The Western Canadian Wheat Growers are pleased the Canadian government has announced the start of free trade negotiations with Morocco, an important market for Canadian durum wheat and pulse crops.
“These trade deals are important for improving our competitive position,” says Kevin Bender, President of the Wheat Growers. “Right now, the U.S. has a significant trade advantage selling durum wheat and pulses into Morocco. If successful, these negotiations should put Canada on an equal footing.”
Canada has been at a growing trade disadvantage in selling into Morocco ever since the United States and Morocco inked a free trade deal that took effect in 2006. That agreement gives the U.S. preferential market access which, in the case of durum, provided the U.S. with as much as a $40 per tonne trade advantage over Canada in 2010.
Although Morocco has recently applied a zero tariff on durum imports from both Canada and the U.S., it retains the ability to impose much higher tariffs on Canadian wheat and durum exports. This tariff disadvantage on durum could be over $100 per tonne by 2016 in the absence of a trade deal between Canada and Morocco.
The Wheat Growers will be asking Canadian negotiators to seek a tariff reduction schedule that is on par with that now in place for U.S. exporters.
According to the Canadian Wheat Board and Pulse Canada, Canada ships an average of 525,000 tonnes of durum and 26,000 tonnes of pulse crops to Morocco each year.
The Wheat Growers are strong proponents of bilateral and multilateral trade deals that improve market access and reduce trade distortions. We congratulate the government on launching these negotiations with Morocco and urge the government to successfully conclude the Canada – European Union trade agreement later this year. We also ask the government to take the necessary steps to gain inclusion in the Trans-Pacific Partnership trade negotiations.
“Gaining improved access to international markets is key to our success,” says Bender. “We encourage the federal government to continue to negotiate trade deals that give us the ability to capture the highest possible returns from global markets.”
