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Canada, Mexico, US
Increased trade means more disputes
In the last five years, the value and volume of fresh fruits and vegetables from Canada and Mexico to the United States has grown. In 2015, the U.S. imported more than 2.8 billion pounds of fresh fruits and vegetables from Canada, valued at $1.4 billion. From Mexico, the U.S. imported 17.4 billion pounds of fresh fruits and vegetables for $9.1 billion. U.S. fruit and vegetable growers also have benefited. In 2015, the U.S. exported nearly 7.1 billion pounds of fresh fruits and vegetables to Canada and Mexico, worth $4.2 billion.
With more market integration between the three countries, the potential for disputes can also increase. To address potential issues, the North American Free Trade Agreement created a unified system to enable effective trade dispute resolution. The Fruit and Vegetable Dispute Resolution Corporation (DRC) handles these disputes for the fruit and vegetable industry.
The DRC is a non-profit organization established in February 2000 to smooth the trade of fruits and vegetables between Canada, Mexico and the U.S. It helps its members, including buyers, sellers and brokers of fruits and vegetables, resolve complaints about contract and payment issues as well as about the condition of the fruit and vegetables. This system is modeled on the dispute resolution system in the Perishable Agricultural Commodities Act (PACA), administered by AMS. Today, the DRC has nearly 1,600 members.
Since its inception in 2000, the DRC has successfully resolved thousands of trade disputes worth tens of millions of dollars. No matter the time of year, its members are working to help bring fresh fruits and vegetables to markets and stores throughout the United States, Canada and Mexico.