Canada should lead like-minded countries to protect agricultural markets from non-tariff barriers based in politics rather than science, the Canadian Grains Council said in a new report.
“As Canada looks to diversify trade and strengthen economic resilience, agriculture must be part of the solution,” said Erin Gowriluk, Canada Grains Council president in a Jan. 26 news release.
“Science-based, risk-based regulation is essential to maintaining market access and ensuring Canadian farmers can continue to innovate.”
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WHY IT MATTERS: As Canada looks to diversify agricultural trade away from the United States, non-tariff barriers may hamper progress the Canada Grains Council says.
The council also recommended the Government of Canada use bilateral trade mechanisms to oppose the European Union’s strict pesticide regulations.
In the report, the council said Canada’s trading situation is shifting drastically since the United States is no longer a reliable trading partner. However, regulatory differences could make it harder for Canada to build its trading relationships.
This include trades rules from other countries that are not based on objective science, and do not follow internationally accepted risk assessments, the council said.
Non-tariff trade barriers are some of the most restrictive barriers for agricultural innovation, and they are increasing according to the report. Standards related to the regulation of agricultural innovations, e.g. crop protection products, put Canadian trade at risk.
For example, under the Canadian-European Union Comprehensive Trade Agreement (CETA), most tariffs were removed from Canadian agricultural imports. However, many countries in the EU have non-tariff trade barriers, which made trading more difficult for Canada.
The EU has taken a precautionary approach to agriculture innovations like crop protection products. Over the past 10 years, the EU has removed about half of the crop protection tools available to its own farmers. Because of this, the EU is under pressure to block farming imports using farming tools that are no longer allowed in Europe, even when those products have been proven safe.
Depending on how the EU implements so-called “reciprocity” rules, Canadian grain exports could be restricted or halted. Canadian trade could also be negatively affected as many countries around the world are influenced by EU trade policies.
The council said Canada should lead a coalition of like-minded countries to aim for systemic improvements in setting maximum residue levels. It should also work to prevent regulatory overreach for agricultural innovation in other countries.
Since Canada is engaged with trade at multiple levels, the country will be able to make the most of bilateral mechanisms within CETA to address the EU’s inclination to turn away from agricultural innovations.
Canada and its other trading partners can take on a strong objective to prevent non-tariff trade barriers, using diplomacy and scientific information, the council added.
