Western Canadian producers are relieved that Canada-European Union free trade appears to be going forward.
Representatives of those industries say they are growing more confident the Comprehensive Economic and Trade Agreement will be approved on both sides of the Atlantic.
“We think it’s a great thing and we can’t wait for it to get finished,” said Michael Teillet, manager of sustainable development for Manitoba Pork Council.
Gary Stanford, president of Grain Growers of Canada, shared that view.
“For grain growers and the grain industry, it’s very good.”
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Much of the CETA text, which is the negotiated and written details, was leaked in early August. It appears to preserve the amount of meat access into Europe that Canadian livestock producers and meat exporters thought they were going to get. As well, it contains the protections against non-tariff barriers that can effectively shut down trade.
The fact that the latter protection measures exist in the text has delighted exporters, who were worried they could be lost in the tortuous course of Canada-EU negotiations.
“It’s beyond the (import quota) numbers. It’s the administration of the import numbers and the agreement on the food safety systems,” said Ron Davidson, director for international trade with the Canadian Meat Council, which represents packers. “We are very happy that this is moving forward.”
Not all sectors of Canadian agriculture are thrilled with the deal or the prospect of Canada-EU free trade.
Canada’s cheese industry is particularly miffed about the EU’s insistence on “geographical indications” protection, which prevents the use of terms such as “gorgonzola” on products not made in narrowly defined regions in Europe.
Geographical indications would prevent Canadian manufacturers of specific products from continuing to use those terms without modifying them by adding “-style” or adopting new terms. The same issue has bogged down EU-U.S. negotiations.
Negotiating Canada-EU free trade was a long process and has now passed into a complex administrative phase in which every word of the 1,500 page agreement must be translated into each of the 24 languages of the EU and then approved by each of the EU’s 28 member states.
The agreement must also be approved by Canada’s Parliament.
Since the initial agreement was reached Oct. 18, 2013, to negotiate an agreement, there has been skepticism that a deal would ever be reached. Many feared that the complex web of vested interests within the EU’s patchwork structure would bog down and then weaken any final agreement, providing little gain for Canadian exporters.
Others feared that the beginning of EU-U.S. free trade talks would shunt the already-existing Canada-EU talks onto a subordinate track and maybe stall it permanently.
However, many of those fears have been buried now that the negotiations have concluded, a final text achieved and details of the text leaked.
Real-world impact is still years away. Not only does the agreement still need to be approved by European and Canadian authorities, which might not occur, but once it is approved, Canadian exporters will need to adapt their practices to conform to EU requirements.
For instance, Europe bans a number of common Canadian livestock production practices, including the use of growth-promoting hormones. It means meat destined for the EU will need to come from animals raised in a certifiably EU-approved system and processed by systems approved by EU regulations.
Dave Solverson, vice-president of the Canadian Cattlemen’s Association, said the agreement of European and Canadian authorities to respect the food safety systems of each other means potential roadblocks to trade have been eliminated.
Some Canadian food safety measures, such as steam pasteurization and lactic acid washes, go beyond European standards but could have evolved into excuses to block trade without the agreement because they don’t exist within European regulations.
“That was an important part of the negotiations,” Solverson said.
Canadian livestock producers and packers that want to export to the EU aren’t expected to conform to European standards until the agreement is passed.
Once it is passed, both producers and packers will probably move slowly to exploit the markets.
“They’re not about to (convert) those packers for a market that would start out slowly,” said Solverson.
However, Stanford said even marginal increases in export access can boost overall farmer returns because more bidders and faster clearance increases overall prices.
“If we add just a small percentage more sales through to European markets, it would be good for grain markets,” said Stanford, who estimated a $12 billion per year gain for Canadian farmers.
