The Alberta Wheat Commission congratulates the federal government on concluding the Trans-Pacific Partnership (TPP), which holds the potential for expanded market opportunities in key wheat export markets. Â AWC looks forward to reviewing the details of the agreement.
Among the 12 signatories to the TPP, three countries are major customers of Canadian wheat, three others buy significant quantities on an annual basis and two countries are major competitors. The deal also includes countries with emerging markets that could further enhance international wheat trade.
â€śJapan, the United States and Mexico purchase an approximate three million tonnes combined of Canadian wheat per year, while the U.S. and Australia are major competitors in export markets such as Japan,â€ť said Kent Erickson, chairman, Alberta Wheat Commission. â€śCanada could not afford to remain on the sidelines and risk losing ground in key markets.â€ť
Japan is a premium market for Canadian wheat with average sales in excess of one million tonnes per year and as high as 1.5 million tonnes. In Japan, the TPP agreement will provide improved markets access for feed and food wheat though elimination of duties and increased quotas, Erickson said.Â Tariffs on wheat exports to Vietnam will be eliminated.
TPP will also provide significant benefits for other export-oriented agriculture sectors including barley, canola, beef and pork and give Canadian producers an advantage over competitors outside of the agreement, Erickson added.
The 12 signatories to the TPP are Canada, the U.S., Japan, Australia, New Zealand, Brunei Darussalam, Chile, Malaysia, Mexico, Peru, Singapore, and Vietnam. TPP countries represent over 40 per cent of the worldâ€™s gross domestic product (GDP).