Transcript 2010-11 ALMA Business Plan Overview Foreign Market

Foreign2010-11
Market Opportunities
ALMA
Accessing the EU through CETA
BusinessFuture
PlanFareOverview
Wednesday, June 8, 2011
Edmonton
Throne Speech
Our Government will:
• continue opening new markets for Canadian
businesses
• aim to complete negotiations on a free trade
agreement with the European Union by 2012
Throne Speech
Canada’s traditional industries remain crucial to
our economy.
Our Government has always stood behind
Canada’s agricultural, forestry, fishing, mineral,
manufacturing and energy sectors—and will
continue to support them as they innovate and
grow.
Throne Speech
In all international forums and bilateral
negotiations, our Government will continue to
stand up for Canadian farmers and industries
by defending supply management.
Canada’s Free-Trade Agenda
• Several negotiations underway with priority meat and
livestock markets
• Negotiation of FTAs offer a unique opportunity to
change the conditions of entry in foreign markets
• But they take time and such opportunities are rare
• What has been done
• Looking forward
• GATT/WTO cornerstone but Doha Round faltering
Canada’s Free-Trade Agenda
What Has Been Done
• Canada-U.S. FTA 1989 - NAFTA 1994
• Since then, nine other free-trade agreements
with: Israel, Chile, Costa Rica, EFTA
(Switzerland, Norway, Liechtenstein and
Iceland), Peru, Colombia, Jordan and Panama
• Negotiating with Morocco, the Caribbean
Community, Honduras – Turkey (exploratory)
• Useful but not of major economic significance
Canada’s Free-Trade Agenda
Looking Forward
Major new partners and opportunities –
negotiations underway with:
• the EU
• India
• Korea
• Ukraine
• And, of course, U.S. – Perimeter security and
regulatory cooperation negotiations
Canada’s Free-Trade Agenda
Looking Forward
Negotiations in prospect
• Japan
Longer term prospects
• China
• Mercosur (Brazil, Argentina, Uruguay, and
Paraguay)
Canada-EU
CETA
• 27 Member States
• Population over 500 million
• GDP of $18.7 trillion in 2009
• World’s largest single common market, foreign
investor and trader
• Canada's second largest trading partner in
goods and services
• Canadian 2009 exports to EU $44.3 billion
CETA – Status of Negotiations
• Comprehensive Economic and Trade
Agreement negotiations launched May 2009
• Seven rounds of negotiations but also many
other meetings
• Comprehensive “offers” in goods, services,
investment and procurement to be exchanged
before July round
• Finishing this year is a priority for negotiators
CETA – Agriculture
• Comprehensive offers before July round
• Sensitivities
• EU
Beef
Pork
• Canada
Dairy
Poultry
GIs
CETA – Meat and Livestock
Beef
• Beef
EU market is about 8 million tons
By 2015 EU will need imports of 1 million tons
Prospect for improved access for Canada but with
quantitative limits
In WTO EU had offered 300 thousand tons
Canada will be competing for the 1 million ton
import market
Tough negotiations on rules of origin
CETA – Meat and Livestock
Pork and Bison
• Pork
May be even more sensitive than beef but the EU
market is huge (20 million tons)
Access likely to be limited by quota
• Bison
Canada proposing tariff treatment separate from
beef
CETA – Meat and Livestock
Other Meat Products
• Other meat products, including horse and
sheep not as sensitive
• Duty free quota free access may be achievable
• Poultry products may be affected by Canada’s
reluctance to improve EU access
CETA – Meat and Livestock
NTBs
• Parallel work ongoing on sanitary regulations
• Improved protocol being negotiated for entry of
non-hormone treated beef
• EU has not raised animal welfare issues
End Game
• Better sense of situation after July round
• October round will be critical
• In agriculture EU sensitivities on key Canadian
priorities (and vice versa)
• Political engagement will be needed to reach a
good outcome
• Canada will need to link beef and pork
objectives to other areas of the negotiation
Role of Meat and Livestock
Industry
• Producers and their representatives will need
to put their case strongly to political leaders in
Canada
• Certainly the supply management industry will
leave no stone unturned in defending its
protected market in Canada