File photo of a canola field (Lethbridge News Now)

By Justin Goulet

SACPA presentation explores potential growth for Canada’s agri-food trade and export

Jan 7, 2021 | 11:31 AM

LETHBRIDGE, AB – Canada is a major exporter of agricultural commodities, technology, equipment and food, but is there potential for growth and what countries are our main trading partners?

Those questions were in focus at Thursday’s meeting of the Southern Alberta Council on Public Affairs (SACPA).

The virtual session welcomed Carlo Dade, Director of the Trade & Investment Centre at the Canada West Foundation (CWF), and Sharon Sun, Trade Policy Economist at the CWF.

The duo discussed trading partners and trends for Canada over the past decades.

Between 1996-2019, it was found that the United States was the country’s most prominent trading partner, accounting for 63 percent of Canada’s two-way trade in 2019. However, it was found that the rate of trade between the two countries declined each year, while trade with China increased.

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“(The rate) has steadily grown at an average rate of 12 percent over the last 24 years,” Sun said.

“Keep in mind, that this is despite the political and other tensions that we’ve continuously had in different periods of time with China.”

In regard to exports, Sun said for the U.S., there has been a decline in Canadian overall export to the States since 2002, with “drastic and steady growth” overall with China over the last 24 years.

“Of course, there are hiccups. For example, the majority of the decline between 2018 to 2019 as we know it has mainly been due to agricultural exports decline from canola and soy,” she added.

Screenshot from SACPA meeting (Canada West Foundation)

Sun noted that the United States remains Canada’s largest export partner, accounting for over 75 per cent of Canadian export compared to only four per cent with China.

Western Canada was the most impacted by the 2019 export fall with China.

“Two thirds of our Canadian agricultural exports come from Western Canada,” Sun remarked, adding that despite those hiccups, Canada’s agricultural export with China is still growing.

“Looking at 2020, from 2019, maturity of Canadian export to China has been recovered and it’s mainly due to the recovery of agricultural exports.”

Screenshot from SACPA meeting (Canada West Foundation)

Sun said the primary recovery is due to growth in animal product export and recovery in vegetable products. Sun projects growth and diversification for Canada’s agri-food sector going forward.

“On the trade front, in terms of keep engaging with China, agriculture and food security is particularly a good starting point because it is a shared interest for both countries particularly in the post-COVID environment.”

Thursday’s full SACPA presentation can be viewed below.