RAAWG Meeting Materials April 10 2025

P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com PFAC RAAWG Agenda April 10, 2025 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. No updates Updates, Trends, CFIA and Other Gov Notices (Chris) 3. Overview of bi-monthly call with CFIA (From April 3) 4. Tariff updates from April 2 5. Report on Export Committee work / objectives 6. CFIA – Industry Workshop format and planning a. Registration #s b. Approach to workshop / Questions c. Other speakers Member Submitted Items 7. New Procedures for importation of pet foods from Thailand Section 6 (Janice) Other 8. Next meeting and 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 petfood@pfac.com PFAC RAAWG Meeting Minutes January 15, 2025 Virtual by MS Teams 1 – 2:30pm Eastern time Agenda items 1. Welcome & PFAC Anti-trust statement Mr. Nash welcomed the group, which was around 20 people, and provided a verbal overview of the anti-trust policy. All agreed, so the meeting proceeded. 2. Overview of bi-monthly call with CFIA Mr. Nash provided an overview of the bi-monthly call with CFIA, held January 14. Ms. Zamora Grepe also attended the call as RAAWG chair. His update included the FMD outbreak in Germany, a brief overview of the CFIA-Industry workshop being planned for May 14 th , as well as the France vaccine evaluation results, which were still pending. Ms. Zamora Grepe also added that CFIA is cataloguing raw pet food exports in case there is a case of illness, in response to the HPAI infected food that impacted a cat out west. Mr. Nash also mentioned that Thailand issues were discussed with CFIA, as well as the new changes to US imports, which he talked about in more detail later in the call. 3. SRM definitions / risk assessment work Mr. Nash provided a brief background of the CFIA work to review the risk of harmonizing SRM definitions for animal feed with the US. He mentioned that the risk assessment, done by a 3 rd party, was completed, and sent for expert review. The CFIA is now reviewing the comments from experts and holding regular calls with industry as the results are confirmed. Discussions with industry will be around whether the risk is favourable or not. The largest risk to industry would be export markets not accepting any changes to Canada’s SRM definitions. In the end, it will be up to industry to decide whether the risk is worth it, but also CFIA will have to work with export market countries to negotiate any changes. If it is decided to proceed, then it will take years to change existing regulations, so it will take some time before anything changes. PFAC will keep members posted. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com 4. Debrief from Minister Roundtable on US tariffs Mr. Nash provided a summary of what was discussed at the roundtable discussion with the Minister of Agriculture and senior CFIA and AAFC staff. The first part of the meeting was the Minister asking each industry representative what the major impacts would be to the s e c t o r. PFAC shared its concerns, which were similar to others. At this point, the message from government was that tariffs are coming, so prepare for them. The second part of the discussion was around what opportunities this might allow, and one is that China will also be impacted by tariffs at a high level and may be looking to fix and improve economic relations with Canada. The bottom line is that nobody really knows what will happen until January 20 th , and the coming weeks. The premiers (except Alberta’s Smith, who chose to be absent) met with PM Trudeau this week to discuss options and band together in a Team Canada approach. The government is taking this very seriously at all levels and will work with industry to share information and intel. 5. Updates from CFIA / Government Mr. Nash shared recent updates and notices from CFIA and other government. The Market Access Secretariat shared an email that China customs (GACC) now have a digital system where exporters information is stored. He also mentioned that PM Trudeau resigned and prorogued parliament and will only remain as PM until the leadership race for the Liberal party is complete. At this point it doesn’t appear that there are many candidates but seems like Mark Carney and Chrystia Freeland could enter the race. That said, when parliament returns, it is very likely that there will be a vote of non-confidence which will trigger an election. Unless the new leader can negotiate some deal with NDP or Bloc, expect an election between April and June. M r. Nash also mentioned the US import changes in more detail. There was a robust discussion on this topic, with some disappointed that the CFIA did not consult with industry before implementing a change. The rationale behind the change was mentioned by some as being a way to create a paper link between the documents and shipment. There were several questions, such as, “what is driving this change?” and if we can revisit this with CFIA. It was decided that Mr. Nash would follow up with CFIA after their call Jan 16 with USDA and see if there is an opportunity for flexibility in where the health certificate number can go. He will also see if he can get clarity on the rationale for this. