August 12, 2024

The Right Honourable Justin Trudeau, P.C., M.P.
Prime Minister of Canada
80 Wellington Street
Ottawa, Ontario K1A 0A3
Via email: [email protected]

The Honorable Joseph R. Biden, Jr. President of the United States The White House Washington, DC 20500

Re: Potential Canadian Rail Labour Disruptions

Prime Minister Trudeau and President Biden:

As the representative associations for the fertilizer industry in Canada and the United States, Fertilizer Canada and The Fertilizer Institute (TFI) are highly concerned about the impacts of a work stoppage in the Canadian rail sector and the implications on cross-border rail traffic.

On August 9th, the Canada Industrial Relations Board (CIRB) issued a ruling that no rail transportation activities need to be maintained in the event of a labour disruption between Canadian National Railway (CN), Canadian Pacific Kansas City (CPKC), and the Teamsters Canada Rail Conference. We are now facing yet another disruption in Canadas supply chains, as both railroads have embargoed certain cargos (including some types of fertilizers) as of this morning in preparation for work stoppages occurring as soon as August 22nd. Fertilizer supply chains in Canada and the U.S. are deeply interconnected, and disruptions in Canada have wide-reaching consequences on both sides of the border.

We are writing to urge you to assist in finding a resolution to this labour dispute as soon as possible, ensuring continued goods movement across Canadas Class I railways, and halting further impact to fertilizer production and cross-border transportation.

Over the last few months, the uncertainty regarding potential timelines for a labour disruption has made it extremely challenging for our member companies to prepare or make contingency plans. Now that both railroads have announced network shutdowns on August 22nd baring progress at negotiations, the impacts of such a work stoppage will be severe for the fertilizer industry and our supply chain partners, including farmers on both sides of the border, and, in the longer-term, global food security.

Fertilizer is responsible for half of global food production and Canada is a major contributor to the global supply of fertilizer products accounting for approximately 12 per cent of all fertilizers produced around the world. The United States fertilizer supply chain and farmers across the country depend on fertilizer products imported from Canada, which is a major source for potash nationally and nitrogen-based fertilizers regionally. Supply chain disruptions can be a serious challenge for food security, both in our two countries and in international markets that rely on the existing and strong agricultural partnership between Canada and the United States. Fertilizer application is a highly time sensitive process, as applications times largely determine the course of farmers harvest. A Fall, pre-freezer fertilizer application is important for ensuring adequate soil nutrients and setting up many food and feed crops for a successful growing season.

During these critical fertilizer application periods, any delay or disruption to fertilizer supply chains can prevent farmers from accessing the essential products they need to grow food for Canada, the United States, and the world. Canadas fertilizer industry contributes approximately CAN$42 billion annually to Canadas economic activity, supporting the employment of over 104,000 individuals throughout the supply chain.

The fertilizer industry in Canada and cross-border fertilizer transportation to the United States is highly reliant on rail transportation. Most fertilizer is shipped by rail (75 per cent by weight and 95 percent by tonne kilometer). In many instances, rail is the only feasible option for fertilizer products due to the volume and distances shipped. Rail is also the most sustainable method of transporting fertilizer. Unfortunately, the frequency of supply chain disruptions in recent years, and particularly in the rail sector, has had significant impacts on our industry in both countries. Fertilizer Canada and TFI respect the collective bargaining process and agree that the strongest deals are reached at the table. We are, however, also deeply concerned about the impact to our industry, our members farmer customers, and Canadian and American consumers. Indeed, the nature of some fertilizer products means that transportation impacts are already being felt by our members many days before any work stoppage as railway embargoes affecting our products have already been issued.

We are respectfully asking that you safeguard the well-being of the North American fertilizer sector, ensure our members customers receive time sensitive products and work to protect global food supply, by using all the tools available to support a resolution to this labor dispute.

Thank you very much for your attention on this important issue. Should there be any questions related to this letter, please contact us.

Sincerely,

Karen Proud
President & CEO
Fertilizer Canada

Corey Rosenbusch
President & CEO
The Fertilizer Institute

CC:
The Honourable Steven MacKinnon, P.C., M.P., Minister of Labour and Seniors
The Honourable Pablo Rodriguez, P.C., M.P., Minister of Transport
The Honourable Lawrence MacAulay, P.C., M.P., Minister of Agriculture and Agri-Food
The Honourable Pete Buttigieg, US Secretary of Transportation
The Honourable Tom Vilsack, US Secretary of Agriculture