Category Archives: Blog

On April 8, 2021, the Republic of the Philippines enacted Executive Order 128 (attached), temporarily lowering import duties for fresh, chilled and frozen pork for a period of 12 months.   The Order aims to remedy the pork supply shortfall and increase in pork prices resulting from the effects of African swine fever (ASF) on the Philippines’ domestic hog industry. These measures are in immediate effect and currently set to expire on April 7, 2022

The Order reduces duties on pork imported into the Philippines from 30% to 5% for imports that fall within the minimum access volume (MAV), and from 40% to 15% for imports that do not fall within the MAV. These tariff rates will increase by 10% for in-quota imports and 20% for out-of-quota imports after four months. These tariff rates will return to 30% for in-quota imports and 40% for out-of-quota imports after 12 months. The current MAV allocation for pork imports from all exporting countries is 54,000MT. The Philippines is further deliberating on a possible increase in the MAV for pork imports to 350,000 MT. The Market Access Secretariat will provide a separate status update to advise of any outcomes from this deliberation.

The Order specifies the following pork products, by HS Code, as being subject to reduced duties: 020311.00; 020312.00; 020319.00; 020321.00; 020322.00 and 02032900. Canada has market access for these pork products, which are normally subjected to tariff rates ranging from 30% to 40%. The following table summarizes the decrease in tariffs for over 12 months:

Period of Effectivity

Volumes authorized under the quota are allocated to licensed Philippine meat importers and will expire when filled or upon the expiry of the Order. Exporters of pork products are encouraged to contact their Philippine importers to determine the appropriate procedures to follow.

Canada’s Trade Commissioner Service (TCS) in Manila can provide advice and useful market intelligence to Canadian companies seeking to export to the Philippines and facilitate introductions to licensed Philippine meat importers. Please contact Ms. Angel Cachuela (Angel.Cachuela@international.gc.ca), Trade Commissioner for Agriculture and Agri-food commodities, and Ms. Louise Pasadilla (Louise.Pasadilla@international.gc.ca), Trade Commissioner for Agriculture and Retail food at the Embassy of Canada in the Philippines for more information.

Exporters are advised to contact their local office of the Canadian Food Inspection Agency (CFIA) for more information on export conditions and certification requirements.  Please refer to this link to find the nearest office: CFIA offices.

Below is a copy of Decree 128 for your review. Should you have any questions, please do not hesitate to contact the Market Access Secretariat at aafc.mas-sam.aac@canada.ca.

Executive-Order-No.-128-Rep

This is to inform you that Egyptian authorities have notified the World Trade Organization (WTO) regarding the extension of the Ministerial decree that extends the shelf life for domestic and imported frozen fish to nine months. The measure is now valid until June 30, 2021. The measure was first notified to the WTO by Egypt in June 2020, as part of its updated Egyptian Standards “Shelf life for food products Part 2”, and was valid until December 31, 2020.

For your reference, please find below Egypt’s latest WTO notifications related to this measure (G/SPS/N/EGY/92/Add.2, G/TBT/N/EGY/212/Add.2).

Please write to the Market Access Secretariat at aafc.mas-sam.aac@canada.ca if you have any questions related to this measure.

WTO-SPS-negy92a2-AGR315
WTO-TBT-egy212a2-AGR314

The Federal Market Access Team (FMAT) would like to bring you up to date on recent developments relating to beef and pork market access to Guatemala.

Introduction:

On December 22, 2020, CFIA wrote to Guatemala’s Ministry of Agriculture, Livestock and Food (MAGA) to re-establish market access for beef and pork meat and meat products from Canada to Guatemala, which has been suspended since 2013.  The CFIA letter raised two outstanding issues:  1) the process for re-approving Canadian meat establishments for export to Guatemala; 2) to reconfirm that Guatemala now approves all Canadian beef (as a major improvement over previous limited access of UTM boneless only).

1)      Pork and Beef Establishment Approvals

Background

  • In December 2012, Guatemala informed Canada of the requirement to inspect establishments and that as of December 31, 2013, any establishment not on the list of approved establishments would not be allowed to export.
  • In 2019, MAGA reviewed Canada’s OIE Performance of Veterinary Services (PVS) report in-lieu of the Guatemalan technical questionnaire initially provided to address the request to approve the Canadian system.
  • In December 2019, MAGA advised our Embassy that MAGA still required an inspection visit which would be on a systems approval basis whereby they would accept imports from any establishments certified by CFIA.
  • In late 2020, MAGA indicated their willingness to approve all Canadian federally licensed meat establishments through a paper review or virtual audit.
  • On December 22, 2020, CFIA wrote to MAGA to initiate the process, offering to provide the necessary documentation to demonstrate that Canadian federally registered establishments are meeting the requirements for export of meat and meat products to Guatemala, to allow Guatemala to perform a paper review for re-opening of the market.

