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April 15, 2026

Written Submission of the Canadian Agri-Food Trade Alliance for the Pre-Budget Consultations in Advance of the Upcoming Federal Budget

The Canadian Agri-Food Trade Alliance (CAFTA) is a coalition of national organizations advocating for a freer and fairer international trade environment for the agriculture and agri-food sector.

CAFTA represents the 90% of farmers, ranchers, producers, processors, and exporters who depend on trade. CAFTA's members include farmers, ranchers, processors, producers, and exporters from major trade sectors such as beef, pork, grains, oilseeds, sugar, pulses, soy, processed food, and life science industries.

Recommendations

  1. Elevate Agri-Food to the Heart of Canada’s International Diplomacy

  2. Proactively Defend Export Interests in the 2026 CUSMA Review

  3. Modernize Market Access Infrastructure to Combat Non-Tariff Barriers

The global landscape for agricultural trade has shifted. It has been apparent in recent years that trade is no longer governed solely by the reduction of tariffs (which are making a return under the current US administration). Contemporary agri-food trade irritants are now dictated by regulatory alignment, science-based standards, and the ability to navigate complex non-tariff barriers (NTBs). With 90% of Canadian farmers, producers, and processors dependent on international markets, any erosion of the rules-based trading order is a direct threat to our economic prosperity.

As global food demand surges (in India and Southeast Asia it is expected to grow by 31% in the next decade) Canada has a unique opportunity to make a major contribution to global food security. To do so, the government must reject isolationist tendencies and champion a free, fair, and open trading environment.

Recommendation 1: Elevate Agri-Food to the Heart of Canada’s International Diplomacy

​Agriculture should no longer be viewed as a standalone economic sector but as a primary tool of Canadian soft power and economic diplomacy.


Canada requires a comprehensive strategic framework that integrates agri-food objectives into the core of its foreign policy. This means that trade liberalization for agricultural products must be a priority in trade reviews and bilateral discussions.


The government must resist domestic and international pressures to implement protectionist measures. Such policies weaken Canada’s credibility when we call for other nations to open their markets.


Diplomatic resources should be aligned to facilitate entry for Canadian producers, and heads of mission and trade commissioners must be tasked with advancing agri-food interests as a top-tier priority.


By placing agriculture at the center of the international agenda, Canada can leverage its reputation as a reliable supplier to gain influence in emerging economies.

Recommendation 2: Proactively Defend Export Interests in the 2026 CUSMA Review

The Canada-United States-Mexico Agreement (CUSMA) is the lifeline of North American agri-food trade. However, the upcoming 2026 review presents a significant risk as protectionist rhetoric increases in the United States.

Canada must enter the CUSMA review with a mandate to ensure that the trilateral provisions which support integrated supply chains are not diluted.

 

We need to:

  1. Protect Core Provisions: Ensure the continued existence of tariff-free trade, robust dispute settlement mechanisms, and ambitious Sanitary and Phytosanitary (SPS) measures.

  2. Science-Based Decision Making: Commit to and demand that all regulatory decisions within the CUSMA bloc remain rooted in rigorous science rather than political expediency.

  3. Structure Industry Consultation: Establish a permanent, high-level advisory body consisting of agri-food export stakeholders. This ensures that the negotiators on the ground are informed by the real-time economic realities of the farmers and processors they represent.

Failure to secure these provisions during the 2026 review could lead to a fragmented North American market, increasing costs for producers and consumers alike.

Recommendation 3: Modernize Market Access Infrastructure to Combat Non-Tariff Barriers

In the modern trade era, traditional tariffs have largely been replaced by more insidious Non-Tariff Barriers (NTBs). These include technical regulations, labeling requirements, and inconsistent safety standards that can block shipments even more effectively than a tariff.

Canada must modernize its Market Access Secretariat (MAS) to transform it from a reactive "troubleshooting" unit into a proactive, intelligence-led agency.

The government should:

  1. Expand MAS capabilities to identify potential regulatory shifts in foreign markets before they become barriers. This involves deeper engagement with the regulatory bodies of our trading partners.

  2. Strengthen the ties between the Canadian Food Inspection Agency (CFIA), and the Trade Commissioner Service (TCS). A "whole-of-government" approach is required to tackle technical trade hurdles.

  3. Implement a modernized reporting system that allows industry players to report emerging barriers instantly and receive timely updates on government intervention efforts.

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