ISLAMABAD: Pakistan and Canada have agreed to facilitate the export of Canadian canola to the South Asian country, they said in a joint statement late Monday, amid Ottawa’s search for new markets for the commodity.
The statement came days after Pakistani Foreign Minister Ishaq Dar held a “productive” telephonic conversation with his Canadian counterpart Anita Anand, emphasizing the importance of deepening cooperation in areas of mutual interest, according to the Pakistani foreign ministry.
Canada has been looking to open new markets for canola after China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would levy a 100 percent tariff on the import of Chinese electric vehicles.
The agreement between Pakistan and Canada to allow Canadian canola imports comes after the two sides held the first round of negotiations toward a Foreign Investment Promotion and Protection Agreement (FIPA) in Sept., which reflected their commitment to fostering trade.
“Pakistan and Canada agreed to facilitate the export of Canadian canola to Pakistan, recognizing the significant potential of Pakistan’s expanding market for this Canadian commodity,” the Pakistani foreign office said in a joint statement.
It said the two sides recognized the strong and growing role of Canadian companies in achieving Pakistan’s ambitious mineral development goals and harnessing its clean energy potential.
“Both sides also expressed keen interest in expanding bilateral cooperation on energy security and critical minerals,” the statement read.
While the agreement opens a key export market for Canada, it means enhanced food security and a wider array of options for Pakistan’s substantial edible oil consumption.
Bilateral trade between Pakistan and Canada crossed the $1 billion mark in 2022, with the balance in favor of Pakistan. In 2023, the overall volume of trade was recorded at $627.17 million out of which, Pakistan’s exports were $461.57 million and imports were $165.59 million, according to the Pakistani high commission in Ottawa.
Pakistan’s exports include textiles, leather products, cotton yarn and cereals and imports mainly consist of oil seeds, oleaginous fruits, industrial and medicinal plants, straw and fodder, edible vegetables, roots and tubers, iron and steel.
Many Canadian companies, including Hatch, Enerflex, Constellation Software, Nortel, Solinst, Enerflex and Bombardier, have a strong presence in Pakistan. Canadian food giant Restaurant Brands International (RBI), one of the largest food chains in North America, has opened multiple branches of its flagship coffee chain, Tim Hortons, in Pakistan, while Second Cup is another popular Canadian coffee retailer that has its outlets in Karachi, Lahore and Islamabad.
The Pakistani foreign office said both countries are looking forward to the upcoming 6th round of bilateral consultations, which will serve as a platform to advance shared priorities, reinforce government-to-government and private sector linkages, and explore new avenues for strategic collaboration.
“Pakistan and Canada remain committed to working together to promote peace, prosperity, and inclusive growth, both bilaterally and on the global stage,” it added.
