Pork industry wants feds to cut a Korean trade deal

Tuesday, January 11, 2011

by BETTER FARMING STAFF

The organizations with a stake in the Canadian pork industry want the federal government to resume free trade agreement talks with South Korea as soon as possible.

“If we don’t have a free trade agreement, we lose the market,” says Gary Stordy, public relations manager with the Canadian Pork Council, the national producer group. The Council, along with Canada Pork International, which promotes pork exports, and the Canadian Meat Council, a group of packers, issued a news release Wednesday asking the government to move ahead with the talks.

Stordy says South Korea is Canadian producers’ fourth largest market for exports of pork cuts and favours high value cuts such as chilled shoulder, butts and bellies. In 2009 the pork trade with the country was valued at $125 million.

Stordy says talks have been ongoing, on and off officially since 2005 but were interrupted in 2008. With other countries, such as the United States, negotiating agreements at the same time, there was an “air of caution,” to make sure competitors didn’t get a better deal, he says.

Now, the United States and the European Union are finalizing agreements and Canada’s industry is saying that without a similar agreement in place it will lag behind its competitors. A free trade agreement between South Korea and Chile is already having its impact with that country becoming a significant player, the news release states. From January to October, 2010 the United States shipped 63,000 tonnes of pork, Canada 45,000 tonnes and Chile 36,000 tonnes. For the Americans and Canada, that was a 14 and five per cent drop in volume respectively over the same time period the year before; Chile maintained its market share.

Martin Lavoie, a vice president of Canada Pork International, says if free trade access is not obtained, Canada will lose the market within two years. Canada has always been South Korea’s first or second largest supplier, he says. “This FTA is not a matter of gaining access; it’s really critical for maintaining our access.”

A U.S. industry study has estimated that landing an agreement with South Korea will mean a benefit of US$10 per hog. If one is reached between Canada and South Korea the benefit would be about the same, says Stordy. More pork trade lowers the number of hogs available and can boost the price, he explains.

Stordy says the industry groups have been discussing the issue with the federal government but sense reluctance to resume the talks.

Other sectors may not be as enthusiastic over such an arrangement, he says, pointing to the auto industry as an example.

In comments forwarded by his press secretary via email today, Agriculture Gerry Ritz says he agrees that a free trade agreement with South Korea is important.

“That’s why Canada and South Korea have concluded 13 rounds of negotiations towards a free trade agreement that will help expand market opportunities for Canadian pork producers, farmers, businesses and workers,” he states.

Ritz did not indicate when, or if talks would resume. BF