Thanks, Chair.
I'm here to speak at the committee's request in relation to the catch certification office and the functions that DFO serves in that manner.
The Canadian seafood industry has undergone significant developments in the area of traceability over recent years. Much of this development has been largely driven by various market access requirements, many in the form of barriers to trade resulting from requirements of other countries. Other incentives that have led to developments in this area are purely consumer- and market-driven, such as eco-labelling.
The Department of Fisheries and Ocean's catch certification program is an example of how Canada has adapted to respond to ever‑evolving market access requirements, which require components of product traceability from Canadian seafood export products.
In 2009, the European Union introduced a new regulation that established market access measures as a means to prevent, deter and eliminate illegal, unreported and unregulated—or IUU—fishing. The first regulation of its kind, the EU IUU regulation, requires all exporting countries of fish and seafood product to provide, on a consignment basis, catch certificates that attest to the legality of the products as determined by the competent authority, which is the authority of the flag state that manages and enables harvest activities.
The EU's catch certification scheme is intended to improve the traceability of most fish and seafood products destined for EU markets, at all stages of the production chain. The catch certification program was created in 2010 to position the Canadian industry to be able to respond to international rules such as the EU IUU regulation, and to support Canada's role in preventing, deterring and eliminating IUU fishing.
Concern for the environment has translated into requirements for evidence, through product traceability along the entire value chain, that fish and seafood are caught legally and in an environmentally sustainable manner. The onus of this proof, with supporting evidence, is now on the exporting fish and seafood industry and the government departments that regulate and enable their activities.
DFO's catch certification program has, since 2010, responded to multiple other international requirements for catch certification, and they currently provide certification for exports destined to the EU, the United Kingdom, Ukraine, Japan and Chile. They are preparing for implementation of catch certification requirements for additional export markets.
It is important to note that industry participation in the catch certification program is voluntary and market driven, which means that entire sectors of the Canadian fish and seafood industry have not participated in this program. The program gives certification only to fisheries products for which it is required, based on foreign requirements, and to date this includes only products derived from marine wild-capture fisheries. Having fisheries products certified by DFO is not required under Canadian legislation, but companies choose to participate in the certification process based on which markets they are targeting for their product.
The catch certification program does not provide any level of validation or verification for foreign-sourced product that is imported into Canada. For product that was imported into Canada and subsequently re‑exported, Canadian importers must receive product certification from the country of origin for the product. The program can then issue the required re‑export certificate which links the product moving through the Canadian supply chain to the certificate from the country of origin.
While DFO has developed the tools necessary for Canadian industry to obtain electronic certification for their export product, DFO does not prescribe the mechanisms by which industry physically track the product while it is in their custody. Industry must remain proactive in developing and maintaining their own tracking systems to allow them to accurately identify and differentiate between batches of product, and, using this tracking system, accurately report in the fisheries certificate system from where the product was received and to whom it will be sold.
Thank you, Chair.