UNITED STATES - CANADA ACTION PLAN
REGARDING AREAS OF AGRICULTURAL TRADE
This action plan is designed to strengthen and expand Canada-U.S. agricultural trade relations. It consists of 17 annexes as follows:
1. Import of U.S. Swine for Immediate Slaughter
On December 3, 1998, Canada passed regulations that will allow U.S. slaughter swine to
enter Canada from eligible states without the testing and quarantine restrictions that are
applied to breeding animals. The regulations governing the import of U.S. slaughter swine
are comprehensive. Importation under permit will be allowed to a previously approved
plant. The animals must originate from states that have reached Stages IV or V under the
U.S. Pseudorabies Eradication Program and travel to the Canadian plant along defined
routes and within defined time frames.
2. Expansion of the Northwest Cattle Project for
Restricted Feeder Cattle
The Canadian "restricted feeder" regulations (Northwest Cattle Project) were
amended on August 7, 1998. "Restricted feeders" that originate from approved
states may be exported to Canada during the fall and winter months without test. The
imported animals are treated for anaplasmosis following their arrival and are then
permitted to move without restriction. To qualify to export under the new regulations,
states must be officially free of bovine brucellosis and tuberculosis and be classified by
Canada as low risk for bluetongue. Feeder cattle have been entering Canada from Montana
and Washington State under the provisions of the new regulations. States that meet the
same criteria and whose cattle producers wish to export to Canada under the regulatory
provisions for restricted feeders are encouraged to contact the Canadian Food Inspection
Agency (CFIA). Under normal circumstances, CFIA will evaluate and approve states within 2
weeks of request, dependent on the adequacy of information provided.
Importation under permit is allowed only to previously approved premises. In the United
States, the health certification of the animals and validation of their identification is
completed by a U.S. Department of Agriculture, Animal and Plant Health Inspection Service
(USDA-APHIS) accredited veterinarian; there is no USDA endorsement of the export
certificate required.
If a country imposes new duties on cattle trade, the other country may rebalance
commitments made under this section for the duration of the duty increase.
3. Animal Health Regionalization - Recognition of
the Health Status of States/Zones
Canada has initiated a review of regulations governing the import of animals and their
products, with a focus on the principles of zoning and regionalization. The process is
scheduled for discussion at the Canadian Animal Health Consultative Committee meeting in
December 1998. Both parties expect that Canada will publish a final regulation during the
first quarter of 2001.
4. Other Animal Health Issues
Brucellosis and Tuberculosis (TB) Requirements
As part of the cooperative brucellosis program, some states have mandatory brucellosis
vaccination requirements for cattle within the state or imported from other states or
countries. Some states also have additional testing and/or certification requirements for
a number of diseases beyond the U.S. federal import requirements. The following steps will
be taken to address this issue:
Equine Semen Imports
The United States requires an import permit and health certification for imports of equine
semen from Canada. The United States agrees to initiate the regulatory process to change
these regulations to eliminate the permit and certification requirements for equine semen
imports from Canada and endeavor to implement a final rule eliminating these permit and
certification requirements not later than January 2000.
Inspection of Live Horses
The United States currently has regulations requiring inspection at the border of all
Canadian horses presented for permanent entry. Horses presented for temporary entry are
not required to be inspected. The United States will initiate the regulatory process to
eliminate the inspection requirement for all horses and implement a final rule eliminating
this requirement by August 2000.
5. Exchange of Cattle Data
Canada and the United States will cooperate in the exchange of data on cattle trade and
make publicly available a joint report within 30 days that will identify data currently
available from each side; requests for additional data; and a proposal to address the
needs for additional data. It is intended that the additional data will include the number
of cattle on feed, cattle inventory and cattle slaughter.
6. In-Transit Movement of Grain by Rail
The Canadian Food Inspection Agency (CFIA) has developed an alternative certification
program that will permit shipments of wheat, oats, barley, rye and/or triticale, excluding
seed, to transit through Canada based on a certificate of origin in lieu of a
phytosanitary certificate with mandatory sampling and testing. This will allow U.S. grain
to be shipped on the Canadian rail system to final destinations in the United States. A
certificate of origin from a state authorized under the program will be acceptable for
grain if it meets all of the following conditions:
The areas identified to participate in this program include the areas of
Minnesota, Montana and North Dakota that are recognized free of Karnal bunt, wheat flag
smut, and dwarf bunt. This program will become effective as soon as possible but no later
than January 1, 1999 for the states of Minnesota, Montana, and North Dakota. The program
will be reviewed, in cooperation with the United States, six months after implementation
with a view toward expanding the program to other interested states meeting the same
program and science-based criteria as soon as possible.
7. Wheat Access Facilitation Program for Canadian Licensed
Primary Elevators Handling U.S. Wheat
The program will improve access for U.S. farmers to primary elevators in Western Canada,
while preserving the integrity of the Canadian grain quality control system. The program
codifies the rules for handling of U.S. wheat by licensed Canadian primary elevators. It
will enter into force on January 1, 1999.
