Ottawa-An attempt by a group of Senators to modify a bill to create a deemed trust for Canadian fruit and vegetable growers selling produce to American buyers has finally been rejected the Senate, which passed the bill already approved by the Commons.

The outcome thrilled the Fruit and Vegetable Growers of Canada (FVGC), the Canadian Produce Marketing Association (CPMA) and the Fruit and Vegetable Dispute Resolution Corporation (DRC) that have been trying to get the bill passed without changes introduced by a small group of Senators.

CPMA President Ron Lemaire said the bill’s passage culminated “decades of advocacy by organizations and industry members across the fresh produce supply chain and in the broader agriculture sector. We are grateful to all who have supported this work over the years, and greatly appreciative of the efforts of Bill C-280’s sponsors and Parliamentary champions in moving this important legislation forward.”

FVGC Executive Director Massimo Bergamini said “From the farm to the dinner plate, fresh produce sellers make significant contributions to local economies across the country and provide Canadians with safe, nutritious fruit and vegetable products. The establishment of a deemed trust for all fresh produce sellers will strengthen food security in Canada and help ensure that our sector can continue to fulfill its important roles.”

DRC President and CEO, Luc Mougeot said the positive impact of the bill’s passage “on the highly integrated fresh produce industry cannot be overstated. The lack of a financial protection mechanism in Canada has been a pain point in our trading relationship with the United States for many years. We look forward to working with our U.S. counterparts to put in place reciprocal protection and provide stability for produce sellers on both sides of the border.”

In addition to its impact on domestic produce sales, the lack of a financial protection mechanism for fresh produce sellers in Canada has meant that Canadian sellers have been unable to utilize the preferential treatment they previously enjoyed under the U.S. Perishable Agricultural Commodities Act (PACA). Instead, Canadians selling fresh produce to our biggest trading partner had to pay double the bond on the shipment to access the PACA dispute resolution mechanism – a cost that is simply untenable for many Canadian businesses. The establishment of financial protection under the now paves the way for the U.S. Department of Agriculture to restore Canadian produce sellers’ preferential access under PACA.

The bill was presented to the Commons by York-Simcoe Conservative MP Scot Davidson to provide Canadian produce sellers with the deemed trust that will help secure payment in the event of U.S. buyer bankruptcy, providing stability and support to the industry while safeguarding Canadian food security. The bill was steered through the Senate by Senator Michael MacDonald.

This news report prepared for National Newswatch