FACILITATING

CANADIAN

SEED

EXPORTS

OVERVIEW Canada’s seed industry has an opportunity to increase exports to meet growing international demand for high quality seed. This report outlines some steps that CSTA and its members can take to fulfill that growing demand.

Table of Contents Executive Summary ..................................................................................................................... 3

Introduction ................................................................................................................................. 4

Identifying Target Markets ........................................................................................................... 7

Canadian Seed Export Destinations .......................................................................................... 7

Turkey ....................................................................................................................................... 14

Overview ............................................................................................................................ 14

Crop and seed production in Turkey .................................................................................... 14

Legal Framework ................................................................................................................ 14

Turkey’s Seed Trade ............................................................................................................ 15

Opportunities ...................................................................................................................... 16

Challenges .......................................................................................................................... 16

Market Development .......................................................................................................... 17

Further Reading .................................................................................................................. 18

Ukraine ..................................................................................................................................... 19

Overview ............................................................................................................................ 19

Crop and seed production in Ukraine ................................................................................... 19

Legal Framework ................................................................................................................ 20

Ukraine’s Seed Trade .......................................................................................................... 21

Opportunities ...................................................................................................................... 22

Challenges .......................................................................................................................... 22

Market Development .......................................................................................................... 23

Further Reading .................................................................................................................. 23

Kazakhstan ................................................................................................................................ 24

Overview ............................................................................................................................ 24

Crop and seed production in Ukraine ................................................................................... 24

Legal Framework ................................................................................................................ 25

Kazakhstan’s Seed Trade ..................................................................................................... 25

Opportunities ...................................................................................................................... 26

Challenges .......................................................................................................................... 26

Market Development .......................................................................................................... 27

Further Reading .................................................................................................................. 27

Tier Two Markets ...................................................................................................................... 29

China ..................................................................................................................................... 29

Opportunities ...................................................................................................................... 29

Challenges .......................................................................................................................... 30

Market Development .......................................................................................................... 30

Further Reading .................................................................................................................. 30

Japan ..................................................................................................................................... 31

Opportunities ...................................................................................................................... 31

Challenges .......................................................................................................................... 31

Market Development .......................................................................................................... 32

Further Reading .................................................................................................................. 32

South Korea ........................................................................................................................... 33

Opportunities ...................................................................................................................... 33

Challenges .......................................................................................................................... 33

Market Development .......................................................................................................... 34

Further Reading .................................................................................................................. 34

Market Facilitation Advantage ................................................................................................... 35

Executive Summary The Canadian seed industry is part of a dynamic international seed trade. Global exports are dominated by European countries and the United States, with more than USD 7 billion of field crop seed exported globally. Canada plays an important role in that trade as a top ten seed exporter, according to the International Seed Federation, but there is an opportunity for Canada to do more. Building on the Canadian Seed Trade Association’s (CSTA) strong track record on market access issues, this report outlines how the CSTA can support its members as they work to increase Canadian seed exports. Given the competitive nature of the seed industry, the report focuses on the role the CSTA can play in facilitating increased exports, leaving the development of sales to its members. Knowledge, relationships and access are at the core of the Market Facilitation Strategy. Leveraging these three assets will be essential to increasing seed exports. To maximize the industry’s resources, the report identifies 6 Target Markets, in two tiers, based on the potential to increase exports. Tier One Target Markets are:

• Turkey – A regional hub that is becoming an important seed exporter to Europe, the Middle East and Southern Asia.

• Ukraine – Already a major grain exporter, Ukraine is undergoing land reform, which is expected to lead to increased investments in plant genetics.

• Kazakhstan – A country with significant untapped grain production potential. Tier Two Target Markets are:

• China – The world’s second-largest seed market. • Japan and South Korea – Two mature, high-value, forage and grass seed markets.

There is significant potential in these markets, but there is also significant competition. This report recommends that Canada build a Market Facilitation Advantage to give Canadian exporters a competitive advantage. This Advantage should include efficient, expeditious access to export certificates, a clear understanding of import conditions in target markets, improved relations with industry associations in target markets, recognition of Canada’s varietal registration and support for IP protection abroad. Taken together, these measures have the potential to give Canadian seed exporters the edge in Target Markets and other markets around the world.

Introduction Canada’s seed industry is made up of a variety of players, involved in everything from seed research, production, marketing and trade, both domestically and internationally. The Canadian Seed Trade Association (CSTA) represents 130 members in Canada’s seed business as their national industry association. In addition to its role advocating on behalf of the seed trade, the CSTA fosters the development of international markets, and works with industry and affiliated organizations in Canada and abroad to address issues in the seed industry. CSTA’s members are present in markets around the world, selling some of the world’s most innovative, high-quality seeds and plant genetics. For these companies, market development is an important part of their business plan, and a strong market development strategy is essential to their success in international markets. While CSTA’s members are on the front line of market development, the CSTA plays an important role in supporting its members’ sales to foreign markets. Trade and market access is a key focus area for the CSTA, whose objective is the open domestic and international trade of seed. CSTA's International Committee advises and informs the CSTA Board of Directors on international issues that do or can impact the achievement of CSTA's 'open trade of seed' objective. This committee is interested in international trade negotiations, non-tariff trade barriers and international phytosanitary standards. Participants are also active in international organizations such as the International Seed Federation (ISF), Seed Association of the Americas (SAA) and North American Plant Protection Organization (NAPPO). Writing the Report The CSTA recognized that there is an opportunity for it to go beyond its work on market access issues by supporting its members’ market development activities. With funding from Agriculture and Agri-Food Canada’s AgriMarketing Program, the CSTA undertook to develop a market development strategy to guide its efforts to do more to increase the exports of Canadian seed. This project included research into the international seed trade, identification of opportunities for the Canadian industry and the development of a plan to take advantage of those opportunities. A survey of CSTA members followed up by in-depth calls, engagement with contacts in foreign markets, including Canada’s Trade Commissioners, and a review of available resources all aided the development of this strategy. Development of the strategy also included a review of strategies used by other national associations representing the seed industry and other national associations representing similar industries in

CSTA’S MARKET ACCESS

SUCCESS • Reduction in phytosanitary and trade barriers • Trade arbitration services • Passage of the PBR Act that put Canada in

compliance with UPOV 1991 • Increased trade in licensed genetics, now

worth millions of dollars • Improved trade of soybean varieties and

identity-preserved soy shipments founded on seed genetics

• Improving the domestic regulatory environment to facilitate trade and access to improved genetics

Canada. This review enabled an evaluation of best practices and identification of lessons the CSTA could learn from others’ experiences. Common Themes Several common themes came up during the development of the report. • There is no single model for success in exporting seed genetics. There are almost as many

strategies in place as there are exporters, reflecting the individual risk tolerance levels, resources, experiences and skill sets of each exporter. Canada’s seed industry has exporters that come in a variety of shapes and sizes, increasing the diversity in approaches to exporting seed.

• IP protection is a concern in every market. Even in developed markets with strong IP regimes

and meaningful enforcement, exporters still expressed concerns about exporting their IP abroad. These concerns increase exponentially when exporting to markets with regulatory regimes that are under development or where enforcement may be limited.

• Nothing can replace having boots on the ground and experience in foreign markets. While

technology makes it infinitely easier to do business around the world, it does not replace the need or benefit of being present in export markets. Most strong export programs rely on having trusted staff in the market, but exporters benefit from being in the market as well to oversee and support their market development activities.

• There was relatively low awareness of the government support available to exporters. Support

ranges from Trade Commissioners (www.tradecommissioner.gc.ca) located in markets around the world that can assist exporters to the CanExport program (https://www.tradecommissioner.gc.ca/trade_commissioners-delegues_commerciaux/funding-financement/canexport/sme-pme/index.aspx?lang=eng ), which can fund international market development activities for SMEs.

• The seed trade is very competitive. Canadian exporters face competition from the US, EU and

from within Canada, as they sell seeds and plant genetics in foreign markets. Companies leverage performance, prices, brand, knowledge, and so much more to deliver sales in export markets.

That is why some members expressed concern about the CSTA engaging in market development activities that could potentially advantage one exporter over others. When the CSTA works on market access issues, it helps create a level playing field and benefits exporters equally. As the CSTA considers what market development activities to undertake, it must ensure its work is in support of all exporters and not done in a way that takes away from the significant work its members are already doing. As a result of this concern, most of the recommendations in this report lean towards market facilitation and not what has often been considered market development (ex. Brand development, foreign promotion, etc). Put differently, this report recommends the CSTA go further in facilitating its members’ access to target markets, but leave the development of those markets up to its members. Fundamental Principles The common themes lead to a set of fundamental principles that are at the core of the Market Facilitation Strategy. They are knowledge, relationships and access.

