OTTAWA — The federal government has been accused of undermining the Canadian beef industry by increasing the volume of boneless beef imports allowed from off-shore.
Manitoba Reform MP Jake Hoeppner complained in the House of Commons last week that because the government raised the import quota to 85,021 tonnes from 72,021 tonnes, Canadian cattlemen are facing lower prices and are being forced to sell more live cattle into the United States.
“Why is the minister putting the Canadian cattle industry at risk and also allowing the export of jobs in the Canadian beef processing industry?” Hoeppner asked.
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International trade stakeholders said securing markets in the face of increasing protectionism should be the key priority for Canada’s agriculture ministers.
On the same day, Revenue Canada announced even the higher quota had been filled and future imports would be subject to a 25 percent surtax.
Increase quotas
The government is considering whether to once again raise the quota to allow more boneless beef from Australia and New Zealand to meet demand from some processors.
But Goodale rejected any charge that the government is undermining the Canadian beef industry.
He said the quota was raised May 6 to accommodate meat in transit to Canada that was contracted at a specific price and should not be subject to the surtax.
The federal government is attempting “a balanced view of the situation to make sure that all Canadian interests are properly taken into account.”
Created disharmony
It is an issue that has pitted cattle producers and portions of the packing and processing industry, that do not use off-shore manufacturing beef, against processors who use it as a mix in their products.
They were importing beef at a near-record rate and last year after hearings, the Canadian International Trade Tribunal ruled that a quota should be set and a 25 percent tariff applied on over-quota imports until the end of 1994.
Over the objections of Australia and New Zealand, the CITT ruled unrestricted imports from off-shore had the potential to harm the Canadian industry.
Imports from the United States are unrestricted and account for the bulk of manufacturing beef moving into Canadian packing houses and processing plants.
