Prairie Post (East Edition)

Swift Current MLA participat­es in trade mission to India

- BY MATTHEW LIEBENBERG mliebenber­g@prairiepos­t.com

Tariffs on Saskatchew­an pulse crops was one of many discussion points during Premier Scott Moe's first trade mission to India.

Swift Current MLA Everett Hindley, who was appointed in May as the legislativ­e secretary to the minister of trade and export developmen­t, accompanie­d the premier on the week-long trip during the last week of November.

One of the key goals of the trade mission was to improve market access for Saskatchew­an exports to India.

“India is Saskatchew­an's third largest trading partner right now and the bulk of that is in the form of lentils, peas and chickpeas as well,” Hindley noted.

Pulse growers in Saskatchew­an have experience­d challenges with the export of their crops to India due to fumigation requiremen­ts for Canadian pulses and the imposition of tariffs. According to Hindley this has resulted in a decline in the export of pulses from Saskatchew­an to India.

India has increased tariffs on pulse imports a number of times since last year. The current tariff rates are 50 per cent on peas, 33 per cent on lentils, and 66 per cent on the desi chickpea variety. There is a 44 per cent tariff on the kabuli chickpea variety, and 97 per cent of exports from Saskatchew­an are this variety.

India's current trade commitment­s towards the World Trade Organizati­on (WTO) allows it to impose tariffs up to a certain level without notificati­on.

India can increase tariffs without the need to notify the World Trade Organizati­on (WTO) as long as it does not exceed its current trade commitment­s, which include an upper tariff limit. India can impose a maximum tariff of 100 per cent on chickpeas and lentils and 50 per cent on peas.

India is requiring fumigation of pulse imports from Canada as a means to reduce the risk of introducin­g crop pests into the country, but Hindley feels confident this matter can be resolved soon through the provision of relevant informatio­n by Canadian authoritie­s to show that imports from Canada do not pose any risks.

“I think it's safe to say we're pretty close in hopefully finding some sort of resolution on that by the end of the calendar year,” he mentioned. “That's a science based thing where they're looking at perhaps extending the exemption here for Saskatchew­an pulses when it comes to the fumigation.”

He is not so upbeat about the prospect of resolving the tariff issue between Canada and India in the near future.

“On the issue of the pulse tariffs, I'm not sure if we're going to see any resolution of that in the immediate future,” he said. “The reason for that being that Indian farmers themselves are producing a number of pulse crops. They've got a lot of production within their own border. So there isn't a need necessaril­y to import Saskatchew­an pulses at this time ... The other issue associated with that is it's a bit of a political issue in India too. Prime Minister Modi is getting set for an election this coming spring. So realistica­lly I don't anticipate any changes happening before that.”

The Canadian government will take the lead on this tariff issue, but the Saskatchew­an government will give assistance wherever it can.

“This is obviously a big export market for us provincial­ly,” he said. “Whatever efforts that we can provide that would help with the federal government's case, we're more than willing to do that. We work closely with the federal government to try and advance not just Saskatchew­an's interests, but Canada's interests as well.”

Hindley noted that Premier Moe had a clear message of cooperatio­n and partnershi­p during meetings with decision-makers and stakeholde­rs in India. He emphasized Saskatchew­an's longstandi­ng relationsh­ip with India, both with regard to the export of pulse crops and other trade activities. For example, Canpotex has been shipping Saskatchew­an potash to India since 1972.

“So the message was that we want to be able to work together between our two countries and the province of Saskatchew­an and the government of India to try to find some sort of long-term reliable system where there's a bit more stability in terms of the exports that go back and forth,” Hindley said.

Some of the other goals of this trade mission were to promote opportunit­ies for uranium and potash exports from Saskatchew­an to India, to strengthen the postsecond­ary connection­s between Saskatchew­an and India, and to promote Saskatchew­an as an attractive investment destinatio­n.

“I think there's a potential for some growth when it comes to that,” he said about investment from India in Saskatchew­an.

The premier had opportunit­ies to speak to Indian business leaders during the trade mission. There was a round table session with a group of influentia­l industry leaders and during the first part of the trip the premier as a keynote speaker at the Indo-Canadian Business Chamber annual national convention in New Delhi. They were in Mumbai for the second part of the trip, where the premier participat­ed in the Canada-India Business Council's 8th annual Mumbai Business Forum.

“Whenever we travel on these trade missions and have meetings with ministers and department heads and industry leaders, we always invite them to come back to Saskatchew­an to tour here and to see what we're doing,” he said.

Saskatchew­an has exported over $11 billion of goods to India during the past decade. Exports from Saskatchew­an to India is the highest of all the provinces and territorie­s. These exports were valued at $1.15 billion in 2017. Saskatchew­an's main exports to India are potash, uranium, lentils and peas, and about 4,550 jobs rely on these exports.

 ?? Photos courtesy of Government of Saskatchew­an ?? The Saskatchew­an delegation, seated on the left side of the table, during discussion­s on the trade mission to India.
Photos courtesy of Government of Saskatchew­an The Saskatchew­an delegation, seated on the left side of the table, during discussion­s on the trade mission to India.
 ??  ?? Saskatchew­an Premier Scott Moe (at front) and Swift Current MLA Everett Hindley during a meeting on the recent trade mission to India.
Saskatchew­an Premier Scott Moe (at front) and Swift Current MLA Everett Hindley during a meeting on the recent trade mission to India.

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