© 2007 Her Majesty the Queen in Right of Canada (Canadian Food Inspection Agency), all rights reserved. Use without permission is prohibited. The Canadian Food Inspection Agency: Challenges and Outlook Aline Dimitri Senior Policy Advisor March 25, 2008

2 CFIA Overview

3 Who we are The CFIA is mandated to safeguard Canada’s food supply and the plants and animals upon which safe and high-quality food depends.

4 Our vision and mission Our vision is to excel as a science-based regulator, trusted and respected by Canadians and the international community. We are dedicated to safeguarding food, animals and plants, which enhances the health and well-being of Canada’s people, environment and economy.

5 Our goals Protect Canadians from preventable health risks Protect consumers through a fair and effective food, animal and plant regulatory regime that supports competitive domestic and international markets Sustain the plant and animal resource base Contribute to the security of Canada’s food supply and agricultural resource base Provide sound agency management

6 Managing food safety risks The CFIA… Enforces food safety and nutritional quality requirements of food sold in Canada* Verifies industry compliance with federal acts and regulations Encourages science-based risk management Operates emergency response system Approximately 350 food recalls are managed each year *policies and standards are set by Health Canada

7 Protecting consumers and the marketplace from unfair practices For example, the CFIA… Enforces standards for food labelling Verifies compliance with Seeds Act Testing and inspection of seeds for trueness to type, purity, germination, quality and disease Provides legal protection to plant breeders for new plant varieties for up to 18 years Monitors fresh fruits and vegetables for safety and wholesomeness, compliance with grade, packaging and labelling requirements, and marketing to avoid marketplace deception

8 Certifying exports and controlling imports The CFIA… Certifies food, plants, animals (and their products) that are exported around the world Canada’s agricultural, forestry and agri-food exports are worth billions of dollars annually Controls importation of animals, their genetics, and animal products Inspects and assesses imports of plants, plant products and soil Sets policies and regulations for the import of food, agricultural inputs and agricultural products (enforced by the Canada Border Services Agency)

9 Protecting Canada’s crops and forests The CFIA… Inspects and surveys for pests and disease Imposes quarantines and other control measures

10 Protecting Canada’s livestock The CFIA… Verifies livestock feeds Uses internationally accepted disease control methods when outbreaks occur Monitors livestock ID requirements at livestock markets Verifies humane transportation and slaughter

11 Controlling transmission of animal diseases to humans The CFIA mitigates zoonotic diseases, e.g., BSE, rabies and avian influenza, through: Prevention: risk reduction Preparedness: effective policies, procedures and plans Response: actions taken immediately before, during or directly after disease emergence and/or spread Recovery: efforts to repair and restore

12 Regulating biotechnology The CFIA regulates biotechnology-derived products and conducts safety assessments for efficacy, and safety for animals, the environment and human handling. Products include: novel plants livestock feeds fertilizers veterinary biologics

13 Maintaining an effective regulatory base To maintain an effective and transparent system that is based on rules and science, the CFIA … Develops and updates acts and regulations Leads or participates in domestic and international agreements and arrangements Consults with other levels of government and stakeholders

14 Strong partnerships Success of food safety system depends on working closely with: Provinces and Territories Municipalities Distributors/retailers Consumers International food experts (scientists) Growers/Producers Food processors Industry Academia Other federal government departments

15 The CFIA’s legislative authority The CFIA administers or enforces the following acts and their respective regulations: Food and Drugs Act* Fish Inspection Act Health of Animals Act Meat Inspection Act Plant Breeders’ Rights Act Plant Protection Act Fertilizers Act Feeds Act *As it relates to food Seeds Act Agriculture and Agri-Food Administrative Monetary Penalties Act Canada Agricultural Products Act Canadian Food Inspection Agency Act Consumer Packaging and Labelling Act*

16 Policy Challenges

17 The world is changing….. Globalization & niche markets Imports/Exports Proliferation of products Enhanced consumer awareness and sophistication Labelling and labelling information Nutritional labelling Organic labelling Environmental change Natural pest control and protection mechanism

18 And the government is trying to respond through specific actions…. Livestock sector crisis How to alleviate the burden without decreasing the standards Paper burden reduction SME focussed 20% reduction in administrative burden across the GoC by November 2008 Examining specific policies Cost recovery “Made in Canada” Labelling Seeking international partnerships Sharing of scientific knowledge for review of submissions

19 …. And longer term strategies Food and Consumer Safety Action Plan Announced in December 2007 New/update authorities Focused on imports and enhance the ability to remove from market Increased focus on the helping stakeholders take great responsibilities, including consumers and industry Growing Forward “Agricultural Policy Framework 2” Federal/Provincial/Territorial initiative Building on lessons learned from the APF Focussed on streamlining programs and delivery of programs and enhancing flexibility

20 Example of success: Managing BSE 2003: 1 st case of BSE was discovered All export markets were closed Canada convened an international panel to identify measures to be put in place Canada implemented all the recommendations in place Clear and continuous communication plan Work within the OIE Recognition that a BSE-free country is no longer a reality Change the country classification system to use a risk based approach Canada has recovered 33 markets and has a “BSE controlled risk status”

