Canadian beef cattle groups demand protection in any Mercosur deal

WINNIPEG, Manitoba, May 6 (Reuters) - Canada's beef cattle industry groups demanded on Wednesday that guaranteed access to the domestic beef market must be left out of any deal Canada makes to join the Mercosur trade bloc.

• The Canadian Cattle Association and the National Cattle Feeders Association issued the statement as Canada moves towards a provisional deal with the South American trade bloc.

• Brazil and Argentina are major beef exporters. Brazilian beef exporters and producers are worried that their access to the vital Chinese market could be limited by quotas recently imposed.

• "Canada is already one of the most exposed beef markets in the world," said CCA President Tyler Fulton, adding that 30% of domestic beef consumption is imported.

• The organizations also said they have concerns about Mercosur standards on animal health and other food issues.

• Like American ranchers, Canadians have struggled with years of drought in cattle-producing regions, causing the herd to shrink and beef prices to soar, hurting consumers.

• Canada imports much U.S. beef and exports many cattle and large amounts of beef to the U.S., with few border issues affecting trade under the U.S.-Mexico-Canada trade deal.

• The cattle groups' statement highlighted the integrated nature of the North American cattle herd under USMCA and urged against creating "unnecessary friction" that could threaten access to the U.S. market.

• Canada has been pursuing trade deals around the world to reduce reliance on the U.S. and China, both of which have had trade conflicts with Canada in recent years.