Already each other’s largest export markets for potatoes, Canada and the U.S. on Thursday concluded new agreements that Ottawa said will further smooth cross-border trade in potatoes for processing or further-repackaging.
The “Technical Arrangement Concerning Trade in Potatoes” came into effect Thursday and will be phased in over three years. It includes mutual recognition of Canadian and U.S. standards and certifications on quality grade standards for potato imports.
Secondly, it calls for changes to Canada’s process for issuing ministerial exemptions, which are usually enacted when Canadian processors run short, to waive requirements for grade, packaging and labelling and allow bulk container imports from other provinces or the U.S.
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These exemptions are normally granted case-by-case, but the new rules will allow “historical data” to be considered when assessing shortages to grant exemptions, and, in the agreement’s third year, will also allow Canadian importers’ contracts with U.S. exporters as a consideration.
The new agreement also calls for the U.S. to progressively eliminate funding for spot-checking of Canadian potatoes at northeastern U.S. border crossings.
Lastly, the U.S. agrees to set the rulemaking process in motion to allow for import of a greater variety of sizes and colours in imports of Canadian potatoes.
Agriculture Minister Gerry Ritz said the deal will “improve market access for producers and processors on both sides of the border” and allow for the industry to cut down some of its compliance costs. Canada in 2006 exported over $123 million worth of processing potatoes.
Canadian and U.S. officials, however, both retain the right to run quality assurance systems and have phytosanitary rules and health and safety inspections, the Canadian Food Inspection Agency said in a release.
