UPGC advises members to focus on contingency strategies amid tariff concerns.
The United Potato Growers of Canada (UPGC) is encouraging its members to not press the panic button when it comes to the potential impact of the tariffs proposed by president-elect Donald Trump, and instead, focus on contingency plans.
“At this point, it’s still early days,” says UPGC General Manager, Victoria Stamper. “Trump can be a little erratic sometimes in terms of his decisions, but we’d rather wait until January when he’s in power and see how discussions proceed from there.”
The concern comes after Trump threatened to act on his Jan. 20 inauguration day to impose 25 per cent tariffs on goods from both Canada and Mexico unless those countries take action to curb the flow of migrants and drugs crossing their borders into the U.S.
Stamper says Trump’s current focus is border security — which in a way is a good thing.
“He’s not necessarily targeting a particular industry or the supply management chain, which has been targeted in the past,” she says “We also have the question, of course, of whether tariffs are legal if you have a free trade agreement — and how does that play out in terms of Canada / U.S. relations? There’s a lot to think about and I don’t think it’s of any real value to speculate at this point.”
But that doesn’t mean the UPGC is resting on its laurels. Canada remains the primary source of imported frozen french fries into the U.S., accounting for 86 per cent of the volume and a value between $600 and $800 million. On the fresh side, Canada has exported around$200 million to $300 million worth of fresh potatoes to the U.S. each year. Those aren’t statistics growers can ignore.
“We know it’s on people’s minds and so we’re trying to steer the conversation to something maybe a little more productive,” Stamper says. “What do we do if we can’t export to the U.S.? Are there other markets we can explore? What can we do domestically?”
Those discussions might not completely assuage the tension as we head into the holiday season and a near future full of unknowns, but Stamper says the industry has no choice but to ride it out until the New Year.
“For now, we need to try and put a little faith in the powers that be in Canada and hope that they will be able to negotiate and do the right thing for our country. That’s number one,” she says. “And number two, it’s early days. Let’s hang tight. See what happens in January and how the discussions go.”
Until then, Stamper says growers should do their research on alternative methods of transport and the movement of potatoes. Talk to colleagues, customers, other growers.
“Try to focus the discussion inward,” she says. “As opposed to trying to speculate on what might happen South of the border. The issue is definitely within our sphere of concern, but it’s not under our control. Focus on the things that are really under your control for the time being. And then, we’ll see from there.”
To watch the interview, click here.
