May 25, 2009

Canada is pressing to sign comprehensive free trade agreements with Peru and Colombia that would allow its exporters to remain competitive in those countries, Agriculture Minister Gerry Ritz said Friday (May 22).

 

Canada is at a disadvantage in South America with key competitors such as Argentina and the US, which already have or are negotiating free-trade agreements in Colombia and Peru, Ritz said during a media teleconference from South America.

 

"The situation is simple, without free trade agreements with Peru and Colombia, Canadian producers will lose hard-won market share to our competitors with little chance of reclaiming any of that market," Ritz said.

 

Tariffs on Canadian grain exports are roughly 15 percent, pulse tariffs are up to 25 percent and tariffs on Canadian livestock products run as high as 80 percent, he said.

 

The free trade agreements are before legislators in Canada as well as in Peru and Colombia.

 

The Peruvians and Colombians are interested in accessing Canada's genetics and breeding technologies, and they would like access to high quality Canadian grains and pulses for blending with cheaper products from other countries, he said.

 

In the absence of a comprehensive world trade agreement, it is "incumbent" on the Canadian government to advance trade opportunities for its exporters by seeking bilateral trade agreements, Ritz said.

 

He also said that Colombia could fully re-open its market to Canadian beef and livestock as soon as this summer, provided Canada meets certain obligations required by the Colombian government.

 

Specifically, it was agreed that the Canadian Food Inspection Agency will provide Colombia with detailed analysis of the two most recent cases of bovine spongiform encephalopathy, complete a technical questionnaire requested by Colombia, and provide updated information about Canada's livestock and food safety systems and sanitary procedures. Colombia will deliver a final decision within 15 days of receiving the requested information from CFIA.

 

The Canadian Cattlemen's Association estimates that the re-opening of that market, closed since 2003 when mad cow disease was confirmed in Canada, would be worth C$6 million for Canadian beef exporters. Another C$1 million could flow from the sale of breeding stocks and genetics, the Canadian Beef Breed Council estimates.