The Canadian Grain Commission (CGC) is giving advanced authorization to handle imported
wheat from the United States for those primary elevators that have indicated a desire to
participate in the Wheat Access Facilitation Program. Currently, 4 grain companies have
proposed a total of 27 facilities for the program, most of which are located within 60
miles of the Canada-U.S. border.
The program facilitates U.S. wheat being trucked and sold by or on behalf of U.S.
producers to participating Canadian primary elevators for storage and forwarding to
domestic markets or export locations. This program complements existing arrangements that
facilitate the direct movement of U.S. wheat and barley to Canadian feedlots, feed mills
and flour mills.
Canada and the United States will jointly publish a fact sheet by January 1, 1999,
explaining the program and how producers can participate in the program.
Within six months of implementation, Canada, in cooperation with the United States, will
examine how the program has functioned with a view toward ensuring that it is working
effectively and identifying potential ways to streamline procedures including inspections.
Within the twelve month initial phase of implementation, Canada, in cooperation with the
United States, will review the program. The review will include the clarity of the
information provided to U.S. and Canadian producers, the volume of shipments under the
program, the effect of Canadian Customs procedures and CGC inspections , and comments from
U.S. and Canadian producers and Canadian elevators. The twelve month review will also
consider procedures under the program with a view to streamlining and reducing costs of
the program within 30 days of conclusion of the twelve month review.
This program will not be extended to any state that fails to exempt Canadian grain from
state research and promotion check-off programs in a manner equivalent to that granted to
grain from other sources.
8. Phytosanitary requirements for the importation of
U.S. wheat and other cereals into Canada
Wheat Access Facilitation Program - Phytosanitary Requirements:
A procedure has been developed with the cooperation of the Canadian Food Inspection Agency
(CFIA) and the U.S. Department of Agriculture, Animal and Plant Health Inspection Service
(USDA-APHIS) that will reduce the amount of sampling and testing required for U.S. growers
participating in the Wheat Access Facilitation Program.
Individual participants (growers) may ship wheat under a "Master Phytosanitary
Certificate" without the requirement to have each individual shipment tested. Wheat
must originate from an approved grower in states eligible under the program, and at least
one sample per grower, per crop, must be officially tested and found free of Karnal bunt
spores. The Master Phytosanitary Certificate must additionally satisfy requirements for
dwarf bunt and flag smut based on area freedom or official testing as appropriate.
This program will be implemented for North Dakota and Montana by January 1, 1999. The
program will be reviewed, in cooperation with the United States, six months after
implementation with a view toward expanding the program to other interested states meeting
the same program and science-based criteria as soon as possible.
Karnal Bunt
Following the recent review of U.S. National Karnal Bunt Survey data and the confirmation
that no spores of Karnal bunt were found in the non-infested states, CFIA has worked with
USDA-APHIS to develop a certification program that permits wheat to be imported into
Canada without the current requirement for testing. Under this program, wheat from
approved states will be accompanied by a phytosanitary certificate that certifies that the
grain is produced in and shipped from a state that has been officially surveyed and found
free from Karnal bunt.
Following discussion with USDA-APHIS to address concerns with the domestic movement of
grain from the infested areas, Canada will be prepared to implement the above-mentioned
program in a progressive, risk based approach, as follows:
Canada will initiate the process to implement the above mentioned program
immediately with a view to operationalize the above program for the first tier of states
by March 31, 1999.
Cereals (Wheat, barley, rye, oats)
As confidence is built through the Wheat Access Facilitation Program, the In-Transit Rail
Program, and the above-mentioned phytosanitary certification program, the CFIA will
consider further steps toward recognition of area freedom for Karnal bunt, dwarf bunt, and
wheat flag smut. CFIA and APHIS will initiate discussions on the use of alternative
certification to the issuance of phytosanitary certificates for all cereals to recognize
area freedom for Karnal bunt, wheat flag smut and dwarf bunt. As a first step, the
Canadian Food Inspection Agency will review the Pest Risk Assessments (PRA) for each of
the 3 diseases.
9. Other Grain Related Issues
Grain Trade Consultations
In order to strengthen cooperation and trust on issues of mutual interest, Canada and the
United States agree to meet quarterly, or more frequently on request, to consult on global
grain production and marketing. Such consultations shall include the following:
The first such consultations shall occur not later than February 1, 1999.
10. Seed Trade
The Canadian Food Inspection Agency (CFIA) and the Agricultural Marketing Service, U.S.
Department of Agriculture agree to meet with interested state, provincial and industry
representatives in the first quarter of calendar year 1999 to develop initiatives to
streamline requirements and facilitate seed trade.
