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Agriculture and Agri-Food Canada (AAFC) held a meeting with broad agricultural industry members on May 5th, 2026 to present the most recent trade update.
AAFC reported progress in the ASEAN negotiations, with approximately 60% of the chapters completed. However, Canada expressed disappointment with the limited agricultural market access offers from several ASEAN countries (Indonesia, Malaysia, Singapore, Thailand, Philippines, Brunei, Vietnam, Laos, Myanmar, Cambodia), particularly Thailand, the Philippines, and Vietnam. ASEAN countries also agreed for the first time to include biotechnology provisions in the agreement, which was viewed as a significant milestone, though sensitivities remain around Low Level Presence provisions. The next negotiating round is scheduled for the week of June 29.
Negotiations with the Philippines continue to advance positively, especially in the Goods and Sanitary-Phytosanitary (SPS) chapters. CFIA indicated that roughly 90% of the SPS chapter has now been closed, with remaining discussions focused mainly on pesticide Maximum Residue Limit obligations and a few areas where Canada is seeking more ambitious outcomes. From an agriculture perspective, Philippines is sensitive on pork exports. Both sides are aiming to conclude negotiations as early as possible this year, with additional rounds planned for the week of July 27 and September.
During Canada–India CEPA discussions during the second round of negotiations held in New Delhi from May 4th to the 8th, India reiterated that dairy and genetically modified products remain red lines, while also flagging sensitivities in pulses and other agricultural commodities. Canada noted constructive SPS discussions overall, although significant differences remain on dispute settlement and India’s requests for special and differential treatment. On May 25, India’s Minister of Commerce, along with a delegation of negotiators covering both trade and SPS issues, will be in Ottawa for further discussions with Canadian counterparts. The next negotiating round is scheduled for the week of July 6.
AAFC also informed stakeholders that negotiations with the United Arab Emirates (UAE) are being fast-tracked stating in the coming weeks, with both sides aiming to conclude talks by the end of July.
On Canada–U.S. relations, AAFC emphasized that the narrative suggesting Canada is unwilling to engage with the U.S. is inaccurate, noting that Canada remains ready to negotiate at any time. Canada continues advocacy efforts with U.S. stakeholders to reinforce the importance of integrated North American supply chains. AAFC also cautioned that the U.S. is expected to transition from Section 122 tariffs to Section 301 tariffs later this summer, which could create more durable and flexible enforcement measures that may be more difficult to challenge legally.
Lastly, AAFC informed stakeholders of the ongoing U.S. anti-dumping and countervailing duty case against Canadian mushrooms, noting concerns that the case could establish a broader precedent for other agricultural sectors. Officials indicated that sectors benefiting from programs such as AgriStability and AgriInvest could potentially face increased scrutiny, as the U.S. is treating certain federal-provincial support programs and tax measures as potential subsidies.
