Month: January 2017

Q. We are a Mexican grower/shipper but are not a member of DRC. We are negotiating a Marketing Agreement with a US distributor who is a DRC member. The Marketing Agreement includes an arbitration clause indicating that if there is a dispute we agree to use the services of DRC. If both parties sign this contract and encounter problems related to the contract, would we be able to immediately take action through DRC.

A. (Answer provided by Jaime Bustamante, Trading Assistance Manager): Prior to signing a contract, you have to make sure that the arbitration clause included in the Marketing Agreement follows the wording of our suggested DRC Arbitration Clause. While arbitration clauses can be modified or have additions, there are some parts that cannot be changed. You can give us a call and we can advise you on correct wording to the arbitration clause to help ensure that the clause is binding. Secondly, if, after signing the contract, you have a dispute, you would need to join DRC or pay the non-member fee to access our dispute resolution system. We will provide both parties with the options and procedures to resolve the issue through our dispute resolution system.

However, be aware that if one of the parties decides to take the dispute to a court of law, the judge will be the one deciding the avenue for recourse: DRC or court. In our experience, if the contract has a valid arbitration clause, the courts will enforce it and oblige the parties to go to arbitration.

To avoid involvement of the court for enforcement of the clause, DRC always recommends that before you begin a commercial relationship, you join or invite your customer to join DRC. If you become a DRC member and deal with other members both parties will be protected in case of a contract dispute.

Paola Gonzalez Diaz, Trading Assistance Officer will be taking on some additional communications and membership duties as Andrea Bernier, Manager, Communications & Membership departs on leave. Ms. Bernier leaves some big shoes to be filled and will be missed, while away, by staff and members alike. For additional information please contact:

DRC Help Desk | 613-234-0982 | [email protected]

While DRC has helped resolve disputes worth millions of dollars, we strive to counsel and educate our members about best practices in business so they may avoid disputes altogether. Our dispute resolution model is designed to reduce risk and facilitate trade between members. DRC provides dispute prevention education via confidential consultation, the DRC Help Desk, seminars, guest speaking opportunities, fact sheets, our Solutions blog, and more.

Did you know? The two most important things parties can do to help avoid disputes are: COMMUNICATE and DOCUMENT.

Clearly communicate your understanding and document the details of the transaction. To help you get started, DRC has included an example of a Contract of Sale.

On Tuesday, January 17^th, DRC was invited as a guest speaker at the Trade Facilitation Office (TFO) annual trade representative seminar at Global Affairs Canada. The topic for this year’s seminar was “Food Safety Regulations and Certifications: Are they considered non-tariff barriers to trade for developing countries’ Small and Medium-sized Enterprises (SMEs)?”. This topic is very relevant to almost all developing countries and one for which DRC provides support and facilitates trade. Trade representatives had previously shown an interest and requested more information on the subject. The audience for the event was comprised of trade representatives from developing countries, economic officers for high commissions and embassies, as well as, trade promotion agencies from both Ottawa and Montreal.

DRC Trading Assistance Manager, Jaime Bustamante, was on hand to represent DRC as a guest speaker. His presentation, “Commercial issues faced by countries when exporting to Canada”, was well received and strove to demystify some of the common issues being encountered by audience members. Patricia Rengifo Hidalgo Trade Specialist Office of Ecuador in Canada, Tammy Swicha, Director Food Safety Program Planning and Requirements CFIA, and CPMA’s Jane Proctor, Vice President, Policy & Issue Management, were also guest speakers. Canada Organic Association and Fairtrade Canada were also expected to participate on the panel discussion.

Issues that were addressed included the perspective of the developing country exporter, what are exporter limitations in accessing the Canadian market, an overview of the Canadian market for fresh fruits and vegetables, the importance of food safety from farm to fork, as well as highlights of Canadian regulatory framework as it relates to food safety.

If you are interested in DRC representation at an event or speaking engagement, please reach out to the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

In case you missed the Note from the President Fred Webber, on Friday January 20 the Canadian Food Inspection Agency “CFIA” published the proposed Safe Food for Canadians Regulations in Canada Gazette Part I for a 90 day comment period.  We thank members for their continued support in moving Canada towards a single entity delivery model for dealers and dispute resolution.  The proposed changes under Division 2, sections 25 and 26 will have minimal impact on current DRC members.  The changes will mean some firms not currently holding a DRC membership will have to apply for membership in order to comply with the new regulations.  In other words some of your Canadian suppliers or clients may require a DRC membership once the Regulations are passed in Canada Gazette Part II. As the DRC moves towards a role of service provider to the CFIA, we will remain a neutral industry driven organization overseen by its board of directors and membership.

For more information, including the proposed regulations please visit: http://news.gc.ca/web/article-en.do?nid=1181099 .

You may also want to register to participate in the consultations on line or in person at: http://inspection.sondages-surveys.ca/surveys/CFIA-ACIA/proposed-sfcr-info-session/?l=en .

For more information please call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]