Section II. Exporter business tips; services; food regulation 6
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USDA Foreign Agricultural Service GAIN Report Template Version 2.09  Global Agriculture Information Network Required Report - Public distribution Date: 3/3/2009 GAIN Report Number: CA9012 CA9012 Canada Exporter Guide Canada 2008 Approved by: Robin Tilsworth   U.S. Embassy Prepared by: George Myles and Joyce Gagnon  Report Highlights: This report replaces GAIN report CA8084. It updates/revises some sections in the Exporter Guide 2008 published in December 2008. The Exporter Guide is a practical guide for U.S. food exporters in the Canadian market; includes updates to the organic food section, market sector reports, consumer trends, and best prospects for U.S. consumer-oriented agricultural products in the Canadian market.e Includes PSD Changes: No Includes Trade Matrix: No Annual Report Ottawa [CA1] [CA] Table of Contents ^ Consumer Trends in Retail Food 5 SECTION II. EXPORTER BUSINESS TIPS; SERVICES; FOOD REGULATION 6 Export Services for U.S. Food and Agricultural Exporters 6 Business Customs Import Procedures 8 Customs Brokers 8 The Commercial Import Process 9 Import Service Centers 9 http://www.inspection.gc.ca/english/imp/importe.shtml 9 Non Resident Importers 9 Food Brokers 9 Food Regulation 10 Labeling Requirements 10 The Guide to Food Labeling and Advertising in Canada 10 Label Review 10 Labeling of Shipping Containers 13 Nutrition Labeling 13 Tariffs and Tariff Rate Quotas (TRQs) 14 Packaging and Container Regulations 15 Food Additive Regulations 15 Pesticide and other Contaminants 16 Other Regulations and Requirements 16 Inspection and Registration Fees 16 Container Sizes: Processed Meats 16 Requirements for Fresh Meats 17 Requirements for Fresh Fruits and Vegetables 17 Processed Horticultural Products 18 Other Specific Standards 18 Fish and Seafood 18 http://www.inspection.gc.ca/english/fssa/labeti/guide/tab15e.shtml 18 Novel Foods (Genetically Modified Foods) 18 Wine, Beer and Other Alcoholic Beverages 19 Organic Foods 20 Kosher Foods 20 Pet Food Labeling 21 Livestock Feeds 22 Labeling Claims 22 Meat Labeling Claims 22 Diet-Related Health Claims 23 Food Allergens 24 Sample Products 24 Test Marketing: Processed Food Products 24 Temporary Marketing Authorization Letter (TMAL) 25 Interim Marketing Authorization 26 Copyright and/or Trademark Laws 27 ^ Market Sector Reports 28 SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS 29 SECTION V. ROAD MAP FOR MARKET ENTRY 31 SECTION VI. QUESTIONS AND ANSWERS 32 SECTION VII. CONTACTS 34 ^ APPENDIX II. STATISTICS 35 Table A. Key Trade and Demographic Information 35 Table B. Consumer Food & Edible Fishery Product Imports 36 Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products 36 ^ Canada is the No. 1 market for U.S. agricultural exports. In FY2008 US agricultural exports to Canada reached a record $16.2 billion. U.S. agricultural exports to Canada accounted for 14% of total U.S. food and agricultural product exports of $115.4 billion. Consumer-oriented agricultural products accounted for 74% of total U.S. food and agricultural product sales to Canada in FY2008, with fresh and processed fruits and vegetables, snack foods, breakfast cereals, processed horticultural products, and red meat products as the category leaders. American products accounted for more than 60% of total Canadian agricultural imports in 2007. During FY2008, a number of consumer oriented agricultural categories posted record sales to Canada. The top 5 categories are fresh vegetables ($1.5 billion), fresh fruit ($1.4 billion), snack foods ($1.3 million), red meat ($1.1 billion), and fresh vegetables ($923 million) and breakfast cereals ($488 million). Combined items in these categories accounted for more than half of total U.S. exports consumer-oriented agricultural products to Canada. Canada is also an important market for U.S. fish and forestry exports. Canada is the No. 2 market for U.S. fish and seafood exports and sales during FY2008 reached $763 million. Despite being a major producer and world exporter of forest products, Canadian imports of U.S. forest products reached $2.4 billion in FY2008. Combined, total U.S. farm, fish and forestry product exports to Canada reached a record $19.4 billion during FY2008, $3.2 billion more than to Mexico, the next largest market destination. Total bilateral agricultural trade between the U.S. and Canada reached $34.1 billion in FY2008, more than $90 million per day. Two-way truck traffic alone exceeds 7,000 trucks per day. That’s an average of almost one truck, every-other-minute, 24 hours a day. The United States and Canada have the world's largest bilateral trading relationship. During FY2008, two-way merchandise trade reached $616 billion.
Under the tariff elimination provisions of the North American Free Trade Agreement (NAFTA), the majority of U.S. agricultural products have entered Canada duty-free since January 1, 1998. On December 4, 1998 the United States and Canada signed a Record of Understanding, an agreement to further open Canadian markets to U.S. farm and ranch products. Tangible benefits of the agreement have accrued to the U.S. agricultural industry. Trade with Canada is facilitated by proximity, common culture, language, similar lifestyle pursuits, and the ease of travel among citizens for business or pleasure. Many American products have gained an increased competitive edge over goods from other countries as the result of the FTA/NAFTA. Canada’s grocery product and food service trades have been quick to seize opportunities under FTA/NAFTA, which permit them to expand their geographical sourcing area to include the United States. Declining import duties under the trade agreements and an easing of Canadian packaging requirements for processed horticultural products for the food service market have resulted in significant gains in the Canadian market for U.S. consumer-ready foods and food service foods. However similar the United States and Canada are, there are differences that exporters need to become aware. Understanding the nuances of a marketplace is critical to a successful launch of a product in any foreign market. |
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