Produce Industry Perspectives on Cross-Border Issues

Canada-United States Transportation Border Working Group

Fall PlenaryBev Appleby,

CPMAOctober 28,2010

Canadian Produce Marketing Association

• Canadian Produce Marketing Association (CPMA) is a not-for-profit organization representing companies that are active in the marketing of fresh fruits and vegetables in Canada

• CPMA represents over 720 international and Canadian members of the fresh produce industry supply chain

• These industries are responsible for 90% of the fresh fruit and vegetable sales in Canada at an annual estimated value of $8 billion Canadian dollars.

CPMA endorses the following common vision:

• Fair and ethical commercial trade practices

• Standardization and harmonization or acceptance of equivalency in trade regulation, and customs practices

• Enhancing effective border measures, without administratively complex and/or punitive regulatory measures

• Harmonized or equivalent, pragmatic food safety and security systems across the fresh vegetable and fruit supply chain

Volume of Imports and Exports

• Canada imports 2.9 billion dollars of fresh fruit from around the world - 2.1 billion dollars in fresh vegetables

• Exports total 1.2 billion dollars to all countries for fresh fruit and vegetables - Including 3.4 million to Mexico and 1.1 billion to the US

Canadian ImportsCanadian Dollars

Key Border Concerns

• Inspection - Costs – Damages – Delays

• Communication between Industry and OGD’s – Policy and Programs

• New Licensing Requirements

• Pesticide and Plant Health Issues

Shipment Inspection - Costs – Damages – Delays

• Timelines biggest issue for this industry

• Industry often targeted for contraband

•Refrigeration is often not provided at offload areas for inspections - Gaps in Cold Chain – Leads to disputes for lost loads and potential food safety issues

• Loads damaged in inspection and must be destroyed

• Industry hesitant to voice concerns regarding inspections

Communication Between Industry and OGD’s – Policy and Programs

• Industry lacks knowledge of new programs

• eManifest - Industry may lack technology to meet program needs – Challenges in pre-arrival data for mixed loads

• Carrier codes eliminated –Takes 10 days to register for program

• Edible Fruit and Nut HS code category holds top rank for error rates in CBSA paperwork

New Licensing Requirements

•Concern re industry preparedness - Policy delays have caused industry notification to be last minute

•Trade off is more secure trade and registration of importers

•CPMA supports changes in COS and requirements for importer of record to be licensed (either DRC or CFIA)

Pesticide and Plant Health Issues• Need for harmonization of maximum residue levels for

pesticides

• Plant health issues require specialized phytosanitary certification

• Soil on specific commodities difficult to identify without damaging product

• Consistency of messaging to industry regarding inspection process and certifications

Additional Issues Impacting Trade•Labelling –Nutritional guidelines harmonized –Uniform information on consumer and master labels

•Grades and Standards – Grade classifications- Defect tolerances

•Risk Mitigation Tools- Development of sales protection mechanism – PACA Like Trust

•Food Safety – Harmonization of good agricultural practices metrics – National approach to Food Safety requirements - traceability

•

CPMA Role • CPMA has created a working group with Industry and

Government to dialogue key concerns in the produce industry

• Created the North American Trade Committee

• CPMA with government guidance is developing a consistency model to be used for policy communication with industry and government

• CPMA is actively involved in a Best Practices document review for the carrier industry (transportation guidelines)

CPMA North American Trade Committee Mandate

• Develop and maintain an inventory of regulations impacting fresh produce commerce

• Examine regulations in the context of public policy or industry needs

• Identify inconsistent regulations across the three countries negatively affecting business

• Identify steps required for change, and engage in seeking support from key associations, and governments to effect change

Going Forward• CPMA will support industry with educational initiatives

• Continue role in harmonization of Government regulations within, into and from Canada

• Monitor legislative and regulatory action to minimize commercial and administrative impact on industry

• Provide member support through CPMA pillars and website

Thank you!

www.cpma.ca