Canada is a significant importer of organic Indian soybeans that come in without a tariff.It would also be helpful if there was an industry-government collaboration to proactively prevent non-tariff issues throughout the Asia-Pacific region, Innes said. “Increased collaboration and investment would reduce risks and costs while helping to enable innovation on Canadian farms.”Because of concerns about thistle seeds, Canada is not allowed to ship soybeans to Vietnam in bulk vessels although the U.S. can. “Then there are numerous differences over regulation of seed and crop protection technologies.While the demand for soybeans in the Asia-Pacific region is growing significantly for both food and feed markets, regulations on imports “are evolving – though often not in sync with what's happening here in Canada, he said. “The result is that while these technologies are approved here in Canada, until they are accepted in export markets we cannot commercialize them.“Investing in more collaboration between Canadian regulators and their Indo-Pacific counterparts will help minimize the trade barriers that arise when technology is regulated differently or is not based on science,” he said.