January 25, 2005

China, Japan, Taiwan markets to open to Canadian beef soon

Canada is optimistic that several Asian markets will lift their bans on Canadian beef and restart imports soon.

Canadian Beef Export Federation President Ted Haney said that China is expected to allow the import of beef and other cattle product to resume gradually in the first half of this year, probably after Japan, South Korea and Taiwan resume imports in the next few months.

Canada's efforts to resume beef trade in Asia and the U.S. met with a blow this month when the country reported two more cases of the disease, called bovine spongiform encephalopathy, or BSE. The disease has a fatal human variant.

"Countries suspended negotiations on resuming imports briefly and asked for more information about the new cases,'' said Haney, a member of a Canadian trade delegation to China. Talks, while slightly delayed, had resumed, he said.

The recent cases didn't hurt sales in Hong Kong, which allowed imports of Canadian beef to resume Nov. 30, Haney said. The city of 6.8 million people is a "sentinel market'' and its decision to allow imports may prompt other countries in the region to follow, he said.

In Hong Kong, Hutchison Whampoa Ltd.'s PARKnSHOP supermarket chain and Dairy Farm International Holdings Ltd.'s Wellcome supermarkets are carrying Canadian beef, Haney said. Hutchison is controlled by billionaire Li Ka-shing and Dairy Farm by Jardine Matheson International Holdings Ltd.

A Canadian delegation which included Haney, Prime Minister Paul Martin, International Trade Minister James Peterson and Canadian business leaders, were earlier this week on a beef-trade-prompted visit to Beijing, Shanghai and Hong Kong.