Over the past few years, we've seen a piecemeal approach to NHP policies. Instead of a coherent, forward-looking strategy, Canada has been introducing new rules bit by bit, whether it be Vanessa’s Law, increased licensing requirements, increased fees or additional labelling rules. This isolated approach leaves many small businesses scrambling to comply, often without a clear understanding of the long-term vision of the sector. This creates confusion and inconsistency.

Furthermore, our members believe Health Canada's current approach overlooks a crucial fact: NHPs are not pharmaceuticals, and they should not be regulated as such. For instance, the recent introduction of cost recovery fees being layered on top of stricter labelling requirements does not consider the unique realities of small businesses operating within the sector. One of our members imports approximately 800 different types of NHP. He has projected that the cost recovery program could add an extra $500,000 per year to his business expenses.

SMEs operate with tight budgets, and many may find it challenging to absorb these rising costs, especially all the additional costs associated with compliance. This forces many SMEs to make some tough business decisions, such as reducing investment in their operations and their employees, reducing innovations and reducing proper health and safety measures. Such a situation also creates an uneven playing field between small and large businesses. With large companies better equipped to absorb these expenses, this ultimately hinders the ability and the competitiveness of SMEs.

Bill C-368 seeks to repeal sections of Bill C-47, the budget bill. However, it is important to note that Bill C-69, another budget bill, also included further measures impacting NHP businesses.

Our members are not against the modernization of NHP regulation. However, they're concerned about Health Canada's introduction of multiple uncoordinated regulatory changes that risk overwhelming small businesses and complicating their survival in an already very tough economic landscape. As such, CFIB supports the passing of Bill C-368. It's a very important bill to a lot of our members operating within the NHP sector.

Thank you for your attention to these concerns. We look forward to answering your questions.