Evidence of meeting #35 for International Trade in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was japanese.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Jean-Michel Laurin  Vice-President, Global Business Policy, Canadian Manufacturers and Exporters
Richard Phillips  Executive Director, Grain Growers of Canada
Janice Hilchie  Vice-President, Government and International Relations, Canadian Life and Health Insurance Association Inc.
Peter Wilkinson  Senior Vice-President, Government Relations, Manulife Financial, Canadian Life and Health Insurance Association Inc.

12:50 p.m.

NDP

The Vice-Chair NDP Don Davies

What's your point of order, sir?

12:50 p.m.

Conservative

Ed Holder Conservative London West, ON

Thank you very much, Chair, for recognizing me. I want to clarify Mr. Easter's comments, because I know that Mr. Phillips would have wanted to properly express himself—

12:50 p.m.

Voices

Oh, oh!

12:50 p.m.

Conservative

Ed Holder Conservative London West, ON

—and I wanted to get that on the record. Thank you.

12:50 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Even if you are wrong.

The fact of the matter is that you are right, Richard, in that there are only so many negotiators and we are falling behind in the U.S. market. There has been a lot of discussion, but the big market that we're really extremely concerned about in the agriculture sector is the Korean market, and that's where the government has to step up to the plate.

I wanted to comment as well on the Japanese market as it relates to canola. There's no question—they're a premium market. But they're also a very closed market when it comes to value added.

Prince Edward Island sells them a lot of non-GMO canola. They're going to assure themselves that they're getting the quality they ask for and that it is non-GMO. They come to Prince Edward Island once a year and they inspect the fields. If there's a GMO field of anything within close proximity of that non-GMO canola field, that product is not going to get shipped. They are a premium market, but you had better produce premium or you're not going to be in that market, and you had better ship what you said you were going to ship.

What is the difference between canola seed and canola oil on tariffs? Do you know? The door is basically closed on value added. That's the point I'm trying to make. How do we open that?

12:50 p.m.

Executive Director, Grain Growers of Canada

Richard Phillips

At the Canola Council of Canada—and I sat on the Canola Council for many years—we meet with the Japanese every summer. Not only do they go to Prince Edward Island, but they come out to the prairies and they look at the crops there as well. We have regular consultations with them.

You can ask, and ask, and ask, and the answer is always no, because they want to protect their domestic crushing and value-added industries. I think the only way we are going to solve this and deal with those tariffs they charge more on processed goods is through the opportunities that we have through formal free trade negotiation. After 20 years of labouring, there has been very little adjustment, and this is probably the only opportunity we will have to deal with that issue.

12:55 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

I guess the other point related to agriculture—and then I have another question that you mentioned as well, Richard—is the railways. It is extremely serious. On average, Canadians are 900 miles from tidewater position. No other country in the world has that kind of transportation barrier to overcome—and we have a monopoly with the railways at the moment.

The government has been asleep at the switch on the service review. They've had pretty near five years now to deal with that review, and they have absolutely failed to do so. I appreciate your words. I hope that at least some backbenchers will start to stand up and argue for rural Canada in terms of the government implementing the recommendations of the service review.

On the general question, looking at it from the other side of the equation, where do you think Japan might have advantages in Canada? I think we have to be aware of where we're going to face some competition that may create problems for us. Do you see anywhere on the other side of the equation where there may be an advantage to Japan that we have to kind of work against?

Anybody...?

12:55 p.m.

Executive Director, Grain Growers of Canada

Richard Phillips

Maybe manufacturing first...?

12:55 p.m.

Vice-President, Global Business Policy, Canadian Manufacturers and Exporters

Jean-Michel Laurin

I can go first, Mr. Easter.

It is pretty clear, with regard to automotive, for both vehicles and parts, they have some defensive interests coming into Canada. They already export vehicles to Canada. They already do some manufacturing in Canada and North America. Eliminating the tariff, potentially, and also getting improved market access to Canada, these are probably their top issues in terms of what they are pursuing in these trade negotiations, and that would have an impact on our own industry.

If you look at some of the other sectors where they do export, eliminating tariffs and providing improved market access for aerospace parts, for construction equipment, which is one of their top exports to Canada as well.... They would strongly benefit from having tariffs eliminated and just getting improved market access.

12:55 p.m.

NDP

The Vice-Chair NDP Don Davies

Thank you very much.

On behalf of all the committee members, I'd like to thank all of the witnesses for your time and your contributions of expertise. Your testimony has been very helpful to the committee. Thank you very much.

We'll adjourn the meeting.