GHY Tradelines

(CBC News)

New Brunswick was the largest provincial seafood exporter of food in 2012

The federal Fisheries Department says $4.1 billion worth of Canadian seafood landed on tables in more than 100 countries last year, with lobster remaining the most valuable export. Fisheries Minister Keith Ashfield said Sunday that Canada exported $41 million more in fish and seafood products in 2012 than the year before.

“The strong exports in 2012 demonstrate the trust consumers place in our fish and seafood products worldwide,” he said in a statement. Read more here.
 

(Globe & Mail)

Canadian cattle producers say they’re pleased Japan is relaxing restrictions on imported beef from Canada and three other countries a decade after raising barriers amid the so-called mad cow disease scare.

Japan’s Foreign Ministry announced Monday it will allow imports of beef from cows up to 30 months old, effective this Friday. The previous standard was to ban imports of beef from animals older than 20 months.

“This is an exciting announcement and we’ve been looking forward to this for quite some time,” Martin Unrau, president of the Canadian Cattlemen’s Association, said in a teleconference. “This announcement is very significant for Canadian cattle producers. Japan is extremely important market and this expanded access will breathe new life into the Canadian beef sector.” Read more here.
 

(Sue Bailey – Canadian Press)

Canada’s potential free trade deal with Europe should raise alarms that open access to lucrative seafood markets will come at the expense of protections for Atlantic fishery jobs, says a new report.

“At stake is the ability of Canadians to pursue public policies that curb domination of the fisheries by large corporations,” says the study released Wednesday by the left-leaning Canadian Centre for Policy Alternatives.

“My biggest concern is that Canadian governments and citizens, particularly provincial governments, will lose their ability to regulate the fishery to maximize local benefits,” author Scott Sinclair said in an interview.

His study, “Globalization, Trade Treaties and the Future of the Atlantic Canadian Fisheries,” includes details reportedly leaked from ongoing closed-door Canada-EU trade talks. They indicate that “the EU is strongly pressuring Canada to abolish minimum processing requirements” as the two sides work toward a deal known as the Comprehensive Economic and Trade Agreement, or CETA, says the report. Read more here.
 

(Agriculture Canada)

Canadian livestock producers will benefit from more export opportunities in the Americas. Agriculture Minister Gerry Ritz and Minister of International Trade and Minister for the Asia-Pacific Gateway Ed Fast announced that Nicaragua has approved imports of beef and pork from Canada.

“Our government understands that opening new markets to increase exports of our world-class beef and pork creates jobs and economic growth,” said Minister Ritz. “Every international market opened means more dollars returning to the farm gate and another great opportunity for our livestock producers.”

Effective immediately, Canadian producers can export beef to Nicaragua, with full access now restored after the closure of this market in 2003 due to BSE. And, for the first time ever, market access conditions have now been established for Canadian pork. Read more here.
 

(Reuters)

Russia may freeze imports of U.S. beef and pork amid concerns about producers’ use of the feed additive ractopamine, the U.S. Meat Export Federation said.

Russia set a deadline effective Friday for U.S. exporters to certify that beef and pork have been tested to confirm it’s free of ractopamine. The additive, prohibited by some other countries, is used to promote leanness in livestock.

Russia’s requirement may effectively result in a halt to pork and beef imports from the U.S. by Saturday, said Joe Schuele, a spokesman for the U.S. Meat Export Federation. “The back and forth we’ve had with Russia on ractopamine has gone on for some time,” Mr. Schuele said. “They’ve now reiterated they would impose the documentation requirement.” Read more here.
 

(Longshore & Shipping News)

After nearly three months of negotiations, the multinational grain corporations operating in the Columbia River and Puget Sound have given local workers a final offer that demands deep concessions from workers, even though the companies have been successful under the current agreement and impasse has not been reached in negotiations.  Negotiators for the union include member representatives from ILWU Local 8 in Portland, ILWU Local 4 in Vancouver, ILWU Local 23 in Tacoma, and ILWU Local 19 in Seattle.

