A year after Canada signed free trade agreements with Peru and Colombia, farmers and exporters are still waiting to see the benefits.
Neither deal has yet been implemented and agricultural groups are becoming concerned about losing sales to competitors like the United States and Argentina, which enjoy tariff-free access to both countries.
Canada continues to face tariffs ranging from 12 to 25 percent for grains and pulses and as high as 80 percent for beef.
“That takes us right out of the market,” federal agriculture minister Gerry Ritz said last week in a conference call with reporters from Lima, Peru.
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Ritz reiterated the importance of the deals to Canadian exporters and urged all political parties in Canada to move quickly to ratify the agreements.
“Sooner rather than later would be better for everyone,” he said. “It’s up to us as politicians to get these deals through.”
The Colombia agreement will be tabled in the House of Commons next week and Ritz expressed hope it will move quickly through committee hearings and gain rapid approval.
The Peru deal is further advanced but also has yet to be ratified.
The New Democrats and Bloc Quebecois oppose the agreements, saying they don’t do enough to address human rights, labour and environmental issues.
Ritz said both Peru and Colombia are eager to see the deals implemented, although Colombia’s approval process will also take months.
The Canadian Wheat Board, which annually exports around $230 million worth of wheat, durum and barley to the two markets, said time is of the essence.
“It would be nice to see these in place for the 2009 new crop production,” said CWB chief executive officer Ian White in an interview from Peru.
“Otherwise we will continue to be at a comparative disadvantage until they pass.”
Over the past three crop years, the CWB has exported an average of 492,000 tonnes to Peru and 416,000 tonnes to Colombia.
White said if the deals are implemented, the board will be in a position to increase its market share because of its quality advantage over competitors.
The same holds true for the pulse industry, which exports about $100 million worth of products annually to the two South American countries.
“Both pulse importers and Canadian pulse exporters are supportive of immediate approval of these trade agreements,” said Gordon Bacon, CEO of Pulse Canada.
White and Bacon were part of a delegation accompanying Ritz on the trip. Others included representatives from Pulse Canada, the Canadian Beef Breeds Council, the Canadian Cattlemen’s Association, the Canadian Beef Export Federation and the Canadian Pork Council.
The Canadian Federation of Agriculture and Grain Growers of Canada both issued news releases supporting the timely implementation of both trade deals.
During the trip, there were also discussions aimed at re-opening the Colombian market to Canadian beef, subject to certain animal health and safety issues being resolved. There have been no beef exports to South America since 2003.
Access to the beef market in Colombia is estimated by the CCA to be worth about $6 million, with exports of genetics and breeding stock worth another $1 million.
Ritz said the overriding goal for Canada is to have a multilateral trade deal achieved through the World Trade Organization, but failing that, it’s vital that Canada keep pace with its competitors by achieving bilateral deals with important agricultural markets.
