Glacier FarmMedia | MarketsFarm — At the beginning of seeding, the focus for Pulse Canada right now is not the fields but rather the negotiating table.
Pulse Canada is awaiting word from India as to whether or not the country will extend the tariff-free status of Canadian yellow pea imports before it expires on June 1. If not, it would be the second blowto Canadian pulse growers after China imposed a 100 per cent tariff on its Canadian pea imports in March.
Greg Northey, vice president, corporate affairs for Pulse Canada, said while late spring and early summer typically means a seasonal slowdown for pulse exports, the uncertainty regarding Canada’s two largest markets has brought a wariness for buyers. Activity from India suggests that a tariff may be on the horizon.
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“The current speculation is … (India) would put a tariff on peas. (We’re) not sure what level that tariff would be. But I would think it would be a major signal from India on what that market will look going forward,” he said, adding there was a recent surge in yellow pea imports to India.
“We’re seeing a lot of competition, from the Black Sea particularly. A tariff would apply to everybody, but it would be a challenge for Canada to stay competitive,” Northey said. “(India’s) a pretty dynamic market. So it will be interesting to see what would happen with the combination of prices.”
Representatives from Pulse Canada have had “open lines of communication” with Heath MacDonald, the minister of Agriculture and Agri-Food, since he was appointed to Prime Minister Mark Carney’s cabinet on May 13. They will also visit Ottawa next month for discussions with other cabinet ministers.
“(Talks have) been good so far. It’s been promising. (AAFC) is continuing to staff up and get themselves ready, but they’re very open to speak with stakeholders at the moment,” Northey said.
However, international trade is still top of mind for Pulse Canada.
“The focus is trade and trying to address the issues we’re seeing, particularly in China,” he said. “How do we get back to a place where we don’t have 100 per cent tariffs? What does that relationship look like going forward? That access is very important and it’s never good to have a major market like that be in a situation like that.”
