April 5, 2013
EU and Canada yet to conclude over rules of livestock origin issue
Specific regulations, which determine the origin of cattle and pigs slaughtered in Canada, are one of the main issues during free-trade talks with the EU, said Frederic Seppey, chief negotiator for Agriculture and Agri-Food Canada.
Canada hopes to get greater access for its beef and pork in Europe, while the EU wants a foothold in Canada's protected agriculture sectors, especially dairy.
Talks on a comprehensive deal are expected to finish this year, but one outstanding issue is on rules of origin, said Seppey.
The EU has not agreed that all meat slaughtered and processed in Canada is considered of Canadian origin. It takes into consideration where the livestock was born and raised.
Canada's position is that slaughtering and cutting up a cow or pig is a significant enough step that the end product should be recognised as Canadian, even if the animal was born or fattened to market weight in the US, Seppey said.
"In our trade agreements, we are always advocating that slaughter is enough of a transformation to confer origin," he added.
EU negotiators are hesitant to concede the point as Canadian slaughter plants import livestock from the US, as well as buying domestically. The issue would likely be put aside once the US and EU negotiate their own trade deal. However, those talks have just begun, nearly four years behind the Canada-EU negotiations.
Canada is the third-biggest pork shipper after the US and EU. It is also the number. six exporter of beef and veal. EU countries are collectively the world's third-biggest beef and veal producer and the second-largest pork producer.
Total trade of agriculture and food products between Canada and the EU currently amounts to about US$6.6 billion annually.
