Gerry Ritz Welcomes Council to Ottawa

Welcoming the U.S. Grains Council to Ottawa, Canadian Agriculture Minister Gerry Ritz focused on the benefits to nations of both economic partnership and free trade. Ritz noted the benefits accruing from the passage of North American Free Trade Agreement (NAFTA) and the importance of continuing the integration of North American markets and production systems.

The elimination one year ago of the monopoly of the Canadian Wheat Board is an especially important step in the agricultural sector and is among the signature achievements of Minister Ritz and the current Canadian government. On the U.S. side of the border, Ritz pointed to a quick resolution of the Country Of Origin Labeling (COOL) issue as an important near future goal.

The theme of partnership and economic integration was seconded by Scott Reynolds, the U.S. Agriculture Minister-Counselor in Canada. The U.S. and Canada share the world’s longest undefended border and more importantly, shares a common commitment to democratic institutions; respect for private property and free markets; the rule of law; and openness for trade. As a result, we also share historically prosperous economies and a high standard of living.

Reynolds noted that Canada is now the world’s second largest importer of U.S. agricultural products. The composition of U.S. trade has also shifted; the passage of NAFTA has significantly increased the share of high value, consumer products flowing into the Canadian market from the U.S. The benefits are reciprocal; Canadian exports to the U.S. have soared as well.

As a major agricultural exporter, Canada is also an ally in the battle to reduce trade barriers around the world. Canada is a partner in the Trans Pacific Partnership (TPP) and is conducting its own free trade negotiations with the EU, in parallel with the U.S.-EU Trans-Atlantic Trade and Investment Partnership (T-TIP) talks.

Canadian climbingThe U.S.-Canadian agricultural trade relationship is complex, and many issues arise. Reynolds emphasized, however, that the relationship is collaborative, with both sides working hard to resolve problems. Global markets are an enormous opportunity for both nations, and the NAFTA partnership provides a strong foundation for export growth.