In January, the Government of Canada announced its Team Canada missions to the U.S. to promote Canadian exports before renegotiating the Canada-U.S.-Mexico Agreement (CUSMA, formerly NAFTA).
Cam Dahl, general manager of Manitoba Pork Council, said while these missions to State legislatures and the U.S. government are promising, there seems to be a notable absence. The missions don’t feature agriculture and food products prominently.
Despite agriculture and food being one of Canada’s largest export sectors, generating around $60 billion annually in exports to the U.S., it appears to be overlooked in the context of national security trade considerations.
“The federal government speaks of securing vital trade for national security, yet the agricultural sector remains largely absent from this narrative,” said Dahl.
Canada is an exporting nation, and Manitoba plays a significant role in this, particularly in agriculture. Annually, 90 percent of the eight million pigs raised in Manitoba are shipped globally as pork products or live animals to the U.S.
“However, a growing trend of protectionism in international trade poses a serious risk to these exports. Manitoba’s farmers and processors rely on open markets and cannot afford restrictions on market access,” said the MPC general manager. “It’s critical for governments to actively defend these interests and ensure continued access to global markets for the province’s agricultural products.”
Farmers in the U.S. marketplace face significant protectionist challenges threatening their exports and market stability. One prominent example is California’s Proposition 12, a state-level regulation that imposes strict animal welfare standards on pork production. Out-of-state producers must comply with these standards to sell their products in California.
“This extra-territorial legislation not only increases costs for producers but also disrupts the integrated North American agricultural market by imposing state-level rules across borders,” Dahl said.
Additionally, the U.S. Department of Agriculture’s new country-of-origin labelling (COOL) law discriminates against Canadian pigs and cattle exported to the U.S. This regulation forces Canadian livestock to be labelled differently, making them less competitive in the U.S. market. Proposition 12 and the new COOL law result in higher consumer costs and reduced returns for Canadian farmers.
Dahl said that to counter these trade barriers, Canada needs to adopt a more assertive strategy, actively opposing and resisting these protectionist measures to protect its agricultural interests.
New barriers to cross-border agriculture and food trade are emerging as the renegotiation of the Canada–U.S.–Mexico Agreement (CUSMA) approaches. Regardless of the outcome of the U.S. elections, Canadian agriculture will likely face challenges.
“Canada must develop a comprehensive agriculture and food strategy to safeguard its interests in preparation for these negotiations,” he said.
A vital aspect of this strategy should involve including agriculture and food export interests in outreach efforts to state and national legislators in the U.S. Agriculture must be part of the broader Team Canada effort to protect Canadian sectors.
“Without a clear national strategy developed in collaboration with farmers and processors, there is a risk that agricultural and food export interests could be overlooked—or even sacrificed—to protect other sectors when renegotiating CUSMA. This would undermine the stability of a crucial export sector.”
It concerns farmers that negotiators don’t prioritize their trade interests, especially when the Canadian government takes broader trade actions. A prime example is the 100 percent tariff on China-made electric vehicles and a 25 percent duty on Chinese steel and aluminum imposed by Canada. China responded by initiating a dumping investigation on Canadian canola exports.
“While it’s understandable that the government must protect Canadian jobs from unfair trading practices, the burden of retaliatory measures should not fall solely on farmers.”
The Government of Manitoba is crucial in ensuring farmers maintain access to vital markets. Premier Kinew’s establishment of the Business and Jobs Council, which conducted a trade mission to the U.S. this spring, is a positive step in this direction. However, a unified agriculture trade strategy across the prairie provinces would be beneficial to strengthen Manitoba’s voice in both Washington and Ottawa. Such collaboration would amplify regional interests and create a stronger front on issues affecting farmers.
Beyond North American markets, there is significant potential for joint initiatives in key Asia Pacific markets, where the industry expects growth in agriculture trade. If Manitoba were to work closely with other prairie provinces to establish a presence in these markets, it would mark a breakthrough in collaborative government efforts, opening new opportunities for Western Canada’s agricultural sector. Farmers dependent on international markets face significant market access threats, which could negatively impact incomes, especially in Western Canada, if no action taken. A comprehensive agriculture and food trade strategy is urgently needed to protect existing trade access and create new opportunities to counter protectionist pressures. This strategy should be developed with farmers, processors, and provincial and federal governments, ensuring a unified approach across Canada to safeguard and expand agricultural trade. •
— By Harry Siemens