First, knowledge is power. CSTA members need to understand the dynamics at play in the target markets and have access to data to be able to assess the opportunities that exist. The information included in this report provides a high-level overview of the markets. The information and insights are intended to serve as a starting point that will help enable members to make a more informed decision as to whether they want to explore the market further. One of the challenges the seed industry faces is a lack of reliable or consistent trade statistics. This report uses data from the Government of Canada, the United States Department of Agriculture, the United Nations, the FAO and the International Seed Federation. They may not always align due to differences in how the information is collected, classified and reported. While there may be slight differences, when taken as a whole, these different sources paint a more complete picture of the international seed trade. However, the public availability of pulse seed exports is limited, and as a result, pulse seed exports may not be reflected in all situations. Second, relationships are essential for success in export markets. All the CSTA members interviewed highlighted how important relationships are for the success of their export business. The ability to rely on a trusted partner can go a long way to addressing challenges exporting seed to markets half a world away. While the most important relationships are between the exporter and importer, CSTA can facilitate those connections by establishing relationships with its counterparts around the world. The CSTA can then work with the industry association in the importing market to connect interested exporters with interested importers. It is also essential that the CSTA maintain a strong relationship with the Canadian Food Inspection Agency, Agriculture and Agri-Food Canada and Global Affairs Canada. The CSTA’s existing relationships position it well to advocate on behalf of its members with these key departments. The final relationships that matter are those between officials in Canada and export markets. These relationships are essential to facilitating exports by preventing and resolving issues that can have a significant impact on Canada’s ability to export abroad. Unfortunately, resources inside the government can be tight and may limit how officials can engage with their counterparts. The Canadian seed industry benefits from the international relationships that Canadian departments have and should encourage governments to do more and go further. Finally, the access Canada has to foreign markets can make or break the ability of a Canadian company to export. Building on CSTA’s strong track record, the CSTA should continue to work so that Canada’s seed trade has the world’s best access to target markets. Securing improved import conditions can give Canadian exporters the competitive advantage they need to succeed in foreign markets. Knowledge, relationships and access underpin the rest of this report. The remainder of the report addresses how the target markets were selected, provides an overview of each target market and identifies how Canada can build a Market Facilitation Advantage.

Relationships

Access

Knowledge

Identifying Target Markets Canadian seed companies exported almost $650 million of seed to over 100 markets in 2017/18. A growth of more than a third between 2012/13 and 2017/18. This large international reach means that Canadian companies already have footprints all over the world. It also means that it is important that the CSTA be strategic when it is identifying target markets where it invests its resources in support of the Canadian seed trade. There are multiple factors to consider when identifying target markets including, value and volume imports, Canadian exports, climate and soil conditions, historic and future growth potential and the legal frameworks that exist. These factors are not all equal, and their weight is different in each situation.

This report groups target markets into two different tiers based on the potential that exists in the markets. Potential is assessed based on the opportunities and challenges, or risk vs reward and recognizes that some markets may have limited interest to the industry as a whole, but are still of interest to a certain segment, or a smaller number of exporters. Major Importers Looking first at the markets that are major seed importers, most are markets were Canadian seed exporters already have strong relationships or where it is relatively easy and low risk for companies to develop new sales. For example, European Union countries make up the largest block of seed importers, representing almost half of the top 25 seed importers. The United States is the second-largest importer, coming close behind the Netherlands in the value of total seed imports. France was the highest value field crop importer, with the United States once

2017 World Seed Imports

Country

Quantity [Metric Tons]

Value [Million US Dollars]

Field Crops Total Field

Crops Total

Grand Total 3,845,956 3,979,793 6,912 11,289 Netherlands 409,311 421,601 430 1,017 USA 190,775 204,188 559 1,003 France 169,959 174,994 577 769 Germany 224,686 228,700 551 693 Italy 489,631 501,879 324 540 Spain 268,919 274,584 233 531 Mexico 35,575 37,438 131 455 Russian Fed. 72,334 73,354 362 442 China 9,636 125 366 Ukraine 51,130 51,323 272 293 Japan 42,525 47,403 111 274 Belgium 409,488 416,905 228 272 Canada 52,709 57,261 138 267 Poland 182,306 188,572 203 259 United Kingdom 81,006 85,904 137 226 Romania 67,201 68,828 191 211 Hungary 47,741 48,240 176 191 Turkey 26,500 27,418 68 168 Austria 41,424 42,769 147 161 Denmark 65,338 65,890 127 157 Brazil 53,445 53,450 67 139 Bulgaria 22,316 23,018 119 127 Australia 31,132 32,283 60 125 India 26,660 29,456 35 121 Argentina 37,000 37,395 89 117

Source: ISF compilation based on official statistics and international seed trade reports Total also includes Vegetable and Flower seed imports

Canadian Seed Export Destinations

Source: Statistics Canada data accessed via CSTA SeedStat

again second and Germany a close third according to statistics compiled by the International Seed Federation. Given the competitive forces already at play in these markets, the ease of doing business and the low risk for sales to these markets, the United States and the European Union were not considered as target markets for the CSTA strategy. However, many other large importers remain interesting options for Canadian exporters. Top Export Destinations Most Canadian export markets are well aligned with major importers. Canada has also seen significant growth in most of its major export markets over the last five years, except for some more mature European markets where exports are relatively stagnant (ex. Germany and France). Some export markets have seen significant grown from a percent perspective, growing from little to no exports five years ago. Some EU members, including Ireland, Portugal and Peru fall into that category. Once again, the ease of doing business in these markets eliminates them from consideration as target markets. Growth Potential Just because a market imports a significant value of Canadian seed doesn’t mean there is a lot of opportunity for growth. For example, Nepal, which went from almost no Canadian imports to more than $10 million worth in one year, has not been a consistent or reliable seed market and does not appear to have a lot of growth potential for Canadian seed exporters. Brazil also saw significant growth in Canadian imports over the last five years and was a top 20 export destination for Canadian seed, but it is a competitive market, with limited opportunity for future growth. Assessing the growth potential of a country’s grain industry can be a challenge. More in-depth analysis is included later in the report, but as a first step, a review of grain yield and production projections was conducted. The International Grains Council (IGC) prepares a five-year projection for wheat, corn and soybean area, yield and production for most major producers. More information on the IGC projections can be found here https://www.igc.int/en/markets/marketinfo-forecasts.aspx. According to the IGC’s five-year projection, Kazakhstan, Russia and Canada are expected to lead in yield increases for wheat by 2023, with Kazakhstan increasing its wheat yields by 40% between 2014 and 2023. Russia, Ukraine, Canada and North Africa are expected to lead the growth in wheat production between now and 2023.

Top Canadian Seed Export Destinations Value of

17/18 Exports Increase from 12/13

Value % Total 645,855,924 217,664,519 51% United States 403,297,038 57,247,334 17% China 46,752,850 33,711,927 259% Ireland 30,855,529 30,689,360 18469% Japan 19,159,234 11,953,667 166% Turkey 12,709,834 11,698,155 1156% Netherlands 12,236,715 (413,065) -3% Nepal 11,273,059 11,273,059 7415% Germany 7,122,625 (217,670) -3% Mexico 6,614,949 6,404,834 3048% Pakistan 5,704,240 5,704,240 1743% Colombia 4,713,226 4,348,925 1194% Argentina 4,271,938 3,410,806 396% Italy 4,126,625 2,153,455 109% Portugal 3,927,010 3,896,691 12852% Peru 3,808,066 3,330,527 697% South Korea 3,805,288 (894,450) -19% Brazil 3,794,123 3,757,124 10155% U.A.E. 3,706,534 3,550,334 2273% Algeria 3,484,625 3,484,625 70% Singapore 3,336,564 2,906,997 677%

The IGC predicts that Brazil, Argentina, Canada and South Africa will be at the top of the increases in corn production, with South Africa, India, China and Brazil leading the increases in yield. The IGC expects that increases in soybean production will largely be driven by increases in soybean acres around the world, with acres increasing by double digits in all major growing regions except the US and Argentina. The IGC predicts soybean yield will decrease in the EU and Argentina but will grow in Brazil, Canada, Paraguay and India. Soil and Climate Looking beyond the statistics, it was important to identify markets where Canadian plant genetics would perform well. Canada’s diverse climate and growing conditions have similarities with large parts of the world.

Looking more closely at soil temperature and moisture, Eastern Europe and Eurasia were identified as having very similar growing conditions to large swaths of Canada.

Tier One Markets As a result of the analysis, Turkey and Eastern Europe (Ukraine and Kazakhstan) were selected as Tier One target markets. Greater detail is provided later in the report, but their selection was driven by the growth in their imports, the potential for agriculture in the market and the ability to leverage those markets to increase sales to other markets. Turkey, Ukraine and Kazakhstan’s proximity also gives the CSTA and its members a unique ability to coordinate outreach and missions to the region. The logistics of travelling to the three markets are relatively simple and create a potential for CSTA and its members to travel to the three markets during the same market development mission. These three markets also present an interesting ability to leverage the target markets into opportunities in other markets. The ability to export from target markets into other markets should be part of a long-term strategy for Canadian seed exporters. The three target markets have major seed exports to markets across Europe, in the Middle East and North and East Asia, which can position Canadian seed companies for even greater growth. Tier Two Markets While the opportunities are considered greatest in Turkey, Ukraine and Kazakhstan, there remain opportunities around the world, but they may be smaller, riskier, or more targeted than those in the Tier One markets. China may be the market with the largest potential value for Canadian seed exporters. However, it may also be the riskiest given the current political climate and their IP regime. China has recently taken several high-profile actions that have had a significant impact on Canadian agriculture. While the Canadian government announced the resumption of the meat trade in early November 2019, it remains unclear when predictability will return to Canada-China trade. China also has a very poor record of IP protection. With companies across the economy suffering from Chinese companies copying their IP. These challenges in the trade relationship resulted in China being classified as a Tier Two market. However,

