Edition 62

Food and Beverage Canada’s Update on Canada-US Relations and Industry Impacts

Working Group Updates

Food and Beverage Canada (FBC-ABC) held a meeting last week with its Working Group on Canada-U.S. Relations to share insights and finalize two key documents – FBC-ABC’s Position and Key Messages on Canada-U.S. Trade and Key Messages and Recommendations for Breaking Down Internal Trade Barriers to Strengthen Canada’s Food and Beverage Manufacturing Industry. French versions will be available soon. We appreciate the contributions of our Working Group members in developing these materials.

FBC-ABC fully supports all levels of government in defending Canada’s interests during this period of uncertainty. To maintain the competitiveness of Canada’s food and beverage manufacturing industry, we urge the federal government to respond to any U.S. tariffs by imposing reciprocal tariffs on U.S. finished goods – final, ready-for-sale food and beverage products – coming into Canada. Additionally, we encourage both federal and provincial governments to introduce measures that will strengthen the Canadian food and beverage manufacturing industry.

Latest Developments on Canada-U.S. Relations and Tariff Threats

·    Tariffs Expected March 4, 2025: On February 3, President Trump signed an Executive Order postponing tariffs on Canada and Mexico to Tuesday, March 4. If implemented, all imports from Canada will face a 25% tariff, except for Canadian energy, which will be subject to a 10% tariff. On Sunday, U.S. Commerce Secretary Howard Lutnick confirmed that tariffs on Canada and Mexico would take effect on the announced date, though final tariff levels will be determined by the President. FBC-ABC continues to monitor the situation closely and will update members accordingly. In the event tariffs proceed, FBC-ABC will host a members call on Wednesday, March 5th at 2:30pm EST. You can join the meeting by clicking here.

·    Prime Minister Trudeau’s Response: Prime Minister Justin Trudeau has pledged an immediate response to any U.S. tariffs, although it is unclear if the original list of tariffs on $30B of U.S. imports will differ from what was originally released.

·    Progress on Internal Trade:

·    The Committee on Internal Trade met again last week, with all governments committing to reviewing the remaining exceptions to the Canadian Free Trade Agreement (CFTA), and prioritizing broader mutual recognition. To support Canadian producers, consumers, and ‘Buy Canadian’ efforts, the federal, provincial and territorial governments will explore Internal Trade missions to promote the Canadian products and facilitate new business opportunities.

·    Nova Scotia Premier Houston recently tabled Bill No. 36, An Act Respecting Free Trade and Mobility within Canada, which would ensure that goods manufactured and produced in another province or territory that passes similar legislation would be treated the same as products produced in Nova Scotia.

FBC-ABC Member Updates

FBC-ABC Submits Response on Environmental Claims Guidelines

FBC-ABC has submitted feedback to the Competition Bureau regarding its proposed guidelines on environmental claims, following recent amendments to the Competition Act. A reminder that these provisions require that product environmental claims be supported by adequate and proper testing, and that claims about the environmental benefits of a business or business activity by substantiated using an international recognized methodology.

We remain committed to ensuring that industry concerns are heard and will continue to monitor and advocate on this issue.

Thank You for Attending & Event Photos Now Available – FBC-ABC’s Annual Policy Breakfast

A heartfelt thank-you to everyone who joined us for FBC-ABC’s Annual Policy Breakfast. This year’s event, Boosting Competitiveness and Productivity in Food and Beverage Manufacturing, provided valuable insights into strategies for navigating evolving trade relations with the U.S.

We also extend our sincere gratitude to our event sponsors – FCC, MNP and Maple Lodge Farms – for their generous support. Event photos are now available – view and download them here using the 4-digit PIN: 2055.

Next Steps in the Consultation on the Proposed Agriculture and Fish Processing Stream

The Temporary Foreign Worker Program has released the next two discussion papers on the proposed Agriculture and Fish Processing Stream – specifically on Stream-Specific Work Permits and Transportation Requirements. English and French copies of the discussion papers are available here. Comments are due Friday, March 21, and FBC-ABC will be preparing submissions to share with members for feedback. If you would like to discuss your input further, please reach out to Kristina Farrell.

Federal Agriculture and Agri-Food Announces Retirement

The Hon. Lawrence MacAulay, Minister of Agriculture and Agri-Food and Member of Parliament for Cardigan, Prince Edward Island, has announced his retirement and will not seek re-election. FBC-ABC thanks Minister MacAulay for his longstanding advocacy for Canada’s agri-food sector.

Minister of Transport and Internal Trade announces creation of the creation of the Supply Chain Advisory Council

The Hon. Anita Anand, Minister of Transport and Internal Trade, has announced the establishment of the Supply Chain Advisory Council, a non-partisan Council that will provide strategic advice on strengthening supply chains to boost productivity, increase competitiveness and support trade diversification.

For more details or to contribute insights, please reach out to Kristina Farrell, FBC-ABC’s CEO.