By Melanie Jacob
Journal Editor
After a lot of negotiations, the European trade deal with Canada has finally concluded, which means an estimated $1.3 billion in benefits for agricultural exporters.
Despite the wrapping up of the deal, the European Union (EU) is a collection of countries with more than 20 languages, which means the translations alone will take time. As such, the implementation of the deal won't be some time yet.
Nevertheless, the anticipation of it will open up EU market access for Canadians in a manner never seen before. There will be decreased tariffs, improvements with exportation barriers, and increased capacities for exported pork and beef quantities (among others).
"Between now and then (when the deal is implemented), (changes in production) will be more preparatory as they get ready for market access," said Robert Donald, Executive Director for Trade Policy and Intergovernmental Affairs for Saskatchewan. "In terms of new market access in terms of grains and oilseeds, the quality wheat tariff goes to zero."
Grains and oilseeds are only one small area of agriculture that will benefit. Beef and pork, for example, will also see new opportunities since beef will allow for a 50,000 ton quota while pork will increase to 80,000 tons.
Prior to the agreement, access had been minimal, so it wouldn't have been economically sound for Canadian producers. In order to create a separate hormone-free production stream, they would have needed to export enough to make up the difference in costs. With that capacity increased by the trade agreement, the European option would now be more economically reasonable.
"It's not a lot, but it's a sort of foothold in the EU markets," said Donald. "As industry leaders will tell you, it's certainly better than nothing. It's a significant amount in the sense that it makes sense for the Canadian industry to start thinking about production streams that fit with the EU market; that is, hormone-free."
Aside from beef and pork, producers can now export bison meat, which was previous barred from access, and canola will enjoy expedited approval processes.
Of course, all of this is only potential until the agreement is finalized in writing between the EU and Canada.
"They made the commitment," said Donald. "We want to make sure the EU lives up to their commitment in that regard."
