RAAWG Town Hall Meeting September 2024

P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] PFAC RAAWG Agenda September 18, 2024 Virtual by MS Teams 1 – 2:30pm Eastern time Agenda items 1. Welcome & PFAC Anti-trust statement (Chris) Sub-group Reports + Updates (Sub-group leads) 2. Plastics - registry 3. In-Transit to Mexico 4. TRACES Import Updates, Trends, CFIA and Other Gov Notices (Chris) 5. Overview of bi-monthly call with CFIA a. Vietnam certificate b. China c. Bovine meal/materials d. PDF Fillable forms e. CFIA – Industry workshop idea - 2025 6. Health Canada pre-market authorization of food packaging materials 7. ECCC – CEPA notice – PFAS and State of PFAS report 8. CUSMA Review Consultation 9. FDA and AAFCO MOU 10. Vietnam certificate negotiation 11. CN / CPKC Rail Strike Member Submitted Items 12. ? Other 13. Other business / issues a. Any issues with Thailand imports? 14. Next meeting 15. Adjournment PET FOOD ASSOCIATION OF CANADA COMPLIANCE POLICY: COMPETITION ACT It is the unqualified policy of the Pet Food Association of Canada to comply fully with the Competition Act (Canada). This policy prohibits any discussions that constitute or imply an agreement or understanding concerning the following or any other provision of The Competition Act: 1) Prices, discounts, or terms or conditions of sale; 2) Profits or profit margins or cost data; 3) Market shares, sales territories or markets; 4) Allocation of customers or territories; 5) Selection, rejection or termination of customers or suppliers; 6) Restricting the territory or markets in which a company may resell products; 7) restriction of the customers to whom a company may sell; or 8) any matter which is inconsistent with the proposition that each manufacturer, wholesaler and distributor must exercise its independent business judgment in pricing its services or products, dealing with its customers and suppliers and choosing markets in which it will compete. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] Plastics Sub-Group Meeting Minutes Present: Chris Nash, Janice Baker, L aurie Ross, Epsa Sharma June 28, 2024 The group met to discuss issues around ECCC Plastics policy: • The first meeting focused on the plastics registry • The concerns are that some of the information isn’t under the ownership of the brand owner to be able to provide to ECCC • There is also a concern about possible reporting of proprietary information on some plastic packaging • The timelines have been problematic, as companies are supposed to be reporting on 2024 by September 2025, but there is no guide currently to describe what to report – this is coming out sometime soon apparently • ECCC’s plan exceeds current EPR programs, and duplicates info collection, but it is also not clear what their expectations are for year 1, or what the end goal of the data is Solution/Actions: • The group recommends continuing to monitor the situation, and review the guide once it is released, as well as comment as necessary on the guide at that time • PFAC Members can also identify any issues in collection of the data, and we can comment to ECCC on that • Chris will contact the official opposition shadow minister for environment to try to figure out what their position would be, if they become the new government in 2025 • Now that PFAC is a member of the Canada Plastics Pact, we will also monitor their action and feedback on the registry and other areas • It was discussed briefly that the court case which stalled the government’s initial proposed regulations has gone through the appeal process, with a decision expected by the fall, and rumours are that ECCC has everything ready to go to push the draft regulations through Canada Gazette 1, and 2 and receive royal ascent as soon as possible. We will also monitor this, as the election cycle in 2025 makes this a very tight timeframe, if the appeal wins P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] In-Transit to Mexico Sub-Group Meeting Minutes Present: Chris Nash, L aurie Ross, Mary Ann Zamora Grepe June 28, 2024 The group met to discuss issues around transiting the US to Mexico, or from Mexico to Canada: • Chris and Mary Ann met with CFIA earlier, and at that meeting, they said that they had spoken to their USDA counterparts, and were told that there is no issue in transiting to Mexico from Canada through the US, if the product meets US requirements • Upon follow up with USDA, they said that was not true, and that product transiting the US first has to be imported, and then exported to Mexico from the US • The group discussed that this issue is present in both directions • The meat industry for example can transit the US to Mexico as long as they meet the US requirements and the product is in a sealed container/truck. Solution/Actions: • The group recommends following up with CFIA so that they can follow up with their counterparts at USDA to inform them that there doesn’t appear to be an aligned position on Canadian goods having to be imported into the US when goods are transiting through US between Canada and Mexico. CFIA could also ask USDA why meat can transit through the US to Mexico without issue, when heat treated pet food is lower risk. • When transiting from Canada to Mexico via the US, we do not understand why a full import would need to be done, as long as the product meets US requirements and the truck is sealed, with appropriate CFIA attestations • Pet food transiting through the US to Canada from Mexico is more challenging because the US requires a US import permit for pet food from Mexico. Not all companies can get an import permit to transit through the US, and if they can, the process is time consuming and SADER will only endorse US BSE questionnaires once per year so it can be difficult to import new products in a timely way. There are also other US requirements to consider (NOAA) which are not related to health, but rather to fishing practices. We believe that with a declaration that the product will not remain in the US, we could get an exemption from NOAA requirements but that has not yet been tested. • As part of the follow up, we will also ask if the same applies to transit through the US from Canada to Canada, which is necessary or less expensive in some cases P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] TRACES Sub-Group Meeting Minutes Present: Chris Nash, Janice Baker, Mary Ann Zamora Grepe June 26, 2024 The group met to discuss issues happening with TRACES for imports. • It has been reported that there are issues with France especially in getting export certificates to Canada for ingredients or other products (France is the only problematic country currently) • The problem was that in some cases, the vet in France couldn’t issue digital certificates if the company isn’t in TRACES, but also wouldn’t continue to issue paper certificates • Part of the problem could be companies that used to export to EU, but don’t anymore, are removed from TRACES as an exporter from Canada, but may still show up in the system, but aren’t