RE: CONSULTATIONS ON A POTENTIAL FREE TRADE AGREEMENT WITH CHINA

Similar documents
Canadian Fertilizer Institute. Presentation to the. Senate Standing Committee on Agriculture and Forestry

PRE-BUDGET RECOMMENDATIONS Government of Alberta. Submission by Fertilizer Canada

Submitted Electronically. July 18, 2017

Re: Response to consultations on Proposed Binational Phosphorus Load Reduction Targets for Lake Erie

The Honourable Catherine McKenna, P.C., M.P., Minister of Environment and Climate Change

Fertilizer Canada: Delivering Exceptional Member Value Through 2020

Where Do We Go From Here? Magnusson Consulting Group 1

Canpotex Growing Relationships

4R Ontario Update Ag Sector Working Group February 14, 2017

Natural Gas and Nitrogen Fertilizer. WSU ALL Extension Conference March 7, 2997 Spokane, Washington

10 Million Acres of Opportunity. Planning for a decade of sustainable growth and innovation in the Canadian soybean industry

Golden Opportunities and Surmountable Challenges: Prospects for Canadian Agriculture in Asia. Mike Gifford

Brownlee. President and CFO. May 17, 2011

The Potash Outlook. Al Mulhall Director, Market Research - PotashCorp. November 2, 2005

With an Introduction to Commodities Chase Mathew, Kar Seng Yee Alexander Hu, Christopher Chung

Fertilizer Industry s Views: Enhancing Agricultural Productivity Sustainably. Luc M. Maene, Director General, IFA

Soy Canada SOYBEAN PROCESSING WORKSHOP PRESENTATION NOVEMBER 16, 2017 BRANDON, MANITOBA

Re: Response for Public Hearing on Bill 66, Great Lakes Protection Act, 2015

ICIS Fertilizers Webinar

Global Investment Driving Growth in the Pulse Industry Australia Milling Group/AGT Foods Australia Peter Wilson, CEO July 2015

Agrium: Growing Across the Value Chain

United States House of Representatives Committee on Agriculture. The Importance of Trade to U.S Agriculture. March 18, 2015.

N, P & K OUTLOOK. Presenter: Jay Yost, Vice President Fertilizer. Fluid Fertilizer Foundation Fresno, California December 7, 2011

Potash Outlook Presentation

About IFA Overview of fertilizer demand and supply Meeting food demand / Reducing environmental footprints

Using Information to Market Plant Nutrients

Market Alert. China NPK Statistical Update February Highlights. China Plant Nutrient Exports. Exports

Railroads and Fertilizer

Re: Response to New Horizons: Ontario's Draft Agricultural Soil Health and Conservation Strategy

4R Nutrient Stewardship

Pulse Industry to Double in Less Than Five Years; 1200 New Jobs to be Created in Saskatchewan

Passport Potash Holbrook Basin

Common Vision Common Future Be sustainable. Be economically viable. FISHERIES RENEWAL FRAMEWORK Action Plan

Exploring Regional Food Systems. An Overview

Canpotex: Growing Relationships

2016 CANADIAN FERTILIZER PRODUCTS FORUM OUTCOMES DOCUMENT

Agriculture, Food and Rural Development

Our Story. We help the world grow the food it needs.

The European Protein Transition

The Mosaic Company. Overview and Fiscal 2006 Outlook. Fritz Corrigan, President & CEO December 7, December

A TPP Agreement: An Opportunity for Illinois. Trade & Investment with TPP Countries Is Good for Illinois. Jobs Exports Investment 54%

MARKET FORCES AND CHANGES IN THE PLANT INPUT SUPPLY INDUSTRY

Market Overview. Southwestern Fertilizer Conference. July 2017

MARKET OUTLOOK REPORT Volume 1, Number 6

Market utilization overview. Grain Farmers of Ontario

A collaborative society; a world without hunger; a planet respected. Yara in brief

Indian Fertilizer Market

Canadian MRL update" Pierre Petelle June 19, 2014"

Fertilizer is a world market commodity, which means that supply

Managing Phosphorus Cycling for Food Security

A Comparison of Contributions to the Canadian Economy of Key Bulk Commodity Shippers and Rail Freight Carriers

NSW Farmers Association Review of the Port Terminal Access (Bulk Wheat) Code January 2018

Joint Statements of the 2017 Tri-National Agricultural Accord October 17-19, 2017 Denver, Colorado

Plant Nutrients and Plant Nutrient Markets

Jefferson 1. Exporting Potash Fertilizer to Nepal Scott Jefferson AGR 1110

Canpotex Exporting Potash to International Markets. Feb 2007

Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Effects of it on the Canadian Agriculture Sector

Agriculture, Food and Rural Development

Farm Credit Canada Annual Report

Bill C-49, Transportation Modernization Act Comments to the Senate Standing Committee on Transport and Communications.

