US Deals Threaten Canadian Wheat Exports to Key Markets

Bangladesh ranks seventh with 1.07 million tonnes. In July, the U.S. and Indonesia finalized a trade deal eliminating Indonesian tariffs on 99% of American products. Additionally, Indonesia’s flour milling association (APTINDO) signed a memorandum of understanding (MOU) with U.S. Wheat Associates, committing to double its annual U.S. wheat purchases to one million tonnes per year for the next five years. A similar MOU with the Government of Bangladesh pledges to buy 700,000 tonnes of U.S. wheat annually over the same period. Leif Carlson, director of market intelligence at Cereals Canada, called these MOUs a “big concern” for Canadian exporters. The explicit mention of wheat in the MOUs is particularly troubling, as it could limit Canada’s market opportunities. However, Carlson noted that the impact on Canadian exports will depend on the types of wheat Indonesia and Bangladesh purchase from the U.S. For instance, Indonesia currently imports mostly soft wheat from the U.S., which ...