Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Unpacking the changing ag export markets

Wednesday, July 18, 2018

CETA may unlock possibilities for increased Canadian agri-food exports to Europe

By Jim Algie
Writer
Better Farming

"Modest" Canadian gains from the Comprehensive Economic and Trade Agreement (CETA) with the European Union should include growth for the agricultural industry and food exporters, a report from Jean-Denis Fréchette, the independent parliamentary budget officer says.

The 44-page report – titled The Canada-EU Comprehensive Economic and Trade Agreement: A Prospective Analysis and dated May 2, 2017 – is available on the parliamentary budget officer's website.

The report highlights potential gains in Canadian wheat and beef exports to Europe. A combination of tariff reductions and new import quotas in CETA produced these opportunities. The treaty took effect in late September 2017.

The report also warns of deterioration in Canada's trade balance: "on an export-weighted basis, Canada's exporters were facing lower tariffs than were Europe's prior to the agreement." However, the parliamentary budget officer estimates net gains in Canadian economic output of almost $8 billion, or about 0.4 per cent of gross domestic product.

Adversely affected sectors that show possible "slower output growth" include some dairy and agricultural products, textiles, some machinery, and manufacturing goods, the report says.

However, tariff reductions should mean a $742-million boost for Canadian exports of agricultural, forestry and fishery products, and a $727-million boost for Canadian food and beverage products. European food and beverage exports to Canada should also grow by more than $1.17 billion, the report says.

The parliamentary budget officer predicts a $705.6-million gain for Europe-bound Canadian wheat but only a $300,000 increase in Canadian-bound European wheat. Canadian oilseeds exports could drop by about $6.5 million in sales to Europe, although the category for vegetable oils and fats shows a $15.3-million gain.

image
    cstar55/E+ photo

Canadian bovine meat products exported to Europe could jump by $31.3 million; they'd be well ahead of a $7.0-million increase in Europe-to-Canada exports. But Europe may be ahead in the dairy products category. Europe could get a $175.6-million boost in its exports to Canada while Canada could get a $26.7-million gain in its exports to Europe.

The parliamentary budget officer predicts Europe could be ahead by $877.6 million in the general food products category, a reference specifically to prepared food imports. The predicted Canadian sales boost is smaller: $627.8 million. European and Canadian trade in beverages and tobacco products are also expected to grow: $28.1 million for European exports to Canada and $2.1 million for Canadian exports to Europe.

The European agreement will lead to reductions in trade with our North American Free Trade Agreement partners, the parliamentary budget officer predicts. Canadian exports to the United States are expected to decline by $1.4 billion, and Canadian exports to Mexico should drop by about $38 million.

European exports are only a tenth of the value of Canada's exports to the United States and about double the value of Canadian merchandise exported to China. Canada's sales of oil and gas to the United States alone "are worth more than all the goods and services (Canada) sells to the European Union," the report says. BF

Current Issue

June/July 2025

Better Farming Magazine

Farms.com Breaking News

Calf Auction Raises Funds for Youth

Monday, June 30, 2025

Wyatt Westman-Frijters from Milverton won a heifer calf named Ingrid through a World Milk Day promotion by Maplevue Farms and a local Perth, Ontario radio station. Instead of keeping the calf, 22-year-old Westman-Frijters chose to give back to the community. The calf was sent to the... Read this article online

Cattle Stress Tool May Boost Fertility

Friday, June 27, 2025

Kansas State University researchers have developed a cool tool that may help reduce cattle stress and improve artificial insemination (AI) results. The idea came from animal science experts Nicholas Wege Dias and Sandy Johnson, who observed that cattle accustomed to their environment... Read this article online

Ontario pasture lands get $5M boost

Friday, June 27, 2025

The governments of Canada and Ontario are investing up to $5 million to strengthen shared community grazing pastures. This funding supports the province’s plan to protect Ontario’s agriculture sector and help cattle farmers improve pasture quality, ensuring long-term sustainability and... Read this article online

Health Canada sets rules for drone spraying

Wednesday, June 25, 2025

Health Canada has approved the use of drones, also called Remotely Piloted Aircraft Systems (RPAS), for pesticide application under the Pest Control Products Act (PCPA). Drones are considered aircraft by Transport Canada, but Health Canada treats them differently due to their unique... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top