OTTAWA (Staff) – In theory, the European Union won the right last week to ship up to 5,000 tonnes of subsidized boneless beef for grinding to Canada each year.
The Canadian International Trade Tribunal decided to drop an anti-dumping duty that has effectively blocked EU beef from the market since 1986.
But in practice, federal government officials said last week the 10-year absence of European beef from Canadian meat processing plants will not end soon.
No EU beef will be coming into the country for some time yet.
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No slaughterhouses or packing plants in the United Kingdom have been approved by Agriculture Canada for exports to Canada.
And for now, European beef is banned from Canada because of the mad cow disease scare.
Most of the boneless beef destined for Canada would come from Ireland.
“What has happened is that the tariff structure has been altered to make imports from the EU possible,” said Agriculture Canada trade policy specialist Fred Boyce. “But it’s just the first of many steps. Imports will not be happening soon.”
That was little consolation to the Canadian cattlemen’s lobby which condemned the CITT decision and the federal government’s agreement to allow 5,000 tonnes of imports.
“Removal of the duties will be seen by producers as a failure on the part of the government to protect us against unfair trade practices by the European Union,” Canadian Cattlemen’s Association president David Andrews said in a written statement of protest.
During CITT hearings, the cattlemen argued that since EU beef still is heavily subsidized, it would be unfair competition to the largely unsubsidized Canadian industry.
Cattle producers predicted an influx of EU beef would drive Canadian prices down, since the country already will be awash in grinding beef. During the next three years, as much as 20 percent of Canada’s cattle herd is expected to be culled.
The result, said the cattle lobby, would be lower prices for both grinding beef and ultimately, cows.
But the CITT, in its 15-page decision, said it does not expect 5,000 tonnes to have much market impact, since it represents just 1.5 percent of the Canadian market.
Replace Australian shortfall
Since Australia expects to fall 18,000 tonnes below its allotment this year, “the tribunal considers that for 1996 at least, 5,000 tonnes of EU beef will simply replace Australian beef that has vacated the market.”
CCA representatives said the real issue is that subsidized beef should never be allowed as competition for Canadian product.
They accused the federal government of cooking up a deal with the European Union that sells out Canadian cattle producers in return for gaining some access to European markets for Canadian wheat.
For its part, the EU said it was happy to have a toehold in the Canadian manufacturing beef market, small as it is.
