In recent weeks, the Government of Canada has signed two major trade agreements that will benefit Canadians in the form of jobs and economic growth.  Most notably for Saskatchewan, the agreements signed are particularly beneficial to our agricultural sector.

The first agreement was signed with Taiwan in early January and expands market access to include Canadian bone-in beef and other specified beef products from animals under 30 months of age (UTM). The arrangement levels the playing field for Canadian beef producers and generates export opportunities to the lucrative Taiwanese market.

Canada currently ships boneless UTM frozen, fresh and chilled beef to Taiwan. In 2012, Canadian total exports for these beef products were valued at $1.4 million, ranking Taiwan as Canada’s 18th largest beef export market.

Since the BSE outbreak in 2003, government and industry have been working hard to reopen markets and gain full access for Canadian beef, based on science and guidelines established by the World Organization for Animal Health.  In June 2007, Canada regained access to Taiwan for boneless beef derived from UTM animals. In 2002, the year prior to the BSE ban, Canadian beef exports to Taiwan were valued at $19.8 million, ranking Taiwan as Canada’s 5th largest export market for beef.
 
The second trade agreement came earlier this month when Prime Minister Harper visited South Korea.  The Canada-Korea Free Trade Agreement (CKFTA), signed by both countries, will benefit a wide range of sectors, including industrial goods, agricultural and agri-food products, wine and spirits, fish and seafood, and wood and forestry products.

In 2012, Canada was the world’s fifth-largest exporter of agricultural and agri-food products. Canada’s annual agricultural exports to Korea were worth an average of $708 million from 2010 to 2012, led by wheat, pork and pork offal, hides, skins and furs, refined and crude canola oil, malt and prepared foods.

Canada will benefit from expanding exports of these and a wide variety of other products, including meats, grains, oilseeds and pulses. Canadian agricultural exports to Korea currently face high tariff rates, which averaged 52.7 per cent in 2012. The Agreement will result in the elimination of tariffs on 86.8 per cent of agricultural tariff lines. This duty-free access will give Canadian agricultural products, including beef, pork, canola and grains, preferential access to the Korean market and will put Canada on a level playing field with Korea’s current Free Trade Agreement partners. The Canada-Korea Free Trade Agreement will not affect Canada’s supply management system, which will remain as robust as ever.  The Canada-Korea Free Trade Agreement provides no additional market access (i.e. no quota expansion and no reduction or elimination of over-access tariffs) for Korea’s dairy, poultry and eggs.
 
In the early days following the signing of the Canada-Korea Free Trade Agreement, organizations and groups within the Canadian agriculture sector, such as the Saskatchewan Stock Growers Association, welcomed the announcement, understanding the benefits to our livestock, grain and oilseed producers. 

With the signing of the Canada-Korea Free Trade Agreement, Canada now has 43 agreements signed with major trading partners, with more to come.

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The audio version of Garry's April 21, 2014 op-ed column can be heard by clicking here