Trends in Alberta Agri-Food Exports -- No.15 - Trade Agreements and Agri-Food Trade

 
 
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 What is a Trade Agreement?

A Trade Agreement is a formal agreement between two or more countries about improving trade with each other by removing tariffs and other non-tariffs trade barriers. Trade agreements and negotiations are essential for Canada to say competitive in global trade and increase market access for our agri-food products. Signing new agreements support market diversification and lessen our dependence on the United States (US) as an export destination.

Importance of Canadian agreements to Alberta economy and agri-food trade

As of 2018, Canada concluded three multilateral trade agreements:
  • CUSMA – the new Canada, United States (US) and Mexico Agreement, former NAFTA, was signed on November 30, 2018. NAFTA, the North American Free Trade Agreement, came into effect on January 1994. NAFTA created the largest free trade region in the world and all tariffs between the three countries were eliminated. The CUSMA ensures that the vast majority of trade between the three countries will continue to be duty-free. In 2017, Alberta’s total agri-food exports to both, the US and Mexico, contributed $4.9 billion to the provincial economy. With imports totalling $2.4 billion, Alberta, as always, had a positive trade balance with both countries. The US remains Alberta’s largest trading partner accounting for $4.3 billion in 2017. The CUSMA deal must be ratified by the legislatures in all three countries before taking effect.
  • CETA - the Comprehensive Economic and Trade Agreement with the European Union countries, concluded in 2018. CETA was signed by the Canadian Prime Minister and European Union officials in October 2016. On 21 September 2017, CETA was provisionally applied, immediately eliminating 98 per cent of EU's tariff on Canadian goods. Alberta agri-food exports to EU were $410 million in 2017 and imports were $390 million. In 2017 and 2016, Alberta had a surplus in trade with EU, however in the previous years, the province experienced trade deficit. Until final decision on BREXIT, CETA includes 28 EU countries (See page 2).
  • CPTPP, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership was completed in 2018. A previous version of the deal was agreed to in 2016 but later had to be reworked after the US pulled out. The deal has been ratified in six countries, including Canada, Australia, Japan, Mexico, New Zealand and Singapore. Vietnam was added to the partnership in January 2019. Without the US in the agreement, Canada will gain advantage in key CPTPP market such as Japan. Japan ($1.3 billion in 2017) is the largest export market among the CPTPP countries, accounting for more than one-half of the total agri-food exports to CPTPP, at $2.3 billion. Agri-food imports from CPTPP were $472 million in 2017, giving the province $1.8 billion surplus

            Alberta Agri-Food Trade with CUSMA, CETA and CPTPP
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Millions of Canada Dollars
Alberta Total Agri-Food Trade
Total Agri-Food Exports Total Agri-Food Imports
            Trade Balance
8,385.9
7,428.8
6,775.4
8,061.1
9,209.9
8,711.6
9,754.1
10,181.1
10,006.4
11,237.8
1,910.3
1,854.6
1,865.6
2,075.1
2,289.0
2,473.9
2,738.8
3,079.6
3,054.5
3,219.8
6,475.6
5,574.2
4,909.8
5,985.9
6,920.9
6,237.7
7,015.2
7,101.5
6,951.9
8,018.1
1. Agri-Food Trade with NAFTA / CUSMA
Total Agri-Food Exports Total Agri-Food Imports
            Trade Balance
3,819.2
3,141.8
2,891.3
3,191.0
3,599.5
3,586.3
4,482.7
4,570.1
4,600.8
4,871.1
1,375.7
1,346.5
1,304.2
1,456.1
1,564.5
1,749.6
1,942.3
2,229.6
2,239.0
2,382.0
2,443.5
1,795.3
1,587.1
1,734.8
2,035.0
1,836.6
2,540.5
2,340.5
2,361.8
2,489.2
2. Agri-Food Trade with CETA (EU 28)
Total Agri-Food Exports Total Agri-Food Imports
            Trade Balance
280.0
294.8
217.4
    370.4
279.7
243.8
307.1
381.7
405.1
    410.4
265.1
223.6
262.1
    277.6
310.5
339.7
367.3
415.2
384.2
    389.7
14.9
71.2
-44.7
92.8
-30.8
-95.9
-60.2
-33.4
20.9
20.7
3. Agri-Food Trade with CPTPP
Total Agri-Food Exports Total Agri-Food Imports
            Trade Balance
2,043.9
1,559.8
1,456.0
2,022.9
2,232.4
2,061.6
2,035.0
2,021.5
2,043.4
2,319.1
268.9
278.8
281.1
    273.1
286.0
316.4
352.4
387.6
435.8
    472.1
1,775.0
1,281.0
1,175.0
1,749.7
1,946.4
1,745.3
1,682.7
1,633.9
1,607.6
1,847.0
  2. NAFTA/CUSMA: Canada, the United States and Mexico
  3. CETA: 28 EU countries - Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungry, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, the United Kingdom.
  4. CPTPP: Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam

The source of data is Statistics Canada, International Trade Division

Note to Users: The contents of this document may not be used or reproduced without properly accrediting Alberta Agriculture and Forestry Economics and Competitiveness Branch, Statistics and Data Development Section.
March 11, 2019

For more Information:
Please contact: Barbara Pekalski, Trade Research Statistician
Alberta Agriculture and Forestry Economics and Competitiveness Branch
Statistics and Data Development Section Phone: 780-427-5386
Email: barb.pekalski@gov.ab.ca		  
 
 
 
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This information published to the web on March 11, 2019.