Canada, EU set to seal trade deal on beef, cheese concessions

October 18, 2013

A deal that would give beef farmers and other Canadian businesses greater access to a market of 500 million consumers is soon to be realised as Canada and the EU are preparing to seal a far-reaching trade agreement.

Stephen Harper is jetting to Brussels to finalise the agreement with an official ceremony, a political achievement the Conservative Prime Minister has been pursuing for years to demonstrate his trade-reliant economic strategies are bearing fruit.

Government sources said that Ottawa has struck the ''political framework for a deal'' and has been seeking the consent of all provinces before finally agreeing to the package. After news broke of the tentative deal there was no noticeable opposition from provinces- many said they were still reviewing it – but Harper''s trip plans suggest he feels confident of avoiding a major backlash from premiers.

The politically powerful Canadian dairy lobby, however, is accusing the Harper government of selling out farmers in the process and warning they will aggressively oppose this agreement. The Dairy Farmers of Canada represents about 12,500 members and their sector is largely insulated from foreign competition, owing to steep duties on imports that exceed 200%.

John Masswohl, director of government and international relations for the Canadian Cattleman''s Association, said the access negotiated for Canadian cattle products is worth about US$600-million per year in new exports. Some of the access will be phased in over time, he said.

The agreement is expected to grant Canadian and EU firms more rights to bid on government procurement contracts in their respective jurisdictions, and also to effectively lengthen patent protection for brand-name medicine in Canada.

Government sources said that Canadian negotiators have agreed to double to about 30,000 tonnes the annual amount of European cheese that can be imported into Canada each year on a tariff-free basis. New Democratic Party (NDP) Leader Thomas Mulcair signalled he''s girding to fight the deal on the grounds it would allow in more than 13,500 additional tonnes of European cheese each year, a development that threatens, at least, to crowd out Canadian product.

A Canadian government source said the total tariff-free access for EU cheese would represent ''a very small percentage of current domestic consumption.'' Canadian business is lining up behind the deal, and urged provinces to signal their approval.

Jay Myers, president of Canadian Manufacturers and Exporters, wrote an open letter to premiers asking them to support the deal. ''The agreement is important because it opens markets for small businesses looking to export goods and services, invest, and commercialise new technologies in Europe and other markets around the world,'' Myers wrote.

The Conservative government was publicly mum on whether a deal had been reached but Harper used his Speech from the Throne to signal an agreement is near.

''Discussions are indeed continuing at the highest level between the EU and Canada towards a comprehensive free trade deal (CETA) – with the hope to conclude the negotiations in the coming days,'' EU trade spokesman John Clancy said.

This long-delayed deal, which was supposed to be completed by 2012, would be Canada''s biggest since the 1988 Canada-US free trade agreement.

The British Columbian (B.C.) government welcomed the tentative trade deal. Teresa Wat, the minister for international trade, said her government has been an active participant in the negotiations, and expects the deal to deliver economic growth and job creation in B.C.

Ontario Premier Kathleen Wynne''s office confirmed that the government got the details of the agreement and is examining it before deciding whether to back the trade pact.