Canada and the U.S. are by far each others' largest export markets for potatoes. In 2006, Canada's exports of potatoes destined for further repackaging or processing represented over $123 million.
The Technical Arrangement Concerning Trade in Potatoes comes into effect on November 1, 2007. It will be phased in over the next three years, focusing on four key elements:
- Mutual recognition of Canadian and American standards and certification procedures related to quality grade standards of imported potatoes.
- Changes to Canada's administrative process for issuing Ministerial Exemptions. Ministerial Exemptions are issued to alleviate a shortage in the Canadian supply of potatoes. They waive the regulatory requirements for grade, packaging and labelling, when there is evidence of a potato shortage in Canada, allowing Canadian importers to purchase bulk containers of potatoes from other provinces or the U.S. Currently, Ministerial Exemptions are issued by request on a case by case basis. In the first two years of the Arrangement, historical data may be considered in the assessment of potato shortages for the purpose of issuing Ministerial Exemptions. In year three of the Arrangement, contracts between Canadian importers and American exporters may be considered in this assessment.
- The progressive elimination of American funding to spot-check Canadian potatoes at north-eastern U.S. border crossings.
- Initiation of an American rulemaking to propose that their import requirements allow for the import of Canadian potatoes of a greater variety of sizes or colour.
In addition to facilitating potato trade between Canada and the U.S., the arrangement will provide opportunities for the reduction of various compliance costs for industry. It recognizes that Canadian and American quality grade standards are reasonably comparable.
