Saskatchewan producers pan Mercosur beef in trade deal

SWIFT CURRENT, Sask. — Saskatchewan cattle producers have added their voices to the chorus against a trade deal with Mercosur countries.

The Saskatchewan Stock Growers Association passed a resolution to lobby the federal government to have beef removed from the negotiations with the South American countries, including Brazil and Argentina.

The Canadian Cattle Association has been campaigning against the deal, saying beef should not be a bargaining chip.

Why it Matters: Canada signalled its intention to wrap up a deal with Mercosur earlier this year, but the beef sector said it’s concerned about competitiveness and far-reaching effects.

SSGA vice-president Henry McCarthy said it’s dangerous to be in a rush and put Canada at a competitive disadvantage.

Last year, imports reachest 30 per cent of domestic consumption and the highest level since 1993. However, imports from Mercosur countries have risen by 238 per cent since 2021, said the CCA.

CCA vice-president Ryan Beierbach said the negotiations have been moving fast after about 10 years of talks.

“They’re some of the biggest beef exporting nations in the world, definitely lower cost beef than what we produce here,” he said at the SSGA convention.

He said Uruguayan producers sell fat steers for US$1,200 to $1,500 and are making money, which indicates how low their costs are, he said.

The lack of environmental and labour standards compared to Canada are among the reasons for lower costs, but Canadian producers also have concerns about quality.

“One of the concerns is we’ll see some of that beef come in, people buy that beef not knowing it’s South American beef and have a bad eating experience,” Beierbach said. “

We’ve worked really hard to make sure that Canadian beef is high quality and that consumers really get what they pay for.”

However, there is a strong push from Ottawa to get a deal done quickly, he said.

A deal could also cause problems in the Canada-U.S.-Mexico Agreement review set to begin July 1.

“We’ve heard that loud and clear from our U.S. counterparts that it could be detrimental to the CUSMA negotiations,” Beierbach said.

He called the July 1 deadline artificial, noting the agreement doesn’t end if a deal isn’t done right away.

He said July 20 presents the bigger threat. That’s when U.S. president Donald Trump has said he will announce new tariffs.

Beierbach said he expects 10 to 20 per cent tariffs on some goods but not necessarily on beef.

Trump has been focusing on keeping beef prices down lately as consumers grapple with high grocery prices, he said.

“I would say the risk is fairly low we’ll be on that list, but there is a risk there,” Beierbach said.

Another factor is the Jan. 1 introduction of voluntary country-of-origin labelling. Some groups, such as R-CALF, are pushing for it to be mandatory and included in the U.S. farm bill.

He said other organizations are working to keep it out ,and there is a possibility the Senate will kill the bill. Currently, the 2018 bill has been extended to Sept. 30.

Beierbach said mandatory COOL would cost the Canadian industry at least $80 per head.

He said CCA promotes the flow of cattle back and forth in the integrated market, and the feeder cattle imports into Alberta the last few years help the case.

Negotiations between Canada and Mercusor at the end of May did not lead to any announcements.