Ontario Grain Farmer December 2023 / January 2024

Market Development

Ontario Grain Farmer

European trade policies IMPACT ON ONTARIO GRAIN EXPORTS YET TO BE SEEN

THE PAST 20 years have seen their share of disputes among technology users, countries, and trading partners involving various innovations, from transgenics to active ingredients in chemical products, often with corresponding trade issues. The disputes might trigger a resolution through the terms of a trade pact or generate uncertainty as to whether regulatory assessments in one jurisdiction meet with the approval of another. Earlier in 2023, two pieces of legislation were introduced by the European Union (EU), one dealing with maximum residue limits (MRLs) of two insecticidal products and the other with applications of new genomic techniques (NGTs). The MRL regulations, published on February 15, address the use of clothianidin and thiamethoxam, two neonicotinoids (neonics) used in Canada primarily as seed treatments and foliar-applied products. The regulations go into effect on March 7, 2026, giving food companies and trading partners time to adopt the guidelines. The regulations for NGTs were published on July 5. However, there is still a review period, which could take 18 to 24 months. How these rules will unfold for the EU, its member countries, and their respective agri food sectors remains to be seen. Yet the concerns for Canadian growers can be divided into separate channels: the continued use of crop protection products and the long-term determination of NGTs and how those may be regulated in the future. Of the two, the MRL legislation is the more immediate concern for Ontario corn and soybean growers. The rules governing NGTs –including genome editing — are more like moving targets for future consideration. OUR REPUTATION ABROAD For years, Canada has been acknowledged for having one of — if not the — most stringent regulatory systems in the world, including the use of crop protection products. But

ADVOCATES NEEDED Unfortunately, the narrative on such issues can take on a life of its own. Mac Ross, vice president of trade policy and crop protection for the Canada Grains Council, believes this country's efforts in disseminating the EU's policy on MRLs could be helped by scientists responsible for evaluations and approvals. But on a global scale, some sort of critical mass of alignment among Canada's trading partners would also be a step in the right direction. "People probably need to be told about the importance of innovation in agriculture because not everybody gets it," says Ross. "Sometimes it feels like we can have 50 talented people on our side, and all their progress can be undone by two people on social media." Then there is the uncertainty surrounding the use of neonics and their alleged link to falling bee numbers: is bee health more adversely affected by varroa mites, colony collapse disorder, neonic seed treatments, or a combination of those factors? Yet Ross notes that MRLs only apply to products grown in one country and then crossing an ocean or what is in a truck heading to another country. Using MRLs to protect pollinator health — and then assuming other countries will follow suit — is not the proper use of that residue standard. It is the "gatekeeper" on what the maximum trace is that can be found on products being shipped across international borders. "There may not be a direct risk or impact with the current proposal on neonic revocations," he says. "But it's the precedent that the EU would continue to take this approach on additional actives that are vital for Canadian growers. It's really important to be looking at ways to push back on this." GLASS HALF FULL? As far as the new genomic techniques (NGTs) legislationis concerned, there are several "annexes" to the proposed legislation, including

another jurisdiction trying to impose a directive that is not science- or risk-based and intended to curtail technology use in other areas should be questioned. Such restrictions could deter countries from making their own determinations on the use of any technology. "Holistically, Ontario farmers are always concerned at the decisions being made around the world on our ability to grow crops to export and feed a growing population," says Paul Hoekstra, vice president of strategic development with Grain Farmers of Ontario. "Regulatory decisions or policies that impact the ability to access technology to be both economically and environmentally sustainable is a chief concern among our farmers." Regarding the use of neonics, the EU regulations seek to use a food-based protocol like MRLs to impose more of an environmentally based standard, not just on the European mainland but in other countries around the world. Some may view that as a means of setting guidelines for doing business with EU members. However, if the EU is allowed to misuse MRLs to determine which active ingredient can or cannot be used by non EU farmers, it is unlikely this approach will be limited to neonics only and could instead result in added restrictions placed on the use of other chemistries, including glyphosate. These issues are emotionally charged, yet they are complex scientific discussions and discoveries, and a country has to ensure it is making the best decisions for the safety of the food its people are consuming. "We're seeing a divergence between how the EU has made its regulatory decisions," says Hoekstra. "In the EU, for example, pollinator assessments are incredibly conservative — based on overly protective models and assumptions. That versus how Health Canada has looked at the data in conjunction with the U.S. Environmental Protection Agency (EPA) and made a different type of framework and how it evaluates risk to pollinators in a more pragmatic but still protective manner."

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