Along with multiple analyses of the economic impact of tariffs, Canadians are also growing more accustomed to the differences between “Product of Canada” and “Made in Canada”.
Tariff threats and other unpredictable actions by the United States have led to a surge in retail patriotism. But the ways products move from raw materials to retail goods is complicated. Canadians may have an urge to “Buy Canadian,” but what exactly does that mean?
Much of the discourse has started with a set of Enforcement Guidelines published by the Competition Bureau in 2009. Those guidelines drawn from the Competition Act, Consumer Packaging and Labelling Act and the Textile Labelling Act define “Made in Canada” as requiring a 51% threshold of Canadian content, along with some kind of qualifying statement that notes the product also contains imported elements. Similarly, a “Product of Canada” claim should be limited to products where meaningfully all (98 per cent or more) of the content is Canadian. In both cases, the ‘last substantial transformation’ of the product must have occurred in Canada.
However, those guidelines are just guidelines, and not regulations. Also, verification of a country of origin (and other labelling claims) have been low enforcement priorities for Canadian regulators.
The Canadian Food inspection Agency (CFIA) describes a “product of Canada” as one where all, or nearly all, the food, processing and labour used is Canadian. Food can contain small amounts of imported spices, flavourings and other additives that are non-Canadian but still qualify as product of Canada. The word “Canadian” is treated similar to “product of Canada” by CFIA.
The use of a red maple leaf? The guidance is less clear. The CFIA notes “depending on how a maple leaf is used it could imply a ‘Product of Canada’ claim.” It recommends a domestic content statement accompany the leaf, but many firms ignore that recommendation.
To some consumers, the ownership of the production facility or even the retailer can also matter. Canadian grocery chains, for example, have put considerable effort recently into helping consumers identify Canadian products, even if the retailer itself is foreign-owned. So consumers can “buy Canadian” while shopping at Walmart.
Potato chips made with Canadian potatoes, processed at Canadian facilities using Canadian labour, may still upset some consumers, because they carry the Lay’s brand, which is owned by PepsiCo.
Coca-Cola Company is a worldwide leader with a Canadian-owned subsidiary. Yet Coke Canada Bottling Limited is the Canadian producer and distributor of Coca-Cola products in Canada, and is independently owned.
Some animals raised in Canada can be slaughtered in the United States. Under CFIA standards, meat and poultry can only be categorized as a “product of Canada” if they were slaughtered in Canada.
Canada Grade A Beef means the meat meets Canadian standards, not that the meat itself is “Canadian”. Some vegetables display similar “Canada Grade” labelling that refers to the CFIA evaluation, not the country of origin.