Tier One Markets and their Major Export Destinations

Value of Canadian Seed Exports to North Asia

Source: Statistics Canada accessed via CSTA Seedstat

if the political and trade context change, it may shift to a Tier One market. There is also potential in other markets in the region. Along with China, markets in North Asia, including Japan and South Korea, also present opportunities for Canadian exporters. Japan is already a top seed export destination, importing Canadian soybean, pulse and forage seed. Soybean seed exports have fluctuated in the past but have seen substantial growth over the last two years. Despite this recent growth, industry intelligence has indicated that growth in the market may be limited going forward. The population is ageing and shrinking, and the agriculture industry is mature. Feedback from Japanese industry is that they are shifting resources to develop export markets as they see limited growth potential domestically. However, given the strong relationships that exist in the market, the Canadian industry is well-positioned to try and increase sales to the market. Along with Japan, South Korea is a top 20 destination for Canadian seed. It has previously ranked higher (in 2012/13 it was the 7th largest market) and has seen the types of seeds that are exported shift over the years. At times South Korea has imported wheat, rye, navy and other bean seed and oats from Canada. Some of the volatility in Canadian exports was a result of the US securing an FTA in advance of Canada. However, the trade relationship has returned to normal, and while agriculture in South Korea is relatively mature, there is a potential opportunity for Canada to increase sales. As is the case with the Tier One markets, the Tier Two markets are relatively close in North Asia. Therefore, the Canadian industry could visit China, Japan and South Korea in a single overseas mission. Other Markets Russia was also considered as a target market. It is a top 10 importer, with significant potential for its industry to develop and grow over the next ten years. However, while there is significant opportunity for exporters in Russia, there is also significant risk. While market access issues in Russia have not been high profile in recent years, they were front and center in 2014 when the Russian Government banned imports of some agricultural products. These actions, in response to Western sanctions placed on Russia, had a significant impact on exporters across commodities and around the world. The import ban has been followed up by a series of Technical Barriers to Trade (TBT) that have continued to limit agricultural imports. United States Department of Agriculture (USDA) reports12 highlight the growth that is underway in Russian agriculture and the opportunities that exist. However, they also list the significant challenges that exist exporting agricultural products to Russia, including TBT issues, IP protection, access to credit and negative perceptions of Western countries.

1 2018 Agricultural Economy and Policy Report, Russian Federation. USDA, Global Agricultural Information Network (GAIN). Accessed October 2019. https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Agricultural%20Economy%20and%20Policy%20Report_Moscow_Russian%20Federation_7-19-2018.pdf 2 2018 Russian Federation Exporter Guide 2018. USDA, GAIN. Accessed October 2019. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Exporter%20Guide_Moscow%20ATO_Russian%20Federation_7-12-2019

Canadian exporters may see opportunities in Russia that they want to explore, but given the risks and challenges that exist, it was determined that it is not a market where CSTA should play a role supporting its members’ market development activities.

Turkey Overview Turkey is already a growing destination for Canadian seed exports. For example, building on the success of Canadian pulse exports to Turkey, lentil seeds have seen growth over the last five years, reaching a significant high in 2017/18. Turkey’s demand for alfalfa, forage, corn and grass seeds also makes it an interesting market for Canadian exporters. While Turkey’s government is encouraging it to be self-sufficient in seed production, Turkey’s position as a major seed exporter is shrinking its negative trade balance and positions it for continued growth in seed imports. Crop and seed production in Turkey Turkey is a major cereal grower, growing more than 24 million acres of wheat and barley. Turkey’s cereals production typically goes into its domestic food processing sector. Production of wheat, barley and corn is facing competition from other crops but is expected to remain relatively strong given the demand from Turkey’s processing sector. Turkey’s agriculture department has implemented a series of policies to encourage the development of its seed sector and to try and limit imports. The USDA GAIN Planting Seed3 report from 2017 highlights the history of seed production and the measures the government has taken over the last 20 years. Subsidies and other measures have been used to shift farmers away from farm-saved seed towards certified seed use. These measures have increased domestic certified seed production and use, with certified seed making up half of Turkey’s seed use. According to the USDA, certified seeds represent 30% of wheat and barley seeds. Legal Framework Turkey has a long-standing regulatory framework that governs variety registration and intellectual property protection. Turkey’s framework has similar legal and administrative approaches as other developed nations.

3 Turkey Planting Seeds Sector Overview. USDA GAIN. Accessed September 2019 https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Turkey%20Planting%20Seeds%20Sector%20Overview_Ankara_Turkey_3-15-2017

Turkey’s Top 10 Crops 2015-17 Average Area (ha)

Wheat 7,706,207 Barley 2,631,020 Olives 842,846 Sunflower seed 727,643 Maize 667,811 Seed cotton 450,493 Grapes 438,030 Hazelnuts 436,695 Chickpeas 367,194 Sugarbeet 312,014 Source: FAOSTAT

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Value of Canada's Seed Exports to Turkey

Lentil Chickpea AlfalfaBean Rye grass Creeping red fescue

Source: Statistics Canada data accessed via CSTA Seedstat

Turkey’s laws and regulations require varietal registration before seed can be imported, exported or distributed. Several departments within the Ministry of Food Agriculture and Livestock (MinFAL) are responsible for the variety registration and testing in Turkey. The registration system requires testing for distinctiveness, uniformity and stability and in some cases, for value for cultivation and use. Import permits can also be received for a limited period before registration is completed to enable testing, research and demonstration. The maximum amounts of seed that can be imported for demonstration range from 10 kg of canola to 1000 kg of barley. MinFAL’s General Directorate of Plant Production is responsible for plant breeder’s rights protection. Turkey adopted the most recent UPOV convention in 2007. Turkey maintains a ban on genetically modified crops for food and cultivation, with a limited number of traits approved for import for feed purposes only. The Government of Turkey has been working on changes to its biotechnology regulations; however, it is not clear when the new regulations will come into effect. The expectation is that the revised regime will be closely aligned with the EU’s biotechnology regime. Turkey has maintained an inconsistent testing regime for GM traits in imports, but can, at times, undertake significant testing. Canadian exporters have been previously impacted by the detection of trace levels of unapproved GM traits in Turkey. Turkey’s Seed Trade As a result of the domestic measures in place, seed imports have been relatively steady in Turkey. At the same time, its exports have grown significantly, shrinking Turkey’s balance of trade on seed. Turkey’s success in export markets has lessened the pressure the Government faces to maintain strong import controls; however, the Government has not taken any officials steps to ease import restrictions.

Imports Turkey maintains a series of import controls that limit how imported seeds can be used. Forage, grass and vegetable seeds can be imported for trade and commercial purposes, while wheat, barley and corn seeds can only be imported for reproducing and breeding purposes. While this may limit the ability to export some bulk seed to Turkey, there is an opportunity for Canadian seed companies to partner with Turkish companies to use Canadian varieties to produce seed in Turkey for sale in Turkey and the region. Canada’s existing seed sales represent a small share of Turkey’s total seed imports. While vegetables (mainly tomatoes) dominate

2018 Top Seed Crop Imports Partner Seed (Thousand

$US) Italy Lucerne 11,611 Italy Corn 2,531 Denmark Fescue 2,333 Denmark Rye Grass 2,190 US Rye Grass 1,895 Spain Forage

Plants 1,492

US Fescue 1,304 Romania Corn 1,282 US Forage

Plants 982

Canada Canary Seed 811 Canada Lucerne 759 Source: USDA GATS. Pulse crops not included

$-

$50,000

$100,000

$150,000

$200,000

201020112012201320142015201620172018

Tho

usan

d U

SD

Turkey Seed Trade

Imports Exports

Source: USDA GATS. Pulse crops not included

Turkey’s seed imports, it is a large importer of a variety of field crop seeds, including corn, forage and grass seeds. Pulse seed import stats are not publicly available but are reported by industry to be limited. Turkey’s proximity to and Customs Union with the European Union (EU) give EU companies and advantage in the market, with the EU dominating seed exports to Turkey. However, Canada and the US export alfalfa and grass seed to Turkey. Exports Turkey has seen significant growth in its seed exports over the last ten years, with exports almost doubling between 2010 and 2018. Major export destinations include markets in the Middle East and Eastern Russia, with significant growth in sales to Azerbaijan, Russia, Ukraine and Georgia. Major seed exports from Turkey include wheat, corn, vegetables, barley and durum. Opportunities • Forage and Grass Seed – Turkey

imported almost $30 million of forage and grass seed in 2018, more than double what was imported in 2010. Rules that limit the use of some seed imports do not apply to forage and grass seed. While the EU is the dominant supplier of forage and grass seed to Turkey, the US supplies almost 25% of existing imports demonstrating that North American seed can be competitive in the market.

• Corn – Corn seed can only be imported for reproduction and research in Turkey. However, the demand for high-quality varieties, particularly for feed and forage use, is driving Turkish companies to look for partners all over the world. While Turkey’s corn seed exports have fallen in recent years to approximately USD 25 million a year, they had averaged $37 million between 2013 and 2016.

• Oversight in the Market – Turkey’s government maintains a strong regulatory and subsidy system for seed varieties. It also has a well-developed domestic research and variety development network. The risk to IP is relatively low compared to other growing markets.

• Turkey is looking for partners – The restrictions on imported seed limit some potential, but Turkey’s seed industry is looking for global partners that can bring high-quality varieties to Turkey for development and duplication for use in domestic and export markets.

• Positive relations – While political relations have shifted in recent years, Canada and Turkey still enjoy strong commercial ties. Agriculture and Agri-Food Canada and the Canadian Food Inspection Agency have increased their engagement with their counterparts in recent years and are well-positioned to help facilitate increased trade between Canada and Turkey.

