Made in Canada legislation

Written - 25 May, 2008

The Canadian government recently announced plans for new regulations to ensure products labeled ‘made in Canada’ are actually made in Canada. The regulation is welcome news as interest in supporting local producers has increased for ethical, environmental and economic reasons. Given the choice, Canadians support their own farmers, however, it is unclear how far the new labeling will go in putting dollars in farm families pockets.

Under current regulations, if 51% of production costs are incurred in Canada, an item can be labeled as ‘made in Canada’ and therefore, produce or livestock grown in foreign countries can be labeled as such. Under the new regulations, nearly all the product, with the exception of spices and minor additives would have to be grown in Canada in order to be labeled ‘made in Canada,’ a much stronger and honest reflection of production.

However, if BSE taught us anything, it was that buying Canadian produce does not necessarily translate into farmer income. During the crisis, Canadians increased beef consumption in hopes of supporting struggling farmers, however, the increased purchasing lined the pockets of middlemen while income plummeted on farms. This was a reflection of the reality of agriculture today – a powerfully concentrated retail and agribusiness sector that controls the flow of money in farm systems, not consumers and certainly not farmers.

Regulations aimed at supporting domestic consumption are largely superficial if little is done to protect Canadian farmers from international companies and foreign subsidies that devalue the price of commodities and increase the price of inputs. Harper suggests that given the choice, Canadians will support farmers and therefore tariffs to protect agriculture are unnecessary. But consumers cannot ensure that agricultural suppliers and processors are ensuring fair prices for farmers when they purchase at grocery chains.

Therefore, while all welcome the ‘made in Canada’ amendments, the most effective means of getting money into farmers’ pockets is by supporting them directly in the community. Not only will you can be assured that the produce is made in Canada, but you can ensure that the right people are getting paid.