WINNIPEG, MANITOBA--(Marketwired - Oct. 18, 2013) - The Western Grain Elevator Association (WGEA) today commended the Government of Canada on announcing that it has reached agreement in principle with the EU on the much anticipated Canada-EU Comprehensive Economic and Trade Agreement (CETA).
"The European Union is one of the world's most important markets, and continues to be a key market for western Canadian grains and oilseeds," said Wade Sobkowich, Executive Director of the WGEA. "While the EU is already a major destination for agricultural products, strengthening our economic ties with the Europeans will further increase market access, clearly benefiting farmers, the grain sector, and the broader economy in western Canada."
The immediate benefits include approximately 20.5 million dollars in additional duty free wheat sales to Europe, plus the indirect benefits of supplying feed to the beef and pork sectors, for which the CETA is worth an approximated 1 billion dollars per year. The full benefit of the CETA for wheat exports will be realized incrementally each year within the next in seven years, at which time all wheat quotas would be completely removed. In the meantime, the deal provides a significant immediate potential for canola oil shipments to Europe, estimated initially at an added export value of 90 million dollars. Furthermore, future gains can be realized if we can be successful in the removal of non-tariff barriers that are currently preventing the export of canola seed to the EU.
"Diversifying markets and expanding market access in key areas of growth around the world will pay long-term and great dividends for our agriculture exports and the economy in Canada," continued Sobkowich. "The western grain sector fully supports the government's significant efforts here."
The Western Grain Elevator Association is an association of seven farmer-owned, public, and private grain businesses operating in Canada, together handling over 90% of western Canada's bulk grain exports.