Trade & Marketing
Promoting international trade and investment with export markets is a priority for the Canadian produce sector.SECURING TRADE COMPETITIVENESS FOR CANADA’S FRUIT AND VEGETABLE SECTOR
Canada’s fruit and vegetable growers produce over $8 billion in farm-gate value annually and contribute nearly $15 billion to Canada’s GDP through direct, indirect, and induced activity. With 97% of farms family-owned, the sector is a key driver of rural economic development and food security. But this engine of economic activity is now at risk.
As input costs rise and global trade tensions escalate, Canadian growers are increasingly vulnerable. With 46% of production—and 92% of exports—destined for the United States, even modest trade disruptions can destabilize farm businesses and limit access to international markets. The recent resurgence of U.S. tariff threats has underscored how exposed the sector is to geo-political and economic shocks beyond its control. Eliminating the threat of tariffs and establishing clear, sector-specific support in the event of future trade actions must be top priorities.
Unlike other agricultural sectors, the fruit and vegetable industry has limited tools to manage volatility, due to the perishability of products, intensive labour requirements, and just-in-time supply chains.
THE ISSUE
Canada’s fruit and vegetable sector is uniquely exposed to trade disruptions. Perishable goods can’t sit indefinitely in warehouses or be rerouted through alternative markets. When delays or tariffs occur, crops spoil and markets are lost—sometimes permanently.
Trade agreements and regulatory regimes often overlook the unique needs of horticulture. At the same time, Canadian growers must compete against imports produced under different regulatory, labour, and environmental conditions—often at lower cost—while bearing rising domestic compliance costs.
Without targeted policy support to improve competitiveness and safeguard market access, growers risk losing both export opportunities and domestic shelf space.
KEY FACTS
- Canada’s Produce Exports Are Concentrated and Exposed: With 97% of exports going to the U.S., the sector is highly sensitive to even short-term trade tensions. Growers have limited access to alternative markets when disruptions occur.
- The Sector Lacks Equivalent Trade Safeguards: Unlike some other agricultural industries, fruit and vegetable producers do not have regulatory compensation mechanisms for emergency pests/diseases that have major trade implications, nor strong import controls or supply management tools to shield them from sudden market shocks.
- Tariff Threats Are Real and Growing: Ongoing U.S. protectionist policies and current and past tariff actions (e.g., steel/aluminum retaliation) highlight the sector’s vulnerability to being caught in broader trade disputes.
- Horticulture Faces Asymmetrical Competition: Imported produce can arrive from jurisdictions with lower labour standards, lower minimum wage, environmental regulations, or production costs—placing Canadian growers at a competitive disadvantage.
- No Quick Fixes for Disruption: Because of perishability, growers start with a limited negotiating power and just-in-time delivery models, even minor trade delays can result in lost markets, spoiled products, and significant financial loss.
WHAT FVGC RECOMMENDS
To protect competitiveness and ensure long-term food security, the federal government must act in three key areas:
- Ensure Horticulture Is Reflected in Trade Policy. Canada’s trade agreements and enforcement tools must recognize the unique challenges of horticulture, including perishability, seasonality, and export concentration. The sector must have a dedicated voice in trade negotiation consultative mechanisms and more responsive processes to address non-tariff barriers as these arise. Safeguarding Canada’s status as a sovereign trading nation, relies on Canadian agriculture policy and negotiations that do not permanently entrench one group’s rights over another.
- Improve Monitoring and Safeguards for Import Surges. Canada should implement a fair and responsive framework for tracking import pressures and providing support to growers when they face unfair competition or market shocks.
- Offset Rising Domestic Costs Through Targeted Competitiveness Programs. Horticulture producers face increasing cost pressures from domestic regulations, including requirements related to labour, transportation, and packaging. These costs directly affect growers’ ability to compete with imports from jurisdictions with lower standards. Targeted federal programs are needed to help offset these rising expenses and ensure Canadian-grown fruits and vegetables remain viable and affordable in both domestic and export markets.
WHY THESE SOLUTIONS MATTER
Canadian growers compete globally but operate locally. They produce safe, high-quality food, support rural economies, and contribute billions to the national economy. But without strong trade protections and competitiveness policies, we risk ceding more market share to imports—reducing Canada’s ability to feed itself, limiting rural economic opportunity, and threatening the long-term viability of our domestic food system.
For more information
please contact Angela Reid by submitting this form.