Tuesday was the Germination Retail Roundtable on Trade. It was a great session with amazing listener engagement. The video is live on the Germination website for those of you that were unable to attend. Here are a few of my takeaways.
Missed it? Watch here.
Michelle Klieger- Stratagerm Consulting
"Protectionist policies affect the seed industry with higher seed prices, lower demand for some grains, a lower willingness to pay for value-added products."
Brian Innes - Canola Council of Canada
"Canadian canola is an $11 billion industry, & 90% of Canadian canola is exported."
The top four importing countries are China, the U.S., Japan, and Mexico. Currently, Canadian canola exports are closed out of China. However, the fundamental demand for canola products has not changed long-term. There are just some short-term challenges. Chinese demand remains high.
Seed-specific notes: $1.2 billion is spent purchasing canola seeds to over 43,000 canola growers.
Michael Scheffel - Canadian Seed Growers Association
"Canada requires that most new varieties of agricultural field crops are assessed prior to commercialization."
No novel traits, those must be approved by Plant Biosafety Office, CFIAVariety registration
In total: There are 54 different crop kinds/types subject to variety registration
Hemp growers need a special license. Hemp doesn't need to go through variety registration, but growers must plant pedigreed seed. New varieties must be submitted to Health Canada for approval.
Great resource: https://seedgrowers.ca/resources/
Maryscott Greenwood- Canadian-American Business Council
"Congress, Mexico, & Canada have all told President Trump that the steel and aluminum tariffs must come off for USMCA to pass."
The North American Free Trade Agreement is being replaced by the U.S.-Mexico-Canada Agreement.
Trump is very proud of the new agreement.
Neither document is perfect, but USMCA is a modern trade agreement.
Mexico is currently updating its laws to meet the USMCA requirements. Canada is ready to sign the agreement. the U.S. Congress still needs to ratify before it can go into effect.
Most people expected Trump's steel and aluminum tariffs on Mexico and Canada to be removed when a deal was reached since the tariffs were Trump's leverage to get a deal. Trump has not budged on the tariffs, but Ms. Greenwood is optimistic that the desire to implement USMCA will force Trump's hand.