Carrying the Dispute Resolution Corporation Torch By Bryan Nickerson, Commodity & Supply Chain Services Director The implementation of the North American Free Trade Agreement (NAFTA) in 1994 revolutionized the North American fresh produce industry, creating a unified marketplace and opening significant cross- border trade and investment opportunities. Despite its advertised benefits, however, this transformation also amplified the potential for disputes, contract breaches and related issues that invariably arise in fresh produce transactions.
While the U.S. already had a dispute resolution system in place under the Perishable Agricultural Commodities Act (PACA), Canada’s regulatory framework proved ineffective in resolving most disputes, and Mexico lacked an international dispute settlement mechanism entirely. Consequently, U.S. and Canadian produce companies often resorted to costly court proceedings. Recognizing this gap in member protection, WG played a pivotal role in creating the Dispute Resolution Corporation (DRC) in February 2000, providing a non-profit, membership-based dispute resolution body to support the North American fruit and vegetable industry. The DRC offers its members harmonized standards, procedures and services that help them avoid (and mediate, if necessary) disputes. Crucial to the establishment and early successes of this tri-national dispute resolution system was long-time WG legend Matt McInerney, who guided the DRC as chair its first 17 years. (In another notable, related accomplishment, McInerney was also instrumental in securing passage of the PACA Trust amendment in 1984, granting domestic produce suppliers first-priority creditor status in buyer bankruptcies.) After an illustrious 43-year career serving the fresh produce industry, McInerney retired in his role as Senior Executive Vice President in March 2019. As a third-generation agriculturalist and McInerney protégé, I hope to continue his legacy in my position as Commodity & Supply Chain Services Director. Over the last decade, I have supported the WG membership in various capacities and now serve as the association’s expert in PACA and dispute resolution matters. After a several-year WG absence following McInerney’s retirement, I was honored to have the WG torch passed to me in December 2023 when my nomination to serve on the DRC board was approved by its current directors. Once again, WG will be at the table in setting the policies and trading standards of the DRC, which is governed by a board of 14 directors representing Canada, the U.S., Mexico and Chile. In particular, I am committed to monitoring Canadian issues impacting the domestic fresh produce industry and upholding the legacy of
collaboration in addressing the North American trade challenges faced by our members. One immediate area of focus is the Canadian legislative bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, which was passed in the House of Commons with all-party support on October 25, 2023. If passed by the Canadian Senate, Bill C-280 would establish a trust mechanism for fresh produce growers and sellers in Canada, similar to the PACA Trust for U.S. producers, to ensure payment in the event of buyer bankruptcy. The establishment of a PACA-inspired system in Canada has been a longstanding objective for the DRC, WG and the wider North American fresh fruit and vegetable sector. The progress of this Canadian bill underscores the ongoing significance of the DRC in safeguarding WG members and highlights the pivotal role our association can fulfill in ensuring its sustained efficacy. Thanks to his mentorship and the early influence he had on my career at WG, I am confident that my approach will closely mirror the legacy of the McInerney tradition.
Bryan Nickerson (center), photographed with DRC Staff, at the Semi-Annual Board Meeting in Playa Del Carmen, Mexico
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MARCH | APRIL 2024
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