VANCOUVER (NEWS 1130) – Global stock markets tumbled after China announced its latest plans to retaliate in tit-for-tat trade tensions with the US, ready to slap $50-billion in import duties an American products in response to proposed US tariff hikes on a $50-billion list of Chinese goods.
In a separate dispute, Beijing raised tariffs Monday on a $3-billion list of US goods including steel pipe, apples and pork in response to increased duties on imports of steel and aluminium that took effect March 23.
CEO of Canada Pork International Martin Lavoie says this is not seen as an opportunity for Canadian pork exporters.
“We’d much rather work in a stable and predictable business environment,” he tells NEWS 1130.
Lavoie says US pork exports not going to China simply go to other markets, creating more competition elsewhere.
“There would be a shift of the US trade to markets like Mexico, Taiwan, Hong Kong and some other Asian countries,” he explains. “Also, what we are exporting to China are specific cuts that Chinese consumers like — such as feet, offal and byproducts — and we are shipping most of what we can already. There would be opportunities for other cuts, but not that much.”
However, despite there being the possibility of both risk and reward, others believe Canada could capitalize in other markets.
“The Chinese impose tariffs on US pork, or if they eventually move to include soy beans, those are obviously opportunities for us to replace the Americans,” says Carlo Dade who teaches international trade at the University of Ottawa.
Last year, Canada exported 306,000 tonnes of pork to China, our country’s second largest market for the product after the US.
China’s latest list of US goods threatened with tariffs includes soybeans and small aircraft but the country’s tax agency gave no date for the 25 per cent increase to take effect and said that will depend on what President Donald Trump does about US plans to raise duties on Chinese goods.
The Chinese government announced it made a “request for consultations” at the World Trade Organization in response to the tariffs against products from that country.
The step triggers the WTO’s dispute settlement mechanism that will begin with consultations between the two countries.
China said the request centres on a proposed product list subject to the additional tariffs under US Section 301 rules.
The post Canadian pork producers don’t see China-US trade tensions as opportunity appeared first on NEWS 1130.