Canadian Agriculture and International Trade Negotiations. February 5, 2014

Foreign Agricultural Service Update United States Department of Agriculture

Business Plan

Saskatchewan Exports Opportunities and Challenges July 21, 2015

Ontario s Local Food Strategy

Parliamentary Research Branch RESOURCE MANAGEMENT IN CHALLENGED ENVIRONMENTS: NABC 9 CONFERENCE REPORT. Sonya Dakers Science and Technology Division

INTRODUCING NUTRIEN: A GLOBAL POWERHOUSE READY TO HELP GROWERS IMPROVE YIELDS AND PROFITABILITY.

Agriculture and Agri-Food Canada IICA Videoconference on Agricultural Policies

Canadian MRL Activities

Business Plan. Department of Fisheries and Aquaculture

Annual Report INvested in Advancement

The American Soybean Association and the Importance of U.S. Soy Exports to Our Nation s Economy

Market Alert. China NPK Statistical Update October 2016 Statistics. China MOP Imports. China Exports. China Imports

Overview of the Canadian Agricultural Partnership: October 18, 2017

in review 2016 Annual Report

Feed Industry Perspective on EU Protein Production Nick Major FEFAC President

RESOLUTIONS to the CANADIAN FEDERATION OF AGRICULTURE STANDING POLICY. As Approved at the 2018 ANNUAL MEETING OTTAWA, ONTARIO

Exploring Regional Food Systems. An Overview

4R NUTRIENT STEWARDSHIP A Policy Toolkit. March International Fertilizer Industry Association (IFA) IFA 4R Policy Toolkit March

CANADIAN FERTILIZER INNOVATIONS 4R NUTRIENT STEWARDSHIP NERP BLAIRMORE RING CFPF ELEPHANT BRAND FERTILIZER SIZE GUIDE NUMBERS

Industry Health Indicators - Agriculture. Data Summary

CANADIAN AGRI-FOOD TRADE ALLIANCE

ADVOCACY SAFETY & SECURITY NUTRIENT STEWARDSHIP 52 THE COMMUNICATOR

Improving Nutrient Use Efficiency with 4R Nutrient Stewardship

Agri-info. Putting Canada First. Inside. Business Risk Management. Agricultural Policy Framework. March 2003 Volume 1. Environment...

Recalibration of the Phosphate Market

4 R Stewardship In Ontario

Cross Border Rail Transportation: A Canadian Perspective. Canada-United States Cross-Border Rail Peer Exchange May 25, 2011 Burlington, Vermont

ONTARIO. Bring Home. World. the. Improving Access to Ontario s World Foods

Trade in the Balance

The international competitiveness research of china's agricultural products

Tough in Rough Times Capital Markets Day Merkers - November 12th, 2015

2014 Southeast Hay Convention

CHEM. Page 1 AGRICULTURAL CHEMICAL INDUSTRIES, CANADA GENERAL STATISTICS, CANADA UNITS : COSTS OF FUEL & ELECTRICITY IN THOUNSANDS OF DOLLARS

{slide=sqm (Sociedad Química y Minera de Chile S.A.)

POGA Brief Submitted by Prairie Oat Growers Association Art Enns, President Wednesday, May 18 th 2016

Glencore-Viterra: Information for Farmers and Growers

Agrium Wholesale. Ron Wilkinson President, Wholesale SVP, Agrium

Project on Organic Agriculture

Transcription:

GLOBAL AFFAIRS CANADA Canada China trade consultations Global Affairs Canada Trade Negotiations Division - Asia (TCA) Lester B. Pearson Building 125 Sussex Drive Ottawa, Ontario K1A 0G2 Email: Chinatrade-consultations-commerceChine@international.gc.ca RE: CONSULTATIONS ON A POTENTIAL FREE TRADE AGREEMENT WITH CHINA Fertilizer Canada is responding to the federal government consultation on a potential free trade agreement with China, Canada s second largest trading partner. Prime Minister Justin Trudeau and Chinese Premier Li Kequiang announced exploratory discussions this year. Global Affairs Canada is seeking input from key stakeholders. We support exploration of a free-trade agreement with China. Fertilizer Canada represents manufacturers, wholesale and retail distributors of nitrogen, phosphate, potash, sulphur fertilizers and related products. The fertilizer industry plays an essential role in Canada s economy with manufacturing and distribution facilities across the country. About half of Canadian crop production is due to fertilizer application. The association is committed to supporting the fertilizer industry with innovative research and programming, while advocating sustainability, stewardship, safety and security through standards and Codes of Practice. As the foundation of Canada s agri-food sector, Fertilizer Canada continues to make changes that positively impact the environment, the economy, and the social fabrics of Canadian life. Fertilizer Canada s flagship sustainability program is 4R Nutrient Stewardship.

