Progress with new Free Trade Agreements
CCA is advocating for a strong permanent agreement between Canada and the United Kingdom (UK) that addresses current trade limiting factors found within the Comprehensive and Economic Trade Agreement. On March 24, 2022 Canada and the United Kingdom (UK) announced the launch of negotiations toward a Canada-UK Free Trade Agreement.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Expansion
CCA encourages the exploration of expansion of CPTPP for further diverse markets in Asia-Pacific, given any new entrants meet the high-level ambition of the agreement. Further expanding the market access for Canadian beef offal into the Asian market would add significant value to Canadian beef trade. Reinstating and then expanding China would include priorities such as; eliminating the 12 per cent import tariff for Canadian beef cuts, obtaining access for over thirty-month (OTM) beef and offal, and obtaining comprehensive approval of Canada’s meat inspection system.
CPTPP came into force on December 30, 2018 for the initial six CPTPP signatories of Japan, Mexico, Singapore, Canada, New Zealand and Australia. Vietnam implemented the CPTPP on January 14, 2019, bringing initial reductions in import duty rates for beef from CPTPP member countries including Canada.
Under the CPTPP, on Dec. 30, 2018, the Japanese tariff of 38.5 per cent dropped to 27.5 per cent on Canadian fresh beef and to 26.9 per cent on frozen beef. As of 2023, Canada’s tariff is down to 23.3 per cent on both fresh and frozen which will eventually lower down to 9 per cent over several years. With CPTPP, Canadian beef will also be exempt from the Japanese safeguard tariff of 50 per cent on frozen beef.
The agreement has prompted growth in exports of Canadian beef to Japan, as expected. Vietnam is an emerging market with important growth potential for Canadian beef. In 2017, Canadian beef exports to Vietnam were C$3.9 million with a 20 per cent tariff. As of 2022, beef exports to Vietnam grew to C$6.1 million. Beef from CPTPP signatories Australia and New Zealand already enjoy duty free access to Vietnam under existing trade agreements with the Association of Southeast Asian Nations (ASEAN). The U.S. Meat Export Federation (USMEF) anticipates that Canada and Mexico will benefit most from the tariff reductions.