Challenges • Import Restrictions – Turkey’s restrictions on wheat, barley and corn seed imports may limit the

potential for some Canadian exporters.

• A crowded market – Turkey’s seed industry is crowded, with 50,000 members in the national seed association. The EU’s proximity makes it easy for Europeans to be in Turkey, and it is difficult for Canadians to be as engaged in Turkey as the Europeans are. It may be difficult for Canadians to find space in such a crowded market.

• Competition from the European Union – Not only are the Europeans very active in the market; they benefit from cheaper logistics exporting to Turkey and a Customs Union.

Market Development There is a significant opportunity for the CSTA and its members to increase exports to Turkey. The following are examples of steps the Canadian seed industry can take to increase Canadian sales to the market. • Visit the market – In-person engagement is

important in Turkey. A mission to Turkey would allow Canadian exporters to meet with potential importers, distributors, and seed development partners, large growers and the Turkish Government. An industry mission could be followed up by company-specific travel once initial connections have been made.

• Participate in a trade show – Trade shows are not as effective as a targeted mission to develop sales to the region, due to the large crowds and the presence of many seed companies that may not be interested in Canadian seed. While they may not be an ideal venue to develop relationships in the market, they can be an affordable add-on to a more targeted industry mission to Turkey.

Relevant Trade Shows for Turkey Seed and Nursery Fair Ankara, Turkey

September 26 – 29, 2019 http://www.infofair.com.tr/FuarDetay-371-tohum%E2%80%992019-3-tohum-ve-fidancilik-fuari.html

Adana Agriculture Fair Adana, Turkey November 5 – 9, 2019

http://adanatarimfuari.com/en/

International Agriculture, Agricultural Mechanization and Field Technologies Fair

Konya, Turkey March 17 – 21, 2020

http://konyaagriculture.com/

Agroexpo International Agriculture & Livestock Exhibition

Izmir, Turkey February 6-9, 2020

https://en.agroexpo.com.tr/

Farmer Expo Debrecen, Hungary August 18-21, 2020

http://www.farmerexpo.hu/

• Develop partnerships – Relationships are key to success in markets like Turkey. The CSTA and its Turkish counterpart already have a positive relationship through their joint work in the International Seed Federation. Canadian companies that are interested in pursuing sales in the market could leverage that relationship to identify potential importers and opportunities for partnerships. Canada’s Trade Commissioners in Turkey are also keen to assist exporters as they explore the potential in the market.

Turkey at a Glance

Canadian Exports

Lentils, Chickpea, Alfalfa, Bean, Rye Grass, Fescue

Turkey’s Imports

Alfalfa, Corn, Fescue, Rye Grass, Forages, Canary Seed

Domestic Regulations

Limitations on certain imports Subsidies for certified seed

UPOV Status UPOV 91 Compliant OECD Seed Scheme

Yes for almost all seed types

Tariff Rates Most Favoured Nation Biotechnology Limited Traits Approved for

Feed Use Inconsistent Testing

Industry Association

TÜRK-TED http://turkted.org.tr/

Trade Commissioners

www.tradecommissioner.gc.ca/tr

• Add value – Turkey’s seed companies, distributors and large growers are typically interested in more than just Canada’s high-quality seed. The ability to go beyond seed sales and offer technical expertise or technology has the potential to give Canadian companies an advantage over their competitors.

Further Reading The following documents offer more information on the seed market in Turkey. • Turkish Seed Industries Association. TURKTED Seed News, Issue Number 1 May - June 2019.

http://turkted.org.tr/ebultening/turktedseednewsmayjune-2019.pdf • Kaya, Yalcin & Beser, Necmi. (2018). Turkish seed sector: Current situation and future

directions. https://www.researchgate.net/publication/330825298_Turkish_seed_sector_Current_situation_and_future_directions/citation/download

• USDA GAIN (2017). Turkey Planting Seeds Sector Overview. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Turkey%20Planting%20Seeds%20Sector%20Overview_Ankara_Turkey_3-15-2017

• USDA GAIN (2019). Turkey Grain and Feed Update. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Grain%20and%20Feed%20Update_Ankara_Turkey_10-15-2019

• USDA GAIN (2018). Turkey Agricultural Biotechnology Annual Report, 2018. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Agricultural%20Biotechnology%20Annual_Ankara_Turkey_11-15-2018

Ukraine Overview Ukrainian agriculture has undergone a long, slow transition following Ukrainian independence in 1991. The transition continues with recently announced land reforms, which have the potential to increase the development of Ukrainian agriculture. Canadian seed exporters already have a growing footprint in Ukraine. Some Canadian soybean seed exporters have developed a long track record in the market and now are some of the largest players in the Ukrainian soybean seed business. The changing state of Ukrainian agriculture and Canada’s track record in the market creates opportunities where Canadians can take advantage of the growing demand for high-quality seeds. Crop and seed production in Ukraine Ukraine is often referred to ask the breadbasket of Europe, a title that it has held since the 18th century. Ukraine earned the title as a result of its ample, fertile black soil and favourable growing conditions. The black soil, called “Chernozem” is humus-rich soil that is used extensively for cereal production and raising livestock. A third of the world’s black soil can be found in Ukraine. Despite the significant potential that comes with Chernozem soil, Ukrainian agriculture has faced significant hurdles over the last 30 years following the collapse of the Soviet Union. A significant amount of those challenges are grounded in the prohibition of private agricultural land ownership. From limiting access to credit to discouraging investments in land productivity, the inability of farmers to own the land they farm has held back the sector4. The ban on land ownership has encouraged the development of large holding companies that control the leases for a large share of Ukraine’s most productive land. In effect, Ukraine has two different types of farms, large, modern, farms owned by holding companies, or small, family-owned farms that are typically less productive and have less access to the inputs needed for modern agriculture. This arrangement may soon change, with Ukrainian President Volodymyr Zelenskiy, elected in April 2019, moving forward with an ambitious plan to end the moratorium on land ownership. The World Bank estimates that land reform has the potential to increase Ukraine’s GDP by $15 billion a year.5 The growth will, in part, be because of increased investments in agricultural inputs and technology, creating additional opportunities for Canadian seed exporters.

4 Wesolowsky, Tony. Greener Pastures For Ukrainian Farmers? Zelenskiy Plows Ahead With Land Reform. Radio Free Europe. https://www.rferl.org/a/greener-pastures-for-ukrainian-farmers-zelenskiy-plows-ahead-with-land-reform/30168571.html 5 Kahkonen, Satu. Ukraine Can Boost Annual Output by US$15 Billion with Land Reform. October 2, 2017. https://www.worldbank.org/en/news/opinion/2017/10/02/ukraine-can-boost-annual-output-us15-billion-with-land-reform

Soils of Ukraine

Source: FAO Investment Centre Report

While the moratorium has had a significant impact on Ukrainian agriculture, it has not prevented the industry from growing. For example, investments in inputs have increased dramatically over the last 20 years, and there is a growing network of seed variety development based in Ukraine.

This growth has helped make Ukraine a global top ten producer of most grains. It is the world’s number one sunflower grower, the sixth-largest corn grower, seventh-largest wheat grower and a top ten producer of sugar beet, barley, soybean and rapeseed. Ukraine exports a large portion of its production to Europe and Asia, leveraging its position in the Black Sea to be the world’s 5th largest grains and oilseed exporter. Recognizing that it has reached this position with a sector in transition, the opportunities for Ukraine to increase production and exports to meet the growing global demand are significant. That presents an opportunity for Canadian seed exporters to become Ukraine’s destination of choice for the seeds they need to grow their agricultural evolution.

Legal Framework In Ukraine, there is a difference between the framework that exists in the country’s laws and regulations and the framework that is applied. While the law may provide a framework that Canadian companies should be able to rely on, its enforcement is lacking and an exporter's first line of defence is maintaining solid relationships with those with whom they do business with. Ukraine is UPOV 91 compliant and does maintain a regulatory framework that can offer IP protection for most plant varieties. The Ministry of Agrarian Policy and Food (https://minagro.gov.ua/en ) and the Ukrainian Institute for Plant Variety Examination (https://sops.gov.ua/en/) are involved in plant variety protection in Ukraine. The large agroholding companies are typically respectful of IP, and the legal obligations that come with plant variety protection and arrangements can be made to protect IP. However, a large number of small farms and the firms that supply them, are less likely to be concerned about what IP protection a plant variety has. Ukraine’s biotechnology regulatory system has long been under development, but a de facto moratorium is in place with no approved product registrations. As a result, it is illegal to import genetically modified varieties into Ukraine. However, once again, the regulatory framework reflects a different reality than the situation on farms across Ukraine. While estimates vary, the USDA reports that industry rumors suggest that 60-70 percent of

Ukraine’s Top 10 Crops 2015-17 Average (ha)

Wheat 6,474,233 Sunflower 5,771,200 Maize 4,272,133 Barley 2,721,967 Soybeans 1,992,300 Potatoes 1,308,600 Rapeseed 635,367 Sugarbeet 280,567 Peas ,dry 273,800 Oats 205,633 Source: FAOSTAT

-

500,000

1,000,000

1,500,000

0

100,000

200,000

300,000

400,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Ton

nes

of N

Ton

nes

of P

2O5

and

K2O

Fertilizer Use

Phosphate P2O5 (total) Potash K2O (total) Nitrogen (total)

Source: FAOSTAT

soybeans, 10-25 of rapeseed and 1-3 percent of corn produced for export are genetically modified6. Other estimates put the presence of GM traits in the market lower than the USDA report; however the lack of regulatory approval has not prevented growers from accessing the technology. As Ukraine modernizes its biotechnology regulatory framework, including with a 2017 law intended to closely align its approach with the EU, a commercial trade in GM varieties will likely develop. However, for the time being it appears that sales of GM varieties will be relegated to the black market. Ukraine’s Seed Trade Imports Ukrainian seed imports are dominated by sunflower and corn, and Eastern Europe is the primary source for imports. While public statistics on sunflower seed imports are limited, the USDA reports that major import sources were Turkey (28%), the EU (23%), and the U.S. (20%). The USDA reported that during the September to December 2018 period, Ukraine’s imports from the US more than tripled compared to the same period in the previous year7. While corn is the other major seed import in Ukraine, the import market is under pressure due to an increase in domestic production of high-quality seed. Pioneer, Syngenta, Limagrain and KWS are examples of companies that have invested in seed corn production in Ukraine recently.

