With the recent election victory of Mark Carney and his Liberal team, the Grain Growers of Canada have emphasized the urgent need to address the ongoing tariff situation with the U.S. and China. Executive Director Kyle Larkin highlighted the severe impact these tariffs are having on Canadian farmers and the broader economy.
Tariff Challenges:
- China: Imposed 100% tariffs on canola meal, canola oil, and peas, affecting $1.7 billion in annual exports.
- U.S.: Unpredictable tariffs on various commodities, creating market uncertainty and driving down prices for wheat, canola, barley, and peas.
Larkin stressed that these trade uncertainties are squeezing farmers' margins, especially as input costs for fertilizer, seed, and pesticides continue to rise.
Keith Currie, president of the Canadian Federation of Agriculture, echoed these concerns, noting the pressures from international trade tensions. While CUSMA-related products are mostly exempt, the impact of tariffs on steel and aluminum for farm equipment remains unclear. Currie urged the government to navigate these challenges, particularly with pork and canola products facing Chinese tariffs.
Key Actions Needed:
- Harmonize Trade Standards: Improve interprovincial trade and address non-tariff barriers.
- Business Risk Management Programs: Ensure these programs meet producers' needs.
- Capital Gains Tax: Reverse recent increases to support farmers.
- Carbon Tax: Seek a permanent legislative solution for on-farm activities like grain drying.
Larkin emphasized the importance of resolving trade disputes with the U.S. and China to stabilize commodity prices and support family farms.
Currie concluded by highlighting the vital role of agriculture in Canada's economy. With a GDP of $150 billion annually and employing 2.3 million people, the sector's resilience is crucial for the nation's health, economy, and security.