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GAIN Report #CA9142

Page 12 of 19

A similar culture, eating habits, and food trends Short growing season for fruits and vegetables in Canada Common branding and spill over advertising Generally higher levels of food production efficiency Similar social trends driving food demand

And now more than ever imports from the US enjoy competitive advantage as a result of NAFTA which resulted in the elimination of most import duties.

Some evidence of the strengthening trade competitiveness: Canned fruit and vegetables imports from the U.S. climbed 8.8% to $US 451.2 million in 1997. (Canned fruit exports amount to 88% of domestic consumption). Fruit and vegetable juices from the U.S. rose to $US 185 million or 61% of world imports into Canada. Fresh vegetables imported from the U.S. rose to $US 500 million as the short growing season in Canada, the rise in healthy eating and the influx of Asian immigration all have a positive impact of demand for U.S. fresh vegetables. Exports of fresh vegetables into Canada have risen as a percentage of total consumption from 33% to 39% in 8 years. U.S. products enjoy a relatively strong competitive position, as evidenced by the following table showing the competitive position of the U.S. relative to the rest of the world. The table also shows the % importance of imports in total domestic consumption in each food category.

UNCLASSIFIED

Foreign Agricultural Service/USDA

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