The Australian government is expected to announce this week whether to impose restrictions on imports of Canadian pork.
The Canadian hog and pork industry is watching closely, threatening a World Trade Organization challenge if Australia acts.
“We do not believe any action against our product would be legal under trade rules,” said Robert Weaver, general manager of the Canadian Meat Council. “We certainly would press our government to launch a WTO action.”
Martin Rice, of the Canadian Pork Council, said any Australian action would not only be illegal, but also add to the current woes of the Canadian pork industry.
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Last year, Australia was Canada’s sixth largest pork customer, importing more than 10,000 tonnes, worth more than $27 million. This year, as pork prices and demand in Australia have tumbled, Canadian sales have fallen. According to CMC figures, sales last year to September were 7,597 tonnes. This year during the same period, imports of Canadian pork were 5,869.
Australia is considering action against imports because producers complained and the Australian Productivity Commission held hearings that concluded imports are helping drive down prices.
It recommended “safeguard action,” which could range from tariffs to quotas. One suggestion has been for a two-year special tariff: 10 percent the first year and five percent the second year.
It also has been reported that the government is considering a package of supports for the hog industry that would not involve border protections.
Rice said one galling aspect of the Australian commission finding is that while it concluded imports are hurting Australian farmers and depressing prices, there was no evidence or allegation that Canadian product is being unfairly traded or dumped.
“It is fair trade,” said the Canadian Pork Council executive director. “As Australian demand fell, our exports fell, as you would expect.”