Canada is the largest supplier of soybean seed to Ukraine, but soybean seed exports have declined from a high of almost $3.5 million in 2015/16. This decline is driven in part by Canadian companies who have increased their seed propagation in Ukraine and are less reliant on seed produced in Canada. More Canadian companies are developing partnerships with Ukrainian seed companies that are increasing the availability of Canadian plant genetics in the market without leading to an increase in the export of seed to

Ukraine. Ukraine relies on the domestic production of cereal seeds to supply its wheat and barley growers, importing almost no cereal seed.

6 USDA GAIN. 2018 Ukraine Agricultural Biotechnology Annual Report. https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Agricultural%20Biotechnology%20Annual_Kiev_Ukraine_10-30-2018.pdf 7 USDA GAIN. Ukraine Oilseeds and Products Annual. https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Oilseeds%20and%20Products%20Annual_Kiev_Ukraine_4-3-2019.pdf

2018 Top Seed Crop Imports

Partner Seed (Thousand

$US) Romania Corn $44,330 Hungary Corn $29,508 Serbia and Kosovo Corn $7,292 Austria Corn $3,985

Germany Corn $3,348 Turkey Corn $2,087 Canada Soybean $1,631 Germany Wheat $1,046

United States Sorghum $852 New Zealand Corn $717 Source: USDA GATS

Canadian Seed Exports to Ukraine (CAD)

2015/16 2016/17 2017/18

Soybeans 3,455,606 2,044,171 1,648,012 Brome Grass

94,614 97,212 90,501

Lentil

83,099 Forage Seeds

34,091 48,079 44,118

Chickpeas - - 29,166 Wheat

1,839

Oats

1,342 Source: StatCan via CSTA Seed Stat

Exports Ukraine has exported approximately $30 million of seeds annually over the last five years. One third to half of those exports have been corn seed exports to Belarus. As Ukraine increases the domestic production of seed, its exports to the region are well-positioned to grow. Opportunities • Land reforms – Ending the moratorium on

private land ownership is expected to drive up investments in Ukrainian agriculture. As individual farmers begin to leverage the land they farm for credit and become able to purchase additional land to increase their farm sizes, and there is expected to be a shift away from extremely large agroholdings and small inefficient farms, to a larger number of medium to large farms.

• Partnerships – Ukrainian companies are looking for sources of high-quality plant genetics. They are prepared to invest in and support partnerships that bring Canadian genetics into Ukraine for testing, development and propagation.

• Reputation – Canadian companies’ track records in soybean seeds sales benefit the overall brand that Canadian seeds have. It is already being leveraged to expand sales into corn and other crops.

• Free Trade – The Canada-Ukraine Free Trade Agreement entered into force in 2017. While tariffs are already low on most seeds, the FTA also includes text on facilitating trade and intellectual property protection, which may give Canadian exporters and advantage.

• High quality – While farmers tend to be price-sensitive, there is a large segment of the market that is investing in high-quality plant genetics.

• New crops – There is a growing interest in Ukraine to diversify production into new crops. There is interest in Ukraine for a range of plant genetics, including red lentils, chickpeas and forage crops.

Challenges • Domestic competition – The development of Ukraine’s

seed industry is putting pressure on imports. Across multiple crops there is a shift away from importing seed to importing genetics that are developed and marketed by Ukrainian companies.

• Regulatory enforcement – Ukraine has a comprehensive regulatory system in place; however, enforcement is inconsistent. This results in an unpredictable environment. The regulatory framework is being modernized, but it is difficult to see how they will be able to crack down on the black market, particularly for the GM crops that are already present.

Ukraine At a Glance

Canadian Exports

Soybeans

Ukraine’s Imports

Sunflower, corn, soybean, wheat

Domestic Regulations

Regulations from land ownership to biotechnology are being modernized

UPOV Status UPOV 91 Compliant OECD Seed Scheme

Yes but not for grasses and legumes

Tariff Rates Canada-Ukraine FTA Biotechnology Prohibited, but GM traits are

present in the market. Industry Association

Seed Association of Ukraine http://ukrseeds.org.ua/en Ukrainian Seed Partnership Association http://www.unt.org.ua

Trade Commissioners

www.tradecommissioner.gc.ca/ua

• Credit – Exporters may not be able to secure credit or loan guarantees when exporting to Ukraine. For example, EDC will not offer insurance protection for sales to the market. Doing business with the large agroholding companies, or demanding payment upfront can significantly reduce the risk of not being paid.

Market Development • Develop relationships – Given the dynamics of the market in Ukraine, it is essential to have

strong relationships with local partners. It is important to be able to assess potential partners for trustworthiness. Canadian exporters have benefited from strong relationships in the past when importers have facilitated imports or increased purchases when additional supply is available.

• Be present in the market – Ukraine is a market where visibility is important. At first, that may be through meetings with prospective clients and presence at trade shows (which are important in the market). However, the companies that have had the most success in developing the market have invested in on the ground resources in Ukraine. Having boots on the ground provides eyes and ears to monitor commercial relationships, facilitate imports and can increase promotion and sales.

• Value-Add – Once again, Ukrainian importers tend to look for more than just seed. They are investing in equipment, technology and management skills. Canadian companies in other sectors have been able to turn that value-added offer into a competitive advantage in Ukraine.

Further Reading • FAO Investment Centre. Ukraine: Soil fertility to strengthen climate resilience.

http://documents.worldbank.org/curated/en/755621468319486733/pdf/918500WP0UKRAI0E0Box385344B00OUO090.pdf

• APK-Inform. Main factor of the stable yield of Ukrainian soybeans. https://www.apk-inform.com/en/exclusive/topic/1501729

• Ukrainian Agribusiness Club. Ukrainian Soya Sector: A Value Chain Analysis https://www.donausoja.org/fileadmin/user_upload/Activity/Events/Soya_Sector_Study_Ukraine_final_report_by_UCAB_and_Danube_Soya.pdf

• Adama. Ukraine – a world-beating grain producer. https://www.adama.com/en/our-commitment/global-farming/farming-stories/ukraine-overview

• Office for Harmonization in the Internal Market. Ukraine IP Country Factsheet. https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/News/Ukraine-guide_en.pdf

• Ministry of Agrarian Policy and Food of Ukraine, Vasil Kisil and Ukrainian Agribusiness Council. Doing Agribusiness in Ukraine: Legal Guidance for Foreign Investors. https://minagro.gov.ua/en/investoram/agrarnij-biznes-v-ukrayini-pravovi-zasadi

• Government of Canada. Canada-Ukraine Free Trade Agreement (CUFTA) https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ukraine/index.aspx?lang=eng

Kazakhstan Overview Kazakhstan’s agricultural transition following the collapse of the Soviet Union has been slower than Ukraine’s, and it has not seen the same modernization. However, it has some similar potential, and there is growing interest from major importers, including China and Russia, in Kazakhstan agriculture. The US Government considers planting seeds as one of the opportunities to increase exports to Kazakhstan8. Crop and seed production in Ukraine Wheat is king in Kazakhstan, representing over 2/3 of cropland. Wheat and barley combined consume almost 80% of acres. The dominance of wheat in the market has been one of the challenges for Kazakhstani agriculture and diversification to new crops is seen as a significant opportunity and is a priority for the government. The need to move away from wheat has been encouraged by challenges with wheat quality recently. Volatile and poor yields and grades have underscored the need to develop new varieties or crops. There is a growing recognition in the market that the wheat varieties that are available in the market are not allowing Kazakhstani agriculture to meet its full potential. A World Bank report on Kazakhstani agriculture pointed to other cereals, pulses and oilseeds as possible alternatives to wheat. When asked about the challenges of adopting new crops, almost 40% of respondents cited the lack of availability of varieties and seeds as a concern, second only to availability of markets9. The World Bank report highlights a decrease of 1 million hectares of wheat and a shift towards no-till and minimum-till systems as positive signs for Kazakhstani agriculture. The Kazakhstani Government’s Strategic Plan for agriculture known as Agribusiness-2020 has acreage targets for major crops and calls for a further shift away from wheat with increases in barley, pulses, canola and buckwheat. The Kazakhstani government is investing in direct subsidies, infrastructure and research and development to try and deliver on its objectives. Kazakhstani agriculture has strong connections to Canada. There is a long-standing trade in beef genetics and farm machinery. Along with oil and gas, beef genetics have been at the center of the Canada-Kazakhstan trade relationship. A 2013 story in the Globe and Mail highlighted this trade relationship and the desire to increase sales of cattle and other livestock10. Canada’s success in beef genetics exports serves as a potential case study for seed exporters that are interested in the market. KazAgro Holding plays an important role in Kazakhstani agriculture. It is a state-owned agro holding company with finance, input and development subsidiaries. KazAgro Holding has a

