Check it Out: The stakes are high for prairie producers

By Joan Janzen

A 7-year-old said to her mom, “I’m so thankful you’re my mommy.” Her mom was getting all teary-eyed until her daughter continued, “Other people’s moms only give them healthy lunches.”

As I began writing this on Thanksgiving Day, it occurred to me it might be appropriate to be thankful for something. I’m definitely thankful for the unconditional love of family, friends, and God. And as I’ve watched harvesting take place across the landscape, it’s fitting to express gratitude to our farmers.

As I write this column, the federal government has been presented with the opportunity to show gratitude to our grain producers, and I truly hope this is successfully resolved by the time you read this article. Chris Baker discussed the matter on his Bakes On Things podcast.

China has put a straightforward deal on the table: they have offered to drop their canola import tariffs if Canada drops its 100 percent tariffs on Chinese electric vehicles (EVs).

Chris Baker said this could be an easy win for Canadians, and it should be an easy decision to make. After all, Saskatchewan’s exports to China dropped 76 percent in August compared to August of 2024. Sixty percent of that trade consists of food: grain, canola, real Canadian products that are the lifeblood of the prairie economy. The decision will impact 200,000 Canadian workers, farmers, mill operators, exporters, and truckers.

And yet the federal government is stalling on making a decision. “Every month this government continues to hesitate, farmers lose contracts, processors lose shifts, and rural towns lose their future,” Chris observed.

So why is Ottawa stalling? Chris answered the question by saying, “Our government is defending tariffs on cars we don’t even make while sacrificing crops that we do make. The tariffs are supposed to protect the domestic EV industry.”

But what domestic EV industry are we protecting? Some will say we must keep the tariffs to protect Ontario’s auto sector. But right now, these tariffs aren’t protecting a single assembly line in Windsor or Oakville because China’s EVs aren’t even being sold here in meaningful numbers.

“This isn’t about safeguarding existing jobs. It’s about safeguarding future votes,” Chris pointed out.

The federal government moves swiftly when it comes to new spending announcements, but when it comes to defending Canadian producers, it feels the need for a review committee and lengthy consultations. The Canada Pension Plan (CPP) Investments didn’t hesitate to invest $200 million in Northvolt, a Canadian producer of EV batteries, back in 2023.

Northvolt’s bankruptcy in November of 2024 made the investment worthless and resulted in significant financial losses for Canadian pension funds.

Mark Warner, an international trade lawyer, noted farmers are being punished for something that doesn’t even exist because there is no EV market from China yet.

“The prairie farmers built this entire country’s export reputation. They’re the ones suffering right now,” Chris observed. Manitoba’s processors, Saskatchewan’s truckers, and Alberta’s grain terminals are all suffering for a trade war that protects no one in Windsor and nothing in Oshawa, he added.

Meanwhile, the stakes are high for Canadian farmers while Ottawa is hesitating. Hundreds of millions of dollars in agricultural trade will evaporate as Canadian producers are locked out of one of their biggest markets.

Chris continued to explain that China doesn’t need Canada’s canola; they can buy it from Australia, Brazil, or Russia. We need to act now because once these supply lines are solidified, Canada suffers the permanent loss of a market. “In Canada we’re losing trade leverage, losing farmers, and gaining nothing in return,” he said.

The premiers of Manitoba, Saskatchewan, and Alberta are standing up for prairie farmers because they are well aware of the consequences. When prairie farmers can’t sell their crops, grain elevators go quiet, and small towns start losing their tax base, it’s not just a western problem anymore; it’s a Canadian problem.

Chris pointed out this is a defining leadership test for our Prime Minister. The Chinese ambassador has given a clear signal, the premiers have lined up in agreement, and the stakes are extremely high.

“If there ever was a moment to show that you understand both economics and diplomacy, now is that time. Drop the EV tariffs, save the canola, defend all the farmers, and do what is right for the nation, not what’s going to buy you votes,” Chris said, articulating the situation very well.

This can be done with necessary safeguards put in place, but we have to do it now. “We’ve been given an offer. Why wouldn’t we take it?” Chris asked.

I sincerely hope the offer has been accepted by the time you read this article. It would be one more thing for which Canadian producers would be extremely grateful.