21 Example of success: Canada Organic Regime (COR) Principles: Build on existing system (third-party service delivery for accreditation and certification) Revised Canadian standards for organic agriculture form the basis for the regulatory regime Purpose/Mission: Effective consumer protection against deceptive and misleading labelling practices Continued market access Development of domestic market Level playing field for domestic and imported products

22 COR (Ct’d): Canada Organic Logo When you see this logo, it will mean that the product has been certified according to Canadian requirements for organic products. Imported products bearing this logo must also bear the words “imported” or “product of.” Use of the logo is voluntary

23 COR (Ct’d): System structure CFIA is competent authority → agreements with accreditation bodies, and accredits certification bodies based on their recommendation. Building upon the pre-regulated system, CFIA will continue to liaise and cooperate with provincial government authorities Authorized Accreditation bodies → assess certification bodies Certification bodies → inspect for on-farm/facility compliance with organic standard requirements Operators → apply and maintain procedures in standards CFIA → enforces regulations System audits to verify ABs and CBs operating as intended Complaint response Investigation and enforcement activities

24 COR (Ct’d): Implementation – Next Steps for Government Integrate organic requirements into CFIA’s 14 commodity inspection programs for monitoring and enforcement activities (see Organic Label Review – Decision Tree) Evaluation of accreditation bodies and development of agreements Negotiation for recognition with key trading partners – EU and US

25 Regulatory Development: the Cabinet Directive on Streamlining of Regulation

26 Expert advice said… 2000Auditor General Review of health/safety reg. programs Regulatory Policy should better explain government priorities Ensure that reliable information is available on risk 2002OECD Review of regulatory system Move towards a lifecycle approach that includes evaluation Improve coordination within Canada Pay greater attention to market openness and competition 2004 EACSR Final report Review and update the Regulatory Policy Measure performance and ensure systematic review of regulation Greater focus on instrument choice throughout the policy cycle Improve international regulatory cooperation Context

27 …regulation can be a strategic asset… “Regulation is a powerful instrument of government… The country that can best use its regulatory system to generate greater environmental and social benefits while enhancing the conditions for a competitive and innovative economy will have a comparative advantage in attracting investment and skilled workers.” - External Advisory Committee on Smart Regulation Final Report, 2004 Context

28 …when it is smart. Smart Regulation initiative launched in themes: Strengthen regulatory management Enhance regulatory cooperation Achieve results in key sectors & areas Undertook broad, national consultation on regulatory reform Guiding principles Effectiveness, Cost-Efficiency, Predictability, Transparency, Accountability and Performance Context

29 We adopted a new lifecycle approach… Consulting, Coordinating, Cooperating Planning for Implementation & Compliance Measuring & Reporting on Performance Evaluating & Reviewing Regulation Setting Objectives and Expected Results Identifying & Assessing Public Policy Issues Selecting, Designing & Assessing Regulatory Responses Analyzing Impacts & Ensuring Benefits Justify Costs Key Elements

30 …that strengthens regulatory management. Regulatory Policy Limited to regulatory development Lack of coordination and policy coherence, resulting in duplication and complexity Minimal guidance on economic analysis Static risk assessments and limited analysis of instrument selection High level document that provides very little direction to officials and has many gaps Treats all regulations the same, regardless of impact Lifecycle management and performance measurement Requires coordination across government and jurisdictions Enhanced analytical guidance, including competitiveness, trade, and business burden Requires departments to set service standards and report on results Triage system focuses resources on high- impact proposals, makes system more responsive CDSR NEWOLD Key Elements

31 Our Commitment to Canadians… “ The Government of Canada is committed to protect and advance the public interest by working with Canadians and other governments to ensure that its regulatory activities result in the greatest overall benefit to present and future generations of Canadians. ” Protect and advance the public interest Promote a fair and competitive market economy Promote a fair and competitive market economy Create accessible, understandable and responsive regulation Create accessible, understandable and responsive regulation Make decisions based on evidence Make decisions based on evidence Advance efficiency and effectiveness Require timeliness, policy coherence, and minimal duplication Require timeliness, policy coherence, and minimal duplication Walk through

32 …includes consultation throughout the lifecycle… Open, meaningful and balanced Opportunities for interested and affected parties to participate should be offered at all stages of the lifecycle What is the issue? What should the policy objectives be? How should the objectives be met? Is our approach working, does it need to be reviewed? Provide feedback on the input received and how it was considered in the decision-making process Walk through

33 … and policies that are realized through a mix of instruments… Regulation is one of many instruments EACSR noted that government uses regulation as a “first option” Greater emphasis on “instrument mix” Identify the appropriate points for intervention Identify the appropriate institutions and parties to be involved Develop a mix of instruments Demonstrate that the chosen response is linked to policy objectives, proportional, and will not unduly affect other areas Regulation should be chosen only after the full range of instruments has been analyzed A mix can lead to better outcomes Walk through

34 … that can range from coercive to voluntary. Informal, Flexible/ Voluntary Formal “Command & Control” Laws Fiscal Instruments MOUs Codes Standards Voluntary Initiatives Promotion / Information Letters of Commitment / Intent Consultation Legal Agreements; Contracts Moral Suasion / Persuasion Walk through

35