“The ILWU has bargained in good faith and offered several proposals designed to meet the employers’ needs,” said Leal Sundet, ILWU Coast Longshore Division. “We want to keep the grain moving as we have done nonstop since the 1930’s. It’s unfortunate that the multinational corporations that are profiting at our ports have failed to accept the workers’ reasonable proposals to reach a fair agreement.”

The grain industry’s proposal will be reviewed and shared with the union membership before officials will comment on it. In the meantime, work is continuing under the full terms of the agreement that the union has developed with the grain elevator owners over the past 80 years and that expired on Sept. 29.

“We believe that in light of a low yielding harvest and corresponding high bushel prices, the profitable multinational grain merchants are using the circumstances to undermine a mature 80-year contract with longshoremen that’s made the Northwest one of the most productive grain export regions in the world,” said Sundet. Read more here.
 

(Better Farming – Susan Mann)

Federal government’s aggressive focus on international trade obtains mostly thumbs up from Canada’s farm community

The federal government says it’s currently undertaking the most ambitious trade expansion plans in Canadian history but farm community reaction to the direction is mixed.

Representatives from the farm community were asked their opinions in response to today’s release in Ottawa of the 2011-12 Agriculture and Agri-Food Market Access Report, issued by Agriculture Minister Gerry Ritz and Ed Fast, minister of international trade.

Al Mussell, senior research associate with the George Morris Centre, an agricultural think tank in Guelph, says Canada needs to trade farm products to fully utilize its large arable land base and capacity to produce food that is far greater than what the domestic market needs.

Mussell has not yet seen the report but notes the federal government has been very clear and consistent in its message promoting trade and new agreements as a driver of economic growth. It’s a “laudable and very rational strategy,” he says. “If we try to have everything that we produce in Canada or in Ontario or virtually in any province come to market in that area, prices would be pretty darn low or we’d have to take valuable land out of production.” Read more here.
 

(CBSA)

This notice is to advise exporters, that effective August 1, 2012, the Canadian Wheat Board (CWB) will no longer issue export licenses for shipments of wheat, durum, and barley (including products) leaving Canada. This change in policy is a result of legislation passed by the Federal Government in December of 2011 that changed significantly the mandate of the CWB. With the passage of the Canadian Wheat Board (Interim Operations) Act, all types of export licenses currently managed by the CWB, including special licenses issued on an annual basis and individual licenses issued on an ad hoc basis will no longer be issued by the CWB.

For the current crop year (August 1, 2011 to July 31, 2012) individual export licenses will be issued by the CWB up to and including July 31, 2012. Exporters will need to apply through the CWB for an export license until that date. Also note that all special licenses issued by the CWB on an annual basis will automatically expire on July 31, 2012.

For additional information regarding this notice, please contact:
Canada Border Services Agency
Export Programs
150 Isabella Street, 10th Floor
Ottawa ON K1A 0L8
Telephone: 613-954-7160
Email: export@cbsa-asfc.gc.ca
 

(STR Trade Report)

The Food and Drug Administration has unveiled a new automated system for companies exporting food from the U.S. to file electronically for certificates of free sale. Such certificates are often requested by international customers or governments to verify that the products being exported meet certain standards.

The FDA Unified Registration and Listing Systems Certificate Application Process allows exporters of conventional foods, including seafood, to apply online for a CFS, reducing the amount of time required for the FDA to process requests and issue certificates. Exporters who create a CAP account will be able to apply for new certificates, modify existing applications and check the status of pending applications. To create an account, companies will need to enter the food facility registration number and passcode they received when they registered under the Bioterrorism Act of 2002.

The FDA notes that while companies will now be able to apply for a CFS electronically they can still request certificates by mail. In addition, even if the application is made electronically, at this time certificates are available only as hard copies that are mailed to the applicant.

(Jessica Murphy – Toronto Sun)

The federal government is eyeing Germany and Russia as possible markets for Canadian food exports.

But two newly released polls indicate that while German consumers are generally open-minded about picking up Canuck chow, Russians – who view Canadian food as “exotic” but “lacking freshness” – will prove more skeptical consumers.

Agriculture Canada commissioned both reports last year in a bid to find ways to boost food exports.

Canadian marketers will face Russians shoppers with an “essentially non-existent” awareness of Canadian food. Read more here.
 

