Amid increasing global trade tensions, 88% of Canadian agri-businesses are urging the country to strengthen trade relations with nations outside of China and the U.S., according to new data from the Canadian Federation of Independent Business (CFIB). This comes as escalating trade disputes are hitting the agricultural sector harder than anticipated.
China’s retaliatory tariffs on Canadian agricultural and seafood products have had a significant impact, with nearly one-third (36%) of Canadian agricultural businesses feeling the strain. Approximately one in four (23%) businesses report taking a direct financial hit from the tariffs. The situation has prompted calls for more robust support from the government and a push for diversifying export markets.
“While much of the focus has been on the U.S. tariff battle, Canadian agri-businesses have been even more deeply harmed by China’s tariffs on canola oil, canola meal, peas, pork, fish, and seafood products,” said Juliette Nicolaÿ, bilingual policy analyst at CFIB. “These producers need greater attention and support.”
Despite the challenges, many agri-businesses are taking steps to mitigate the impact of the tariffs. However, only 10% of these businesses feel that government efforts to support affected firms have been sufficient. This gap in support has prompted CFIB to call on the federal government to take urgent action, urging a reduction in the tax and regulatory burden on the agriculture sector and to enhance support programs to address the current challenges.
“Both the U.S. and China represent significant markets for agri-businesses. Together, these two countries account for more than half of Canada’s canola exports, and China is Canada’s second-largest fish and seafood export market,” said Jasmin Guénette, CFIB’s Vice-President of National Affairs. “The disruptions caused by these trade tensions threaten to leave Canadian agri-businesses with unsold inventory, and some are already losing foreign buyers.”
CFIB is calling on the Canadian government to provide clarity on how agri-businesses can navigate these disruptions and plan for the future. By strengthening trade ties with other countries and adopting policies that improve the business climate, Canada can help its agriculture industry weather these turbulent times and ensure its long-term success in global markets.
