Saskatchewan Pulse Growers invests in market access for a number of reasons. Over the years Saskatchewan has seen some great advancement in pulse crop production. As larger crops come off the field, more of the crop is being exported than ever before.
Over 80% of our production is exported to international markets, which means that growers need to have access to appropriate markets to ensure the industry’s competitiveness going forward.
Since 1997, SPG has partnered with grower groups from other provinces and pulse exporters through our national association, Pulse Canada to tackle issues such as transportation, maximum residue limits, and free trade agreements. Click here to learn more about Pulse Canada’s role.
Free Trade Agreements
Canadian agriculture is made up of many diverse agricultural sectors. Canada’s large arable land base and small domestic population require the establishment of export markets for the majority of our products.
SPG works together with industry to draw awareness to the importance of advancing Canadian bilateral and regional trade agreements. As such we are constantly assessing which markets are important for Canadian agriculture and why they are important to our industry.
Market Access and the Impact of Trans-Pacific Partnership
The Trans-Pacific Partnership (TPP) member countries together imported 519,000 tonnes of Canadian pulses in 2014. Combined, they would represent the third largest market for Canadian pulses behind India and China. The TPP is an opportunity to:
- Reduce trade barriers
- Improve harmonization of sanitary/phytosanitary issues between countries
- Improve access where pulses did not already have duty-free access
- Current 10% tariff on dry beans and peas exported to Japan will be eliminated immediately
- 10% tariff for beans and peas in Vietnam will be eliminated within two years
- Canadian peas exported to Japan will become duty-free in 10 years
Trade in food products is key to food security and mitigation of food price volatility. Addressing barriers to trade is an important part of the strategy to enhance development of commercial opportunities for subsistence farmers. Tariff barriers that restrict access reduce the value of pulse exports by reducing the price and/or quantity of pulse exports. Non-tariff barriers such as phytosanitary, health, or food safety barriers can create significant costs for the pulse industry, including demurrage, interest charges and re-selling distressed cargo. In cases where market access problems threaten to close markets, there can be devastating impacts on farm gate prices. The cost of tariff and non-tariff barriers is borne by farmers, processors and exporters, but is also borne by importers and consumers in the final destination market, who are ultimately paying more for the product. Creating greater efficiencies by ensuring open access to markets and predictability of trade is of benefit to all members of the value chain, from farmers to the end consumer.
Maximum Residue Limits
Although the pulse industry in Canada has made significant progress in developing acceptable maximum residue levels (MRLs) globally for pulse crop products used in Canada, growers are still advised to be aware of possible marketing restrictions that may arise from using certain desiccants/harvest management tools.
MRLs are set by CODEX and adhered to by countries around the world. For more information on MRLs in Canada, click here.