U.S. growers express ‘disappointment’ over Canadian situation
October 03, 2014 | 05:49 PM
Western Growers, Florida Fruit & Vegetable Association (FFVA), the Produce Marketing Association (PMA), United Fresh Produce Association, Florida Tomato Exchange, the Northwest Horticultural Council and the Texas International Produce Association (TIPA) expressed disappointment Thursday that the Canadian government had failed to establish a system that would protect U.S. suppliers of fresh produce to Canada if a buyer fails to pay for a shipment or declares bankruptcy.
Under the Agriculture Department’s Perishable Agricultural Commodities Act (PACA) program, Canadian companies shipping produce to the United States have had the same financial protections as U.S. suppliers.
“However, the Canadian government has failed to live up to a 2011 pledge under the Canada-U.S. Regulatory Cooperation Council (RCC) to implement a similar program to protect U.S. companies that export to Canada. As a result, the USDA recently warned that Canada’s special status is likely to be revoked,” the produce groups said in a news release.
On Thursday, the Agriculture Department revoked the privilege.
“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,” said Mike Stuart, FFVA president.
“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, emphasized the importance of a payment priority program for U.S. shippers.
“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.”
▪ USDA Agricultural Marketing Service — PACA letter on Canada
Under the Agriculture Department’s Perishable Agricultural Commodities Act (PACA) program, Canadian companies shipping produce to the United States have had the same financial protections as U.S. suppliers.
“However, the Canadian government has failed to live up to a 2011 pledge under the Canada-U.S. Regulatory Cooperation Council (RCC) to implement a similar program to protect U.S. companies that export to Canada. As a result, the USDA recently warned that Canada’s special status is likely to be revoked,” the produce groups said in a news release.
On Thursday, the Agriculture Department revoked the privilege.
“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,” said Mike Stuart, FFVA president.
“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, emphasized the importance of a payment priority program for U.S. shippers.
“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.”
▪ USDA Agricultural Marketing Service — PACA letter on Canada