A former Prime Minister once quipped from the campaign trail that, “an election is no time to talk about serious issues”. When it comes to providing opportunities for Canadians, however, policy matters far more than partisan politics. We have had a federal election, and a Cabinet has been appointed. We now need the government to have a laser-like focus on the fundamentals of good policy.
I have heard farmers express the view that agriculture is an afterthought around the cabinet table. The sector makes up about seven percent of the Canadian gross domestic product, or $150 billion per year, and employs 2.3 million Canadians, representing one in nine jobs across the country. An acknowledgement, by the whole cabinet, of the critical contribution that agriculture makes to the Canadian economy would be a good way for the new federal government to offset farmers’ frustration about the placement of agriculture in national policy priorities.
Trade must be the priority issue for the new Minister of Agriculture and Agri-Food. In 2024, Canadian agriculture and food exports exceeded $100 billion, yet the policies that will support and expand Canadian agriculture and food exports are not always considered when Canada’s trade positions are set. A positive key first step signaling a shift in focus for agriculture policy would be the explicit inclusion of agriculture in the “Team Canada” missions that are part of our outreach with U.S. customers and policy makers.
While agriculture, like most Canadian industries, has rightfully focused on the threat of U.S. tariffs in the past few months, protectionism is growing around the world. Canadian pork and seafood exports to China face a 25 percent tariff. Canola products have been hit with a 100 percent tariff by the Chinese government. Canadian agriculture and food exports have been sidelined by European non-tariff barriers, despite the Canada – European Comprehensive Economic and Trade Agreement (CETA). Growing protectionism is compounded by rising political uncertainty, with the war in Ukraine and instability in the Middle East just two examples. Canada needs a strategic plan to deal with these threats.
The new federal Minister of Agriculture and Agri-Food, the Hon. Heath MacDonald, could hit the ground running if he were to set up, together with representatives from export agriculture, a task group with the mandate to develop a strategic plan for agriculture and agri-food trade. This joint government and industry task group should set out to answer three basic questions. First, in the short term, how does Canada mitigate the impact of tariffs and potential tariffs on agriculture and food exports? Second, what is the strategic plan to eliminate non-tariff and tariff trade barriers currently blocking Canadian agriculture and food exports? And third, what is the strategic plan to diversify markets for Canadian agriculture and food exports? The overarching goal of the task group should be to set out a clear plan that will preserve the integrated North American market for agriculture and food products, and to eliminate tariff and non-tariff trade barriers around the world.
The effort to develop a strategic plan for agriculture and food trade cannot only be carried out by governments. There is also work to be done by farm groups and industry stakeholders. There are over 400 farm groups across Canada. This means that governments do not always receive a coherent consensus position from the sector. It is incumbent upon farmers, those who represent farmers, along with food processors and manufacturers, to develop clear policy proposals aimed at the expansion of agriculture and food exports. If the Minister receives 400 different opinions, they face a risky policy position where any action would be subject to opposition by somebody. Lack of consensus within agriculture opens the door for governments to do nothing.
Agriculture and food trade is not just a matter of economic policy, it is also a national security issue, given the increasingly less stable geopolitical environment. This is especially true for the three countries who are signatories to the Canada -U.S -Mexico Agreement (CUSMA). Canadian farmers can help deliver a reliable and safe food supply for consumers. This value from Canadian agriculture must be demonstrated in the strategic plan for agriculture and food trade and emphasized in upcoming trade discussions, including the impending review of CUSMA.
The recent election campaign saw the major parties promising a new approach to trade policy to respond to growing protectionism in both North America and around the world. The new federal government, including the new Minister of Agriculture and Agri-Food, has an opportunity to put these promises into action for farmers, processors, and the millions of Canadians who work in the sector. Current disruptions to world trade can be turned into opportunities for Canadian agriculture, but only if we see bold and decisive policy. The alternatives will be bad for farmers, bad for Canadian value-added processing, and undermine the potential for growth in the Canadian economy.
