The New
CANADIAN
ORGANIC
REGULATIONS
and The Case for Equivalency
By Katherine DiMatteo and Matthew Holmes
June 30, 2009 marks a big day for Canada—and all the organic companies that do business with
Canada. On this day, Canada’s new organic regulations become official.
Currently, the United States supplies roughly 80 percent of Canada’s organic produce, and
almost 90 percent of its organic grocery products, making it the United States’ largest and
most important trading partner in the organic industry. Worldwide, Canada is also a
major player, ranking as the fifth largest agricultural importer and the fourth largest
agricultural exporter, supplying a major share of the world’s grains.
With this said, the introduction of a new mandatory standard for organic prod-
ucts and marketing has raised serious questions about the impact this may have
on international trade of organic products, in particular, bilateral trade be-
tween the United States and Canada. To help companies prepare for these
changes, we have outlined the key features of the new regulations, in-
cluding the similarities and differences that exist between the U.S. and
Canadian programs.
Looking at trade from a broader viewpoint, the important issue of
“equivalency,” which allows countries to accept each other’s organic
seals interchangeably, is also brought to the table. A U.S.-Canadian
equivalency agreement on organic products would be a first in world
trade. This agreement, which is currently being discussed by the two
countries, would not only significantly open up trade between Canada and
the United States, but it would also set a precedent for trade throughout the entire
international organic community.
MARCH — APRIL 2009