8 export.gov. Kazakhstan - Agricultural Sector. https://www.export.gov/article?id=Kazakhstan-Agricultural-Sector 9 Broka, Sandra et al. Kazakhstan Agricultural Sector Risk Assessment. World Bank Group. http://documents.worldbank.org/curated/en/422491467991944802/Kazakhstan-Agricultural-sector-risk-assessment 10 Wingrove, Josh. Cattle drive: Kazakhstan turns to Canada to jumpstart industry. The Globe and Mail. September 9, 2013. https://www.theglobeandmail.com/news/national/cattle-drive-kazakhstan-turns-to-canada-to-jumpstart-industry/article14211738/

Kazakhstan's Top Crops 2015-17 Average (ha)

Wheat 11,951,659 Barley 2,000,027 Sunflower seed 797,247 Linseed 704,939 Other Cereals 262,768 Source: FAOSTAT

government mandate to stimulate growth and modernization of Kazakhstani agriculture. It plays an influential role in the import of agricultural inputs, with the US government estimating that over half of the farm machinery imported into Kazakhstan having been financed by KazAgro Finance. KazAgro has also been involved in imports of Canadian livestock genetics. Kazakhstan is also attracting significant interest from China, Russia and other importers in the region who see potential in Kazakhstan’s crop sector. China has committed to investing in Kazakhstan as part of its Belt and Road Initiative, which has the potential to drive up demand for alternative crops in the market. These investments could create new markets, addressing the primary challenge of diversifying away from wheat, leaving access to plant varieties as the major stumbling block facing the industry. Legal Framework The legal framework in place in Kazakhstan needs modernization. While the country has taken initial steps to become UPOV compliant, it has not implemented the necessary protections and there is significant concern about how effective IP protection is in the market. Responsibility for plant variety protection falls to a joint Ministry of Agriculture and Justice Committee on IP and the State Commission for the Testing of New Varieties of Agricultural Plants11. There is a formal process to register a variety and secure IP protection within the existing framework. The process typically takes multiple years to complete. Kazakhstan does not have an effective regulatory framework for biotechnology products and does not appear to have plans to develop one12. As a result, the Eurasian Economic Union (EAEU) regulations serve as framework used in Kazakhstan. The growth of biotech seeds is effectively prohibited by being limited to laboratory greenhouses. Biotech traits that are approved by the EAEU can be imported for food or feed use, but maintain a 0.9% tolerance for unapproved traits. Kazakhstan’s Seed Trade Imports Kazakhstan is not currently a significant seed importer. It relies mainly on Russia for wheat genetics. Its imports of Russian seeds have also been volatile over the last five years, and the recent concern about the quality of available wheat genetics has raised a concern about the reliance on Russian wheat varieties. Official Canadian statistics show that there have been no seed exports to Kazakhstan. However, there is suspicion that Kazakhs have been able to access some Canadian pulse genetics through unofficial channels. The potential that they have accessed Canadian genetics highlights some of the challenges that exist with IP protection in Kazakhstan.

11Bolotov and Partners. Protection of Plant Varieties of Foreign Breeding. January 2016. https://bolotovip.com/publication/protection-of-plant-varieties-of-foreign-breeding/ 12 USDA GAIN. 2018 Kazakhstan Agricultural Biotechnology Annual Report. https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Agricultural%20Biotechnology%20Annual_Astana_Kazakhstan%20-%20Republic%20of_10-1-2018.pdf

Kazakhstan Seed Imports (Thousand USD)

Partner Seed 2014 2015 2016

Russia Wheat 1,000 8,318 2,054

Russia Durum 379 529 557

Uzbekistan Soybean - - 354

Russia Corn 499 249 352

Turkey Corn 525 341 312

Russia Barley 152 290 220

Hungary Corn 367 495 175

Source: USDA GATS

Exports Kazakhstan exports substantially more seed than it imports, and just like its production, the vast majority is wheat. In addition to its Kyrgyzstan and Russia, Kazakhstan has also exported significant amounts of wheat to Turkey and Tajikistan in the past.

Opportunities • Untapped Potential – Kazakhstan

has significant potential to diversify its agriculture and increase its productivity. Even before diversifying away from wheat, it has the potential to increase yields substantially. Looking at yields in the region, Kazakhstan lags far behind Russia, Ukraine and other markets. While new varieties alone will not be enough to increase yield substantially, they have the potential to make a difference.

• Importer interest – Kazakhstan is attracting interest from importers, including China, Russia and European countries. China has committed to invest in Kazakhstan as part of its Belt and Road Initiative. This will spur further investments in Kazakhstani agriculture and lead to greater exports.

• Diversification – Industry and government are investing in crop diversification to move away from wheat. Canada is well-positioned to meet their needs for the new crops that they are interested in (lentils, chickpeas and other pulses, durum, flax and mustard).

• Climate – Growing conditions in much of Kazakhstan have a lot of similarities with Saskatchewan. Canadian varieties should be well suited for Kazakhstan.

• Canadian cattle – Canadian cattle have a strong track record in Kazakhstan, with some of Kazakhstan’s largest farms having invested in Canadian genetics. The Canadian exporters involved in marketing livestock to Kazakhstani’s could help Canadian seed exporters establish relationships in Kazakhstan.

Challenges • IP Protection – Kazakhstan’s IP protections are the least developed of all the target markets.

While the country has begun the process to establish stronger plant breeders’ right protections, it is not clear when the process will be complete, and what enforcement mechanisms it will have. However, similar challenges exist in other markets, and seed exporters have been able to find workable solutions to these challenges.

• EAEU – The Eurasian Economic Union has closely aligned Kazakhstan with the other EAEU members (Russia, Belarus, Armenia and Kyrgyzstan). While this presents some opportunity to export from Kazakhstan to other EAEU members, it also gives Russia a significant amount of influence in Kazakhstani affairs. As Canada’s relations with Russia were considered too

Kazakhstan Seed Exports (Thousand USD)

Partner Seed 2016 2017 2018

Kyrgyzstan Wheat 28,592 29,372 11,225

Russia Wheat 12,364 4,824 3,595

Russia Durum 429 875 1,839

Iran Barley 0 458 415

Russia Barley 0 0 412

Source: USDA GATS

0

25

50

75

2010 2011 2012 2013 2014 2015 2016 2017

BU

/AC

Wheat Yield

Kazakhstan Kyrgyzstan Russian FederationTajikistan Ukraine Uzbekistan

challenging to make it a target market, it may also impact some Canadian trade with Kazakhstan.

• Agriculture in transition – Kazakhstani agriculture is in transition and does not have the same level of technological adaptation as the other target markets. However, that is changing, with significant investments being made to modernize their approach to agriculture, including grain production.

• Certification – Canada has a limited number of certificates for exporting to Kazakhstan. Exporters should engage with the CFIA or the Canadian embassy in Kazakhstan to confirm if the appropriate certificates exist. If a certificate is not available, the CFIA will need to work with its counterpart in Kazakhstan to finalize the certificate before exports can take place.

Market Development • Canadian livestock case study – Canadian

livestock exporters have a track record in Kazakhstan, offering superior genetics as well as investing in knowledge transfer and training for their Kazakhstani customers. The Canadian seed industry could undertake a similar approach focused on offering superior genetics and resources to ensure they are being used to their full potential. The livestock industry also leveraged support from governments and academia as part of its outreach in Kazakhstan. For example, the Government of Alberta and Lakeland College both play a role in supporting cattle genetics sales to Kazakhstan.

• Attend KazAgro – KazAgro is the name of the largest agriculture trade show in Kazakhstan. With almost 10,000 visitors, it is a major event for the industry and is officially supported by the Kazakhstani Ministry of Agriculture and KazAgro Holding. Canadian companies have participated in the show before, and it can be a good opportunity to raise awareness with possible Kazakkstani customers.

Further Reading • Broka, Sandra et al. Kazakhstan - Agricultural sector risk assessment. The World Bank.

