Innovation & Competitiveness
Updating Canada's Regulatory Framework to Increase Competitiveness and Innovation in the Food and Consumer Products Industry
There is a significant need to modernize and improve regulations that will help manufacturers better meet the needs of today's consumers and to reflect the current business realities. Regulatory policies need to evolve to keep pace with advances in consumer demand, product development and global competition. There are many examples in the food and consumer products industry that illustrate the common sense approach behind the recommendations within the
Smart Regulation Report – A Regulatory Strategy for Canada. For more information, please read the
Smarter Regulations of Foods in Canada Fact Sheet.
FCPC has recently joined 27 other manufacturing industry associations to form the Canadian Manufacturing
Coalition. The mandate of the coalition is to present a united front to government on the challenges
facing manufacturing namely regulatory modernization, accelerated capital cost appreciation and a renewed
commitment to continue to lower corporate tax rates. To find out more on the coalition, please see
Manufacturing Our Future–Competing to Win
[ en français ]
House of Commons Industry Committee report calls for regulatory changes to boost manufacturing
competitiveness
A recently released Industry Committee report is sounding the alarm on Canada's regulatory system and is
recommending regulatory reform to reinvigorate Canada's declining manufacturing sector. FCPC is very
supportive of its findings. In the absence of reforms, Canadians could face more unemployment, as well as a
lack of access to innovative products being developed and sold in markets around the world.
See report MANUFACTURING:
MOVING FORWARD – RISING TO THE CHALLENGE [
en français ]
FCPC appeared before the Standing Committee on Industry, Science and Technology on October 17th, 2006 as part of the Committee's study on the Challenges Facing the Canadian Manufacturing Industry. Our submission points out that regulatory reform is one of the key areas where the federal government can make a significant difference for the Canadian manufacturing sector. FCPC specifically asked the Committee to recommend government action on our industry's key priorities relating to expanded health claims and fast-tracked approval processes for novel foods and food additives.
- FCPC Submission to the Standing Committee on Industry [
en français ]
October 17, 2006
Canada's Regulatory System - Addressing Consumers' Needs of Today and Tomorrow?
All food, drugs and cosmetics sold in Canada are governed by one act - the
Food and Drugs Act, which was passed into law in 1953. Five decades later, we've seen many medical, scientific and innovative advances. From lycopene to antioxidants to Omega-3, companies today are not allowed to talk about the health benefits of these ingredients or make products that take advantage of these breakthroughs.
A legislative and regulatory regime that adapts to modern technology and societal needs does not exist. Canada's Food and Drugs Act has not been adapted to fully reflect consumers' needs today and in the future. There needs to be a regulatory framework that balances public health imperatives with industry needs for innovation and competitiveness.
Health-enhancing Products
Consumers are concerned about health and trying to manage their own preventative healthcare. To meet the needs of Canadians who are looking for product offerings that will help them improve their nutritional status and overall health and well-being, industry anticipates providing new fortified food products. Canada's regulatory system has not advanced at the same pace as has consumer demand and science. The industry already has a track record of providing some fortified foods to meet the nutritional needs of Canadians. For example, recognizing that not everyone can consume dairy products, beverage companies have added calcium to orange juice. Currently, regulations for fortified foods in Canada are very restrictive and prevent industry from providing many new fortified foods to consumers.
The ability to introduce innovative products drives the growth of the food and consumer products sectors. Without this, companies cannot continue to meet consumers' desire for new products meshing with their nutritional, flavour, health and safety needs. As the demand for products with health promoting benefits grows and companies world-wide strive to introduce innovative beverages and foods, the gap between products available in other countries and the narrow range of fortified products available in Canada is growing ever wider.
Health Information
Canadians consumers want more health information and are actively looking for it. Canadian manufacturers would welcome the opportunity to inform consumers about the health related benefits of products to assist them in making informed food choices. Canadian consumers do not have the same opportunity to benefit from health related statements on food products as consumers in other jurisdictions.
A Global Consumer Marketplace
Although, the scale of the consumer products market is now global, we operate within a regulatory environment that was developed when our market was still mainly domestic. Since the majority of food and consumer products companies actively distribute and process across the Canada/U.S. border, the industry's marketplace is now North American. However, small regulatory differences between Canada and our largest trading partner prevent Canadian-based companies from competing for North American product mandates.
Modernized regulations that are compatible between Canada and the U.S. would provide consistent products and information, and ensure significant health benefits for consumers, while gaining economies of scale for the manufacturing industry.