Background

Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) have been working with the organic industry to assess the need and develop options for a mandatory organic regulation. The CFIA is evaluating options where it would oversee a regime which ensures a consistent compliance plan for the production, export, import, handling, and management practices for organic products.

The federal government and the Canadian organic industry have been working since 1990 to develop a national standard for organic agriculture. In September 1995, AAFC drafted regulations for organic production and certification. However, since the organic industry did not reach a consensus, the regulations were not implemented.

In June 1999, the Standards Council of Canada (SCC) approved a national voluntary standard for organic agriculture (CAN/CGSB-32.310-99). Currently, the SCC has accredited two organizations to ISO 65 guidelines to certify that products comply with the national standard.

In March 2002, AAFC began sponsorship of a revision of the national standard, managed by the Canadian General Standards Board (CGSB). The national standard is being revised to facilitate market access and to respond to domestic concerns. A vote was held in October 2002, however, the revised national standard did not achieve industry consensus. The industry is currently amending the draft in preparation for a second ballot, planned for February 2004. Once adopted, this revised national standard will form the basis for regulation of organic claims in Canada.

Organic industry associations held information meetings across Canada during the winter of 2002-2003. Although this was not a formal consultation process, the chair of each meeting called for a vote to determine interest in establishing a mandatory national standard for organic agriculture. An overwhelming majority of participants voted in favor of establishing a mandatory standard and conformity system (regulation).

As a result AAFC and CFIA have commenced preparation of a Regulatory Proposal Assessment (RPA) which will provide the basis for decisions by the Minister of Agriculture and Agri-Food regarding regulation of organic claims in Canada. The RPA requires that open consultations be held to obtain input from stakeholders, including the general public. These consultations will be held across Canada.

Issue/Problem

Food quality/safety, consumer protection and market access are the three main issues that face the Canadian organic industry and indicate a possible need for regulation.

Food Quality - In the past ten years, consumers have been increasingly concerned about health and food quality/safety issues. Along with environmental issues, including those linked to conventional agricultural production, all the elements are in place to increase demand for organic products. However, consumers are confused by the current voluntary regime. Consumers have difficulty differentiating between organic and natural products.

Consumer Protection - Consumer demand for organic products in Canada has increased by about 15% per year for the past ten years. Enforcement of label claims is seen as the critical factor to assure consumers that products marked 'organic' are in compliance with a minimum standard. This may lead to confusion for consumers. Fraud may also be a concern, as products may be labeled 'organic' while, in fact, they are not. There are currently no mechanisms to enforce a minimum standard.

Market Access - The national standard of Canada for organic agriculture is currently voluntary. According to the Canadian organic industry, Voluntary standards cannot be enforced and may create a lack of consistency and uniformity in Canadian produced products. The voluntary nature of the Canadian regime has been questioned by the United States and the European Union (EU), who implemented their own mandatory organic standards. As well, voluntary standards may not be acceptable to other trading partners, such as Japan, China and others who currently have, or are developing regulations. Starting December 31st, 2005, the EU will require exporting countries to have a harmonized national standard and equivalency in conformity assessment. This likely means a regulated regime will be required.

Reasons for consultations

Government representatives from across Canada will meet with the Canadian organic industry and the public to provide them a venue to express their views. Support for regulation or the level of opposition will be judged throughout these consultations. Information will be gathered in order to develop a preferred national standard model. The information needed to complete the RPA is an analysis of the current situation/problem (health, safety, social, environmental issues), benefits, costs, and regulatory burden.

Public participation

Between January and April 2004, AAFC and the CFIA will coordinate consultation sessions across Canada to gather information required to complete the RPA. The public is invited to read the documents and to provide views.