Canada’s top export destination for canola is the United States
With the possibility of U.S. President Donald Trump imposing a 25% tariff on Canadian goods, concerns are mounting within the Canadian canola sector.
The Canola Council of Canada (CCC) is raising alarm over the potential consequences for farmers, processors, and exporters.
“The application of these tariffs on Canadian-grown canola and canola products will be felt across the canola value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “Tariffs will have devastating impacts on farmers, input providers, canola crushing activities and exports of canola seed, oil and meal.”
The United States is Canada’s top export destination for canola, forming a deeply integrated market. In 2023 alone, Canadian canola exports to the U.S. totalled $8.6 billion.
This included nearly 3 million metric tonnes (MMT) of canola oil worth $6.3 billion and more than 3.5 MMT of canola meal valued at $2.0 billion.
As the largest contributor to farm crop cash receipts, canola is a crucial crop for Canada, cultivated by nearly 40,000 farmers nationwide.
“The damaging blow of these duties will be felt by every canola farmer, starting with the price they receive at delivery and will extend to the full range of their operations, ultimately reducing farm profitability,” says Rick White, Canadian Canola Growers Association (CCGA) President & CEO. “The destructive consequences for our farms, as well as our rural and national economies, are evident.”
A recent CCC analysis highlights the economic benefits Canadian-grown canola brings to the U.S., contributing an average of $11.2 billion (USD) annually, including $1.2 billion (USD) in wages.
The canola industry supports multiple sectors in the U.S., including processing, refining, transportation, packaging, food production, and livestock feed.
The CCC and CCGA remain committed to strengthening Canada-U.S. trade relations. Through advocacy efforts, they aim to ensure that canola trade remains free of tariffs.
“The canola industry delivers a true win-win for both Canada and the U.S., and we must do everything we can to restore smooth, predictable, tariff-free canola trade between our two countries,” say Davison and White.
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