Chicago, Illinois
June 17, 2009
Trade agreement will lead to
greater market opportunities, economic growth for organic
industry between two North American trading partners
Agriculture Deputy Secretary Kathleen Merrigan today announced
that a first-of-its-kind agreement has been reached between the
United States and Canada that will expand opportunities for
organic producers in both countries. The "equivalency agreement"
follows a review by both nations of the other's organic
certification program and a determination that products meeting
the standard in the United States can be sold as organic in
Canada, and vice versa. Merrigan made this announcement at the
All Things Organic Trade Show and Conference in Chicago this
morning.
"The production of organic foods is a vibrant growth opportunity
for American agriculture, and by agreeing on a common set of
organic principles with Canada, we are expanding market
opportunities for our producers to sell their products abroad,"
said Merrigan. "Today's agreement between the world's two
largest organic trading partners is an important first step
towards global harmonization of organic standards."
Under a determination of equivalence, producers and processors
that are certified to the National Organic Program (NOP)
standards by a U.S. Department of Agriculture accredited
certifying agent do not have to become certified to the Canada
Organic Product Regulation (COPR) standards in order for their
products to be represented as organic in Canada. Likewise,
Canadian organic products certified to COPR standards may be
sold or labeled in the United States as organically produced.
Both the USDA Organic seal and the Canada Organic Biologique
logo may be used on certified products from both countries. The
COPR goes into effect on June 30.
Canada is the largest U.S. trade partner and largest estimated
export market for U.S. organic products. USDA's Foreign
Agricultural Service office in Ottawa estimates that more than
80 percent of Canada's organic consumption comes from imports,
and approximately 75 percent of those imports come from the
United States. Organic produce and processed foods are estimated
to make up the majority of U.S. organic products exported to
Canada. Estimates of the total market for organic products in
Canada range from $2.1 to $2.6 billion; meanwhile sales of
organic products in the United States totaled $24.6 billion in
2008. Actual trade flows are difficult to track because the
United States has not developed international harmonized system
codes for organic products.
The two letters determining equivalence and Q & A's discussing
the details of these actions can be found on the NOP website,
under Today's News at
www.ams.usda.gov/nop.
Consumer demand for organic food has risen quickly over the past
ten years, triggered in part by the development and success of
USDA's organic regulatory program and label, according to a
recent study by USDA's Economic Research Service. As consumer
demand for organic products has widened, organic retail sales
have spread far beyond the 'natural products' market niche in
urban areas and college towns and into big-box stores across the
country.
Since the late 1990's, U.S. organic production has more than
doubled, but the consumer market has grown even faster. Organic
food sales have more than quintupled, increasing from $3.6
billion in 1997 to $24.6 billion in 2008. More than two-thirds
of U.S. consumers buy organic products at least occasionally,
and 28 percent buy organic products weekly, according to the
Organic Trade Association. |
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