U.S.-Canada Consultative Committee on Agriculture (CCA)

Washington, D.C.
June 15-16, 2015

I. Introductions and Opening Remarks

The United States and Canada emphasized the mutual benefit and the importance of continuing cooperation and collaboration to achieve common objectives and to advance these objectives globally.  Both countries underscored the importance of the CCA for trade policy discussions.  Both countries also reiterated support for the quarterly coordinator calls, which improve the effectiveness of the CCA and allow room for more strategically focused discussion at face-to-face meetings.  Such calls also continue to be an effective venue for providing updates, sharing stakeholder concerns, CCA planning, and for moving issues forward.

Review of December 2014 Action Items

The United States and Canada noted that many of the action items from the previous CCA had been completed while some remain in process.

Adoption of Minutes

The United States and Canada adopted the December 2014 CCA minutes.

CCA Co-Chairs Meeting Readout

The United States and Canada agreed that the Co-Chairs dinner meetings are valuable for relationship building and open discussions on key issues.  The co-chairs reported that they discussed U.S. country of origin labeling (COOL), the Codex Commission meeting to be held in July, a work plan for the World Trade Organization (WTO), the next phase of the Regulatory Cooperation Council (RCC), collaboration on issues of mutual interest in third-country markets, the importance of ongoing research collaboration, and the benefits of exploring further opportunities for working together.  It was agreed to move future CCA meetings to Washington, D.C. in the winter and to Ottawa in the summer.  Washington will host the next CCA.

II. Trade Issues

Dairy Actions

The United States asked how Canada will implement the Canada-European Union Comprehensive Economic and Trade Agreement dairy-related provisions and expressed concern about the potential impact on non-EU suppliers.  Canada responded that implementation will occur when the agreement is in force.  The United States asked if Canada was planning any changes to special milk classes.  Canada will keep the United States updated should there be any changes.

COOL

Canada reiterated its call for a resolution to this dispute through repeal of COOL legislation in the United States.

Pet Food

The United States and Canada expressed appreciation for the collaborative work between the Animal and Plant Health Inspection Service (APHIS) and the Canadian Food Inspection Agency (CFIA) regarding new export certificate requirements for U.S. pet food exports.  The United States raised the outstanding issue of the window of validity for multi-shipment export certificates.  Canada noted that CFIA would continue discussion of this issue with APHIS to find a solution.

U.S. Transmissible Spongiform Encephalopathies (TSE) Regulations

Canada requested an update on the timing of the TSE rule.  The United States noted that it continues to work on the proposed rule and agreed to update Canada as new information becomes available on the status of the proposed U.S. rule.

British Columbia Wine Policies

The United States raised British Columbia’s (B.C.’s) new wine licensing policies as a serious trade policy concern questioning consistency of the actions with Canada’s international trade obligations, since only B.C. wine is allowed on grocery shelves in B.C.  Canada responded that the new policies apply to a limited number of existing licenses that were grandfathered in under the North American Free Trade Agreement, not new licenses, and is confident the policies are consistent with international commitments. Canada agreed to relay the request to B.C. government officials that they provide a list of B.C. establishments that hold these existing licenses and documentation as to their status as a private wine store in existence on October 4, 1987.

USDA Agriculture Quarantine Inspection User Fees

Canada requested an update on the status and anticipated timing for proposed changes to Agriculture Quarantine and Inspection User Fees and reiterated comments it provided through the Federal Register in July 2014.  The United States informed Canada that the rule and comments received are under review and there will be a final rule when that process is complete.

Canada’s Grain Grading Requirements

The United States shared U.S. industry concerns with Canada’s grain grading system and requested an update on next steps for allowing U.S. imports into Canada to be graded to Canadian standards, including with respect to Bill C-48 and for Canada’s variety registration modernization.  Canada will keep the United States informed on Canadian legislation that could permit Canadian grain grades on U.S. grain and on additional steps to modernize its grain system.

Dairy Cooperatives Working Together

Canada requested information on the industry association’s program Cooperatives Working Together (CWT). The United States responded that it does not have the information since CWT is a private sector, voluntary program, not a government program, and that the organization receives no public funds.

Financial Risk Mitigation

The United States asked for an update on any actions Canada has taken to establish a financial risk mitigation system for ensuring that buyers and sellers of fresh and frozen fruits and vegetables abide by the terms of their contracts, including potential changes to the Bankruptcy and Insolvency Act (BIA).  Canada stated that the BIA review is ongoing. Canada requested and the U.S. agreed that the U.S. would host a call between technical experts to explain the bond requirements for Canadian producers under the Perishable Agricultural Commodities Act (PACA).

Spent Fowl

Canada raised industry’s concern that chicken meat is being imported duty-free under alleged fraudulent practices and welcomed the voluntary Agricultural Marketing Service program for fowl meat verification.  In response to Canada’s questions, the United States provided information on the program and explained how companies can participate in the program.

Trade Promotion Boards

The United States requested an update on proposals for new promotion and research agencies, including boards for raspberries and strawberries. The United States noted U.S. industry opposition to the proposed boards and reiterated its position that trade promotion boards should not discriminate against imported products.  Canada explained that requests are still under review and that there have been no new requests for additional boards.  Canada will provide the United States with any updates on Canadian promotion and research agencies when available.

Update on North American Sugar

Canada asked for an update on the Mexican sugar anti-dumping (AD) and countervailing duty (CVD) investigations and the status of the suspension agreements.  The United States informed Canada that the suspension agreements are currently in effect and decisions from the U.S. Department of Commerce and U.S. International Trade Commission are expected in the coming months.

III. International Engagement and Cooperation

Biotechnology and Trade

The United States and Canada provided an update on efforts to ensure a consistent approach to biotech products in third-country markets as well as in regional and global fora to reduce uncertainty in trade.  The co-chairs discussed opportunities for further cooperation and collaboration that could help advance mutual interests.  Both parties agreed to continue working together in these areas.  Canada will continue to provide information on its proposed Low Level Presence policy.

Advancing Mutual Interest in International Fora

The United States and Canada agreed to explore further collaboration in international fora, such as the Inter-American Institute for Cooperation on Agriculture and the Food and Agriculture Organization where there are common aims and a need to set priorities.

Third Country Market Access

The United States and Canada exchanged information on items of mutual interest in third-country markets and agreed to collaborate where possible.

IV. Collaboration

Collaboration on Science and Technology (S&T)/Pollinators

Canada and the United States recognized the long history of the two countries collaborating on
S&T and discussed potential further collaboration.  The United States and Canada will exchange points of contact for discussions to identify areas of collaboration on pollinators and bee health.

Matrix of Trade and Agriculture Fora

The United States and Canada reviewed the matrix of trade and agricultural fora in which the United States and Canada participate and agreed it is valuable reference that should be updated as needed.  They also agreed the matrix is a valuable tool for identifying opportunities for collaboration, whether as part of the CCA or in one or more of the fora identified in the matrix.

Provincial-State Advisory Group (PSAG)

The United States and Canada noted that the PSAG continues to work on important issues such as pollinators, grain transportation, and avian influenza. They agreed to continue regular briefings between CCA coordinators and the PSAG before and after key meetings.

Regulatory Cooperation Council (RCC)

The United States and Canada discussed recent developments and next steps under the RCC Joint Forward Plan, including opportunities for ongoing joint stakeholder engagement.

Avian Influenza

The United States and Canada agreed to share information on foreign market reactions in response to outbreaks of highly pathogenic avian influenza and to work together to encourage adherence to World Organization for Animal Health standards.

V. Next Steps

The United States and Canada agreed to a list of action items that will be reported out during the next CCA.