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com 6. Vietnam and other certificates Mr. Nash provided an update on several countries that CFIA is working with to develop certificates. These included Vietnam, which they are awaiting a final response, Morocco, Uzbekistan, and Kazakhstan, which they send proposal certificates to, and Moldova, which they are working on a proposal for. Members asked whether PFAC can get an idea of what the conditions are that being proposed and asked why these countries when there may be some of greater priority. M r. Nash will follow up with CFIA. 7. Thailand import issues Mr. Nash highlighted the fact that there have been quite a few issues that members are having with importing from Thailand, especially since the new changes have come into force. During the call with CFIA, it was clarified that nothing really has changed in the process, but documents have changed to be bilingual, and DLD is now responsible for sending the completed and signed Annex 1s to CFIA. This does not mean that importers don’t have to also collect and send the documents to CFIA through their import permit application process. It was also mentioned that any previous derogation on an import permit, would be valid until that permit expires, but also that anything allowed under a derogation will still be so, but allowed for all importers. CFIA has mentioned that DLD is having some issues with understanding the new process and has been slow to get some of the documents to CFIA. There was a question about the statement that said no new pet treats or dry pet food would be allowed from Thailand. Mr. Nash will follow up to see if that is temporary or forever. 8. CFIA workshop idea Mr. Nash gave an overview of how the CFIA – Industry workshop format would look. It would happen during the usual Dialogue Day and would focus on 3 parts. Part one would be an overview and explanation by CFIA about how they work with other departments to support trade for the pet food industry. Part two would be an open discussion about what is working, what is not, and how we can work better together. The last part will be a series of tables based on region, which will allow members to discuss issues directly with CFIA in those regions. There will also be a few other speakers after the morning session, like a typical Dialogue. Details will be shared shortly. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com Member Submitted Items 9. Ingredient Imports A member raised an issue with a particular USDA office was pushing for imported mixed ingredients that had always come on one import permit, to now use two import permits. After following up with CFIA, they agreed it wasn’t correct, but did not do much to push back. The group discussed, and some good ideas for resolving the situation arose, such as pushing for an answer out of CFIA headquarters or elevating the question with USDA. There was a suggestion to attend the USDA/APHIS meeting in Atlanta to discuss with them directly. Others suggested that the member reach out to PFI to see if they can have the discussion with USDA. Mr. Nash will follow up with the member and see what help PFAC can provide. Other 10. Next meeting and Adjournment The meeting was adjourned just before 2:30 pm, and Mr. Nash mentioned that he will look to hold the next meeting in March. P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com RAAWG Town Hall Meeting Materials 3. Overview of bi-monthly call with CFIA • This month’s call was focused on finalizing the planning for the workshop/Dialogue • CFIA is adding someone to talk about AIRS, but also the liaison between CFIA and CBSA, to also provide an overview of their role and work • We discussed what the PFAC export committee is working on, and will share that work with CFIA in the future if not at the workshop • We talked a little bit about the SRM harmonization work that is ongoing, and the changes to BSE surveillance, which as dropped in scale – they are reaching out to trading partners to gain acceptance of this • Dr. Aklil talked about the process for requesting a risk assessment for novel ingredients, specifically in this case cultivated meat – which is clarified in section 4 of the Import Policy Framework • She also mentioned that pet food is in the running for development of an e- certificate, and I reached out to the CFIA president to make our case for that 4. Tariff Updates a. The April 2 announcement by President Trump focused on reciprocal tariffs to most countries around the world b. Canada and Mexico were spared for any additional tariffs, but there still remains the auto and auto parts and steel and aluminum