Important trade discussions are going on this week in Vietnam, which could see a path forward for the Trans-Pacific Trade Partnership, better known as TPP.
After President Donald Trump was elected, the United States pulled out of the TPP negotiations. However, there are signs that the other 11 countries, including Canada, are ready to proceed. Jim Everson, President of the Canola Council of Canada, says it's unfortunate the U-S has chosen not to negotiate, but there are still a number of advantages for the canola industry if they do move forward with the remaining members. For example, Everson points out countries like Japan have high tariffs on canola oil, and if TPP was implemented Canadian bean oil would have a tariff advantage in Japan over U.S. soybeans, because the Americans wouldn't have the same reduction through the TPP. He also says Austrailia has a free trade agreement with Japan that includes reduction in tariffs for canola oil, so it would be beneficial to be on the same trading ground. Everson says through their analysis, those tariff reductions would result in more than $750 million in annual potential sales of canola oil to those countries.