Senate encourages Brazil trade

June 8th, 2012 by Barry Wilson, Western Producer

Canada is missing a golden opportunity to increase agricultural sales to Brazil, says the Senate foreign affairs and international trade committee.


In a report tabled last week that was written after Ottawa hearings and a trip to Brazil, senators said a major missed market is Brazil’s large demand for wheat and barley. 


Last year, Canada sold $156 million worth of agricultural products, mainly wheat, to Brazil. It imported almost $1 billion worth of agricultural products, mainly sugar, coffee and orange juice.


Canada supplies less than two percent of Brazil’s food imports, yet the South American economic powerhouse is the world’s third largest importer of wheat, a major Canadian export commodity.


“There are opportunities for increasing Canadian exports to Brazil of wheat and barley, in large part due to the climatic conditions in Brazil being less than ideal for grains,” said the report, which recommended a broadening of Canada-Brazil relations in many sectors.


It said Canada could also benefit by collaborating more with Brazil on research, genetic modification, storage, food safety regulations and livestock genetics.

Senators said one area of possible co-operation between the two countries is development of new pulse and grain varieties to help deal with world food security issues.


Canadian international development agencies could also work with their Brazilian counterparts on food security issues.


The 61-page committee report covers a broad array of Canada-Brazil issues beyond agriculture, calling for more Canadian effort to work with South America’s largest economy.


“Canada-Brazil relations are on track to enter a new era,” said the May 29 report. “A more intense engagement holds many promises for the prosperity of both populations … and for a partnership that is long, long overdue.”


The committee is led by senators from two agricultural provinces — chair and Conservative senator Raynell Andreychuk from Saskatchewan and Liberal vice-chair Percy Downe from Prince Edward Island.


In a joint commentary about the report, the two senators argued that they saw “agriculture at the centre of (Canada’s) strategic approach to deepening Canada-Brazil relations.”