Regulatory cooperation to reduce costs and facilitate trade is more important now than ever

Business is not back to normal. Food Health and Consumer Products of Canada’s members manufacturer and distribute the vast majority of everyday essential products found in every refrigerator, pantry, cupboard and medicine cabinet in Canada. From the cross-border blockades to the BC floods to the impact of Omicron to chronic labour shortages, our members have faced unprecedented challenges to ensure that Canadians have access to essential everyday products.

With Canada’s inflation rate now at a 30-year high, it is not surprising that cost pressures are a huge challenge, posing risks to food security. FHCP members have told us that overall costs have increased by 17%, where raw materials for food companies increased up to 80%. The costs of paper and plastic packaging components have increased 15-50% and 43% respectively. Labor costs alone have increased by 16% where over 60% of members are operating with a 25% reduced production.

The need to reinforce resilient essential domestic and cross-border supply chains remains an important priority for the government. Moreover, the Russian invasion of Ukraine has caused a re-think of globalization and shift towards building a domestic and regional capacity and economic test with countries that are trusted and respected.

This is why now, more than ever, any measure to improve regulatory cooperation to reduce regulatory barriers to trade. Throughout this platform numerous examples are highlighted to eliminating unnecessary duplication, minimizing costs and expediting product access without compromising safety. Departments should work to investigate and expedite all of these measures to assist with Canada’s post-pandemic recovery.