Canadian Meat industry Vigourously Supports Signature of the Trans-Pacific Partnership

Canadian participation as a founding member of the TPP is of crucial importance to the sustainability of this country’s livestock and meat sector as well as to the thousands of rural and urban communities and tens of thousands of workers and families whose prospects for the future are dependent upon it,” said Canadian Meat Council President Joe Reda. “Failure to participate in the TPP would forfeit not only $500 million in new export market potential, it would place at serious risk $1 billion of current meat exports,” added Reda.

“The moment that the TPP enters into force the status quo will no longer exist,” said Canadian Meat Council Executive Director Jim Laws. “The global trading environment will have changed substantially and permanently. This country’s export dependent agriculture and agri-food sector will either be in a position to benefit from the new world reality - or it will retract under the heavy and enduring cost of historic opportunity squandered,” added Laws.

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Canadian livestock farmers and meat processors cannot afford to relive the destructive experience of South Korea to which Canadian meat product exports plummeted by 64 percent within only two years of losing competitive market access. Notwithstanding entry into force of the Canada-Korea Free Trade Agreement (CKFTA) on January 1, 2015, Canada will remain at a competitive disadvantage throughout the remainder of the fifteen year period of implementation.

Other countries, including important meat importing nations, are expected to join the TPP in the near future. The terms and conditions of accession will be established by the original members of the TPP. It is preferable to be a founding member and to establish the conditions for new entrants than it is to pay the initial members for participation at a subsequent date.

Canada has one of the most trade-dependent agriculture and agri-food sectors in the world. In the livestock and meat sector, export destinations account for 50 percent of Canadian beef production and more than 60 percent of Canadian pork production. Countries participating in the TPP represent not only 40% of world economic output; they account for $4.4 billion (77 percent) of Canadian meat exports. The loss of competitive access to the critical TPP markets would be devastating for feed grain and livestock farmers, meat industry workers, and the numerous municipalities in which they live, work and pay taxes.

Recording annual sales of $23.6 billion, exports of $5.7 billion, and 65,000 jobs, the meat industry is the largest component of this country’s food processing sector. The industry provides a vital market outlet for Canada’s: 68,000 beef farms and feedlots; 10,000 sheep farms; 7,000 hog farms; and, the cattle and calves from 12,000 dairy farms. Moreover, the industry provides a major indirect market outlet for Canadian grain farmers.

Canada’s meat processing industry includes some 400 federally registered establishments, providing safe, high quality protein for Canadian consumers as well as creating jobs and bringing economic activity to rural and urban communities across Canada. The Canadian Meat Council has been representing Canada’s federally inspected meat processing industry since 1919.

Source: Canadian Meat Business