TORONTO — The Canadian Cattlemen’s Association has a long list of priorities when it comes to beef trade policy, but issues such as country-of-origin labelling remain a major preoccupation.
It has been a costly thorn in the side of Canadian livestock producers, but resolution could happen next year, said John Masswohl of the CCA.
“We are on the verge of a key mo-ment on the country of origin file,” he said at the Canada Beef Inc. annual forum in Toronto Sept. 18.
Last month, the Wall Street Journal reported Canada and Mexico won the latest appeal but no one would confirm or deny the World Trade Organization ruling expected at the end of October.
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If the United States has lost, it may still appeal its right to segregate imported beef and pork with specific labelling requirements.
Ultimately, Canada could move toward tariffs on a long list of commodities and manufactured goods if the law is not changed.
Meanwhile, the full implications of the Canada-European Union Comprehensive Economic and Trade Agreement are being studied.
The CCA, Canada Beef and the federal government’s market access secretariat are examining the opportunities that can be attained under the new rules for reaching 500 million potential consumers.
It is hoped the deal can be implemented by 2017.
Canada received a duty free quota on 50,000 tonnes of fresh and frozen beef based on carcass weight rather than product weight.
The beef may come from youthful fattened cattle or cows and must be raised under growth hormone free specifications. The rules are available from the Canadian Food Inspection Agency.
The quota will be phased in with full access by 2022.
“It is more complicated than it needed to be,” Masswohl said.
“We ran into some protectionist elements largely coming out France and Ireland.”
Those countries said the quotas were too large.
A key factor is getting Canadian packing plants approved because these quotas are already available.
Two small Alberta plants are approved, but large facilities are also needed.
As well, Canada wants the EU to accept that the beef is safe for everyone if plants are approved to operate under CFIA rules.
It would also be a good idea to get a head start before the U.S. reaches an agreement because it will receive similar duty free access.
The other allocations include the Hilton quota of 11,500 tonnes with a 20 percent duty. Canada and the U.S. share that quota, but it is rarely used.
“Canada will pay zero percent and the U.S. will continue to pay 20 percent. I like our chances of being able to move beef under that quota, ” said Masswohl.
Canada also keeps access to 48,000 tonnes, which drops to 45,000 tonnes in 2017. There are product specifications to enter this program with its requirement for high quality beef, specific feed rules and no hormone use.
However, it is duty free and open to any exporter who can meet the specifications.
This quota was opened as compensation for the dispute over the hormone ban in Europe. Retaliatory tariffs were launched 10 years ago and removed when the quota was released.
The quota system is complicated.
Under the CETA deal, importers must obtain licences and the first will probably go to those who are already bringing in product.
Security deposits must be paid on a per tonne basis but are not refunded if no business is conducted. This is to prevent protectionist elements from obtaining quotas and then not filling them to prevent Canadian beef from entering the country.
Canada will need to be vigilant if any of these roadblocks occur.
“We want to know very early what problems you are encountering,” Masswohl said.
As well, the federal government’s market access secretariat is starting trade advocacy in Europe in anticipation of this deal, said Marco Valicenti, executive director of the secretariat, which focused solely on re-gaining and expanding market access opportunities for agricultural products.
Created five years ago, the secretariat has staff dedicated to agriculture trade all over the world. It has also embedded CFIA officers in these offices to resolve market access issues as soon as they appear.
“That was one of the key elements to make sure both ourselves and the CFIA offices were on the same page,” he said.
“That was one of the success factors to resolve issues in a very quick way.”
