The EU-Canada Comprehensive Trade Agreement (CETA) will take effect provisionally from this coming Thursday, 21 September. Provisionally it means that the agreement will come into operation pending ratification by individual EU countries.

Removing tariffs

This agreement will remove tariffs on EU beef and lamb that are imported into Canada which had been previously charged at 26%.

This meant that while the market was open since the lifting of the BSE ban in 2015, the extra 26% of cost made doing business uneconomic.

The EU has a dairy quota for 18,000 tonnes of dairy products.

However this isn’t as clear cut as Canadian companies retain considerable control of the operation of a sizable part of this quota and it is only partially available to small and medium enterprises (SME’s) or new entrants.

Significant importer

Canada is a significant importer of beef, taking 109,000 tonnes this year up until 12 August. The USA are by far the largest supplier, sending 75,600 tonnes of this.

New Zealand and Australia follow on 11,300 tonnes and 10,700 tonnes respectively. Uruguay sent 7,400 tonnes and Mexico 1,600 tonnes. The EU, despite tariffs of 26% sent 1,100 tonnes.

Imports

Canadian lamb import volumes are low compared to beef. In 2016, they amounted to 16,019 tonnes with New Zealand and Australia dominating the market. New Zealand sent 8,342 tonnes while Australia sent 7,243 tonnes.

Mercosur

Ahead of the next round of trade negotiations with Mercosur, the EU Commission are struggling to get support from member states on a beef offer.

Late last week in Brussels, up to 11 countries including Ireland stated their objections.

The IFA were in Brussels and met with senior officials from DG Trade that are involved in the negotiations.

Beef and ethanol

Beef and ethanol are the two areas that have to be seriously addressed in the talks with most other sectors at a well advanced stage, prompting expectation that a deal could be concluded in the margins of WTO meeting in December.

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