Even though Canadian durum wheat has been the source of the highest-quality Italian pasta, imports have dropped sharply since Italy enacted protectionist regulations requiring county of origin labelling.
The Canadian growers and exporters are urging the federal government to take more action against the regulations which kicked in a year ago, specifically a formal challenge under the World Trade Organization system.
Italy has traditionally been Canada’s largest durum market taking 20 to 25 per cent, or one million tonnes, of Canada’s durum exports over the past five years, says Cereals Canada.
In fact, much of the pasta Canadians import from Italy has been made from Canadian durum wheat.
“Canada’s hard working farmers produce high quality grains that are in global demand and we rely on the government to provide stable, open markets for these products,” said Jeff Nielsen, president of Grain Growers of Canada (GGC).
“If diplomatic efforts are not resolving our trade issues we need to know that our government will defend Canadian farmers against illegal protectionism.”
“As an industry we have long supported the Comprehensive Economic and Trade Agreement (CETA) with Europe,” said Cam Dahl, president of Cereals Canada.
“But the fact is that one of our larger exports to Europe has almost disappeared since CETA came into effect. If this hard-won trade deal can’t be enforced, many will begin to question its value.”
Italy’s prime minister and agriculture minister have been saying they won’t sign the free trade deal with Canada and, if so, it would scupper the entire agreement with the European Union because it requires unanimous consent from EU member countries.
If Prime Minister Justin Trudeau is willing to impose retaliatory tariffs after Trump hit steel with a 25 per cent tariff and aluminum with 10 per cent, then he should be willing to hit Italy with a 25 per cent tariff on wine.
Of course, neither the retaliation against Trump or a tariff on Italian wine would be legal under World Trade Organization rules. But neither are Country of Origin labeling regulations.
