FVGC Emphasizes Tariff Issues at Canada-U.S. Economic Summit

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Strengthening Economic Ties: The Role of the Fruit and Vegetable Growers of Canada at the Canada-U.S. Economic Summit

The Fruit and Vegetable Growers of Canada (FVGC) played a pivotal role at the recent Canada-U.S. Economic Summit, where they advocated for the fortification of economic ties between Canada and the United States while addressing critical trade and competitiveness issues.

On February 7, Massimo Bergamini, the executive director of FVGC, joined over 150 Canadian leaders from various sectors including trade, business, and public policy, as well as the Prime Minister and several members of his cabinet, at the Summit held in Toronto. This gathering underscored the importance of collaboration and dialogue among key stakeholders in shaping the future of Canadian agriculture and trade relations.

Bergamini emphasized the integral relationship between Canada’s fruit and vegetable sector and the U.S. market, stating, “Canada’s fruit and vegetable sector is deeply integrated with the U.S. market, ensuring year-round access to fresh, high-quality produce on both sides of the border.” He pointed out that a stable and predictable trade environment is essential for food security, economic resilience, and the sustainability of Canadian farms.

The backdrop of the Summit included the recent threats by U.S. President Trump to impose a 25 percent import duty on Canadian and Mexican products. Although this plan was subsequently delayed for 30 days following discussions with the leaders of Canada and Mexico, the potential implications of such tariffs on Canadian agricultural exports were a key concern for Bergamini. He highlighted that these tariffs could disrupt supply chains, inflate costs, and jeopardize food affordability for consumers.

In 2023, Canada exported an impressive $40 billion worth of food and agricultural products to the U.S., with fruit and vegetable growers contributing approximately $4.4 billion to that total. The greenhouse vegetable sector, which exports around 75 percent of its production to the U.S., would be particularly vulnerable to any trade disruptions that may arise from proposed tariffs.

Bergamini stressed the necessity for enhanced business risk management tools to mitigate these risks, specifically tailored to the realities of perishable crop production. He stated, “Our growers need better tools to withstand these risks, including enhanced business risk management programs.” Current support mechanisms, such as AgriStability and AgriInsurance, have been criticized for their inadequacy in covering revenue losses and failing to account for the rapid responses needed when markets fluctuate unexpectedly. He cautioned, “Without stronger safeguards, the entire food system—farmers, retailers, and Canadian consumers—will face increased uncertainty and higher costs.”

Furthermore, Bergamini underscored the importance of market diversification, arguing that a heavy reliance on the U.S. market makes Canadian growers susceptible to sudden policy changes. He articulated that expanding access to international markets requires time and substantial investment. “We need a coordinated effort to develop new trade relationships,” he asserted. He noted that the current system for securing international market access is often sluggish and cumbersome, which can stifle diversification opportunities for Canadian growers. Strengthening Canada’s competitive position in global markets is crucial for safeguarding the nation’s food security by ensuring stable production and supply.

The Canada-U.S. Economic Summit served as an invaluable platform for leaders from across Canada to collaborate and seek solutions to the evolving challenges in trade. The FVGC remains steadfast in its commitment to working alongside the Government of Canada to formulate policies that ensure trade stability, enhance the competitiveness of Canadian fresh produce in North America, and protect food security for all Canadians.

In conclusion, the FVGC’s presence at the Canada-U.S. Economic Summit highlighted the critical need for a unified approach to addressing the complexities of agricultural trade between Canada and the U.S. As the landscape of international trade continues to evolve, the voices of organizations like the FVGC will be crucial in shaping policies that not only protect the interests of Canadian growers but also ensure a stable and secure food supply chain for Canadians. The ongoing dialogue between government and industry leaders will be essential in navigating the challenges and opportunities that lie ahead in the realm of agricultural trade.