Pork exports face renewed competition

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Published: November 21, 2002

Canadian pork exporters could soon face new competition from a familiar

adversary in some markets.

As a result of changes in its trade rules, the United States is

expected to aggressively pursue deals in countries where Canada has

enjoyed preferential access, says Martin Rice, executive director of

the Canadian Pork Council.

“They’re going to catch up with us on some of the bilateral access

where maybe we’ve had some advantage,” Rice said in an interview after

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Two such markets are Chile, where Canada has a free trade deal that

provides for a duty-free tariff rate quota, and Australia, which due to

animal health reasons, imports pork from only three countries,

including Canada but not the U.S.

The American trade rule changes give the U.S. president authority to

negotiate trade deals and then present them to Congress to accept or

reject as a complete package without making any amendments.

Previously, some countries were reluctant to make trade deals with the

U.S. knowing the treaty could be reopened by Congress.

Rice said that despite some “depressing” developments in the world

agricultural trade arena in recent months involving U.S. and European

Union agricultural spending, he remains optimistic about the prospects

for Canada’s pork exports.

“We’re in a position where we can probably still see our exports grow

as quickly as we can increase production,” he said.

Canada is the world’s second biggest pork exporter. Based on 2001

statistics, the EU is No. 1 with 35 percent of the market, followed by

Canada at 21 percent and the U.S. at 20 percent.

Michel Morriset, an agricultural economist from Laval University who

has studied the hog industry, said the biggest single issue facing the

industry involves the environment.

“I think it’s a major, major, major issue,” he said, especially in

Quebec and Ontario, and that could have implications for future

production patterns.

About the author

Adrian Ewins

Saskatoon newsroom

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