Canada and South Korea have reached a deal that could see Canadian beef enter the market within months.
The announcement follows almost eight years of negotiations and a World Trade Organization standoff.
South Korea was Canada’s fourth largest beef export market when the market slammed shut in 2003 after BSE was discovered in an Alberta cow.
The industry estimates that sales worth at least $30 million are possible by 2015 if the June 27 deal in principle becomes reality.
Sales would be restricted to beef from cattle younger than 30 months.
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But first, Korea must publish its proposed health import requirements for Canadian beef and open the regulations for public comment.
“It would be months,” Canadian Cattlemen’s Association president Travis Toews said.
“This is an announcement that the Koreans have agreed to move forward with their process. We will be monitoring the progress that Korea is making in their process. It will be important that they move briskly through the process.”
The beef industry welcomed the announcement by agriculture minister Gerry Ritz and trade minister Ed Fast, despite the limited trade potential compared to overall Canadian cattle and beef exports.
Both ministers were travelling June 27 and unavailable for interviews.
“After almost a decade, Canadian beef producers are on track to gain access to the lucrative South Korean market, making our industry and entire economy stronger,” Ritz said in a statement announcing the agreement.
“The high quality of our beef products combined with the effectiveness and transparency of Canada’s control system is precisely the reason why South Korea can be confident in the safety of Canada’s beef.”
Meat industry leaders said the potential Korean deal is more important than the potential value of trade.
Canadian Meat Council president Scott Entz, general manager of the Cargill packing plant in High River, Alta., said in a statement that settlement of the beef dispute could unblock free trade talks with South Korea and also help other meat sectors.
“A free trade agreement with South Korea is the most crucial potential free trade agreement that can be completed for the Canadian meat sector,” he said.
It could lead to a deal to increase access for Canadian pork, a sector that exported $100 million worth of product to the growing Asian country in 2010 but still faces barriers its competitors do not.
Toews said the Korean market adds value to Canadian beef exports by buying parts of the animal at a premium that are not valued in other markets. Canada’s exclusion since 2003 gave U.S. exporters a “hay day” in the growing market.
However, tight global supplies should help Canada re-establish itself as a market player.
“Our own access will add even more value to Canadian producers,” he said. “Short ribs alone were adding up to $20 million in incremental value per animal.”
