Created on 12/3/2018 10:20:10 AM
FCPC congratulates the government on the signing of the United States-Mexico-Canada trade agreement (USMCA) and appreciates the months of hard work by Canada’s negotiating team that led to today’s signing. We encourage the government to move forward as quickly as possible with the ratification process so that the USMCA can come into force in a timely manner.
The USMCA will support greater investment among our North American partners. Importantly, this deal will help alleviate months of uncertainty felt by food and consumer manufacturers from across the country and provide the basis for a stronger relationship with our trading partners in the south. The integrated manufacturing supply chain that exists between Canada, the U.S. and Mexico is essential for the growth and innovation of our industry.
FCPC is disappointed that the U.S. did not lift the steel and aluminum tariffs prior to signing the agreement. The retaliatory food, consumer products and packaging tariffs that the Canadian government imposed as a response on July 1 has had a devastating impact on the competitiveness of our industry. Many of our members who import these products also have a strong manufacturing presence in Canada and these tariffs are impacting their ability to operate. The tariffs have been disruptive to our highly integrated supply chain and are also having a negative impact on Canadian consumers through increased costs and reduced choice on store shelves. FCPC urges the Canadian government to make the removal of tariffs a priority with the goal of working together on an approach that does not negatively or disproportionately impact the food and consumer products industry.
We encourage the government to continue to press ahead to help companies increase agri-food exports to $75 billion by 2025, and appreciate the additional measures announced in the Fall Economic Update to diversify trade and expand market access support for companies in Canada. We fully support the government’s ambitious international trade agenda and look forward to working together to help grow our exports.
Canada’s food and consumer products industry represents Canada’s largest manufacturing employer, supporting more than 300,000 jobs from coast to coast and contributing nearly $29 billion to Canada’s GDP in 2015. Our industry employs more than the automotive and aerospace sectors combined. A significant number of food and consumer manufacturers operate both in Canada and the U.S., making yesterday’s agreement of critical importance to the sector.
For more information please contact:
Anthony Fuchs Director, Public Relations & Communications