USDA Revokes Privileged PACA Protection Status for Canadian Growers
CANADA - In a landmark move by the USDA, Canadian growers will no longer receive the privileged status under PACA laws which they have historically enjoyed.
“We have determined that Canada does not have a dispute resolution system that is comparable to the U.S. system established pursuant to the Perishable Agricultural Commodities Act (PACA),” read an email by Deputy Administrator Charles W. Parrott to industry officials. “Therefore, Canadian complainants filing formal reparation complaints against U.S. respondents must be treated the same as other foreign complainants utilizing PACA's reparation services...[and] must provide a surety bond prior to acceptance of the formal complain for adjudication.”
As AndNowUKnow reported in a previous story, these bonding requirements can be costly, placing a serious burden on many growers. This is especially true for smaller farming operations with tight budget requirements.
When reports first emerged of the Canadian government's inaction, the Florida Fruit & Vegetable Association's President Mike Stuart expressed his disappointment and concern for growers in both countries.
“The inability of the Canadian government to resolve such a longstanding issue – one it committed to resolving – is a missed opportunity and extremely discouraging to U.S. exporters,” Mike said. “We need leadership from Canada to find a path forward to a solution. Producers in both countries depend on it.”
Matt McInerney, Executive Vice President of Western Growers, wholeheartedly seconded Mike's conclusion, revealing in a press release that, “Protections afforded under PACA may seem less than sexy and may appear insignificant – until you don’t get paid. Then they become one of the most valuable protections afforded to a family farmer.”
Going forward, Canadian growers will sadly have to trade without these protections to fall back on. There does remain hope however for a positive resolution to this situation, Matt makes clear.
“This is of course a sad day in US/Canadian trade relations,” he shared with me. “Western Growers is still very optimistic however for reaching a workable solution to this situation. The privileged status Canada's growers have long enjoyed can still be reinstated, provided that the Canadian Parliament chooses to enact the priority protections for all growers and shippers selling fresh produce to buyers within Canada.”
“We applaud the members of Canada's produce industry who have worked tirelessly on attempting to create these protections and self help tools,” Matt continued. “The U.S. industry will look forward to continuing collaboration in the future in order to achieve comparable outcomes for growers in both countries.”
How the Canadian government and growers will respond to this ruling has yet to be seen. Industry members can only hope that the Canadian and American governments can facilitate the establishment of a system for Canada which will best support the growers of both nations.
Stay tuned to AndNowUKnow for any future updates on this situation.
