The Canadian Cattlemen's Association is excited Canada has ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The Association's Director of Government and International Relations, John Masswohl, says Canadian beef producers should see higher prices through this new trade deal with the Asia-Pacific market.
He notes because the United States isn't part of the trade agreement, the Americans be paying higher tariffs on their beef going to Japan.
"I think what that does is put Canadian feedlots and Canadian packing companies at a competitive advantage to their U.S. counterparts to be able to bid more aggressively to keep those calves up here in Canada, to keep those fed cattle and process them here."
Masswohl says Canadian feedlots and packing plants will be able to bid more for calves because they'll be making more money when tariffs are reduced.
Once the CPTPP comes into force, the Japanese tariff of 38.5 per cent will immediately drop to 27.5 per cent on Canadian fresh beef and to 26.9 per cent on frozen beef. Canadian beef will also be exempt from the Japanese safeguard tariff of 50 per cent.
These tariffs on Canadian beef will eventually be cut to nine per cent over several years.
Masswohl adds Canada could easily double beef exports to Japan within the first year of the trade deal.
Canada joins Japan, Mexico, Singapore, New Zealand and Australia as the first six countries to ratify the agreement. The Canadian Cattlemen's Association says the agreement will come into effect on Sunday, December 30.Source : Steinbachonline