TPP Signed- A bonus for canola
Australian canola seed and oil set to benefit from TPP
Yesterday, Australia's Trade Minister Andrew Robb signed the TPP (Trans Pacific Partnership) Agreement in Auckland. This agreement is between 12 Pacific Rim nations (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam). Amongst other things, the TPP contains measures to lower trade barriers, such as tariffs.
With the worlds two largest canola producing nations (Canada and Australia) at the negotiating table, canola and canola oil was one of the key agricultural commodities under review.
As the TPP provides a 'level playing field' for member countries, Australia will ultimately be on equal footing with Canada in terms of canola and canola oil with regard to importing country tariffs. However, where favourable arrangements are already in place (such as with the free trade agreement with Japan (JAEPA)), this will take precedence until the TPP benefits equate to the bilateral arrangements. In the case of Japan, Australia currently has a preferential importing tariff over Canada under JAEPA, but by 2017, the same TPP rate (10.9-13.2yen/kg) will be applied to imports from both countries- i.e. both countries on equal footing.
Dr Cheryl Kalisch-Gordon from Grain Growers Limited has prepared an excellent overview of the TTP for grains, and details the implications for canola seed and oil for all 12 TPP countries. Access the canola summary here, and the full Grain Growers report here.
Contact: Nick Goddard
Phone: 02 80077553