Ottawa-As more than 70 per cent of Canadian grain is exported, the many pressures on the world trading order are being felt by all producers, says Kyle Larkin, Executive Director of Grain Growers of Canada (GGC).

Speaking to the Commons international trade committee, Larkin said that Canadian grain and grain products go to more than 160 countries around the world, creating $45 billion in export value annually.

“Unfortunately, the rules-based trading order and Canadian exports are being challenged today like never before. Trade uncertainty, tariffs and non-tariff barriers are on the rise, directly impacting grain producers across the country, who rely on international trade for their individual farm revenues.”

The biggest challenges come from Canada’s two main trading partners -the U.S. and China. The U.S. has become “an unreliable trading partner, with changes in their international trade policy on an almost daily basis. Fortunately, all grain and grain product exports continue to be tariff-free under the Canada-United States-Mexico Agreement. However, tariffs on steel and aluminum will have an impact on farm equipment pricing and overall trade uncertainty has depressed markets for crops that family farms rely on.”

China accounted for more than $9 billion of grain and grain product exports in 2023 but now targets grain farmers in the current trade spat between the two countries. The 100 per cent duties introduced earlier this year on canola oil, canola meal and peas, and the recently introduced 75.8 per cent duties on canola seed, have had a detrimental impact on farm gate revenues. China has also begun a new anti-dumping investigation into pea starch, furthering the effects on producers across the country.

To respond to the changing international trade landscape, Canada must first champion rules-based trading through its domestic policies and decisions, Larkin said. That means domestic or international protectionist measures must be rejected because they undermine the principles of free, fair and open trade.

Canada has taken its place as an important supplier of food for granted for too long and other countries have caught up and are competing for market share. “To ensure Canada remains one of the top agriculture and agri-food exporters in the world, we must champion the rules-based trading order globally, strengthen our market access engagement and invest in trade-enabling infrastructure to meet the demands of the 21st Century.

“Canada must continue to instill, promote and defend the rules-based trading order, both domestically and internationally. Without it, our exports will shrink, impacting both grain farmers and Canada's national economy.”

The federal major projects list to bolster trade infrastructure should have included the Port of Vancouver as more than 50 per cent of Canadian grain is exported through it. “I can tell you that countries around the world are investing billions of dollars in their trade-enabling infrastructure and the Port of Vancouver should be at the top of our list.”

Regulatory co-operation with the U.S. and Mexico is also important especially on sanitary and phytosanitary measures, “which are extremely important.”

Canada also must get better at dealing with challenges to trade deals such as the one it has with the European Union, which half of the member states in Europe have not ratified. The market access secretariat at Global Affairs Canada is underfunded and requires more resources to make sure trade deals are fully implemented.

This news report prepared for National Newswatch