On Tuesday June 25th, China called a halt on all meat products being imported from Canada. But why you ask? This blog will explain everything.
Chinese officials say that the feed additive ractopamine was found in Canadian pork shipments. This additive is permitted for certain uses in Canada and the US, but is prohibited in China.
The discovery of ‘ractopamine residues’ was found in a batch of pork sent by Canadian company Frigo Royal earlier this month. China immediately suspended the company’s import license.
However, according to the Canadian embassy, an investigation by Canadian authorities found 188 forged veterinary certificates on exported meat products. In response, China called on the Canadian government to stop issuing health certificates to meat exported after June 25. This effectively cuts off Canadian suppliers.
What Does This Mean?
China is among Canada’s top five international markets when it comes to exporting meat. In fact, Canadian beef and pork exports to China had been experiencing a boom in 2019.
According to Statistics Canada, about 388% more beef and veal was exported to China as of April, compared with the same timeframe last year – as well as nearly 53% more pork.
That amounts to roughly $63.6 million in beef and veal, and about $310.2 million in pork exports. It is clear that this ban from China will result in huge financial losses for the sector.
A statement released by the Canadian Meat Council confirmed this, saying that “meat processors, along with the entire meat and livestock industry, are extremely concerned as this will have a significant business impact on our sector.”
When Will The Issue Be Resolved?
The Canadian government is trying to get answers as quickly as possible. This has been confirmed by the Minister for Trade, who added that it’s too early to determine if the industry will need support. The Canadian government’s primary goal is to find a quick resolution.
Bad Timing?
This import suspension comes at a time when tensions between China and Canada are escalating over the extradition of an executive of giant tech company Huawei.
China recently renewed its demand to release Meng Wanzhou, Huawei’s chief financial officer and the daughter of the technology company’s founder.
Meng was arrested in Canada under charges of fraud back in December 2018 at the request of US authorities. She resides under house arrest in Vancouver.
International trade always comes with uncertainties. Events like the ban on meat imports from Canada can throw you off guard.
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