2010-11 ALMA Business Plan Overview Foreign Market Opportunities Accessing the EU through CETA 2010-11 ALMA Business Plan Overview Future Fare Wednesday, June 8, 2011 Edmonton

Throne Speech Our Government will: continue opening new markets for Canadian businesses aim to complete negotiations on a free trade agreement with the European Union by 2012

Throne Speech Canada’s traditional industries remain crucial to our economy. Our Government has always stood behind Canada’s agricultural, forestry, fishing, mineral, manufacturing and energy sectors—and will continue to support them as they innovate and grow.

Throne Speech In all international forums and bilateral negotiations, our Government will continue to stand up for Canadian farmers and industries by defending supply management.

Canada’s Free-Trade Agenda Several negotiations underway with priority meat and livestock markets Negotiation of FTAs offer a unique opportunity to change the conditions of entry in foreign markets But they take time and such opportunities are rare What has been done Looking forward GATT/WTO cornerstone but Doha Round faltering

Canada’s Free-Trade Agenda What Has Been Done Canada-U.S. FTA 1989 - NAFTA 1994 Since then, nine other free-trade agreements with: Israel, Chile, Costa Rica, EFTA (Switzerland, Norway, Liechtenstein and Iceland), Peru, Colombia, Jordan and Panama Negotiating with Morocco, the Caribbean Community, Honduras – Turkey (exploratory) Useful but not of major economic significance

Canada’s Free-Trade Agenda Looking Forward Major new partners and opportunities – negotiations underway with: the EU India Korea Ukraine And, of course, U.S. – Perimeter security and regulatory cooperation negotiations

Canada’s Free-Trade Agenda Looking Forward Negotiations in prospect Japan Longer term prospects China Mercosur (Brazil, Argentina, Uruguay, and Paraguay)

Canada-EU CETA 27 Member States Population over 500 million GDP of $18.7 trillion in 2009 World’s largest single common market, foreign investor and trader Canada's second largest trading partner in goods and services Canadian 2009 exports to EU $44.3 billion

CETA – Status of Negotiations Comprehensive Economic and Trade Agreement negotiations launched May 2009 Seven rounds of negotiations but also many other meetings Comprehensive “offers” in goods, services, investment and procurement to be exchanged before July round Finishing this year is a priority for negotiators

CETA – Agriculture Comprehensive offers before July round Sensitivities EU Beef Pork Canada Dairy Poultry GIs

CETA – Meat and Livestock Beef EU market is about 8 million tons By 2015 EU will need imports of 1 million tons Prospect for improved access for Canada but with quantitative limits In WTO EU had offered 300 thousand tons Canada will be competing for the 1 million ton import market Tough negotiations on rules of origin

CETA – Meat and Livestock Pork and Bison May be even more sensitive than beef but the EU market is huge (20 million tons) Access likely to be limited by quota Bison Canada proposing tariff treatment separate from beef

CETA – Meat and Livestock Other Meat Products Other meat products, including horse and sheep not as sensitive Duty free quota free access may be achievable Poultry products may be affected by Canada’s reluctance to improve EU access

CETA – Meat and Livestock NTBs Parallel work ongoing on sanitary regulations Improved protocol being negotiated for entry of non-hormone treated beef EU has not raised animal welfare issues

End Game Better sense of situation after July round October round will be critical In agriculture EU sensitivities on key Canadian priorities (and vice versa) Political engagement will be needed to reach a good outcome Canada will need to link beef and pork objectives to other areas of the negotiation

Role of Meat and Livestock Industry Producers and their representatives will need to put their case strongly to political leaders in Canada Certainly the supply management industry will leave no stone unturned in defending its protected market in Canada