Recent Developments

  • On February 5, 2021, MAGA wrote to the Canadian Embassy to request relevant documentation.

Current Status

  • CFIA is preparing a response to MAGA on Canada’s Safe Food Canadian Regulation requirements and federal meat inspection system, advocating for systems approval for Canadian meat establishments.  CFIA is aiming for submission in early April 2021.

2)      Beef Product Coverage

Background

  • In January 2006, Guatemala approved a previous CFIA certificate for boneless UTM beef only.
  • Subsequently, in October 2018, as part of CFIA’s process of implementing Safe Food for Canadians Act and Regulations, Guatemala/MAGA approved a new CFIA export certificate for meat and meat products.
  • In its December 22, 2020 letter, CFIA asked MAGA for reconfirmation that MAGA’s October 2018 approval of the new CFIA certificate constituted approval for full beef access.

Recent Developments:

  • In their February 5, 2021 message to the Canadian Embassy, Guatemala/MAGA said that with respect to the certificate of inspection for meat products, MAGA has no problem.

Current Status

  • Guatemala has now confirmed approval of a CFIA health export certificate that includes all beef which is a significant improvement over the previous approved certificate which included only boneless UTM beef.

Should you have any questions or concerns, please do not hesitate to reach out to the Market Access Secretariat (aafc.mas-sam.aac@canada.ca).

Shipborne dunnage is a major pathway for the introduction of forest pests in Canada. The Canadian Food Inspection Agency (CFIA) has been working for many years to find an efficient, safe and applicable management program for shipborne dunnage.

The CFIA launched an international and national consultation in December 2020 with a risk management document (RMD 20-02) that outlined 4 shipborne dunnage management options. The recommended option, which received the majority of the support during the consultation, is the selected option. It combines robust forest pest mitigation measures with a flexible and easy-to-apply approach that also promotes and encourages the use of ISPM 15 compliant material. The CFIA will be implementing option 4, as proposed with some improvements that were received during the consultation. The implementation of option 4 will require the relevant plant health directive (D-98-08) be amended to incorporate the new shipborne dunnage program, which will include a national and international consultation period.

The effectiveness of the selected option will be assessed over the next several years. The CFIA is moving in a graduated direction that will permit ISPM 15 compliant dunnage to enter Canada without restrictions.

Despite some setbacks caused by the pandemic, Canada’s food and beverage sector may emerge even stronger in 2021, according to a new FCC report.

“The pandemic has brought losses that can never be recouped, but it has also opened a floodgate of opportunities for Canada’s food and beverage sector to become an even stronger part of the national economy,” said J.P. Gervais, FCC’s chief economist. “In many ways, the pandemic did not create these opportunities, but accelerated the tide of underlying trends that promote them.”

Despite the challenges posed by the pandemic, the report shows most economic indicators for the food and beverage processing sector are strong compared to other sectors of the Canadian economy. Capital expenditures and employment in food and beverage processing, for example, fell less as a percentage than all industries combined.

The report also notes that higher disposable income and savings in 2020 will likely spur growth in food and beverage consumption once it is safe to fully reopen food services.

Success in containing the virus abroad also carries significant implications for Canada’s food and beverage processors, since more than 30 per cent of sales have gone to export markets over the past five years, according to the report.

Consumer trends and export markets offer a variety of opportunities for different parts of the food and beverage sector, which together represents the largest manufacturing employer in Canada with almost 300,000 workers. It’s also the second largest manufacturing sector in terms of value of production with sales of goods manufactured worth $122.9 billion in 2020. That year, the sector represented 1.8 per cent of the national Gross Domestic Product (GDP).

Grain and oilseed milling is expected to see the most significant increase in sales at 13.4 per cent, due to increased demand for edible oils, flour, and other baking products domestically and abroad. Plant-based products are expected to capture a greater portion of food spending as part of a growing consumer trend.

Sugar and confectionary products are projected to see a 12.3-per-cent increase in sales for 2021 as consumers appear ready to indulge after going through various lockdowns, according to the report.

There are also projected sales increases for dairy products (5.6 per cent), beverages (4.9 per cent), processed seafood (4.7 per cent), meat products (4.6 per cent), and bakery and tortilla products (2.1 per cent) in 2021. Fruit, vegetables and specialty foods sales are expected to remain steady in 2021.

“The food and beverage processing sector showcased its resilience by adapting to the evolving trends and challenges posed by the pandemic,” Gervais said. “Government investments in food security and safety, along with low interest rates, a weak dollar and strong demand for healthy and high-quality Canadian food, could be the catalyst the sector needs to lead Canada’s economic recovery.”


FCC is Canada’s leading agriculture and food lender, with a healthy loan portfolio of more than $41 billion. Our employees are dedicated to the future of Canadian agriculture and food. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and food industry. As a self-sustaining Crown corporation, we provide an appropriate return to our shareholder, and reinvest our profits back into the industry and communities we serve. For more information, visit fcc.ca.