Canada needs new trade deals and better transportation infrastructure

Indo-Pacific countries present great opportunities

Ottawa-Boosting agri-food exports to meet the growing demands of the Indo-Pacific region will require new trade deals and better transportation infrastructure, says Brian Innes, Executive Director of Soy Canada.

Canada needs trade agreements with the Association of Southeast Asian Nations (ASEAN) and Indonesia as well as a concerted effort to improve export movements of containers, Innes told a conference sponsored by the Canadian Chamber of Commerce.

Currently Canada has “a silhouette of what’s required, but there’s more work to do to make the silhouette a vibrant image.”

It is the only G7 country to have trade agreements with all other G7 members as well as be a member of the Pacific free trade deal, he said. “We’re not yet making the best use of our agreements and we have not yet completed agreements with ASEAN and Indonesia.

“We need meaningful agreements and with Indonesia there is real potential to see this happen. But this will not happen without Canadian commitment and focus.”

Indonesia is already important market for Canadian soybeans. “But trade agreements must do more than just eliminate tariffs. If governments don’t work together through our agreements to have science-based trade, non-tariff barriers limit our ability to adopt innovation and inject risk that prevents us from seizing opportunity.”

On transportation, Canada has the fundamentals for success,” he said. “Reliable and cost competitive container logistics are crucial for our success, but as a country we’re way behind what the U.S. is doing to encourage competitive container service. The U.S. government has been clear that monopolistic business practices of container lines that reduce service and inflate costs is unacceptable.”

Canada “must do more, both to make our system work better within our country, and to have our country have container service that is globally competitive.”

It is also crucial for the government and Canadians to understand that Canada’s agrifood industry is an incredible powerhouse, Innes said. “We represent one in nine jobs in Canada. We are one of the few countries that has an ability to grow food for other people on the planet. We’re a stable and reliable supplier of food and feed. For example, we’re one of only seven major grain exporting countries – and two of those are at war. And we have one of the most sustainable food systems with the most stringent environmental regulatory systems of anywhere on the planet.”

Canadian agrifood businesses have adopted innovation to have the best products produced very efficiently. Quebec has two world leading soy businesses “that have developed soybean genetics and a production system that delivers qualities our competitors struggle to compete with. Our beans are the best in the world thanks to seed innovation, and our system that delivers consistent quality.”

The Indo-Pacific’s middle-income population is growing rapidly and that has created “an increased demand for high-quality, nutrient-rich foods and agricultural products.”

The IndoPacific represents the biggest opportunity for export growth from Canada’s agrifood industry because it’s a region that needs protein. “And it’s a region with high income and population growth rates that both translate into strong demand for the quality food we produce in Canada.”

This news item was prepared for National Newswatch