Question Period Note: SUPPLY CHAINS

Q1 – What is Canada doing to improve bottlenecks along Canada’s trade corridors which negatively impact the supply chain? Q2 – What is the Government doing to support farmers affected by supply chain issues? Q3 – What is the Government doing to ensure that farmers are able to move this year’s crop for export? Q4 – What is the Government doing to protect farmers and the agricultural sector against supply chain labour disruptions?

R.1 - My department is actively supporting Transport Canada efforts to reduce bottlenecks and increase transparency and fluidity along the supply chain, such as the establishment of the National Supply Chain Office and the development of a National Transportation Supply Chain Strategy.

We are also supporting the Government’s efforts to identify areas where improvements to supply chain-related regulation or regulatory practices can support the movement of goods, services and people in Canada. R.2 - To support farmers affected by supply chain issues and rising input costs, the Government increased the interest-free portion of the Advance Payments Program from $100,000 to $250,000 for the 2022 program year, to $350,000 for the 2023 program year and to $250,000 for the 2024 program year. This change represented additional savings of up to $188.2 million over these three years for the approximately 12,000 producers who took advantage of advances above $100,000 during the time the increase was in place. R.3 - Agriculture and Agri-food Canada is closely monitoring the current state of the grain transportation network and working with Transport Canada to ensure that grain moves efficiently to our ports. Canada’s agriculture and agri-food sector relies heavily on resilient domestic and global supply chains. We continue to engage with stakeholders and provincial and territorial counterparts to ensure that our food supply chains are sustainable and resilient. R.4 - The Government of Canada respects the collective bargaining process and believes negotiated agreements are the best way forward. The work stoppage at the BC and Montreal Ports were significantly impacting farmers’ businesses, agricultural shippers and our reputation as a reliable trading partner. This led the Minister of Labour to invoke his authorities under the Canada Labour Code to direct the Canada Industrial Relations Board to impose final and binding arbitration and to order operations at the Ports to resume.

Over the past few years, the Department of Agriculture and Agri-Food Canada (AAFC) has seen how vulnerable Canadian supply chains are and how disruptions can severely impact the sector. As a result, the Government of Canada continues to work on improvements to supply chains.

In March 2022, the Minister of Transport announced the creation of an independent National Supply Chain Task Force to examine the key pressures affecting Canada's supply chain operations. Agriculture stakeholders actively participated in the Task Force, and the resulting final report (October 2022) which included 21 recommendations on short- and long-term actions. These recommendations served to inform the development of Canada’s National Transportation Supply Chain Strategy, as committed to in Budget 2022. This Strategy will help ensure that Canada’s agricultural sector can continue to meet the needs of its global customers.

AAFC has continued to support Transport Canada (TC) with the implementation of the National Supply Chain Office and provided agricultural-specific input to TC on the Supply Chain Task Force recommendations. AAFC has maintained ongoing engagement regarding supply chains with TC, across multiple levels (including ADM-level discussions).

Additionally, AAFC has liaised with the grain handling industry via the Crop Logistics Working Group and participated in a shared contract with TC for the Grain Monitor (Quorum Corporation) to ensure consistent review of Canada’s grain handling transportation system.

On August 22nd, 2024, Canadian National (CN) and Canadian Pacific Kansas City (CPKC) locked out close to 9,300 rail workers and shut down service on both major railways. Later that day, the Minister of Labour invoked section 107 of the Canada Labour Code to order the railways back to work and to use binding arbitration to settle their differences. Approximately 830 K tonnes of goods valued at $1.1B was halted. The Union representing rail workers has filed a challenge on the directives for binding arbitration in the Federal Court of Appeal.

On November 4, 2024, the BC Maritime Employers Association (BCMEA) began a lockout of all BC longshore workers, shutting down all cargo operations at BC ports (Vancouver and Prince Rupert). On November 12, the Minister of Labour referred the matter to the Canadian Industrial Relations Board (CIRB) for final and binding arbitration and directed the CIRB to order the resumption of all operations at BC ports.

The longshore union (CUPE 375) at the Port of Montreal held a series of rolling strikes throughout fall 2024. Starting September 30, the union initiated a three-day partial strike at the Termont container terminals. An ongoing “no overtime work” strike was later initiated, followed by a series of localized strikes at specified terminals. On November 10, the employer responded by locking out workers and calling for the Government’s intervention. On November 12, the Minister of Labour referred the matter along with the dispute at the BC ports, to the CIRB for final and binding arbitration. Operations resumed at the Port of Montreal on November 16.

Both unions at the BC ports and at the port of Montreal intend to challenge the Government’s intervention in court.

The Government of Canada is working to identify solutions to minimize bottlenecks and improve the efficiency and reliability of Canadian supply chains, including through the National Supply Chain Office.

We are committed to ensuring a strong and stable food supply chain by responding to challenges, including severe weather events, labour shortages or disruptions, and other ongoing supply chain challenges.

Agriculture and Agri-Food Canada closely monitors the impacts of labour disruptions on the food supply chain, including the resumption of rail and port services following labour disruptions over the course of August and into the fall. This includes communication with industry stakeholders throughout the disruptions and working with colleagues at Transport Canada to ensure that recovery efforts support the movement of Canadian agricultural commodities.

We recognize the importance of maintaining a stable supply chain and ensuring Canadian agricultural products can reach the domestic and international markets that depend on them.