Day upset over South Korea’s Canadian beef ban
The Gazette, Montreal
Day upset over South Korea’s Canadian beef ban
By David Akin, Canwest News Service
9 April 2009
OTTAWA - Trade Minister Stockwell Day, in Asia on a 10-day mission, took steps Thursday to improve Canada’s trading partnerships in the region even as relations with South Korea worsened over that country’s "unjustified ban" of Canadian beef.
Canada expanded an air-transport agreement with Japan, which Canadian officials said would help boost tourism here, and opened negotiations with the Japanese government to establish "an economic partnership agreement."
"Like us, their prosperity depends on being able to trade vigorously and freely," Day said.
Talks to improve Canada-Japan trade, though, will not address the agricultural sector. Both countries have long protected domestic producers from international competition.
But even as Canada agreed not to push Canadian agricultural products in the Japanese market, Canada is trying to fight its way back into South Korea for Canadian beef. Canada asked the World Trade Organization to rule on what it calls that country’s "unjustified ban" of Canadian beef.
Day’s trade initiatives were announced on the same day that Statistics Canada reported a surprisingly improving trade picture.
Canada recorded a trade surplus of $126 million in February. Most economists were expecting a decline of $1.2 billion.
"I’m not going to call it a turnaround at this point," Day said in a conference call from Japan with reporters. "But seeing a shift in the numbers this month clearly is encouraging. We think the message is getting out as far as the stability of Canada’s situation."
February’s slim surplus followed deficits of $1.15 billion in January and $652 million in December.
The December trade deficit was the first month since 1976 in which Canada bought more from world producers than it sold to world producers.
"There are good reasons to cheer February’s trade report," said Krishen Rangasamy, an economist with CIBC World Markets. "For one, the improvement in the trade surplus was of the better variety, i.e not one resulting from a drop in imports which would have implied weakening domestic demand. In fact, both imports and exports picked up in February. More importantly, volumes indicate that February’s GDP will be better than first thought."
The purpose of Day’s 10-day trip to Japan and China, two countries with which Canada has a steep trade deficit, is to find ways Canadians can sell more goods and services in those markets.
Day said the "economic-partnership agreement" Canada hopes to reach with Japan will not be a comprehensive free-trade deal as some sectors, such as agriculture, will be off the negotiating table.
Instead, officials from both countries have been directed by their political masters to look at other sectors where improved trade can benefit both countries.
The expansion of the Canada-Japan bilateral export agreement means flyers will now be able to travel directly from Canada to any city in Japan outside the Tokyo area. It also means Canadian carriers will be able to land, for the first time and under certain conditions, at Haneda Airport, Tokyo’s metropolitan airport.
Meanwhile, Canada finds itself frustrated with the pace of negotiations with South Korea so Canadian beef can be re-introduced to that market.
"We have tried for some number of months to get the same access for our beef that the U.S. has and they haven’t said no to that but the discussions have continued on and on beyond what we feel is necessary," Day said. "The only way to get this resolved is to move to the (WTO) consultation process."
South Korea and other countries banned Canadian beef in 2003 after BSE was discovered in a Canadian cow.
After receiving approvals from international health authorities in 2007, Canadian beef has been allowed back into 55 foreign markets but remains banned in South Korea.
