Canada's beef shipments set to expand in UAE

Dubai: Strained Canada-UAE ties may be on the mend amid word that the UAE is willing to accept larger consignments of Canadian beef.

Both countries have signed a new deal boosting beef imports after a lengthy row regarding Canada's refusal in 2010 to increase landing rights for Emirates airline and the subsequent imposition by the UAE of visit visa charges on January 2 of last year of up to C$1,000 (Dh3,660) for Canadian visitors.

The Canadian government confirmed new access to the UAE meat market could yield up to $40 million in revenues for Canadian beef producers.

Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, said both governments have agreed upon an export certificate to ship highly sought-after Canadian beef to the UAE.

"This is great news for Canadian cattle exporters, and yet another example of how our government's commitment to opening new markets for Canadian businesses and workers is getting results," said Fast in a statement.

"The UAE's announcement advances our bilateral commercial relations, and will help our overall efforts to build on our economic and trade ties with the Gulf Cooperation Council region as a whole."

According to the Food and Agriculture Organisation, the UAE received $204.2 million in beef imports from around the world in 2009 including Canadian beef and veal.

There was an import ban on Canadian beef by some Middle East countries following the Bovine Spongiform Encephalopathy (BSE) mad cow disease scare in 2003 in Canada, but the trade pipeline was later re-opened when Canadian beef was awarded a clean bill of health.

Boosting trade

Rick McRonald, executive director of the Canadian Livestock Genetics Association, said re-entering the UAE is welcome news for cattlemen.

"We are pleased to have regained access to the UAE market. This is good news for exporters who have been waiting to pursue this opportunity," McRonald said.

The Canadian government said it is working hard to gain entry "to the entire GCC, which represents the fifth largest export destination for Canadian agri-food products. Canadian agri-food exports to the GCC surpassed $835 million in 2010."

Canada's efforts are making headway, according to bulletins by the Canadian Cattlemen's Association, with agreements in February by Saudi Arabia to import up to $6 million of Canadian beef annually as well as Jordan which will welcome up to $1 million in beef imports.

Signing the new Middle East agreements is a good first step to regional access to other countries such as the UAE, the association said.

"Access to Saudi Arabia establishes a noteworthy inroad to the Middle Eastern market — coupled with the recent Jordanian agreement.

"Developing Middle Eastern markets require a long-term investment. Despite the previous modest size of these markets, projections indicate that their existing demand for high-quality Canadian beef is growing."

Agriculture and Agri-Food Canada officials could not be reached in Ottawa at press time yesterday.

Efforts, meanwhile, to shore up Canada-UAE business ties are ongoing between the Canadian Business Council (CBC) and Dubai Exports, an agency of the Dubai Department of Economic Development (DED).

Some of the 350 CBC members in the UAE met with Dubai Export officials earlier this year to discuss ways to increase trade.

According to the CBC, Dubai Customs registered Dh96 million in direct exports to Canada in 2010 not including direct re-exports of Dh87 million.

According to the Federal Customs Authority, in the first six months of 2011, 14.7 billion tonnes of basic commodities — including food shipments — worth an estimated Dh186.6 billion were imported by the UAE.

Canada's Foreign Minister John Baird was in the UAE recently, but there have been no new developments regarding whether there will be any changes in UAE visit via rules imposed on Canadians.

Formerly free for Canadians, UAE visas must now be paid and applied for in writing to the UAE Embassy in Ottawa two weeks in advance of entering the UAE.

As many as 27,000 Canadians are reported to be living in the UAE.