The major fertilizer products are nitrogen, phosphate, potash and sulphur fertilizer, which are essentially food for plants. Canada is the world s leader in potash production and exports. Canada is the ninth largest producer of nitrogen fertilizer. Almost half of Canadian nitrogen fertilizer production is exported to the United States. Canada also imports fertilizers where freight costs are advantageous or to meet nutrient deficits in products such as phosphates. Fertilizer Canada has been a consistent supporter of regional and bilateral free trade agreements such as NAFTA, the Canada-Europe free trade agreement, the Trans Pacific Partnerships. Fertilizer Trade with China Canada s fertilizer industry has the opportunity to increase potash exports to China and the potential to open new markets for other value-added fertilizers such as slow and controlled release products, as well as for related services and technologies. Canada exported more than $707 million in fertilizer products to China in 2015 the sixth most important class of goods Canadian export. But that was an exceptional year. The usual value of fertilizer exports is just under $400 million. The vast majority of the fertilizer exported to China is potash. Sales of other nitrogen and phosphate fertilizers are valued at a few million dollars annually. Canada has the capacity to increase fertilizer exports, and related goods and services, to China. With more than 1.4 billion people, China grows more food than any other country and is the world s largest fertilizer market. However, China will have to increase grain and oilseed production to remain food self-sufficient and to meet demands for improved diets. Fertilizer will be a critical input. Canpotex is the company that markets and delivers Saskatchewan potash overseas on behalf of Fertilizer Canada members, Agrium, Mosaic and PotashCorp -- from Canadian mines to millions of fields and farmers around the world, helping the world grow more food. Annually, Canpotex transports potash by rail and ship to approximately 40 overseas countries including China. Russia and Belarus are the major potash competitors in the Chinese market.

Canada, through Canpotex, was the first country to supply potash to China in 1972. Since then, Canpotex has sold and delivered over 45 million tonnes of potash, making Canpotex one of Canada s top exporters to China. Canpotex has also helped educate its customers in China on how best to use potash to increase crop yields and improve food production through various farmer education programs. Since 1983, Canpotex has invested over US$30 million in these programs in China. As the country s standard of living increases, more people are able to afford higher quantities of animal protein, and fruits and vegetables. This improvement in diet increases the need for balanced fertilizer application and modern farming practices to increase the amount of food that is grown on the existing cultivated land base (9% of the world s cultivated land area). Canpotex website. The Canadian Trade Commissioner Service has noted the potential for increased fertilizer exports to key crop production areas in China. Technology Transfer Fertilizer Canada members are key sponsors of the International Plant Nutrition Institute, which maintains a farmer education and research program in China. Fertilizer Canada staff work in close cooperation with IPNI in Canada and around the world. In its 2017 annual report, IPNI notes that the effort to maintain China s food supply with just seven per cent of the world s arable land has led farmers to use fertilizer at application rates that are the highest in the world. New government policies are being adopted to encourage more sustainable crop production systems. IPNI is playing a key role in delivering farmer education and technical advice. IPNI promotes the 4R Nutrient Stewardship program for sustainable fertilizer use the same system advocated by the Canadian fertilizer industry for use by farmers in Canada. As farm size increases, there are new markets for custom and specialty fertilizers. The increase in fertigation and mechanized fertilizer application provides opportunities for innovation. IPNI 2017 Progress Report.

Non-potash fertilizer exports to China include minor amounts of: urea, potassium sulphate, combination products and small packaged products. China is a minor exporter of fertilizer products to Canada, with annual sales valued at around $10 million annually. Challenges The Canadian Trade Commissioner Service has noted that selling farm inputs such as fertilizer to rural areas in China is challenging and may be hampered by local government policies. There are also technical barriers to trade such as food safety and health standards. According to a Canada China Business Council survey of Canadian companies operating in China, some of the major hurdles are regulatory. There are many obstacles to doing business in China, and those at the top of the list are typically a focus for policy discussions. Continuing a trend from past years, four of the five most important as identified by Canadian companies responding to the survey could be considered administrative obstacles: (1) Lengthy and complicated certification (2) Local content requirements in China (3) Chinese customs procedures and (4) Chinese labelling requirements. Rounding out the top five is China s air and environmental pollution.

Recommendation Fertilizer Canada supports negotiation of a Canada-China Free-Trade Agreement based on the following principles: A comprehensive trade agreement which would include core elements such as industrial goods, agriculture, intellectual property, rules of origin, dispute resolution, technical barriers to trade, labour mobility, investment and environment. Reciprocal elimination of all tariffs on fertilizer trade between Canada and China. A consistent science-based approach to regulatory harmonization to prevent the use of environmental, health and other phyto-sanitory rules as trade barriers. Ensure Canadian interests in other trade agreements such as NAFTA and the Canada-Europe trade agreement are not negatively impacted. Rule of law for Canadian companies and business people in China. Mindful of the success and relationships Canadian companies have already fostered in China in this sector. Fertilizer Canada and its member companies should be viewed as key stakeholders in the development a negotiating strategy for a potential Canada-China free trade agreement. Sincerely, Clyde Graham Senior Vice President Fertilizer Canada cgraham@fertilizercanada.ca 613-786-3033