Ongoing trade uncertainty is driving up costs and creating operational instability across the sector. Sudden trade shocks can force businesses to reassess whether production lines can continue operating or need to be scaled back.
Across the sector, from small businesses to large multinationals, companies are calling for greater predictability and stability. Companies are weighing where it makes sense to invest and innovate.
Claire Citeau, senior vice president, trade and global relations, Canadian Meat Council, said Asia features prominently in those discussions.
“For many, the answers are in Asia where there’s an intersection of demographics and higher incomes and consumer demand for protein,” said Citeau, who was Speaking about disruption and trade uncertainty at the Canada-in-Asia Conference held on February 10 in Singapore.
Vietnam, Malaysia, the Philippines and Thailand were highlighted as markets on the radar for Canadian exporters looking to diversify beyond traditional partners.
However, non-tariff barriers – such as certifications, licences, permits and regulatory requirements – represent the most significant challenge to accessing foreign markets,
“Non-tariff barriers are the number one obstacle to getting products to markets. Tariffs will slow trade. Non-tariff barriers will stop it.”
Citeau elaborated: “If you look at the costs of non-tariff barriers… Research showed that they have the equivalent impact of a 35 to 40 per cent tax… We’ve seen that the number of regulatory requirements impact ag and food more so than any other sector… I think we need to spend much more attention on this sector from a regulatory standpoint, for harmonisation to get that real access,” said Citeau.
While production methods and sustainability standards differ between countries, Citeau said there needed to be mutual understanding and trust that food is produced safely.
“With the right networks in place and the right mindset, I think we can facilitate a lot more trade and partnerships.”
Canada’s opportunities in Asia
Canada sees an opportunity to play a more significant role in Asia’s food security.
Its agri-food sector has two core strengths that can meet the needs and requirements of the region.
The first is its abundance of natural and clean resources, including access to clean water. The second is Canada’s science-based and globally recognised regulatory system.
This credibility is often Canada’s “ticket to entry” into international markets.
However, Citeau has observed that these strengths are not as recognised in Asia as compared to competitors such as Australia or the US.
She highlighted her recent trip to Thailand where she observed the large presence of Australian and US products, even though US exports face tariffs of up to 50 per cent.
“We could be competing if we had the same competitive access,” said Citeau, underscoring the work still needed to build awareness and relationships in the region.
She added that this would require closer government-to-industry collaboration, particularly through on-the-ground engagement in key markets.
“We’ve opened an office in China to build relationships on behalf of the industry. This is an investment driven by industry, but there are other models, like in the Indo-Pacific region that acts as a hub that points us to other different hubs.”
Citeau emphasised a strong focus on removing regulatory red tape to ensure Canadian producers operate on as level a playing field as possible with their largest competitor, the US.
“What we do abroad is trade diversification, but it does not mean trade diversion. We are attached to the hip with the US market. We are going to continue to find a way to trade with the US. That being said, we need to find more markets outside and have our eyes set on the Indo Pacific region.”
Canada has already had success with Japan, where it is current the top supplier of pork.
“We’re now the number one supplier for Japan, and that is a result of decades of investment in facilitating trade delegations,” said Citeau.
In addition, Canada is also eyeing opportunities in Indonesia and China.