February 1, 2016. http://documents.worldbank.org/curated/en/422491467991944802/Kazakhstan-Agricultural-sector-risk-assessment

• FAO. Kazakhstan Country factsheet on food and agriculture policy trends. http://www.fao.org/3/a-i7676e.pdf

• USDA GAIN.https://www.fas.usda.gov/data/kazakhstan-agricultural-biotechnology-annual-3 • Persson, Rutger. Building an integrated seed sector market in the Customs Union. Seminar

Background Studies. Experiences of the European Union in Creating a Single Agricultural Market. January 23, 2014. http://www.fao.org/3/a-au858e.pdf

• Witte, Michelle. Kazakhstan and Canada: Cold Climates, Warm Relations. The Astana Times. December 20, 2013. https://astanatimes.com/2013/12/kazakhstan-canada-cold-climates-warm-relations/

Kazakhstan At a Glance

Canadian Exports

None

Kazakhstan’s Imports

Wheat, durum, corn, soybean

Domestic Regulations

Some domestic regulations in place, but relies on EAEU regime

UPOV Status Initiated Ascension Proceedings OECD Seed Scheme

No

Tariff Rates Most Favoured Nation Biotechnology Regulations in place, but effective

moratorium on growth Industry Association

No industry association, but sector dominated by a small number of large holding companies

Trade Commissioner

www.tradecommissioner.gc.ca/kz

• Canada and Kazakhstan: Similar Realities as a Platform for Partnership. Kazakhstan Business Magazine. 2015. http://www.investkz.com/en/journals/98/812.html

• IFWexpo Heidelberg GmbH. KazAgro/KazFarm 2019 http://ifw-expo.de/wp-content/uploads/2019/04/Information_KazAgro-KazFarm_2019_en.pdf

Tier Two Markets China China is Canada’s second-largest seed export destination. Canada exported more than $1 million worth of 10 different crop types to China in 2017/18, highlighting the variety of demand coming from the Chinese market. It is also worth noting that exports have continued to grow over the last five years and do not appear to have been impacted by some of the instability seen by other crops. Between 2012/13 and 2017/18 total seed exports increased almost threefold. China is also the world's second-largest seed importer. However, according to the USDA13 it is self-sufficient in corn, wheat and soybean seed. Over the last couple of years, the Government of China has revised its policies to support its domestic seed industry and encourage more research and development.

China has imported more than $75 million of forage seeds annually between 2010 and 2017. The United States is the major supplier of forage seeds to China, supplying two-thirds of Chinese forage seed imports. Statistics for 2018 and 2019 show that US exports of forage seed to China were not impacted by the larger China-US trade dispute.

Opportunities • Mechanization – In December 2018, the Chinese State Council issued a new policy on

upgrading farm machinery14. Investments in new, innovative farm machinery should help improve farm profitability and encourage investments in high-quality inputs. The policy specifically references selecting crops “that adapt to mechanized planting and that are easy to be cultivated.”

• E-commerce – E-commerce seed sales lag behind other segments. Agriculture focused e-commerce firms have started to offer technical services and direct engagement with growers, opening up the potential to increase sales through e-commerce.

13 Forage and Cotton Seed Demand Rising—Foreign Investment Rules Relax. USDA GAIN Report. March, 11, 2019. https://www.fas.usda.gov/data/china-forage-and-cotton-seed-demand-rising-foreign-investment-rules-relax 14 China to push forward agricultural mechanization. The State Council, The People’s Republic of China. December 29, 2018. http://english.www.gov.cn/policies/latest_releases/2018/12/29/content_281476456734454.htm

0

10,000

20,000

30,000

40,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan -Sep2019

1,00

0 U

SD

US Forage and Grass Seed Exports to China

Rye Grass Fescue Kentucky BlueForage Plants Clover Alfalfa

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18C

anad

ian

Dol

lars

Canadian Seed Exports to China

Forage and grass seed Flax Oats Pulse Soy Wheat

• Dairy – China continues to encourage increased dairy production, continuing to drive up demand for forage crops.

Challenges • Trade Relations – Canada China relations have been challenged in 2019. There are some

promising signs of improved relations, but the potential for a trade disruption remains elevated. • IP Protection – According to the USDA, 50% of seeds, and 80% of some varieties are counterfeit

seeds. The Chinese government has made efforts to try and track down on IP violations. However, their efforts have only been met with limited success.

• Market uncertainty – Farmers in China have faced significant market pressures that have impacted farm profitability.

Market Development • Find a trusted partner - Due to the challenges with IP protection, Canadian exporters must have

trusted relationships in place with Chinese importers and distributors. They must invest upfront in relationship development with potential partners to try and limit downside risk in the future.

• Work with partners – Due to the state’s involvement in the economy, it is important to leverage relationships between governments and industry associations. For example, travelling to China as part of a government delegation can give Canadian exporters credibility with importers. Canadian companies should look for opportunities to work with partners in industry and government to develop sales in China. Further Reading • USDA GAIN. Forage and Cotton Seed Demand Rising—Foreign Investment Rules Relax. March, 11, 2019. https://www.fas.usda.gov/data/china-forage-and-cotton-seed-demand-rising-foreign-investment-rules-relax • USDA GAIN. China's Planting Seeds Market Continues to Grow. January 17, 2017. https://www.fas.usda.gov/data/china-chinas-planting-seeds-market-continues-grow

China At a Glance

Canadian Exports

Flax, Rye Grass, Alfafla, Pulses, Oats, Wheat, Forages

China’s Imports

Rye grass, fescue, sugar beet, alfalfa, forages and grass, corn

Domestic Regulations

Opaque regulatory regime with ineffective enforcement

UPOV Status UPOV 78 OECD Seed Scheme

No

Tariff Rates Most Favoured Nation Biotechnology No approved traits for domestic

cultivation. Limited approvals for imports processing for feed/oil.

Industry Association

China National Seed Association, China National Seed Trade Association

Trade Commissioner

www.tradecommissioner.gc.ca/cn

Japan Canada has exported small amounts (between $100,000 to $1,000,000) of a variety of seed types over the last five years. Seed types have included exports of a variety of cereals, pulses, forage and grass seed. Canada has also exported a volatile amount of soybeans over that time, ranging from a low of $625,000 in 2015/16 to a high of $17,000,000 in 2017/18, according to Canadian statistics. It appears as if the statistics overstate the amount of soybean seed exports as officials in the Japanese Ministry of Agriculture Forestry and Fisheries reported that most soybean seed is farm-saved seed with only a small volume of seed imported. Much like the rest of the country, agriculture in Japan is a mature industry. As a result of slowing domestic sales, the Japanese seed industry is exploring opportunities to increase exports to other markets as a way to grow their business. Given the nature of the market, most of the growth for Canadian exporters will come from taking market share from other exporters. As a result, it is important to understand who the major exporters to Japan are and how likely Canada will be able to compete. Most of Canada’s competitors also benefit from FTA’s with Japan, limiting Canada’s ability to leverage the CPTPP. Opportunities • High-Value Customer – Japanese farmers pay significantly more for seed than in other markets.

They invest in high-quality seeds and are prepared to pay for it. • Strong Regulatory Oversight – The Government of Japan maintains strong, transparent, science-based regulations for seed and biotechnology. Japan is also at the forefront of developing a regulatory regime for plant breeding innovations. • IP Soybeans – Canada has a positive reputation as a supplier of high-quality soybeans. This brand can be leveraged to develop a better brand for Canadian seed in the market. • Forage and Grass Seed – Canada already supplies some of Japan’s needs for forage and grass seed. There is an opportunity for Canada to compete against Australia and the US to increase exports. Challenges • Agriculture and Demographics – Japanese agriculture and its population and economy are under pressure and are beginning to shrink. The potential

Japan: Seed Imports Sources Ranked by Value of Total Imports from 2014 to 2018

Seed Type 1st supplier 2nd 3rd 4th 5th Forage Crops Australia U.S Canada Denmark China Corn France New Zealand U.S Australia Chile Ryegrass U.S New Zealand Thailand Denmark Germany Oats Australia U.S Chile Brazil Uruguay Timothy U.S Canada Germany New Zealand - Fescue U.S Canada Sweden Germany Denmark Clover New Zealand U.S Denmark France Australia Peas U.S New Zealand Hong Kong China Italy Adzuki bean Canada China U.S Myanmar Korea Rye U.S New Zealand South Africa Germany Canada Soybean U.S China Canada - - Barley Germany U.S France New Zealand Canada Source: Embassy of Canada in Japan

Japan At a Glance

Canadian Exports

Soy, forages, pulses

Japan’s Imports

Forage, rye, oats, corn

Domestic Regulations

Strong, science-based regulatory system

UPOV Status UPOV 91 OECD Seed Scheme

Yes

Tariff Rates Trans-Pacific Partnership Biotechnology Transparent, science-based

system Industry Association

Japan Grassland Agriculture and Forage Seed Association Japan Seed Traders Association

Trade Commissioner

www.tradecommissioner.gc.ca/jp

for growth in the market is limited, and an increase in Canadian exports is likely to come through taking market share from other exporters.

• Production practices - Japanese seed importers highlighted the different production systems used on Japanese farms that can impact how well foreign varieties perform in Japan.

Market Development • Engage with Industry Associations – Industry associations play a prominent role in the Japanese

value-chain. The CSTA can work with its interested members to engage the Japan Grassland Agriculture and Forage Seed Association and Japan Seed Traders Association to explore opportunities in the market.

• Prepare to demonstrate performance – Japanese forage and grass companies prefer to introduce seeds that have been developed overseas after testing to confirm the seeds perform well in Japanese climates rather than being involved in the developmental stage of new seeds.

