They're the same, but if you look, there's “20 grams” on the nutritional facts table, and the lines are thicker on the NFT, but the CFIA won't allow me to sell that in Canada. I can't register that label, and it cost me tens of thousands of dollars. As a small business, that's hard to afford. One is actually registered. You might have a hard time telling which one is which, but one is registered in Canada and the other one is compliant for the U.S.
We were warned that the registration process would be long and complicated. For us, this was all too true. We entered the world of the CFIA, where, in our opinion, vague regulations turn into moving targets. I have a handout there as well that explains different interpretations they've had for the same regulation.
CFIA's response time is very slow, as it still relies on mail. Each version of our label had to be resubmitted on paper. We were only advised of its approval or rejection by the return of paperwork, which would specify in vague form what revisions were to be made. Verbal communication was frowned upon and was made worse by a turnaround time of more than 40 days for mail—again, a stark contrast to the FDA's fast and efficient system.
This is the label. One of my attempts was to take a Kraft label and say, “Well, this must be right.” That was the presumption I made. The CFIA took issue with my decision to include U.S. equivalents on our label, insisting that I would have to have two different versions of my own product. Likewise, this led to numerous resubmissions.
This is the Kraft label. I assumed the Kraft label to be correct. We used it as a guideline for our own label. When the paperwork returned after the 40-plus days, we discovered that the capital “T” on “tablespoon” made our label non-compliant. If you look closely at this label, you'll see it has a capital “T”.
The Kraft jam had the same capital “T”. I was infuriated and e-mailed to find out if Kraft had gone through the same registration ordeal that I was going through. I was surprised to learn that this required access to information protocol and would be unavailable to me. Is this Kraft label registered? I'd like to know, because they have mistakes on this.
I then started to look on the grocery store shelves and found massive non-compliance. I've brought some of these products; I have a lot of them here, but I have more. Many are multinational companies—Unilever, Kraft, Cadbury Schweppes—that should know better and have either slipped through the system or did not even bother with it.
Even more non-compliant are imported products that do not go through the registration process and appear to have had no scrutiny, which raises the issue of food safety. One importer in particular shows up as one of the largest importers of confectionery in Industry Canada's Canadian importers' database—I think that's a handout as well. To me, it shows that the system the CFIA has in place now is ineffective and inequitable as compared to domestic products such as ours.
I take some of the blame for not knowing what I was getting into, but I believe this is the plight of small business. We have to know everything. Meanwhile, a large corporation such as Kraft would have a person in the know, and probably a whole department. The system as it is structured now blindsides small business, local producers, and entrepreneurs who do not have access to the resources and expertise of the multinationals like Kraft. I could have brought many genuine local products that are non-compliant. Some businesses, I know, are unaware, and others can't afford the thousands of dollars in compliance costs.
The Canadian Federation of Independent Business surveyed its members recently. Its key findings were that, on average, an agribusiness spends 29 days and $19,000 per year to comply with CFIA regulations. Only one in five businesses believes the CFIA provides good overall service. The CFIA could significantly improve its communication with the small business community, especially with me. And complexity and compliance costs are increasing.
In closing, regardless of what decision you reach in regard to “Product of Canada”, the CFIA must take on a more proactive, facilitative, and lenient role in helping small businesses get their products to market. It is illogical, given such complicated regulations—I think you said those are in a pile “this high”, and I think I've read most of it—that the CFIA treats small business the same as a large corporation. The amount of $19,000 in compliance costs is minuscule to a company such as Kraft, but it's an enormous cost to the true producers of “Product of Canada”, local food that is created, distributed, and sold by small-town, rural Canadians. I believe, as illustrated in my story and accomplished by the United States FDA, that the CFIA can do that at less cost and with an increase in food safety.
I have a challenge for you. Our battle over the last year, as you can see by that label, has been to harmonize the American and Canadian labels. It is important to us because it would save our small business tens of thousands of dollars, and all this is over, basically, “20 grams”. Harmonization on a larger scale would save Canadians hundreds of millions of dollars.
We hear in the news almost daily where Canadians pay more than Americans for such things as automobiles and electronics. Sometimes, as in the case of Canadian farmers, they pay twice as much for their brand of fertilizers than in the U.S.
The price differences are extensive in the independent grocery system we are in. Heinz ketchup is close to twice the price in Canada as in the U.S. Like the farmers' fertilizer, it is not the cost but what the market will bear. Having different regulations, even minor differences, allows the American and Canadian markets to be price segregated.
The price differences can be proven. We recently made national headlines because one of our competitors, Wal-Mart, threatened to sue us for unfair competition for importing products like Heinz from the United States. The Competition Bureau explains this difference using economies of scale. This would work, except for where this bottle of Heinz ketchup is made. Does anyone have any idea where this is made? It's sold in the U.S., for half the price, and it's made in Canada: “Product of Canada”.
Label harmonization would end this price segregation, as it would fully open free trade to small businesses such as ourselves. The official opinion of the government on this is that it cannot happen because of significant differences. There are significant differences between some labels. I believe for other labels, such as those you have in front of you, the differences are insignificant, and I'd like you to look really closely to see what the differences are.
It is one of the goals of the CFIA to harmonize labels, but their approach appears to be that all the labels should harmonize or none of them should. This will never happen. The process needs to be gradual. One label would break the barrier. Pressure for further labels would ensue, and regulations would change and harmonize, one at a time.
If you look at the labels, you'll conclude that the USFDA has done its part. I believe, as politicians and being on this committee, you can make a difference.
This is my story and these are my concerns and ideas. I thank you again for involving me in your study, and I hope this opens up a discussion. I have ideas that I feel will make a difference.
Merci.
