Advertisement

Trump says he wants potash from Belarus for ‘substantially less’ than Canada

Click to play video: 'U.S. working on deal to buy potash from Belarus instead of Canada, Trump says'
U.S. working on deal to buy potash from Belarus instead of Canada, Trump says
U.S. President Donald Trump says he is working on a deal to buy potash from Belarus, claiming it will cost his country less than buying it from Canada, the world's leading producer and exporter of potash. Mackenzie Gray explains how replacing Canadian imports will likely prove to be quite challenging; and the concerns that buying from Belarus supports Russian aggression.

The U.S. is working on a deal with Belarus to replace the potash it receives from Canada for “substantially less,” U.S. President Donald Trump said.

“The United States is working on a massive Deal with respect to the purchase of Potash from Belarus,” Trump said on his social media platform Truth Social.

“The pricing would be for substantially less than we are currently paying to Canada, very good news for our Farmers and Ranchers. Thank you for your attention to this matter!” Trump added.

Click to play video: 'Saskatchewan potash industry focusing on American relationships amid divestment threats'
Saskatchewan potash industry focusing on American relationships amid divestment threats

European officials have called Belarus an “accomplice” to Russia’s war in Ukraine and earlier this year, Belarus launched joint drills with Russia to practice the use of nuclear weapons that Moscow has stationed in the territory of its neighbor and ally.

Story continues below advertisement

Potash consists of minerals and chemicals that contain potassium and is a vital input used for manufacturing fertilizers. It is used to support plant growth, increase crop yield and disease resistance, and enhance water preservation.

Canada is the leading exporter of potash in the world.

The U.S. imports 79 per cent of its potash from Canada, according to the U.S Geological Survey. Russia, accounting for 11 per cent of U.S. potash imports, is a distant second while Belarus is in fourth place with three per cent.

“No substitutes exist” for potash in the agriculture industry, the USGS says, making it a critical implement for food security.

Story continues below advertisement

Saskatchewan Premier Scott Moe said more than 40 countries, including Canada and allies, currently sanction Belarus for supporting Russia’s invasion of Ukraine.

Get daily Canada news delivered to your inbox so you'll never miss the day's top stories.

Get daily National news

Get daily Canada news delivered to your inbox so you'll never miss the day's top stories.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

“Buying blood potash from Belarus is supporting Russian aggression. It’s wrong and it doesn’t make sense. All of that potash has to be shipped first through Russia, then across the ocean, then across the US to mid-western farmers,” said Moe.

“Does anyone believe Belarusian blood potash shipped through Russia is going to be more affordable, more sustainable or more ethical than potash shipped from Saskatchewan – right here in North America?”

Fertilizer Canada on Monday said in a statement that Canada has been a reliable supplier to North American farmers for decades.

Story continues below advertisement

“Supported by geography and a highly integrated supply chain, Canadian potash helps ensure growers have access to the nutrients they need, when and where they need them,” the industry group said.

“Reliability, proximity, transportation infrastructure, product availability and the ability to deliver during critical application windows all matter. A strong and integrated North American fertilizer supply chain helps support farm productivity, affordability and food security on both sides of the border.”

Pam Schwann, president of the Saskatchewan Mining Association, said there will likely be challenges for Belarus to ramp up production to meet increased demand.

“Right now, most of the Belarusian supply goes to China. I’m not sure if they have any extra latent supply that they’re able to ramp up production with. They have a very complicated supply chain,” Schwann said in an interview with Global News.

“They are landlocked, much like Saskatchewan, but they would require to load onto ships and get their product landed into the United States and then they would require infrastructure built out to do what we already have in Canada in terms of an integrated supply chain. And so, I’m not sure what the capacity Belarus has for additional potash.”

Schwann said Canadian producers have deep and longstanding relationships with U.S. farmers.

“Obviously the U.S. market is very important to our Saskatchewan mining companies. Moving forward, it does speak to the importance of diversification of trade and the building out of trade-enabling infrastructure and diversifying markets. And so there’s also some timely news, I think, on that front from the federal government that’s coming later this week.”

Story continues below advertisement
Click to play video: 'Saskatchewan potash, uranium and oil would be plentiful to US if trade deal gets done: Premier Moe'
Saskatchewan potash, uranium and oil would be plentiful to US if trade deal gets done: Premier Moe

 

Trade talks collapsed between Canada and the United States last month after Ottawa walked away from the negotiating table in response to last-minute terms that Prime Minister Mark Carney says the U.S. demanded, including restrictions on Canada entering into new trade deals with other countries.

Since then, Trump has escalated his economic attacks against Canada, imposing multiple rounds of tariffs as well as import restrictions.

Belarus is “authoritarian state,” where “elections are openly rigged and civil liberties are severely restricted,” according to Washington, D.C.-based nonprofit group Freedom House, which releases annual reports on the state of democracy around the world.

“Security forces have violently assaulted and arbitrarily detained journalists and ordinary citizens who challenge Alyaksandr Lukashenka’s regime,” the group says about Belarus.

Story continues below advertisement

Belarus scored seven out of 100 on the think tank’s freedom index. Canada scored 97.

With files from Global News’ Vanessa Tiberio.

Sponsored content

AdChoices