LETTER: Upcoming AGM to deal with payment protection

Resolution jointly proposed may bring financial safety net Canadian fruit and vegetable sellers have been seeking.

Further to Bar Hayre’s Aug. 14 letter regarding the lack of payment protection for fruit and vegetable sellers, this will have significant consequences for the fresh produce industry in Canada, putting jobs, Canadian farms and other parts of the supply chain at risk.

At the upcoming AGM of the Canadian Chamber of Commerce in October, a resolution to deal with this outstanding issue is being jointly proposed by the Windsor-Essex Regional Chamber of Commerce and the Abbotsford Chamber of Commerce.

The recommendation asks the federal government to support creation of a limited statutory deemed trust that provides financial protection for produce sellers in Canada in the event of bankruptcies. The assets available to trust creditors would be limited specifically to produce accounts receivable, and any cash and inventory from the sale of the produce.

The trust does not require any government funding or administration.

Historically, Canadian agriculture businesses have been protected under a long-standing preferential access to the U.S. Perishable Agricultural Commodities Act (PACA) guaranteeing protection in case of bankruptcies and when payment issues arise.

In order to address the gaps in protections between the two countries, the Canada-U.S. Regulatory Cooperation Council (RCC) mandate agreed to by President Obama and Prime Minister Harper in 2011 included a commitment to establishing a comparable Canadian approach for protecting Canadian and U.S. fruit and vegetable suppliers from buyers that default on their payment obligations.

Due to a lack of progress in fulfilling this commitment, on Oct. 1, 2014, the US Department of Agriculture (USDA) revoked Canada’s preferential access to the PACA.

Creating of a limited statutory deemed trust that provides financial protection for produce sellers in Canada in the event of bankruptcies will meet the U.S. requirements for a comparable Canadian system in order to reinstate our preferential access to PACA.

The Chambers recognize that the current situation puts Canadian agricultural companies in all provinces of Canada at an international disadvantage and have come together to call for action by the Federal Government.

 

Allan Asaph

Executive Director

Abbotsford Chamber of Commerce

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kao Macaulay has been charged in relation to a home break-in on March 30 in Abbotsford in which five kittens were stolen. (Facebook photo)
Former Chilliwack man charged with theft of 5 newborn kittens in Abbotsford

Prolific offender Kao Macaulay, 23, accused of breaking into home on March 30

Workers were on scene to clean up the oil spill in Abbotsford at Trans Mountain Pipeline’s Sumas pump station in June 2020. (File photo by Shane MacKichan)
TSB releases final report on June 2020 oil spill in Abbotsford

Transportation Safety Board says pipeline fitting to blame for spill of up to 190K litres

About 80 demonstrators walked through Hope with signs in support of saving the Station House on March 23, 2021. (Photo/Christian Ward)
Public hearing now planned for Hope’s Station House decision

Council has now taken steps to remove heritage status from historic building

Cemetery staff installed the wrong headstone on the grave of Jima Kiir, even though the headstone’s photo did not match with the photo placed on the grave. (Submitted photo)
Abbotsford mother upset city placed wrong headstone on son’s grave

Cemetery staff mix up graves of 2 recently deceased men from South Sudanese community

Williams Lake RCMP arrested a man Saturday, March 13 near Wildwood in vehicle stolen in Quesnel. (RCMP logo)
UPDATE: Chilliwack woman missing since March 17 found safe and sound

RCMP thanks the media and public for assistance

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

Protesters occupied a road leading to Fairy Creek Watershed near Port Renfrew. (Submitted photo)
B.C. First Nation says logging activist interference not welcome at Fairy Creek

Vancouver Island’s Pacheedaht concerned about increasing polarization over forestry activities

Flow Academy is not accepting membership applications from anybody who has received a dose of the vaccine, according to a password-protected membership application form. (Submitted image)
B.C. martial arts gym refusing patrons who have been vaccinated, wear masks

Interior Health has already issued a ticket to Flow Academy for non-compliance with public health orders

Of 46 arrests made between March 16 and 19 at Metrotown mall in Burnaby, 27 suspected shoplifters are now facing charges. (Twitter/Burnaby RCMP)
RCMP arrest 46 people in 4 days during Metrotown shoplifting crackdown

A total of $4,800 of stolen property was recovered and returned to businesses inside the mall

Maple Ridge's Doug Ubell caught some photographs recently that he was anxious to share, one taken while on the Trans-Canada Trail looking southwest towards the Pitt River Bridge, and another from on Golden Ears Bridge. (Special to The News)
Traffic on Golden Ears Bridge returning to pre-pandemic levels

Commuters from Greater Vancouver still driving more, taking transit less

Sheila Malcolmson, B.C.’s minister of mental health and addictions (Screen shot)
Minister of mental health tells Surrey audience COVID-19 ‘has made everything worse’

More than 23,000 people in B.C. are receiving medication to treat opioid addiction

Facebook screenshot of the sea lion on Holberg Road. (Greg Clarke Facebook video)
VIDEO: Sea lion randomly spotted on remote B.C. logging road

Greg Clarke was driving home on the Holberg Road April 12, when he saw a large sea lion.

Defence counsel for the accused entered two not guilty pleas by phone to Grand Forks Provincial Court Tuesday, Jan. 12. File photo
B.C. seafood company owner fined $25K for eating receipt, obstructing DFO inspection

Richmond company Tenshi Seafood is facing $75,000 in fines as decided March 4 by a provincial court judge

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read