‘Uncertainty’: Tariff talk puts Northwest’s agricultural industry at disadvantage, officials say

BELLEVUE – The typically strong trading relationship between the United States and Canada has seen increased strain in recent months, business leaders and public officials from both countries said Tuesday.

During a panel focusing on issues the agricultural sector faces during the Pacific Northwest Economic Region conference in Bellevue, Lisa Charpilloz Hanson, Oregon’s director of agriculture, said the best word to describe the situation is “uncertainty.”

“It’s uncertainty for our producers, it’s uncertainty for our processors, it’s uncertainty for our integrated agricultural systems,” Charpilloz Hanson said.

And that uncertainty puts the region’s agricultural industry at a disadvantage in the global marketplace.

“There’s not much that we grow that can’t be grown somewhere else. And we have to be able to compete at cost and quality,” Charpilloz Hanson said. “And so the complications that we’re seeing today just continue to make it more difficult for the region, and our farmers and ranchers, to compete in that world market that’s so important.”

Earlier this month President Donald Trump announced a new 35% tariff on Canadian imports, which is set to start Aug. 1, unless the two countries reach a new trade agreement.

Derek Sandison, the director of agriculture in Washington, said during the panel that the state typically enjoys a strong trade relationship with Canada, with the country importing more than $1 billion in food and products from the state each year.

“So, our most important trading partner,” Sandison said.

According to Sandison, one of the most concerning reactions to the ongoing federal push for tariffs and trade negotiations is a reaction by some Canadian consumers to avoid American products.

“We’ve enjoyed a very important relationship with the people of Canada, and want that to continue,” Sandison said. “So to the extent that our industry can help smooth those waves and come back to a very mutually beneficial working relationship, we’re engaged and supportive.”

Typically, around 70% of British Columbia’s agricultural trade is with the United States, with Lana Popham, British Columbia’s minister of agriculture and food, describing America as a typically “easy trade partner.”

But with increased tension in the relationship, and the potential for tariffs, Popham said she has begun to explore ways to increase trade in overseas markets, including Asia.

“But let’s face it, it’s a harder relationship to have. There’s a lot of complexities with moving things across the water to different countries,” Popham said. “So I want to see us go back to the way things were before this happened.”

While the ongoing trade negotiations have created uncertainty in the market, Sandison said Washington’s farmers face other challenges, including increased fuel and labor costs, and a lack of knowledge of their industries.

“It got to the point where it’s very difficult for farmers to break even. They’re producing at costs many times,” Sandison said.

According to Sandison, some farmers have opted to leave some fruit on the trees during the annual summer cherry harvest, because the labor costs outweigh the fruit’s value.

“So I think that’s the bottom-line issue,” Sandison said. “We’re losing farms in Washington. We have a tremendous heritage of agriculture in our state, and many of the old family farms are just simply getting out. They’re selling out, they’re shutting down. It’s a difficult time for ag.”

Sandison said many in the state, including legislators who represent more densely populated urban areas, lack knowledge on the challenges faced by the agricultural community.

“They don’t really understand agriculture, they don’t really understand rural life,” Sandison said. “And because of that, they tend to produce policies and regulations that add to that burden that the farmers are facing in terms of trying to survive. It’s literally that bad.”

Sandison added that the state has begun to work with Washington State University, among others, to “help tell the story of what’s actually happening on the ground, and what is really impacting the bottom lines of farmers.”

“So not to paint a total gloom and doom picture, but that’s where we’re at in Washington,” Sandison said.