Canada & Colombia: Free trade agreement to be implemented as from next week

“The implementation of the Canada-Colombia free trade agreement is a significant accomplishment which will assist Prairie grain farmers in remaining competitive in this important market,” CWB president and CEO Ian White said on August, 10.

"Western Canadian farmers, through the CWB, have developed an important market for Prairie wheat and barley in Colombia. The implementation of this agreement gives Prairie farmers a competitive edge," White said.

The agreement was originally signed in 2008 and then ratified in both Canada and Colombia, with Aug. 15, 2011 set as the implementation date. "We will now be on a level playing field with Argentina into the fast-growing Colombian market," White said, noting the U.S. has yet to ratify their free-trade agreement with Colombia, but is expected to do so some time this fall.

Starting Aug. 15, Canadian wheat and barley exports are guaranteed duty-free access to this important, nearby market for top-quality wheat. Wheat and barley import tariffs have historically been as high as 15 per cent into Colombia and are currently set at three per cent.

Colombia produces very little of its own wheat and barley. Imports of wheat have increased by 15 per cent in the last 15 years. Beer consumption growth is even more dramatic, with malting barley imports more than doubling in the same period, supplied mainly by Argentina and Canada. Over the last five years, Canada has exported an average of 379 000 tonnes of wheat and 72 000 tonnes of malting barley annually to the Andean nation.

With over 80 per cent of Prairie wheat production exported, trade agreements are crucially important to western Canadian wheat and barley farmers. The CWB supports the Government of Canada's efforts to forge bilateral deals with key markets to prevent Canadian grain exports from losing ground to international competitors.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based company sells grain to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

12 August, 2011