May 14, 2013

 

Canada-EU FTA faces hurdle over beef and cheese market access

 

 

Agriculture issues seem to be the last major stumbling block as the Canada-EU free trade talks are nearing an end.

 

In a free-wheeling discussion with Canadian reporters, EU ambassador Matthias Brinkmann suggested that most other issues in the four-year talks have been resolved or are close to being resolved, and that two specific sticking points - how much Canadian beef to Europe and how much European cheese to Canada - is keeping the sides from a deal.

 

"I think we have the landing zones identified for all sectors... but like in most negotiations, it's agriculture which is the most difficult one," he said.

 

"Canada wants to export beef to the EU and wants better market access, but the EU wants also better market access for dairy products, cheeses and yogurt and so on. The beef sector is protected in the EU and dairy products are protected in Canada, so there has to be a certain give and take."

 

Specifically, Brinkmann said the EU has offered to allow the minimum quantity which Canadian beef producers believe would be required to justify separate streams of hormone and antibiotics-free cattle, about 40,000 tonnes a year. However, Canada has demanded more.

 

"We are ready to deliver that and even go beyond that, but there's a certain limit which we cannot go above," he said, because European producers such as Ireland and France would not agree. "It would be suicidal for them to accept things which would wipe out their industry."

 

He added that the quota the EU can accept from Canada is further affected by Europe's desire to negotiate a free trade pact with the US, which will also want to ship beef into the continent.

 

In return, Brinkmann said the EU has not asked Canada to change its controversial supply management system which protects Canadian dairy and poultry farmers, but is insisting that Canada accept more imports of dairy products, especially cheese. He would not name a specific number.

 

"It doesn't have to be same amount we give in beef, but there must be some kind of correlation," he said.

 

Reacting to the comments, Canadian Trade Minister Ed Fast agreed the two sides are close to a deal, but would not discuss the specific issues or agriculture quotas.

 

Observers have speculated that Canada needs to hammer home an agreement soon or risk a distracted Europe turning its attention to free trade deals for fish, with the US and Japan.

 

Fast disagreed, but Brinkmann noted the EU chief negotiator on the Canada file is already starting to work on the Japanese talks.