Grainswest - Fall 2025

Fall 2025 grainswest.com 23 his team have negotiated on the trade front to date. With Bill C-202, which automatically exempts supply management from any trade discussions whatsoever, Harvey doesn’t hold back. “We opposed it from the beginning because we thought it was absolutely terrible trade policy for Canada. So now, we’re very disappointed that the government decided to adopt a terrible trade policy for Canada,” said Harvey. “When you take things off the table, other countries will take things off the table, and we also think that it undermines our reputation as a free trading nation. When we carve out big sectors of the economy, we’re not interested in the rules- based system.” Another large farm lobby, the Grain Growers of Canada, was equally critical when the legislation came to pass. “Despite the government’s stated commitment to expanding trade, Bill C-202 ties the hands of our negotiators at a critical time,” said Kyle Larkin, executive director of GGC. “It passed without consultation or debate—a deeply flawed process that ignored the farmers it most affects.” Harvey said all that can be done now is to move forward and concentrate on freer trade and continue to try and adhere to a more rules-based international environment. He is convinced consumers will eventually tire of the constant tariff cat-and-mouse games, that should disproportionately affect American citizens, who will want more normalcy in their daily lives. How long that may take is anyone’s guess. “I think we’ll get back there, but we’re going through a phase right now where some of the biggest economies of the world are looking at things through another lens and that’s deeply unfortunate,” he said. For those, though, who think a non-existent Canada–U.S. trade relationship is possible, Harvey dismisses the idea almost before the question is out. “Reality check; the United States is by far our most important market, and it’s next door,” he said bluntly. “We’ve got tremendous competitive advantages so you can’t make up for it through diversification, but diversification is a good in and of itself. There’s some big growth in the markets in places like the Indo-Pacific where there’s both population growth and the population is getting wealthier. There are very good things to do in other markets, but there’s no way that you can diversify away from the most important market.” Upcoming mid-term elections along with virtually guaranteed inflation and higher food costs for Americans are likely to temper both the rhetoric and action of Trump’s tariff gambit. “I’ve got a certain amount of confidence that over time [the Trump administration] will come to realize that was a poor policy for them,” said Harvey. “I wouldn’t assume that any decisions that were made on tariffs were permanent in nature. The geographic realities of our two countries being next to each other and working together are more important than short-term political issues.” The CUSMA agreement will be reviewed in July 2026. Any potential changes to the agreement and when they would come into effect would be subject to negotiation. ELIMINATION OF LOCAL BARRIERS One idea bandied about is that Canada could stimulate its economy with elimination of interprovincial trade barriers, long panned by multiple industries. Impediments are found at various stages of the agricultural supply chain; B.C. wine to Alberta being but one example. Provinces have varied trucking regulations in areas such as weight restrictions and safety requirements. With supply management, borders can be shut overnight to restrict movement as they limit production and set prices. On the whole, these can limit Canada’s own domestic economic growth, cost the country billions of dollars and ultimately hinder growth, innovation and productivity. For consumers, it can be most easily seen in the form of reduced choice of goods, products and services. The Canadian Free Trade Agreement has been in place for more than eight years, but it gives provinces considerable “Reality check; the United States is by far our most important market, and it’s next door.” —Michael Harvey