Being a well-developed market with a high purchasing power of the population, Canada presents an array an opportunities for foreign exports, namely the U.S. Within this framework, agricultural exports reflect a considerable part of the overall trade. Canada remains the U.S.’s second-largest partner in this regard, and the relations are supported by favorable agreements between the nations. This report evaluates Canada as an agricultural export destination with an emphasis on nuts and pistachios, in particular.
The process of agricultural export into Canada is well-regulated, which promotes the safety and transparency of trade relations. According to the U.S. International Trade Administration, Canada accounts for 15% of the country’s total agricultural exports with $22 billion, most of which are consumer-oriented. Through this exchange, Canada receives high-value products for its population, whereas the U.S. support over 130,000 jobs. Since 1989, most American agricultural products have entered Canada duty-free under the NAFTA and U.S.-Canada Free Trade Agreement, currently replaced by the USMCA. Supply-managed products, such as dairy and eggs, are not covered by the agreement, which still implies that pistachio export will benefit from duty-free relations. As per the agreement, all shipments are required to have a USMCA Certification of Origin in addition to the standard export documentation package (Government of Canada). For the consumer’s safety, Canada requests all exporters to provide a Phytosanitary Certificate for plant products. They officially confirmed that they are pest-free, conforming with the importer’s sanitary requirements, and have been inspected by the authorized agency of the United States (Government of Canada). This way, the overall safety of agricultural exports is ensured.Because of the favorable trade environment, the export turnover between the United States and Canada has been considerable. Within it, nuts trade has been important, as conditioned by the climatic differences. Table 1 reflects the dynamics of the agricultural product and nut export to Canada. Table 2 contains the history of pistachio import in Canada.
Table 1. U.S.-Canada Exports History (Statista Research Department)
Table 2. Pistachio Import in Canada in 1,000 Metric Tons (Trenda)
Overall, Canada remains one of the leading trade partners of the United States, as conditioned by the geographical proximity of the countries, as well as their policy alignment. These relations are well-regulated by a history of mutually beneficial agreements that alleviate bureaucratic barriers, while supporting the safety and transparency of the trade. Pistachio exports into Canada wield an increased potential in this regard, as long as the sanitary requirements are respected.
Works Cited
9.3.1 Export Documentation. Government of Canada, 2005. Web.
Canada – Country Commercial Guide. U.S. Trade Administration, 2021. Web.
Foreign Agricultural Service. “Tree Nuts 2020 Export Highlights”. Web.
Phytosanitary certificates for plant exports. Government of Canada, 2020. Web.
Statista Research Department. “Value of U.S. Agricultural Exports to Canada from 2000 to 2020”. Web.
Trenda, Eloise. “Volume of Pistachios Imported to Canada 2010-2019”. Web.