The
Canadian Agri-Food Trade Alliance has issued a report drawing attention to
tremendous export opportunities in China for Canadians.
As the
Chinese economy continues to grow, there is increased demand for meat,
processed foods, dining out and convenience foods – i.e. a typical Western
diet.
Canadian
exports to China have steadily increased, even during the economic crisis of
2008, and reached $6.2 billion in 2015.
Canola
accounts for half of that, but Canada also sells China soybeans, pulses, pork,
wheat, barley, beef genetics, processed foods, malt, seafoods, sugar (mainly
as a food ingredient) and hides and skins.
China
joined the World Trade Organization in 2001, but has not been very good at
adhering to some of its standards, such as those relating to sanitary and
phytosanitary standards.
Moreover,
Chinese officials tend to relax or tighten import hurdles to match domestic
supply and demand, making it difficult to predict when sales orders may soar or
slump.
“Exporters
from around the world have consistently raised concerns regarding China’s use
of non-tariff barriers to manage imports and its failure to comply with
international standards and science based decision making,” says the report.
“Canada
experienced this when China placed import restrictions on Canadian beef
following the discovery of BSE (mad cow’s disease) in Canada and on pork with
the discovery of H1N1 (a strain of influenza).
“In both
cases, China failed to acknowledge Canada’s internationally-recognized animal
health status and to resume trade in a timely manner,” the report says.
“China also
maintains a zero-tolerance policy on pathogens, such as salmonella, E-coli, and
listeria, and on residues of veterinary drugs, metals, pesticides and other
products.
“There is a
risk that Canadian meat products may be rejected due to inconsistencies between
Canadian and Chinese residue and microbiological standards,” the report says.
“China has
also shown inconsistency in the application of sanitary and phytosanitary (SPS)
and other measures between domestic and imported goods and across ports of entry.
“Customs
administration is considered to be slow and overly onerous in China requiring
that importers and exporters secure a host of permits, licenses and
certificates.
“There are
also concerns that China alters the administration requirements to temper the
flow of imports where required. Canada also faces delays in custom clearance.
“As part of
its FTA (free trade agreement) with China, New Zealand secured a commitment for
48-hour clearance of imported goods through customs and reports that, while not
achieved in all cases, this requirement has improved customs flow.”
Australia
also has a free-trade agreement with China.
United
States trade analysts predict that if they could negotiate a free-trade
agreement, its agricultural exports could increase by $3.9 billion a year. The report
says that’s an indication of how important a deal could be for Canada.
However, it
also says there are no signs that negotiations will begin any time soon.