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This is not because our prices are
uncompetitive but instead is due to tariff
and non-tariff barriers to entry into the EU
market, which CETA will now address,”
said Vincent.
Matt Sawyer (no relation to Doug
Sawyer), chair of Alberta Barley, said
his industry is equally happy with the
prospect of the new trade deal. At the
moment, about 80 per cent of Alberta’s
4.5 million tonnes of barley goes to the
feed industry, so “a win for the beef
industry and a win for the pork industry is
a win for us.”
Alberta produced about 4.5 million
tonnes of barley in 2013, about half of
Canada's average production. Most
of the remaining half was produced in
Saskatchewan and Manitoba, but Matt
Sawyer noted that Atlantic Canada,
particularly Prince Edward Island, is also
increasing production.
With trade regulations eased and tariffs
lifted, Matt Sawyer said the prospect of
a signed CETA deal is an exciting time
for the beef and pork industries, as well
as feed suppliers like barley growers. He
called CETA a positive step for agriculture.
“CETA is a solid deal with real benefit,”
he said.
Wally Smith, chair of the Dairy Farmers
of Canada, said his members aren’t as
excited about CETA as other producers.
The agreement gives European cheese
makers 16,800 tonnes of market access,
with all but 800 tonnes of it being new
access. Smith said members are “angered
and disappointed” with the deal, as it
could mean the end of small, artisan and
local cheese makers in Canada.
“If this deal proceeds, the Canadian
government will have given the EU an
additional exclusive access of 32 per
cent of the current fine cheese market
in Canada, over and above the existing
generous access,” said Smith. “This
deal would displace our local products
with subsidized cheeses from the EU
and risk our small businesses being
shut down or put out of business. This is
unacceptable.”
The federal government has said it’s
considering compensation for Canadian
dairy farmers if they lose income due to
CETA.
While the CETA buzz in the yard is
mainly optimistic, the new agreement will
mean a change in some farm practices.
Doug Sawyer pointed out that some
Alberta beef producers will need to
change their production methods if they
want to sell to the EU, since exports of
beef with hormone growth promotants
(HGPs) will not be allowed.
Doug Sawyer said producers could
save between 10 and 20 per cent of
their total feed costs by using HGPs.
Discontinuing the use of HGPs will mean
an increase in feed costs due to the
additional time to get cattle to market
weight.
The change is a fact of life when
conducting business with the EU. The use
of HGPs in farm animals, either implants or
feed, has been banned for more than 20
years. Member states have reviewed the
prohibition several time since then, but the
strict rules remain in place.
For exporters, Fast said now is the
time to get to work, fostering business
relationships with potential trading
partners.
Once CETA is inked, free trade can
begin immediately.
“Don't wait until the agreement comes
in to start preparing,” the minster said.
“You’ve got a year-and-a-half to two years
to develop key partnerships.”
For the EU, CETA is the first trade
agreement with a G8 country. JoséManuel
Barroso, president of the European
Commission, called it a “landmark
achievement for the transatlantic economy
and a stepping stone to an integrated
transatlantic market.”
Barroso said the EU's annual GDP is
expected to climb by around $17 billion
Canadian with a signed CETA. Since
industrial trade tariffs for EU products
coming into Canada will be brought
down to zero, he said European exports
are expected to save about $721 million
Canadian a year.
MEETING OF THE MINDS (page 23):
Prime Minister Stephen Harper meets with the President of the
European Commission, José Manuel Barroso, in Brussels, Belgium, this past November.
A DONE DEAL (page 25):
The two embrace after the historic agreement was reached.
Winter
2014
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