7. Potential agreement could transform beef industry
by D. Larraine Andrews
A potential free trade agreement between Canada and the European Union is “huge enough to be transformative” when it comes to Canada’s beef industry, says the director of government and international relations with the Canadian Cattlemen’s Association.
According to John Masswohl, the EU consumes about eight million tonnes of beef annually but “virtually nothing” comes from Canada.
Canada and the United States currently share a paltry 11,500 tonne quota subject to a 20 per cent duty, while producers in South America and Mexico fill the majority of the EU’s yearly production shortfall of about 500,000 tonnes.
If negotiations for a comprehensive trade agreement are successful, Masswohl says the potential exists for the EU “to rival the U.S. as a market for beef,” which currently imports close to 400,000 tonnes of Canadian beef each year (excluding live cattle).
The EU maintains strict standards regarding growth promotants, but Masswohl believes Canadian producers will move to adopt hormone-free production methods if the agreement ensures “access is big enough and secure enough. We need to get rid of the tariff and to be able to compete, not only against imports, but against beef raised within the EU.”
Government officials will negotiate the agreement, but Masswohl says the CCA is closely involved in the process.
Discussions will cover a wide range of issues in addition to beef and other agricultural imports, including trade in goods and services, government procurement, intellectual property and dispute settlement mechanisms.
The federal government estimates a successful agreement could give a $12 billion boost to the economy. The EU is currently Canada’s second largest export market after the U.S. with a two-way merchandise trade total of $90.4 billion in 2008.
by D. Larraine Andrews
A potential free trade agreement between Canada and the European Union is “huge enough to be transformative” when it comes to Canada’s beef industry, says the director of government and international relations with the Canadian Cattlemen’s Association.
According to John Masswohl, the EU consumes about eight million tonnes of beef annually but “virtually nothing” comes from Canada.
Canada and the United States currently share a paltry 11,500 tonne quota subject to a 20 per cent duty, while producers in South America and Mexico fill the majority of the EU’s yearly production shortfall of about 500,000 tonnes.
If negotiations for a comprehensive trade agreement are successful, Masswohl says the potential exists for the EU “to rival the U.S. as a market for beef,” which currently imports close to 400,000 tonnes of Canadian beef each year (excluding live cattle).
The EU maintains strict standards regarding growth promotants, but Masswohl believes Canadian producers will move to adopt hormone-free production methods if the agreement ensures “access is big enough and secure enough. We need to get rid of the tariff and to be able to compete, not only against imports, but against beef raised within the EU.”
Government officials will negotiate the agreement, but Masswohl says the CCA is closely involved in the process.
Discussions will cover a wide range of issues in addition to beef and other agricultural imports, including trade in goods and services, government procurement, intellectual property and dispute settlement mechanisms.
The federal government estimates a successful agreement could give a $12 billion boost to the economy. The EU is currently Canada’s second largest export market after the U.S. with a two-way merchandise trade total of $90.4 billion in 2008.
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