It seems we aren?t the only ones who are banging our heads in frustration over trade with China. Canada has been dealing with trade issues with its canola industry. Now, they are getting even more bad news on the pork front. The Chinese are banning more Canadian pork shipments from a third exporter.
Audio: World of Agriculture
China has announced it will be blocking shipments from a third Canadian firm, Frigo Royal. China is claiming the shipments contained ractopamine, which is banned in China. China will not accept any shipments of pork fed with the feed additive. In April, China banned shipments from two other Canadian companies, Olymel and Drummond Export, over the same concerns.
This is now adding to an already tense trade situation between the two countries. In December, Canadian officials arrested a senior Huawei Technologies Co. executive at the behest of the U.S. Shortly after the arrest, China detained, and later charged, two Canadians on national-security grounds. Canadian officials have called for China to release the two Canadian men.
Canadian Agriculture Minister Marie-Claude Bibeau says food inspectors are investigating the latest case, telling exporters to ?be very vigilant? to ?respect all the rules? regarding exports to China. So far, in 2019, China has been Canada?s third-largest pork export market, totaling $310 million.
The Chinese are definitely in the market to buy pork. African Swine Fever has decimated the herds of the world?s largest pork producer. Estimates are the Chinese have had to cull up to 40% of their herds. The United States has not been able to capitalize on this strained trade relationship between Canada and China, as we are in a trade war of our own with the Chinese. Talks ground to a halt as the end seemed to be in sight. The Chinese have a 62% tariff on all imports of American pork.
President Trump and President Xi are scheduled to meet at the G20 summit, next week, in Japan. There are high hopes the leaders of the world?s two largest economies can get the stalled trade talks jumpstarted again. If not, China may be looking elsewhere to get their much-needed pork.
