Behind the fanfare of state dinners and human rights protests surrounding the visit of Chinese premier Zhu Rongji last week to Canada, agricultural negotiators made progress on some important trade issues.
Officials say they arrived at agreements in principle for lower tariffs and higher tariff rate quotas for Canadian agricultural goods. They also signed a deal on the export of dairy and beef embryos.
The progress was part of negotiations expected to lead to Canada signing off on China’s application to become part of the World Trade Organization.
Read Also
Agri-business and farms front and centre for Alberta’s Open Farm Days
Open Farm Days continues to enjoy success in its 14th year running, as Alberta farms and agri-businesses were showcased to increase awareness on how food gets to the dinner plate.
“China is now part way through the WTO door, and I am now confident that China will be a member of the WTO this year,” said prime minister Jean ChrŽtien in a statement.
High tariffs and unusual trading practices have been traditional barriers to Canadian grain and meat exports to China.
Agricultural exports to the country fluctuate wildly, doubling to $1.35 billion in 1995 from $692 million in 1995, then plummeting to $589 million in 1997 from $1.16 billion in 1996.
Canada had the chance to negotiate better access for agricultural goods because China wants to join the WTO, said Kathryn McKinley, deputy director of the international trade policy directorate in Agriculture Canada.
There are still some items to confirm in the agreement in principle, she said. It will take effect when China officially joins the WTO.
McKinley said China’s entry to the WTO will be good for agricultural trade in part because of the dispute settlement provisions in the agreement. Currently, China’s adherence to trading rules is voluntary.
Jacques Pomerleau, executive director of Canada Pork International, said pork exporters may see better access as early as this year.
“We are confident that the discussions with the Chinese authorities in the past few days will speed up the process,” said Pomerleau, who rubbed shoulders with the Chinese premier at a small reception with major exporters.
Canada has a veterinary inspection agreement with China that has not been practical to use, explained Pomerleau. However, that may soon change.
Currently, 35,000 tonnes of Canadian pork makes their way into China and Hong Kong each year. Pomerleau said official market access could make China as big a market, if not bigger, than Japan, where Canada shipped 80,000 tonnes of pork in 1998.
Pomerleau praised Canadian negotiators and export officials: “At times they go beyond what you’d expect.”
Robert Broeska, of the Canadian Oilseed Processors Association, was also cheered by last week’s progress.
Broeska said the offers made by Chinese negotiators “seem to be moving in the right direction.”
The offers would relax import controls and lower tariffs for canola oil and meal, as well as give private traders more responsibility for imports.
The offers would give canola oil processors a level playing field with Chinese processors, said Broeska. Last year, China was a major buyer of canola seed, but canola oil faces a harder time getting into the country.
If the offers hold and China becomes part of the WTO, it could put commercial and political pressure on countries like Japan and Korea to lower their tariffs on canola oil and meal, Broeska said.
Studies have shown lower tariffs for oil mean higher profits for growers and processors, he said.
