Mercosur negotiations threaten Canadian beef industry
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A free trade agreement with South American countries could threaten Canadian beef farmers and rural communities, say Conservative MPs.
In light of negotiations on a Canada-Mercosur trade deal with Argentina, Bolivia, Brazil, Paraguay, and Uruguay, Canadian farmers are concerned about the impacts on local economies, Bruce—Grey—Owen Sound, Ont., MP Alex Ruff said.
“Beef farmers have publicly expressed concerns about the ongoing negotiations with Mercosur,” he said during Question Period on May 6. “They said, ‘This won't just hurt farmers — it will weaken rural communities and reduce Canada's ability to produce its own food. … In Ontario … where most imported beef enters the market, the impact on local farmers would be severe.’ Canadian beef producers are waiting to get more access in markets across the world. Should the Liberal government not be prioritizing export market access abroad instead of displacing the Canadian cattle industry at home?”
In response, Yasir Naqvi, Parliamentary Secretary to the Minister of International Trade, said the government is working with industry to ensure their voices are heard at the negotiation table.
“We are living in uncertain times, and our focus is on creating more opportunities for Canadian businesses, including our hard-working farmers, to be able to export around the world,” he said. “We are working closely with our farmers. We are working closely with our industries. We are listening to their views, and our negotiations will reflect the needs of Canadians so we can create good-paying jobs for all Canadians.”
Conservative MP John Barlow, who represents Foothills, Alta., also raised the issue, saying the Liberal government is "constantly fail[ing] farmers in trade disputes.”
He added: “Canadian beef and pork exports to Europe and the United Kingdom dropped to zero last year, yet the Liberals are rushing into a Mercosur agreement despite the risk to Canadian cattle, pork and poultry. Mercosur countries do not meet our standards on animal health, food safety or the environment. Why are the Liberals rushing in to sign an agreement that puts our food security, our food safety and Canadian farmers at risk?”
Conservative MP Steven Bonk, who represents Souris-Moose Mountain, Sask., spoke about the cattle industry as among the best in the world. “Our ranchers have built world-class beef genetics through generations of hard work, strict animal health standards and some of the most rigorous traceability requirements anywhere on earth. Now the Liberals are considering a Mercosur trade deal that could open the floodgates to beef imports from countries with far lower standards and production costs,” he said, adding the deal could “undermine our domestic food industry.”
Agreement on the horizon
Talks for a Canada-Mercosur free trade agreement began in March 2018, and a deal is expected by the end of this year.
The Government of Canada says a free trade agreement with Mercosur would reduce tariffs on a number of industries, such as aluminum, forest products, automobiles while at the same time lead to growth in certain Canadian industries – particularly fishing and seafood.
Beef Farmers of Ontario expressed concern about the deal, however.
“A potential trade agreement with Mercosur offers little to no value for Canada’s agri-food sector, and provides no meaningful opportunity for Ontario or Canadian beef producers,” said the statement. “Expanding market access for imported beef into Canada would only serve to undercut domestic production and displace Canadian product.”
The Canadian beef industry contributes $34.2 billion to the GDP and generates more than 347,000 jobs.
Brazil is the world’s largest exporter of beef by volume, exporting over 3.75 million tons of beef globally. If a deal is signed, Mercosur nations would gain access to the Canadian market.
In a consultation, industry and individual stakeholders generally “expressed a high level of support” for negotiations with Mercosur.
Those from export-oriented sectors said that while, “they are not opposed to negotiations towards an FTA with Mercosur, their position is that Canada should refrain from making additional market access concessions in these sectors and, where appropriate, include strong safeguards for these products.”
Foreign Affairs Minister Anita Anand said the government is “unlocking trade opportunities” across the globe, not just in the Mercosur bloc, and that it is “continuing to stand with Canadian farmers.”
