Farms.com Home   Ag Industry News

Ag industry pleased with Canada’s CPTPP signing

Ag industry pleased with Canada’s CPTPP signing

All 11 members are expected to sign the trade deal today

By Diego Flammini
News Reporter
Farms.com

Canada’s agricultural industry is applauding the progress of a landmark trade deal.

International Trade Minister Francois-Philippe Champagne is in Santiago, Chile today to officially sign Canada into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Trade officials from the other 10 members are also expected to sign off on the deal today.

The CPTPP will reduce tariffs in countries that make up nearly 15 per cent of the global economy. The deal will also expose about 500 million people to the high-quality products coming from Canadian farms.

“It’s very encouraging news the country’s ag sector and especially farmers in Western Canada,” Todd Lewis, president of the Agricultural Producers Association of Saskatchewan, told Farms.com today. “We’re going to enter markets that clearly want our products so it’s great.”



 

The challenge now, Lewis says, is to ensure Canada’s products can enter large markets like Japan before some of its competitors. Such exports begins with reliable transportation.

An insufficient number of rail cars has lead to grain backlogs on Prairie farms and Bill C-49 still needs to pass a third Senate reading before becoming law. If Canada can’t get its products to ports on time, the trade deals are almost irrelevant, Lewis said.

“The transportation issue is incredibly important,” he said. “If you can’t get the grain from the farm gate to the port and eventually to import facilities, it doesn’t matter what trade agreements we have. Industry and government have spent a lot of time negotiating these deals and now we need the railroads to do their part and make sure the products get to where they need to go.”


Trending Video

U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!