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Produce Industry Perspectives on Cross-Border Issues

Produce Industry Perspectives on Cross-Border Issues. Canada-United States Transportation Border Working Group Fall Plenary Bev Appleby, CPMA October 28,2010. Canadian Produce Marketing Association.

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Produce Industry Perspectives on Cross-Border Issues

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  1. Produce Industry Perspectives on Cross-Border Issues Canada-United States Transportation Border Working Group Fall Plenary Bev Appleby, CPMA October 28,2010

  2. 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.

  3. 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

  4. 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

  5. Canadian ImportsCanadian Dollars

  6. Key Border Concerns • Inspection - Costs – Damages – Delays • Communication between Industry and OGD’s – Policy and Programs • New Licensing Requirements • Pesticide and Plant Health Issues

  7. 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

  8. 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

  9. 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)

  10. 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

  11. 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

  12. 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)

  13. 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

  14. 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

  15. Thank you! www.cpma.ca

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