(Guelph, ON) – The Beef Farmers of Ontario are pleased with the announcement of Canada's Free Trade Agreement (FTA) with South Korea made by Prime Minister Stephen Harper on Tuesday of this week.
Prior to BSE in 2003, Korea was Canada's fourth largest export market for beef worth over $40 million annually. Since 2012, when Korea lifted its BSE prohibition, the restrictive 40% tariff on fresh and frozen beef has prevented Canada from fully accessing the Korean market. The agreement announced this week, will see the tariff on fresh and frozen beef eliminated entirely in a staged process over the next fourteen years.
"Improving access into foreign markets is very important to the Canadian beef industry. This agreement was essential. Without it, we would have been faced with a severe disadvantage in the Korean market due to the tariff differential with the U.S.," says Matt Bowman, BFO Vice President.
Upon implementation, tariffs on fats and tallows will be fully eliminated, and the current 18% tariff on offals will be eliminated over the next ten years.
"Maximizing the value of Canadian beef in foreign markets returns dollars to our industry, and presents new opportunities for Ontario farmers to remain competitive on a global scale," says Bowman.
Regaining market access with South Korea has been a lengthy process. BFO congratulates the Government of Canada and the Canadian Cattlemen's Association for their tireless work in achieving a FTA with South Korea. We thank Prime Minister Stephen Harper, Ontario Premier Kathleen Wynne for openly supporting a favourable conclusion to the negotiations, and Federal Ministers Gerry Ritz and Ed Fast for their dedication towards this effort.
Source: BFO