(The Globe and Mail – Geoffrey York)

In a dining room above a giant supermarket, several dozen South Africans are sipping wine and sampling some of Canada’s tastiest food exports: smoked salmon, maple syrup, wild rice and more. “There’s maple syrup in all the desserts,” a trade commissioner tells them as they mingle.  It’s the first time the local Canadian trade office has held a “Canadian food night” in Johannesburg, and it signals a growing effort to diversify Canada’s food exports away from its traditional markets in the United States and Asia.

The export campaign is producing some successes – including a steady rise in Canadian meat exports to South Africa – but it also faces a new obstacle. After years of grumbling, the South African government is threatening to file a complaint against Canadian pork exports at the World Trade Organization, sources say. Read more here.
 

(STR Trade Report)

The Office of the U.S. Trade Representative announced March 6 that the U.S. has requested consultations with India at the World Trade Organization concerning its prohibitions on certain U.S. agricultural exports, including poultry meat and chicken eggs.

“India’s ban on U.S. poultry is clearly a case of disguising trade restrictions by invoking unjustified animal health concerns,” said USTR Ron Kirk.

“The United States is the world’s leader in agricultural safety and we are confident that the WTO will confirm that India’s ban is unjustified.” A press release from several U.S. agricultural trade groups cites “conservative estimates” that “if India’s trade barriers were eliminated the value of U.S. poultry exports to India each year would surpass $300 million.” Read more here.
 

(Reuters – Niu Shuping and Ken Wills)

Chinese quarantine authorities will allow imports of Canadian canola by some selected crushers located in major growing areas, partially lifting a ban it imposed because of fungal disease concerns, traders said on Thursday.

The import relaxation, likely to be cleared in the second half of the year, would further boost canola imports from the world’s largest exporter of canola/rapeseed to China later in the year. […]

China has restricted imports of Canadian canola since 2009 and only allowed shipments to areas away from the country’s major growing areas on worries over the spread of the fungal disease blackleg. Read more here.
 

(ST&R Trade Report)

The Department of Agriculture’s Animal and Plant Health Inspection Service has made several improvements to its Phytosanitary Certificate and Issuance Tracking system. PCIT was created in 2005 to automate the issuance of phytosanitary certificates for agricultural commodities exported to foreign countries. In fiscal year 2011, APHIS and state and county governments issued more than 530,000 export certificates for individuals and businesses through the PCIT system.

APHIS states that in the coming months PCIT will begin automatically transferring phytosanitary certificates to foreign countries receiving U.S. exports, reducing previous delays associated with paperwork verification. In addition, APHIS is expanding the availability of user-printed phytosanitary certificates, eliminating the need for users to pay for shipped documents.
 

(MarketWatch – Adam Johnston)

Soft ocean freight rates, which hit 25-year lows in early February, are helping cut into Canada’s grain freight disadvantage with some of its competitors, said industry participants.  The Baltic Dry Index, which is used as a guide for global shipping rates, is sitting at 715 points, up from a twenty-five year low of 647 points Feb. 3. However, that’s still well below the 2011 high of 2,173 points in mid-October and the 2008 peak of 11,793 points.

David Przednowek, manager of marine logistics with the Canadian Wheat Board, said the softening of ocean freight rates has been beneficial for Canadian grain shippers.   Transporting grain from Canada to many global areas, including Asia, takes more time, in comparison to moving it from Australia. However, softer shipping rates have narrowed the freight disadvantage, making it more competitive for Canadian grain distributors, he said.

Trevor Lavender, president of the Summit Maritime Corporation in Montreal, said much of the dramatic downward trend seen in ocean freight values is due to the large supply of ships. The lack of seasonal demand due to the Chinese new-year holiday, has also weighed on freight rates recently. Read more here.
 

(ICTSD)

The almost decade long beef trade dispute between Canada and South Korea appears close to its conclusion after Seoul announced it would immediately open its borders to Canadian beef from cattle under 30 months old. The 20 January announcement follows the temporary suspension of a related WTO dispute in summer 2011 that had meant to facilitate a negotiated solution among the two countries.