tariffs imposed by the US, as well as retaliatory tariffs in those same sectors by Canada c. The original retaliatory tariffs still remain from Canada as of March 4 on $30 billion in goods, and will stay in place until all tariffs are removed by the US d. Otherwise, outside of a few sectors, there are no tariffs on exported goods if the goods meet the CUSMA trade deal requirements e. I am attending a call with the Finance Department and will hopefully get confirmation and clarity on everything, since it is hard to keep track of it all 5. Report on Export Committee work and plan a. Review of export certificates i. Groups created, some meetings scheduled, and will continue with this work and update the master sheet; once completed, will share with CFIA team to see what they can do to improve or update certificates b. Identification of market access barriers / challenges i. Will continue to ask for feedback from members on market access barriers, challenges, and areas for support from CFIA/MAS/Trade commissioners to address and advance some of these issues P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com c. Exploration of funding opportunities i. Will review with PFAC board and possibly develop a project that will support export growth and diversification – details to follow. 6. CFIA – Industry Workshop update, format, and plan • Registration as of April 1 – 16 people • Workshop format: o Part 1 – Import/export overview from CFIA, including how they work, organizational structure, and how they work with other departments, foreign governments, and their process for doing so. There will also be an overview of the CFIA-CBSA link and how they work together, and an overview of AIRS by those specific people at CFIA  Questions: • Do you have a step built into your process to request feedback / consult with industry? • How can industry help support your work with foreign governments, negotiations, and growing exports? • Others? – To be developed during this RAAWG meeting o Part 2 – Open Discussion – This is where we can talk about ideas, opportunities to support each other, and improve how we work more collaboratively together. Chris will facilitate, and will share any questions in advance with CFIA, so they can prepare and not be blindsided.  Questions: • How can we help CFIA undertake their work in a more efficient, effective way? • How can CFIA help industry grow its exports? • How can we do both of the above working more collaboratively? • What is working? o We have a fairly strong relationship with CFIA, and when we have questions, your team responds quickly, and with good information. • What is not working? o Industry feels there is a lack of consultation, and no formal process to ask industry for feedback prior to P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com either negotiating with a foreign government, or before notifying of a policy change. o We feel that it would be better to work together, and ask industry for their input as part of your process, so that you get the right information and impacts up front on any potential decisions you need to make o Part 3 – Regional Roundtable Discussions – Break up group into different tables and rotate every 20 minutes. Each table should include a CFIA rep, and/or a MAS regional specialist  Tables: • Americas (North, South, Central) • Europe, Middle East, Africa • Asia and Oceania • Imports from US • Imports from Elsewhere o Part 4 – Additional speakers  CFIA digitization plan – e-certificates  Political overview – GR firm rep  Trade commissioner support/services + CanExport funding P.O. Box 238 | Carleton Place ON, Canada | K7C 3P4 www.pfac.com (416) 447-9970 petfood@pfac.com PFAC RAAWG Agenda Item Request Sheet Please fill out the table below if you would like your item to be on the agenda of the next RAAWG meeting: Issue/topic to add to the agenda New Procedures for importation of pet foods from Thailand Section 6 Is this company specific or industry wide? If company specific, does it have the potential to become industry wide? Industry wide Why do you want to share this? (Info sharing, seeking input, advancement, other?) There is a need for further clarification on ingredient conditions Are you able to provide background information, examples, details and present this to the group? If not – see below row Yes – particularly around CFIA’s interpretation or definition of a digest vs a hydrolyzed poultry protein. If you prefer to remain anonymous, then Chris can present the issue BUT you MUST provide enough background information, details, examples etc. How much time do you need to present the item? 20 minutes maximum 5 – 10 minutes Any other information you would like to provide? If I’m the only one getting caught up in this, I can let it go and deal with it directly (as I’ve tried to do...) Please save this document with issue and date of the meeting in the file name and submit to Chris by email at cnash@pfac.com