Canada’s beleaguered hog industry says it will lose its third largest export market within years if Ottawa does not become more aggressive in negotiating a trade deal with South Korea.
Pork exports to South Korea were worth $100 million last year, and industry officials predict that could increase to $500 million within a decade with appropriate access.
However, in an open letter to prime minister Stephen Harper last week, industry leaders said that potential will be lost if Canada does not commit to negotiating a trade deal with Korea quickly, as Canada’s competitors have.
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“There exists now a major window of opportunity for Canadian pork exports to Korea,” said the letter to Harper, signed by leaders of the Canadian Pork Council, Canadian Meat Council and Canada Pork International.
“It is not a very long term opportunity and if the window slams shut, the problems besetting Canadian hog producers, pork processors and exporters will continue and will be seriously exacerbated.”
It noted that the United States, Chile and the European Union have deals to open up pork trade and reduce Korea’s high tariffs on their product.
“Without free trade, we will be on the outside looking in as American, Chilean and European competitors take away our important market share,” said the letter.
The industry groups called on Harper to instruct Canadian negotiators to get back to the table, settle issues that Korea is willing to settle, such as pork access, and keep working on the tougher issues.
“Harvest everything possible as a matter of urgency and establish a new mechanism to resolve outstanding issues as quickly as possible,” they said.
Pork council executive director Martin Rice told a Parliament Hill news conference March 8 that time is running out for the hog industry to stay competitive in the lucrative Korean market.
“We are urging the prime minister that Canada move to complete a free trade agreement with Korea,” he said.
“We can’t wait. There are no second chances, and catch up will be impossible once our competitors have used their advantage to replace our exports.”
Negotiations with South Korea began in 2004 and ended in 2008 without agreement after 13 sessions. Talks have not been revived since.
Several Canadian sectors, including automobile manufacturers and the beef industry, have insisted that Canada not sign a deal that does not include more Korean concessions.
The beef industry, shut out of Korea since 2003 because of BSE, insists that access at least equal to what Americans enjoy must be part of the deal. The United States can ship meat from cattle younger than 30 months into Korea.
The government and the cattle industry have challenged the Korean import ban under World Trade Organization rules.
The letter to Harper mentioned the auto industry but avoided mention of beef industry opposition.
“We appreciate that Canada is seeking a high quality agreement with no arbitrary deadline,” it said.
“Perhaps the automotive industry has time to wait. We do not. Our third-biggest export market is at risk. We do not need more process; we need action.”
However, hog industry leaders also recognized they were walking a fine line, criticizing a lack of trade negotiating action from a Conservative government whose aggressive trade negotiating agenda the industry has embraced.
Jim Laws, president of the Canadian Meat Council that represents exporting packers, praised the government trade agenda and the trade promotion work of agriculture minister Gerry Ritz.
However, he said the pork industry cannot wait longer because of reluctance in other sectors.
“Others who are having problems in negotiating with Korea have had three years,” he told the news conference. “We don’t believe the government would want us to wait longer at the expense of exports it has taken so long to develop and to lose out on future opportunities.”
Ritz responded with a statement stressing government free trade credentials.