South Korea’s ban dates back to 2003 when the Asian country, along with other nations, shut its borders to all Canadian and US beef products, responding to North American producers being linked to the BSE, or mad cow disease. Read more here.

(Edmonton Journal – Joe Rosario)

Fueled by demand in emerging and developing countries, world agricultural exports have more than doubled in the past decade, from $551 billion in 2000 to over $1.3 trillion in 2008. The global recession took its toll with exports declining to $1.17 trillion in 2009 but they have since recovered vigorously. However, agricultural exports from Canada only increased from $35 billion to $54 billion during the 2000-2008 period.

Alberta paints an even more dismal picture. Our agricultural exports have been relatively stagnant over the decade — in the $5 billion- $6 billion range — except in 2008 when a sharp price increase for grains and oilseeds occurred. Of even greater concern is the stagnation (at around $3 billion) in value-added exports such as beef, pork, processed grains and oilseeds and consumer-ready products. World demand for such products has increased rapidly due to rising income, population growth and urbanization. Market-access restrictions are one important cause of Canada’s and Alberta’s relatively poor performance. Read more here.
 

(Farm Focus)

The United States has a new Food Safety Modernization Act that is going to be a challenge for Canadians exporting to their largest trading partner.  On the other hand, Canadians are more likely than competing nations to promptly comply when the U.S. Food and Drug Administration announces details and deadlines, say three agricultural economists who have prepared a report on the situation.

They do, however, say “bottlenecks to exporting are bound to appear which will be very frustrating for Canadian firms.

“It is important for Canadian firms and Canadian policy makers to work hard to ensure that temporary bottlenecks do not become permanent inhibitors of trade. The Canadian government needs to understand industry concerns and use any mechanisms – including those in the North American Free Trade Agreement– to initiate consultations with the U.S.,” they say.

The U.S. standards for Hazard Analysis Critical Control Points (HACCP) compliance could be a big challenge because, “while HACCP is widely used in Canada, there is no international harmonization of HACCP systems. Read more here.
 

(World Trade Interactive)

U.S. Trade Representative Ron Kirk announced Sept. 20 that the U.S. has filed a World Trade Organization complaint against China’s imposition of additional import duties on U.S. chicken products. The new enforcement action comes as momentum continues to build for Senate approval of legislation addressing irritants in the U.S.-China trade relationship, which the White House does not necessarily want to see happen.

A USTR press release states that the WTO case challenges China’s antidumping and countervailing duties on imports of U.S. chicken broiler products, which include chicken products that are not cut into pieces as well as various cuts and pieces. The AD duties range from 50.3% to 105.4% and the CV duties range from 4.0% to 30.3%. The U.S. alleges that in imposing these duties China appears to have violated its WTO obligations by not observing numerous transparency and due process requirements, failing to properly explain the basis for its findings and conclusions, incorrectly calculating dumping margins and subsidy rates, and making unsupported findings of injury to China’s domestic industry. The U.S. was China’s largest chicken broiler product supplier before these duties were imposed, USTR notes, but since then exports have fallen 90%. Read more here.
 

(Henry J. Chang, Blaney McMurtry LLP)

In July 2011, the Codex Alimentarius Commission (Codex), at its annual summit in Geneva, adopted guidelines that allow the labelling of genetically-modified (GM) food products. GM food products are derived from organisms that have been modified by means of modern genetic engineering techniques.

This development is not likely to result in sweeping changes for Canadians in the near term, since the Government of Canada does not intend to require the labelling of GM food products domestically. However, the adoption of the guidelines may affect Canadian food producers who export GM food products to other countries because World Trade Organization (WTO) members that implement the GM labelling regime will be protected from complaints alleging that they are engaged in restraint of trade.

The Codex Commission was created in 1963 by the World Health Organization (WHO) and the Food and Agriculture Organization (FAO). It is responsible for leading the development of international food standards, guidelines and related texts, such as codes of practice, under the Joint FAO/WHO Food Standards Program.

The main purposes of this program are to protect the health of consumers, to ensure fair trade practices in the food trade, and to promote the coordination of all food standards work undertaken by international governmental and non-governmental organizations. The Codex therefore has a sometimes contradictory mandate of protecting the health of consumers while also facilitating international trade. Read more here.