As part of its regulatory reform process, the Canadian government is exploring how to best streamline a unified service provider to deliver arbitration of fair trade practices connected to fresh fruit and vegetable dealers. Western Growers has submitted comments stating that the Dispute Resolution Corporation (DRC) is best suited to oversee these fair trading practices.
In reference to the submitted comments, Western Growers Executive Vice President Matt McInerney pointed out that since 2000, the DRC has a proven track record and the necessary experience to deal with fair trade practices. Further he said WG’s comments expressed that since the majority of Canadian, and a significant number of U.S. fresh fruit and vegetable dealers are already DRC members, it is the obvious entity to carry out this function.
McInerney also said that Western Growers seized this opportunity to call on the Canadian government to implement a trust type provision, similar to the USDA-PACA Trust, when there is a default of payment from the buyer of fresh produce commodities. “From a reciprocity perspective, it makes sense that implementation of an equivalent financial risk mitigation provision should be instituted by Canada in order to promote greater trade and protection between our two countries,” he stated. “Canadian exporters enjoy the protection of the PACA Trust when selling to U.S. buyers, while U.S. shippers are not afforded any type of protection and that needs to change.”
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