For the past two years, a look over the border to our friendly neighbour has, at its most moderate, inspired a sense of unease. The self-styled apolitical nature of the current administration has created a climate of uncertainty of which markets are rarely very forgiving. One of the more publicly aired issues has been NAFTA, a trade agreement that is crucial to a great number of sectors in the Canadian industry and Canadians are feeling the pinch as a result.
With little end in sight to the political turmoil in the U.S., it has been the opinion of a great many Canadians that now more than ever we should look to diversify our trading partners to ensure we’re not putting all of our proverbial eggs in a single basket. This will go a long way to ensuring that we’re not all quite so tense every time Mr. Trump reaches for Twitter.
So the news that Canada became the fifth nation to sign the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been well received. The Canadian government passed the legislation to join a total of 11 pacific rim nations in a move that should pave the way for Canadian farmers to see increased export volumes.
Asian markets have long been identified as key to the future growth of the agri-food sector. The deal is expected to lower tariff and non-tariff barriers thereby facilitating further trade in grains, which will help get more Canadian grain products onto the plates of Asian consumers.
This move looks to bring about significant benefits for farmers, producers, food manufacturers and exporters in every region of the country, and all the way back along the process and supply chain. The influx of demand means more agriculture producers will be looking to maximize their output.
This means individual businesses will need to strongly consider green energy upgrades to stay competitive. If you’re a link in the Canadian agricultural supply chain, you should consider industrial heat exchangers for your business as well as other tech developments to help you keep production high and emissions low. Advances in heat exchanger technology — provided by companies like Solex Thermal Science — provide superior fertilizer by conditioning seeds and grains for better crop yields. This surplus of production will only help meet the demand expected to result from further CPTPP developments.
Opening up Asian markets will help create jobs and secure billions of dollars in prosperity here at home – ensuring that Canada is not left behind in a region that is fiercely competitive. Aside from gaining a considerable advantage over U.S. (who are no longer part of the agreement), the CPTPP also levels the playing field between Canada and Australia and New Zealand for exports to Japan.
It’s not only Asian markets that present the biggest opportunity for Canadian industry. It will also further strengthen the ties between Canada and Mexico, another country looking to roll back its debilitating dependence on the U.S. economy, as co-members of the CPTPP alongside our co-membership in NAFTA and the USMCA.
It’s worth noting of course that the CPTPP will not replace the United States as Canada’s most important market nor its biggest trading partner. Sharing the largest land border in the world means our economies will always be closely intertwined. However, it does move Canada further down the road away from overdependence on the United States. There’s a long way to go still, but this is a move that will have positive ramifications for Canadian industries for years to come.
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