11. Export Subsidies (Oats)
Canada and the United States note that in the last crop year more than 700,000 tons of
heavily-subsidized European Union (EU) oats were imported into North America. So far this
crop year, more than 290,000 tons have been imported. Noting that the EU has eliminated
barley export subsidies to North America, Canada and the United States have agreed to
consider what steps might be warranted to achieve a similar result for oats.
12. Veterinary Drugs
Both the United States and Canada have stringent, scientifically based programs for the
pre-market approval of veterinary drugs. While there are some differences in the
regulatory approaches adopted, the outcomes are essentially equivalent in the protection
of public health in the two countries.
A comparison made by the U.S. Food and Drug Administration and Health Canada has also
indicated that both countries have prohibited most of the same veterinary drugs for food
producing animals.
To avoid future disruption in bilateral trade, Canada and the United States have agreed to
the following initiatives with respect to veterinary drugs:
13. Pest Control Products
To avoid future disruption in bilateral trade, Canada and the United States agree to the
following initiatives with respect to pest control products:
14. Horticulture
Produce Pesticide Testing
Canada and the United States have stringent, scientifically-based programs for the
evaluation and monitoring of pesticide residues. While there are some differences in the
regulatory approaches adopted, the outcomes provide essentially equivalent protection of
public health.
The Food and Drug Administration and Canadian Food Inspection Agency agree to work toward
reducing the sampling of fresh produce through the exchange of scientific data, sampling
plans and results, and taking such information into consideration in the development of
annual national sampling plans. Both agencies agree to review the operation of import
procedures with a view toward taking steps to streamline programs.
Bacterial Ring Rot Testing
In December 1998, the U.S. Department of Agriculture (USDA) and CFIA agree to work with
appropriate industry, state, provincial and scientific representatives to explore the
benefits and possible implementation of harmonizing testing procedures for bacterial ring
rot of potatoes.
Potatoes
Canada and the United States agree to work aggressively and quickly to resolve outstanding
potato industry issues. Canada and the United States agree to ask the U.S.-Canada Ad Hoc
Potato Committee to review the issue of regulatory differences and restrictions affecting
bilateral trade in potatoes and provide a report to Ministers by September 1, 1999, on how
these issues might be addressed with a view to facilitating bilateral trade.
Nursery Stock Phytosanitary Requirements
The United States currently restricts certain nursery stock from Canada that has
originated in other countries, and then is grown for a time in Canada, to be exported to
the United States. USDA and CFIA agree to form a joint working group charged with moving
this toward a resolution by prioritizing the regulatory changes in order to harmonize
import requirements for nursery stock from offshore sources. The working group will meet
initially the first quarter of 1999 with a view to identify and prioritize species where
differences exist and identify time lines for implementation of harmonization measures.
15. Joint Cooperation on Biotechnology
Canada and the United States have enjoyed continued cooperation in the area of
agricultural biotechnology. Both countries use a science based approach to regulating
products of biotechnology, including, but not limited to genetically enhanced products.
This approach means that regulatory decisions are predicated on a critical assessment of
the best available scientific information about the product and not on the process used to
develop it.
In September 1998, Canadian and U.S. regulatory officials signed a technical agreement on
the regulatory requirements for the assessment of specific aspects of transgenic plants.
Canadian and U.S. regulatory officials will continue to meet to compare and harmonize
where possible, the regulatory review process for transgenic plants and to discuss and
prioritize future areas of cooperation and information exchange that will facilitate the
safe incorporation of transgenic plants into agricultural production and commerce.
Canada and U.S. policy officials will continue to meet to discuss cooperation on
multilateral biotechnology issues. Canada and the United States will continue to work
closely in areas relating to biosafety including the U.N. Biosafety Protocol. Canada and
the United States share common views on the subject of biotechnology in both the Sanitary
and Phytosanitary and Technical Barriers to Trade Committees of the World Trade
Organization. In addition, both countries are exploring the issue of how to deal with
biotechnology within the WTO and its subsidiary agreements as well as other fora such as
the Organization for Economic Cooperation and Development, CODEX Alimentarius Commission
and Asia-Pacific Economic Cooperation. Canada and the United States will also work
together to promote the science-based approach to regulating biotechnology, including
capacity-building.
16. Labeling
Canada and the United States recognize the integrated nature of the North American
agriculture and food economies and agree that country of origin labeling requirements on
agricultural and food products will be consistent with obligations under the North
American Free Trade Agreement and the World Trade Organization Agreement
17. Sugar Containing Products
No later than June 1, 1999, the United States will require an export permit issued by the
Government of Canada as a condition of entry into the United States for sugar-containing
products of Canadian origin for which the exporter or importer is claiming preferential
tariff treatment. The products for which export permits will be required as a condition of
entry will be sugar-containing products provided for in additional U.S. Note 6 to Chapter
17 of Schedule XX of the United States annexed to the Marrakesh Protocol to the GATT 1994,
as currently reflected in note 8 of Chapter 17 of the Harmonized Tariff Schedule of the
United States.
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