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

Just Posted

Petition says pot-grow stench led to ‘Summer of Stink’

Province urged to ‘Stop the Smell’ in the Fraser Valley

TWITTER: Abbotsford’s school year begins

School district’s busy Twitter feed shows off early highlights

Stray cats hit by cars require $11,000 in medical care, says Abbotsford SPCA

Six injured cats have been brought to branch in last two weeks

Transfers out, tapping in as BC Transit eyes Abbotsford and Mission fare review

Agency looks to make it easier for riders to pay to ride next year

Community of Mt. Lehman holds annual fall fair

Event runs Saturday, Sept. 21 at Abbotsford hall and school

VIDEO: Trudeau asks Canada to look to current, not past, actions on race

Liberal leader says he never spoke about the racist photo because he was embarrassed

Horvat paces Canucks to 6-1 pre-season win over Oilers

Vancouver improves to 3-1 in NHL exhibition action

Legislature gifts, clothing, travel need better control, B.C. auditor says

Audit follows suspensions of managers by Speaker Darryl Plecas

‘Unacceptable’: What politicians have to say about Trudeau in blackface

Calgary Mayor Naheed Nenshi: ‘When I saw that picture last night, certainly it was a sucker-punch’

‘He’s trying to kill me’: Victoria police commandeer boats to reach screaming woman

No charges laid and civilians to be awarded honours after incident on Gorge Waterway

VIDEO: B.C. man accused of assaulting sex worker loses temper in interrogation

Defence lawyer says statements made by accused Curtis Sagmoen should be deemed inadmissible

John Horgan promises action after fatal mid-Island bus crash

Premier cites students, local Indigneous community as reason to repair the road

Police warn of escalating violence, weapons in Vancouver’s Oppenheimer Park

Officers issue statement about high crime in the area that includes a homeless camp

Teens charged in stabbing death of B.C. man in strip mall parking lot

Two youths, aged 15 and 16, charged in Aug. 16 killing of South Surrey’s Paul Prestbakmo

Most Read