Canada should look at strengthening European trade ties in face of U.S. trade war, says trade expert
Danny Dumaresque says he’s already seeing interest in his seafood
With a Canada-U.S. trade war lingering on, one trade expert says the country should look eastward to Europe to further strengthen economic ties — and one Newfoundland and Labrador seafood producer says he's already seeing it happen.
Mark Camilleri, a lawyer and CEO of the Canada EU Trade and Investment Association, said the trade relationship between Canada and the European Union is good, but could be better.
"Since we've signed the Canada-EU Comprehensive Economic and Trade Agreement in 2016, the trade has certainly increased. Trading goods has gone up basically 65 per cent, trading services 73 per cent. So it's going from strength to strength," Camilleri said.
It comes at a time when both counties are facing escalation tariffs on their goods entering the U.S., with 25 per cent tariffs expected to come into effect on April 2. Chinese tariffs came into effect this week.
When it comes to Canada's raw materials, energy and other exports, he said there is room for growth in Europe. However, Camilleri said finding a replacement for the U.S. market isn't going to be an easy process, adding there's a lot of infrastructure already in place for selling Canadian goods to the U.S.
"I do think there's a fair amount of work that needs to be done in terms of developing the infrastructure to help facilitate that trade and to help it grow."
Previously, Canada trading with the EU was treated as something that was "nice to have" but it has now become necessary and this is the time to look at ways to improve the relationship, said Camilleri.
"I think any new government, certainly would be looking at trade diversification. And I think when you think about trade diversification, it really makes sense to look at the European Union," he said.
Already at work
Danny Dumaresque, president of Labrador Gem Seafoods, said seafood producers need to pivot to the European market, given the prospect of double tariffs.
"There's no question, we have to move yesterday to try and get ahead of the existing tariff situation," he told CBC News.
"I just spent two weeks in Europe, in Spain, Italy, France and the U.K. And I can tell you that is the principal target market for me and, I would suggest, for all seafood companies in this province."
There is an appetite in Europe for seafood, Dumaresque added, adding they appreciate the high quality of seafood that is caught off Newfoundland and Labrador.
"I am confident that we will be able to make inroads in Europe," he said, which is eased by the existing EU-Canada Comprehensive Economic and Trade Agreement.
"This agreement cannot be unilaterally changed by any one person like we have seen in the United States with President Trump and in the Chinese situation with President Xi," said Dumaresque.
The products he sells, like scallops, are in demand worldwide, he said. He also secured a deal with a French company at the Boston seafood show, a relationship he began on his trip to Paris.
Dumaresque said Europe is sympathetic to the situation Canada finds itself in with the U.S. and China.
"It's certainly a challenge for our industry. But I do believe that it was a wake-up call that we required. And there's always going to be success stories. And I'm certainly pleased, at this stage, to have had some luck in the past short while."
But Dumaresque also said the U.S. still has an appetite for Canadian seafood.
"I just came from Boston and there's no slacking in the demand for our delicious snow crab products. So that will not change."
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ABOUT THE AUTHOR
With files from Newfoundland Morning