Produce Group Calls on Canada to Implement Reparation Mechanism for US Exporters
A U.S. produce group on Oct. 2 railed against Canada's failure to implement a dispute settlement mechanism for perishable goods exports. Due to that failure, the Department of Agriculture decided, effective Oct. 1, to revoke some legal protections for Canadian…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
exporters awarded under the Perishable Agricultural Commodities Act. The protections are “a critical payment recovery tool for both U.S. and Canadian produce shippers who deal with highly perishable commodities,” said the Western Growers produce association, saying the move puts Canadian exporters on the same playing field as all other exporters to the U.S. The decision, effective Oct. 1, marks a “big blow” to Canadian industry, said the Western Growers statement. Canadian exporters must now provide a surety bond before USDA will allow those exporters to formally seek reparations, according to a USDA letter to its Canadian counterpart published by Western Growers (here). The U.S. agency called on Canada to implement an equivalent dispute settlement mechanism in order to have the legal protections restored. Western Growers said it is working with other producers and USDA to pressure Canada to put that equivalent mechanism into place.