1. 2010-11 ALMA Business Plan Overview
Foreign Market Opportunities
Accessing the EU through CETA
ALMA
Business Plan Overview
Future Fare
Wednesday, June 8, 2011
Edmonton

2. 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

3. 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.

4. 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.

5. 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

6. Canada’s Free-Trade Agenda What Has Been Done
Canada-U.S. FTA 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

7. 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

8. Canada’s Free-Trade Agenda Looking Forward
Negotiations in prospect
Japan
Longer term prospects
China
Mercosur (Brazil, Argentina, Uruguay, and Paraguay)

9. 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

10. 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

11. CETA – Agriculture Comprehensive offers before July round
Sensitivities EU
Beef
Pork
Canada
Dairy
Poultry
GIs

12. CETA – Meat and Livestock 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

13. CETA – Meat and Livestock Pork and Bison
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

14. 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

15. 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

16. 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

17. 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