Government of Canada Releases Federal Budget 2023

On March 28^th, the Government of Canada released its 2023 Federal Budget titled Budget 2023—A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future. TACTIX, GCCA’s Canadian Government Affairs Partner has identified several items included in the budget that are relevant to the cold chain industry.  Below are excerpts of selected provisions in the 2023 Budget impacting the food supply chain:

·         To continue making progress on strengthening internal trade in 2023, including efforts to eliminate exemptions to the Canadian Free Trade Agreement, the government, led by the Minister of Intergovernmental Affairs, Infrastructure and Communities, will lead and advance federal, provincial, and territorial efforts to explore mutual recognition of regulatory standards, which will ensure goods and services are able to move more freely.

·         This includes the development of a Federal Framework on Mutual Recognition, which will set out the federal government’s coordinated policy approach towards mutual recognition, helping to advance engagement with provincial and territorial partners.

·         These critical steps to strengthen internal trade in Canada will be discussed at federal, provincial, and territorial meetings in 2023, in order to establish a clear roadmap to reach an agreement in a timely way that has quantifiable and verifiable targets.

·         To further strengthen Canada’s transportation systems and supply chain infrastructure, Budget 2023 proposes to:

o    Provide $27.2 million over five years, starting in 2023-24, to Transport Canada to establish a Transportation Supply Chain Office to work with industry and other orders of government to respond to disruptions and better coordinate action to increase the capacity, efficiency, and reliability of Canada’s transportation supply chain infrastructure;

o    Collaborate with industry, provinces, territories, and Indigenous Peoples to develop a long-term roadmap for Canada’s transportation infrastructure to better plan and coordinate investments required to support future trade growth;

o    Provide $25 million over five years, starting in 2023-24, to Transport Canada to work with Statistics Canada to develop transportation supply chain data that will help reduce congestion, make our supply chains more efficient, and inform future infrastructure planning. This measure will be advanced using existing Transport Canada resources;

o    Introduce amendments to the Canada Transportation Act to provide the Minister of Transport with the authority to compel data sharing by shippers accessing federally regulated transportation services;

o    Introduce amendments to the Canada Transportation Act for a temporary extension, on a pilot basis, of the interswitching limit in the prairie provinces to strengthen rail competition; and,

o    Launch a review of the Shipping Conferences Exemption Act to improve marine shipping competition.

 

·         Budget 2023 proposes to provide $57.5 million over five years, starting in 2023-24, with $5.6 million ongoing, to the Canadian Food Inspection Agency to establish a Foot and Mouth Disease (FMD) vaccine bank for Canada, and to develop FMD response plans. The government will seek a cost-sharing arrangement with provinces and territories.

·         Similarly on page 151, it is note this will “reduce border closures and protect the livelihoods of livestock farmers in the event of an outbreak.”

 

Strengthening Data Sharing in Trade Corridors 

·         In Budget 2023, the government proposes to introduce legislative amendments to the Canada Transportation Act to provide the Minister of Transport with the authority to compel data sharing by shippers using federally regulated transportation services to improve the efficiency of existing transportation infrastructure.

 

Supporting Rail Competition  

·         In Budget 2023, the government proposes to introduce legislative amendments to the Canada Transportation Act to enable a temporary extension, on a pilot basis, of the interswitching limit in the prairie provinces. This would support competition among rail carriers by enabling rail companies to access tracks owned by another rail provider within the limit, under rates regulated by the Canadian Transportation Agency.

Strengthening internal trade

·         Eliminating exemptions to the Canadian Free Trade Agreement to create a mutual recognition of regulatory standards.

Strengthening Canada’s transportation systems and supply chain infrastructure

·         Increases in funding over five years to Transport Canada

·         Introducing amendments to the Canada Transportation Act

·         Launching a review of the Shipping Conferences Exemption Act

·         Strengthening Data Sharing in Trade Corridors (Page 249)

·         Supporting Rail Competition

Strengthening the Canadian Food Inspection Agency

·         Providing $57.5 million over five years, starting in 2023-24