Further Reading • Japanese Seed Trade Association. The Seed Industry in Japan. June 18, 2018.

https://www.seedtest.org/upload/cms/user/1.1.TheSeedInduatryinJapan.pdf • McKinsey&Company. Empowering Japanese agriculture for global impact. October 2016.

https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Asia%20Pacific/Strengthening%20Japanese%20agriculture%20to%20maximize%20global%20reach/Empowering-japanese-agriculture-FULL-REPORT.ashx

• Ministry of Agriculture, Forestry and Fisheries. Plant Protection Station. Frequently Asked Questions. http://www.pps.go.jp/english/faq/index.html

• Ministry of Agriculture, Forestry and Fisheries. Plant Variety Protection Office. http://www.hinshu2.maff.go.jp/en/en_top.html

• Ministry of Agriculture, Forestry and Fisheries. Conditions for importing plants. http://www.pps.go.jp/eximlist/Pages/exp/conditionE.xhtml

South Korea Like Japan, South Korea has a mature, advanced agriculture industry. It is also an industry that is dominated by a large number of small farmers and an older farm population. Rice dominates Korean crop production, growing on half of all cropland. Soybeans, other oilseeds (including flax) and barley are all grown on approximately 30,000 hectares a year. While the sector is well developed, the seed industry continues to focus on traditional plant breeding techniques. Farmers also continue to save seed for reuse, with estimates that one-third of seed is new or certified seed. While there is an effort underway to reform the system, South Korean farmers currently benefit from significant government influence in the sector, which includes subsidizing seed purchases. The government is also heavily involved in the domestic seed industry with the Korea Seed and Variety Service playing important regulatory and production roles. The KSVS is responsible for

variety registration, plant variety protection, seed production and distribution and research and variety development. There is an ongoing effort to encourage the private sector to play a greater role in the South Korean seed industry. Opportunities • Regulatory Oversight – The South Korean government maintains a strong regulatory regime that protects plant genetics. The government also controls policy levers through subsidies and other production incentives. • Forages and Grass Seed – South Korea is a major forage and grass seed importer, importing almost $70 million a year, largely from Australia and the United States. Challenges • Established relationships – South Korea’s importers have long relied on imports from Australia and the United States. Relationships are valued in

South Korean Seed Imports (USD)

Partner Product 2010-18 Avg

Australia Forage Plants 52,769 United States Forage Plants 8,955 United States Corn 3,094 United States Rye 3,564 United States Rye Grass 4,399 South Africa Rye 386 United States Kentucky Blue 1,089 United States Oats 352 South Africa Forage Plants 685 United States Fescue 858 China Millet 732 Australia Corn 301 China Forage Plants 1,118 Source: USDA GATS

South Korea At a Glance

Canadian Exports

Rye, wheat, oats, beans, rye

South Korea’s Imports

Forage seeds, corn, rye

Domestic Regulations

Strong regulatory system

UPOV Status UPOV 91 OECD Seed Scheme

No

Tariff Rates Canada-Korea FTA Biotechnology Approval for imports for food,

feed and processing but not propagation

Industry Association

Korean Seed Association

Trade Commissioner

www.tradecommissioner.gc.ca/kr

South Korea and Canadian exporters will need to build new ones to compete in the market. • Open Market – South Korea has been aggressive in negotiating trade agreements and as a

result, while Canada can utilize the Canada-Korea FTA (CKFTA), it does not provide an advantage over the US and Australia who negotiated FTAs with South Korea in advance of the CKFTA.

Market Development • Market to North Asia – Combining market development activities in North Asia allows

companies to explore the potential that exists in Japan and South Korea. While distinct marketing activities will need to take place in each market, similar climate and production practices mean that the fundamentals of market development will be the same in Japan and South Korea.

Further Reading

• CHO, Eun-Ji, Ministry of Agriculture, Food and Rural Affairs. Korea’s Agricultural Policy: History, Challenges and Ways Forward. February 21, 2018. https://www.wto.org/english/tratop_e/agric_e/cnt_policy_korea_e.pdf

• Korea Rural Economic Institute. Agriculture in Korea 2015: Seed Industry. https://www.krei.re.kr/DATA/portlet-repositories/agri/files/1448584031908.pdf

Market Facilitation Advantage Regardless of whether they are exporting to a target market, or to one of the dozens of other markets that Canadian seed is shipped to, getting the seed out of Canada and into the market effectively and efficiently can be one of the greatest challenges Canadian exporters have. Exporters often raised the ability to move seed out of Canada as a major competitive issue they face. Addressing this competitive issue should be part of any market development plan the seed industry has. The CSTA already places an important emphasis on resolving market access barriers and removing technical barriers to trade. This work often happens at the multilateral level, through organizations like the International Seed Federation and the Seed Association of the Americas and by engaging with the Government of Canada. Now, by identifying target markets, the CSTA can go further and engage bilaterally to facilitate exports and develop a market facilitation advantage for Canadian exporters, an advantage that will serve the industry well in the target markets, and everywhere they sell seed. A Market Facilitation Advantage should include action on these key issues. 1. Export certification Timely access to export certificates is an ongoing challenge for Canadian seed exporters. Not only do delays and lengthy timelines cause headaches for exporters, but they also put Canadians at a disadvantage to competitors from other markets that can quickly get a phytosanitary certificate. For example, exporters in the United States can get a phytosanitary certificate in a matter of days, whereas it often takes weeks in Canada. Several exporters said that delays with certificates had a direct negative impact on their exports and potentially cost them sales in foreign markets. To provide efficient, expeditious access to export certificates, the CSTA should work with the government to implement:

1) Use of third-party laboratories - Exporters raised concerns about access to labs and the ability to quickly get test results needed for export certificates. CFIA has already implemented the REGAL (Recognition of Export Grain Analysis by Authorized Laboratories) Program for grain certification. A similar program should be put in place for seed exporters.

2) ePhytos – Governments and industry around the world have been working together to implement an electronic phytosanitary certificate (ePhyto) for years. Canada has supported and invested resources in the project, however, it has not yet been implemented in Canada. Canada should join the US, Argentina, Chile, Netherlands and New Zealand to use the IPPC ePhyto hub for producing and exchanging phytosanitary certificates.

2. Knowing the rules Knowledge is power when it comes to exporting. Having a current, relevant and reliable information on the import rules in key markets can empower exporters to make intelligent decisions on which markets they want to develop. For example, exporters need to know whether or not export certificates have been agreed to with the importing country. Some sectors can easily access that information from the Government of Canada. For example, the CFIA maintains a list of requirements by country for most food exports (http://www.inspection.gc.ca/food/exporting-food/requirements-library/eng/1507329098491/1507329098850#aa), but no equivalent is available for plants. The

European Union also maintains a comprehensive Market Access Database that details import conditions in third-country markets for EU based exporters (https://madb.europa.eu/madb/). To ensure exporters have the knowledge they need to take advantage of export opportunities:

1) The CSTA should encourage the government to maintain a database or list of market access conditions for seed exports and make it available to Canadian companies. If the government cannot deliver on this request, the CSTA should work with its members to identify key export markets and develop an internal database of market access conditions that is made available to its members.

2) Trade Commissioners and CFIA and AAFC should monitor and report on changes to market access conditions in export markets. The CSTA should work with its partners in government, so they understand which markets need to be monitored more closely. Changes in import conditions could be shared via a database or through CSTA’s communication with its members.

3. Relationships matter In target markets, relationships can be the key to success. While each exporter will need to develop their relationships, the CSTA can play an important introductory role by developing strong relations with its counterparts in target markets. The CSTA’s work through the ISF has already allowed it to develop relations with its counterpart in Turkey. To help its members connect with potential importers in target markets, the CSTA should:

1) Develop and leverage relationships with the national industry associations in target markets. These relationships should facilitate and encourage business to business contacts to connect interested exporters with interested importers.

4. Recognition for Canadian data and variety registration One of the most challenging issues for an exporter can be securing variety registration in an import market. It can often require years of testing and study, often duplicating work that has already happened in Canada and around the world. This adds costs and delays for Canadian exporters and can serve as a barrier for exporting Canadian varieties around the world. This will never eliminate the need to be on the ground, testing and demonstrating how varieties perform in a market, and it is in the exporter’s interest to take the time needed to prove how well their varieties perform in the market. However, it should make it easier to get varieties into the market. The seed industry can point to many other sectors that can leverage registration or testing from Canada when they are seeking approvals in export markets. For example, the pharmaceutical industry has greater ability to leverage testing it has already done in Canada when securing drug registration in some target markets than the seed industry does. To facilitate exports and secure an advantage for the Canadian seed industry, the CSTA should:

1) Work with the Government of Canada to identify a market where a pilot project can be undertaken with the relevant authorities to allow for the submission of data from Canada, or to accept Canadian varietal registration as equivalent. While there is an opportunity to work multilaterally to facilitate trade for everyone, if Canada moved unilaterally with a target market, it could give Canadian exporters a competitive advantage in the target market.

Obtaining recognition of Canadian data could be the first step, but the ultimate objective should be to secure recognition abroad.

5. Secure IP Protection IP protection is imperative for seed companies who have invested significant resources in developing or accessing the genetics they are marketed abroad. Most markets where Canada has a developed trade relationship also have a developed IP protection regime. However, in some of the target markets and in other promising markets, the IP protection regimes, and their enforcement can be far below Canadian standards. UPOV 91 serves as an important standard for the industry, but there is an opportunity to go further to protect the interests of Canadian seed companies. For example, the Canada-Ukraine FTA contains an IP chapter that could potentially be used to help protect Canadian plant genetics. To protect Canadian companies, and the significant resources they have invested in developing genetics, the CSTA should:

1) Work with the Government of Canada to develop strong language to include in FTAs to protect IP when a country does not have adequate measures in place. The existing IP chapters serve as a starting point, but they should go further to reflect the unique conditions of plant genetics.

2) Work with governments of Canada and academia to offer technical assistance and training for other governments to support the development and implementation of IP protection regimes. Offering technical support and assistance can encourage a foreign government to act on the issue, helping to encourage Canadian exports.

Taken together, these measures should help Canadian exporters secure a market facilitation advantage against its competitors, making it easier and more profitable to export seed and plant genetics from Canada.