AS TRADE disputes and security concerns mount, it would be prudent for governments, agri-businesses and producers to develop plans to address the chaos that would follow if the free flow of goods across the Canada-United States border is curtailed.
Canada and the U.S. conduct $1.9 billion dollars in trade in goods and services every day. But events of the past few years have shown that we cannot rely on an open U.S. border.
Canada-U.S. trade is particularly important in agriculture. In 2002, the U.S. accounted for $17.45 billion or 69 percent of Canada’s food exports.
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A disruption in access to any or all of that market would require a quick, level-headed response in Canada, especially regarding trade in animals and perishable goods.
These are particularly tense days for our southern neighbours. The American decision to remove Saddam Hussein from power in Iraq has caused it to increase its vigilance against terrorist attacks at home, including increasing surveillance at border crossings.
Even before war was declared, the U.S. was implementing a new law requiring companies exporting to the U.S. to register with the Food and Drug Administration and give 24 hours notice to border customs staff and inspectors of each shipment.
Canadian food exporters, many involved in “just in time” supply agreements with American buyers, say the advance notice requirement will be almost impossible to meet.
There are other threats to access, in addition to border security issues.
There are the anti-dumping and countervail investigations that threaten wheat and durum trade. The country-of-origin labelling law threatens livestock and meat exports.
The federal government must work hard to ensure that none of these threats become reality.
But while we hope and indeed expect none will lead to a closed or limited border, managers would be prudent to develop contingency plans.
Many farms and agricultural businesses have emergency plans that set out things to do if the electricity fails, fire strikes or fields flood. The loss of a major market is equally an emergency that requires contingency planning.
Alberta’s livestock industry has set an example. Each day, 30-50 trucks loaded with cattle and hogs cross from Alberta to the U.S. Livestock can’t be held in trucks for long if the border is tied up.
The Alberta industry developed plans to divert livestock traffic if the border closes and it identified nearby temporary hog housing if needed.
All provinces and industry sectors should have similar plans and more, including emergency storage and alternative markets.
We hope the fruitful trading relationship that Canada and the U.S. enjoy is never interrupted. But surprises happen and by preparing now, we can minimize the harm.
