Thursday, August 14, 2014

Trade text reveals details

The text of the trade agreement between Canada and the European Union spells out the gains for beef and pork exports and losses to cheese imports.

It also spells out details on wine and liquor marketing, especially in Ontario and British Columbia.

Beef producers gain tariff-free access to the European market for an additional 5,140 tonnes of fresh beef in the first year, increasing to 30,840 tonnes by the sixth year, and 2,500 tonnes of frozen beef in the first year, increasing to 15,000 tonnes in the sixth year.

Bison gains tariff-free access for 3,000 tonnes per year.

Pork producers gain tariff-free access for 12,500 tonnes in the first year and 75,000 tonnes by the sixth year.

Canada must open its market to another 2,667 tonnes of cheeses in the first year and 16,000 tonnes by the sixth year.

Imports of this tariff-free cheese must be government controlled, probably through a licencing and permit system.

Another 283 tonnes of ingredients for cheese production must be granted tariff-free access in the first year, increasing to 1,700 tonnes by the sixth year.

Canada has agreed to grant Europe an additional 800 tonnes of its World Trade Organization commitment to grant low-tariff access for 20,411,866 kilograms of cheeses per year.

That means other countries lose a total of 800 tonnes of their access to the Canadian cheese market.

The wine rules say Ontario cannot increase the number of retail outlets at wineries that sell only Ontario wines beyond 292 and British Columbia beyond 60.

And where there are monopolies – such as the Liquor Control Board of Ontario – controlling wine and liquor sales, they must not discriminate amongst suppliers, but must treat them all on “commercial terms”.

Their markups must also not discriminate.

There are detailed clauses governing the origin of sugar. The European Union protects its sugar markets for local farmers.

There are also provisions in the agreement governing wool, horsehair, fine hair and coarse hair.