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U.S. position on NAFTA creating uncertainty in cattle negotiations

Canadian Cattlemen’s Association heading to negotiations, hopes to see streamlined border crossing
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Dennis Laycraft Executive Vice-President, Canadian Cattlemen’s Association

As cattle and beef are important export commodities to the U.S., one industry organization is hoping looming trade talks are not a do or die situation.

The Canadian Cattlemen’s Association (CCA) will join government officials and other organizations Jan. 23 to 28 in Montreal for the sixth round of formal discussions on the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico.

CCA executive vice-president Dennis Laycraft explained the group hopes to play a few roles as attempts continue to renegotiate and modernize the agreement that was created in 1994.

“Among the changes we are dealing with are updated food safety procedures and the advent of e-commerce as well as how to work on border re-inspection requirements that have not changed in decades,” Laycraft stated.

“Really, we are looking at cleaning up the agreement and not lose the benefits. For us, it’s really about working with all partners and taking a do-no-harm approach.”

Laycraft noted the majority of the negotiations have seen significant progress on many non-controversial and technical issues, all of which have been overshadowed by over-the-top politics and pandering.

“At the official’s level, there has been a lot of detailed progress made on the over 30 chapters in the agreement. However, at the minister’s level there has been a lot of political posturing as it seems the U.S. is seeing how far it can push many of it’s regressive proposals.”

A few of those U.S. suggestions include country of origin labelling, seasonal produce, removing the dispute resolution process and targeting Canada’s dairy supply management system.

For the CCA, they want to focus this session to be on streamlining the process of getting cattle moved across the border.

“Every time cattle are exported, and the more hours it takes to get cattle approved, it not only costs money, but can cost in cattle weight and time getting to market,” he said.

“Going with e-certification would work, but it needs a number of items to proceed. Approval done at place of origin — instead of the border — is one of the good ideas that’s been presented.”

That being said, it still isn’t clear if or when the U.S. might start the NAFTA withdrawal process — an idea U.S. President Donald Trump has spouted many times in the past year. However, Laycraft explained it is likely a negotiating tactic and the CCA remains committed to keeping NAFTA in tact.

“There are some suggestions the U.S. may hold off on any decision until later this year or until after the mid-term senate and house (of representatives) elections (in November). We think the time is now to do it right.

“Then again, the U.S. may push ahead and trigger the six-month withdrawal process. Now, how much of that is a negotiating tactic, one can’t be sure. And, even after that starts, parties could still negotiate. There’s still a lot that could happen prior to that and we may not end up on that path.”