SASKATOON, Sask. – A change in the trade deal between Canada and China is offering farmers some relief after a turbulent year in the fields.
This week, Canada and China extended an agreement that will keep Canadian peas and canola meal tariff-free in the Chinese market for at least another two years.
“It brings us some certainty we can plan around,” said Stuart Lawrence, chair of Saskatchewan Pulse Growers.
Lawrence, who farms near Rosetown, Sask., is already planning his crop rotation for next year. “It is really, really difficult to pencil in a crop that you may not be able to sell,” he said. “Knowing that we have a two-year agreement allows us to plan our rotations for at least two years.”
China is one of Canada’s top buyers for yellow peas and canola, although Canadian pulse growers compete with Russia for the Chinese pea market, according to Lawrence. “Unfettered access is going to be very important for us to compete against our global competitors,” he told CTV News.
In March, China paused its tariffs on Canadian peas, canola meal, lobster and crab. In exchange, Canada agreed to allow certain Chinese aluminum and steel into the Canadian market. The deal was set to expire at the end of the year.
Since the tariffs lifted, Canada has moved $421 million worth of yellow peas to China, according to numbers from Saskatchewan Pulse Growers.
While producers welcome the deal extension, it does not relieve all the stress for farmers.
“It is somewhat good news, but it cannot replace all the other changes (and) all the challenges,” Lawrence said.
Chinese tariffs are still in place on certain Canadian canola products, including a 100 per cent tariff on canola oil. Canola seeds are also subject to Chinese tariffs.
Trade talks are also ongoing to gain access to Chinese markets for other Canadian pulses, including faba beans, lentils and chickpeas.
On top of tariffs, this year Saskatchewan producers faced record-high costs of production, significantly higher diesel prices and a weather-delayed, waterlogged harvest that affected yields and grain quality.
Laurel Feltin, executive director of the Saskatchewan Association of Rural Municipalities (SARM), says the rising costs of fertilizer and steel for machinery are also hurting producers’ bottom lines.
“It is becoming very expensive,” she said. “All of the things that farmers need to do their jobs well are rising in price.”
SARM has been lobbying the federal government to improve agricultural trade within the Chinese market to help Saskatchewan producers. “Agricultural producers need certainty in this uncertain time, and I really do think this is a nice signal,” she said.
Feltin says the lengthened deal with China is a “step in the right direction,” but more work is needed to remove the significant barriers for canola oil and seeds.
“Anything we can do to keep working together to move more of those trade deals forward is very important for the future,” Feltin said.
