The failure of Canadian farmers to reap the benefits they hoped for from the trade deal with the EU could have implications both for any UK post Brexit deal with the EU and for negotiations on trade with the US.
Of course, it is always worth pointing out that the UK and the EU share a common regulatory starting point, making negotiations less complex in principle, although some divergence post Brexit has always been anticipated. That is a source of tension as the EU does not want the UK to be more competitive by substantially changing the regulatory environment.
Canadian agricultural exports to the EU fell 15 per cent in the year 2018. The underlying issue here is that the main market for Canada is the US and therefore Canadian farmers are oriented towards meeting their standards rather than the more stringent ones of the EU. This particularly relates to the banning of antibiotics and growth enhancement technology, both controversial issues with EU consumers.
As Charlie Mitchell notes in an article for the Financial Times livestock farmers must have their methods endorsed by vets certified by the EU and there are not many of them around in beef producing areas in the Canadian west.
Consequently, the Pink 'Un reveals that apparently generous quotas given to Canadian livestock farmers remain unfilled. Canadian pork farmers filled just 1.5 per cent of their quota and cattlemen filled 3.8 per cent of theirs. In contrast, European fine cheese producers had no difficulty filling their quotas with products that doubtless appeal to many Canadian consumers.
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