There will be winners and losers in a massive free trade deal

(NEWS 1130)  As Canada and 11 other countries try to hammer out the details on what would be the largest free trade zone in the world, it is pitting farmer against farmer and it could affect what you pay for some products at the grocery store.  We’ve seen protests on Parliament Hill, dairy farmers taking their tractors to Ottawa worried that the federal government will give in on protections for their market which shield it from foreign producers. But it is a different story for the Canadian Cattlemen’s Association.

“The only worry we have is that the agreement might *not* happen,” says John Masswohl, the association’s director of government and international relations.

Beef producers stand to lose lucrative overseas marketshare if Canada does not sign onto the Trans Pacific Partnership, currently being negotiated in Atlanta.

“As far as we are concerned in the beef sector, this agreement is an opportunity to restore our competitive position in the Japanese market for Canadian beef,” Masswohl says.

“Japan was a $100-million market for us last year. If we do get the agreement that could double or maybe triple that. If we don’t get a deal we can kiss that market goodbye because we’ll be at such a disadvantage to those who have preferential tariff access.”

While Japan is the big prize for beef producers, emerging markets like Vietnam and Malaysia are also poised to grow.

“There are so many products like tongue, lungs or other things that Canadians aren’t going to the grocery store for,” explains Masswohl. “But producers get a real premium for those products in Asian, Latin American and various other markets around the world. International trade maximizes the value the farmer is receiving for that animal without us having to concentrate deriving all the value on steaks and hamburger.”

Masswohl suggests that is beneficial to the Canadian consumer, keeping pressure off domestic beef prices.

“What we are concerned about — what we’ve seen a lot of in the media — is the small groups of farmers that have a more defensive view on things. They’ve been portraying themselves as being representative of Canadian agriculture. Dairy farmers specifically don’t like this deal, they want it to go away and they are actively advocating that the TPP is bad for Canadian agriculture.”

Masswohl believes that couldn’t be farther from the truth.

“Over 90 per cent of farmers rely on access to international market, not just beef producers but pork, grains, oil seeds and other products. The vast majority of Canadian agriculture needs this deal to happen and we need it to happen quickly.”