The United States Department of Agriculture (USDA) announced today that it has indefinitely revoked, as of October 1, 2014, the preferential treatment status Canadian shippers have enjoyed under the Perishable Agricultural Commodities Act (PACA). The system, which allows Canadian exporters the same access to legal protections afforded to U.S. exporters, is a critical payment recovery tool for both U.S. and Canadian produce shippers who deal with highly perishable commodities. Without the preferred status, Canada is essentially treated the same as every other exporter who ships to the United States, an exceptionally big blow to the U.S.’s largest produce trading partner.
