US, Canada reach organic food trade agreement

A first-of-its-kind agreement has been reached between the US and Canada that will expand opportunities for organic producers in both countries, according to Agriculture Deputy Secretary Kathleen Merrigan.

Under the ''equivalency agreement'', products meeting the standard in the US can be sold as organic in Canada, and vice versa.

Merrigen said the production of organic food is a great growth opportunity for American agriculture and the agreement will help expand market opportunities for US producers to sell their products abroad. 

She added that the agreement is an important first step towards global harmonisation of organic standards.

Producers and processors certified by the National Organic Programme (NOP) standards do not have to become certified to the Canada Organic Product Regulation (COPR) standards in order to sell their products as organic in Canada, and vice versa.

Both the USDA Organic seal and the Canada Organic Biologique logo may be used on certified products from both countries. The COPR goes into effect June 30.

Canada is the largest US trade partner and largest estimated export market for US organic products. The USDA's Foreign Agriculture Service office in Ottawa estimates that more than 80 percent of Canada's organic consumption comes from imports, of which 75 percent came from the US.

Estimates of the total market for organic products in Canada range from US$2.1 billion to US$2.6 billion; meanwhile sales of organic products in the US totalled US$24.6 billion in 2008.