--- title: USDA Revokes Preferential PACA Treatment for Canadian Shippers description: Recently, the U.S. Department of Agriculture announced its intention to immediately remove preferential treatment the Canadian produce industry received under the Perishable Agricultural Commodities Act (PACA) by removing the waiver for bonding requirements for dispute resolution services. --- [![TranzAct Logo](https://blog.tranzact.com/hs-fs/hubfs/Redesign_images/TranzAct-Logo_200px.png?width=200&height=60&name=TranzAct-Logo_200px.png "TranzAct Logo")](https://www.tranzact.com/) # TranzAct Industry News ## USDA Revokes Preferential PACA Treatment for Canadian Shippers 10/15/2014 [10 Considerations in Choosing a Freight Audit and Payment Provider](https://blog.tranzact.com/lessons-on-life-and-logistics/10-considerations-in-choosing-a-freight-audit-and-payment-provider) Recently, the U.S. Department of Agriculture announced its intention to immediately remove preferential treatment the Canadian produce industry received under the Perishable Agricultural Commodities Act (PACA) by removing the waiver for bonding requirements for dispute resolution services. Therefore, as of this week, Canadians are now required to post a bond, double the amount of their claim, in order to file and dispute with PACA. Since the 1930’s the Canadian and United States governments have had a long-standing agreement that allowed reciprocity for Canadians to have access to the U.S. PACA dispute resolution system. This reciprocity was agreed to by the two countries based on Canada’s ability to provide several key services including inspection service, a licensing and dispute resolution program, and insolvency protection tools similar to the PACA trust. For over 30 years, the third component (PACA Trust provision) has been unattainable in Canada, despite being a high priority for many produce organizations from both countries and intense effort over the last three years during the RCC negotiations between the U.S. and Canadian government to harmonize key regulatory areas. ### Would you like to share your thoughts? [![bE](https://no-cache.hubspot.com/cta/default/329734/ae2bfabc-70c7-4f77-8f11-cb2ce962d154.png)](https://cta-redirect.hubspot.com/cta/redirect/329734/ae2bfabc-70c7-4f77-8f11-cb2ce962d154) ### Subscribe to Email Updates ### Popular Posts ### Posts by Topic - [Carriers (3)](https://blog.tranzact.com/news/topic/carriers) - [Economy (1)](https://blog.tranzact.com/news/topic/economy) - [Logistics legislation (1)](https://blog.tranzact.com/news/topic/logistics-legislation) - [Parcel (1)](https://blog.tranzact.com/news/topic/parcel) ### About Us TranzAct helps shippers like you reduce their transportation spend while providing the tools necessary to make better business decisions on an ongoing basis. Our solutions provide shippers of all modes with freight audit and payment, reporting and TMS applications, rate negotiation and savings, contract development, consulting and analysis. - [**](https://twitter.com/TranzAct) - [**](https://www.facebook.com/TranzActTechnologies) - [**](https://www.linkedin.com/company/tranzact-technologies-inc) - [**](https://www.youtube.com/user/TranzActTechnologies) ### Popular Posts ### GET IN TOUCH We're on Your Team & We're Here to Help 360 W. Butterfield Road Suite 400 Elmhurst, IL 60126 [+630.833.0890](tel:1-630-833-0890)  [helpdesk@tranzact.com](mailto:helpdesk@tranzact.com) © 2026 TranzAct Technologies, Inc.. All Rights Reserved.