validated, and CFIA cannot do that for imports, and the EU side also won’t do it • It appears to be a disconnect between CFIA and EU/France and mostly administrative issues causing problems Solution/Actions: • The group will follow up with CFIA to remind them about the issues • CFIA has written a formal letter to the CVO of France to discuss in a technical meeting • Chris will reach out to all members to as if there are any other TRACES issues either with importing or exporting and provide those to CFIA prior to their meetings P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] Updates, Trends, CFIA and Other Gov Notices 5. Bi-monthly call with CFIA • Chris and Mary Ann met virtually with Dr. Aklil and Dr. Haddou on September 5 th . • The following were items discussed, and updates provided: o Vietnam certificate – the CFIA has been negotiating a certificate, and have received conditions that are favourable for Canadian exporters. They are close to finalizing, and are still seeking companies interested. It is important that if you want to ship to Vietnam now or in the future, you should provide them with the info they seek, so you can be placed on the approved establishment list. o China – there are no further updates on China from CFIA, but I have heard that the WTO dispute idea is with Minister Ng for decision. This is of course further complicated by the tariffs on Chinese EVs, and China’s response against canola, so the decision will not be as straightforward on the pet food WTO challenge. CFIA did mention that a Chinese official is attending the ASF forum in Ottawa in September. o In-Transit through USA to Mexico – There seems to be a misinterpretation or miscommunication between CFIA and USDA on this. The CFIA assured us that it is possible to transit to Mexico as long as the product meets US requirements and has 2 certificates, and no need for an import permit – saying they are hearing this from their USDA contacts, while members are saying that other USDA contacts says that its not possible and the same as always. CFIA will follow up again to clarify. o TRACES – Import – Dr. Aklil is heading to the EU, and France specifically the week of September 9, to review the French’s HPAI vaccine protocols, but will also raise the issue that some French vets are requiring importers to be within the TRACES system. It seems to be an issue with only a few vets, who may be sub-contracted by the official authority, and having a misinterpretation. CFIA will review in person in France in the next couple weeks and keep us posted. o Bovine Meal / SRM Definitions / Negligible status – The CFIA has undertaken a risk assessment using a 3 rd party for the SRM definitions between US and Canada, and if harmonizing the definitions will lead to increased risk. This is the bottleneck that is not allowing negligible risk status for BSE to be recognized in the US, and if solved will allow Canadian and US bovine meat and bone meal to be used in product shipped to US/Canada. It is unknown when this report will be finalized – it has taken a while, and there have been 8 drafts, but it has not yet been shared with the CFIA. At the same time, Mexico has approved use of Canadian bovine materials in Canadian pet food exported to Mexico, the issue of course being that it is still not possible to transit the US, and going by air or sea is cost prohibitive. o PDF fillable forms – It was asked whether fillable PDF forms would be possible again, and the CFIA said no, it was too difficult to update them to fillable forms when required, so the current method will be maintained. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] a. CFIA – industry workshop • This is an idea that was proposed to the Board of Directors on Sept 10 • It is based on a USDA/APHIS – Industry Dialogue that happens each year at the IPPE meeting in Atlanta • The concept is to hear from CFIA on how they support the pet food industry on trade, import and export, and who they work with across the various departments • There would be presentations from CFIA, industry, and a discussion on how we can both better support each other, as well as several region specific tables where people could rotate and raise issues with CFIA and have smaller group discussions on specific regions 6. Health Canada Pre-market authorization of food packaging materials • Possible upcoming policy change – no current information available except for having heard it at other meetings that it may be happening, and that pet food packaging is NOT included in food packaging from Health Canada’s perspective 7. ECCC – CEPA notice – PFAS and State of PFAS report • Section 71 Notice - PFAS • In Canada Gazette • Should PFAC provide comment on PFAS in food packaging? ECCC sees pet food packaging included in food packaging, but Health Canada does not consider pet food packaging in food packaging (see #6). Clarification was asked by ECCC to get a better understanding of where pet food packaging fits into this and whether our industry would be subject to information sharing • In a question to ECCC, it was asked whether pet food packaging is included in their definition of food packaging, but they did not provide a clear answer, and say it is up to the producer to decide if they fall under the requirements for the notice. It is not clear however if pet food packaging does, because in the notice, 2 (2) c v, it says this: ...that is food packaging material, including single-serve/disposable bowls, plates, cups, other serving-ware, as well as food cans and lid liners, that are intended to or may come into direct contact with food or beverage, - whereby pet food packaging does not come into contact with food for humans, which I believe is the intent, but on the other hand, ECCC could view it as potentially getting into the environment, so it could be in scope. 8. CUSMA Review Consultation • There will be a joint CUSMA review by Canada, Mexico and the USA in 2026 • Ahead of this review, the government is asking for feedback from industry on what works, what doesn’t and any other considerations • Comments are due by October 31, 2024 P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 [email protected] • Review documents 9. FDA and AAFCO MOU changes • A message went out to PFAC members about this, and about the feedback that FDA is asking for – comments were only open for 30 days. • There will be an industry listening session in November. PFAC will join and recommend that members also join to hear what FDA is considering. • Documents released by FDA 10. CN / CPKC Rail Strike – Air Canada pilots strike • The impending rail strike was a roller coaster of a week, but in the end, the federal government, via the Canadian Industrial Relations Board ordered employees back to work and the union and railways to binding arbitration, as it felt ultimately that a strike would be too great a burden and impact on the economy. • Air Canada pilots were also planning to strike, but this has been averted at the last minute with a tentative deal reached.