An April survey by the Canadian Federation of Independent Business (CFIB) has revealed that 88 percent of Canadian agri-businesses believe Canada should strengthen trade ties with countries apart from China and the US in light of increasing trade tensions.
“While the focus has been on the U.S. tariff battle, Canadian agri-businesses have been even more deeply harmed by China’s tariffs on canola oil, canola meal and peas, as well as certain pork, fish and seafood products,” said Juliette Nicolaÿ, bilingual policy analyst at CFIB, in a media release. “These producers need greater attention and support.”
The CFIB’s April survey showed that China’s retaliatory tariffs on Canada’s agricultural and seafood products are impacting 36 percent and directly affecting 23 percent of Canadian agricultural businesses.
“While about one in four agri-businesses have taken steps to mitigate tariff impacts, only 10% of agri-businesses say that governments have done enough to support affected firms,” Nicolaÿ said in the CFIB’s media release.
In its media release, the CFIB encouraged the government to take urgent steps to combat unfair treatment.
Jasmin Guénette, CFIB’s vice president of national affairs, noted that Canada considers the US and China important markets for agri-businesses. Together, these two countries make up over half of Canada’s canola exports, Guénettes said. China also serves as Canada’s second-largest fish and seafood export market, Guénette added.
“As a result of the trade disruptions, our agri-businesses risk having unsold inventory and some are already losing foreign buyers,” Guénette said in the CFIB’s media release. “They need clarity on how to move forward and plan their operations.”
A recent letter that the CFIB sent to the federal government called for the reduction of the tax and regulatory burden on agri-business. The letter urged the Canadian government to ensure its support programs cover the scope of today’s issues and help agri-businesses enter new markets.
“The government needs to turn its focus to supporting the agriculture industry and adopting policies to improve the business climate for Canada’s SMEs,” Guénette said in the CFIB’s media release.
The CFIB said in its media release that it launched its “Your Voice” survey on Apr. 10. The CFIB shared the survey results based on 2,021 CFIB member responses received by Apr. 21.