Evidence of meeting #25 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was pork.
A recording is available from Parliament.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
But there's no direct benefit from the free trade agreement; is that what you're saying?
11:35 a.m.
President and Chief Executive Officer, Aura Minerals Inc.
No, there is. Our existing investment is protected.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
The investment is protected. That would be one.
Is the repatriation of some of the profits protected?
11:35 a.m.
Liberal
11:35 a.m.
President and Chief Executive Officer, Aura Minerals Inc.
No. The national treatment of services is protected. We're not going to buy engineering services in Honduras, because the engineering firms for mining aren't mining engineering firms—
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay. Thank you.
Mr. Taddeo, just quickly, you spoke about one of the free trade agreements signed and about the 15% duty. I think it was Korea, you were saying, 15%?
11:35 a.m.
Vice-President International, International, Cavendish Farms
No, the 15% duty is in Central America.
11:35 a.m.
Vice-President International, International, Cavendish Farms
Korea is actually 18%, so we're at a major disadvantage.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Is there a percentage where there's a break-even point, where you're even paying 2% or 3%? Does that matter? I know the answer is you basically want zero duty.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Are there are places, like in Central America, where the duty factor is not a major item?
11:35 a.m.
Vice-President International, International, Cavendish Farms
In Central America, actually the duty is the major factor. But you are right, you don't necessarily need to have 100% off. You're perfectly correct; what a lot of the countries do is diminish duties over a four- or five-year period.
Thank goodness Canada has negotiated on our products—for example, Korea, when it gets implemented, will go to zero duty immediately.
11:35 a.m.
Vice-President International, International, Cavendish Farms
Yes, it's immediate.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Then you can turn around and up your production?
11:35 a.m.
Vice-President International, International, Cavendish Farms
Oh, yes, without a doubt. It will have a direct impact on our employment, on our farmers, on our truckers—the whole chain.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay. Great.
Mr. Urias, conversely, in your situation you're saying that with the free trade agreement with Honduras your duties are going to go down. Right now the United States is predominantly there, but you're still able to penetrate the market.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
What is the duty difference going to make if you're still able to penetrate...? Obviously, your sales are going to go up, but is that really one of the barriers for your entering Honduras? Right now, as I understand, there's a lack of supply of pork in the worldwide market. Are your sales really going to improve or increase in Honduras?
11:35 a.m.
Director, Latin America, Canada Pork International
First of all, as I mentioned, in 2006 we almost completely lost the market. Since then we've been trying hard to gain something back; however, our market share is pretty minimal. If we manage to get preferential access, we'll be able to take some market share from the U.S. We estimate it's going to happen between 10% and 12%.
11:35 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Is that because of the Honduras free trade agreement, or is it because of market supply and demand?