Due to the growing contention between China and Canada, bilateral trade has faced serious consequences. The most affected right now is the agri-food sector. Things got heated up when China halted its imports from Canada.
China called the meaty deal off when around 200 forged veterinary certificates were discovered along with the presence of ractopamine residues in a pork dispatch – which is strictly prohibited within Chinese borders.
In retrospect, the meat ban can compromise the relationship between China’s General Administration responsible for food quality assurance and the Canadian Food Inspection Agency- including the 2012 Canadian beef and dairy products deal.
However, Chinese buyers cannot deny the popularity of Canadian meat and they want more exports. The ban extends risky financial consequences to the Canadian meat market. China made up 22% of pork export from Canada. A sudden ban has resulted in limited trade and political strain.
Canada needs to comply with Chinese meat standards if the Chinese concern for food safety is genuine by restricting forged certified meat products. Ractopamine should also be banned if Canada wants to win over the Asian meat market.
On the flip side of the coin, Canada is diversifying its canola exports. Similar diversification in the meat industry will be fruitful for Canada in the long run for becoming the biggest meat exporter.