Evidence of meeting #83 for International Trade in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was workers.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

René Roy  Chair, Canadian Pork Council
Joe Dal Ferro  President, Finica Food Specialties Limited
George Soule  Legislative Staff Representative, United Steelworkers Union
Stephen Heckbert  Executive Director, Canadian Pork Council

12:25 p.m.

Liberal

Mona Fortier Liberal Ottawa—Vanier, ON

Thank you very much.

Do our witnesses online have anything to add?

12:25 p.m.

Executive Director, Canadian Pork Council

Stephen Heckbert

We think we're cost-competitive. We support free trade agreements that will give us access to markets and give us the opportunity to be competitive and especially in this case. We know that Ukraine is facing some food security challenges, and we think delicious Canadian bacon is something they will be pleased to receive during these times, which are challenging for them.

12:25 p.m.

Liberal

Mona Fortier Liberal Ottawa—Vanier, ON

I really agree with you on the bacon part, for sure. Thank you for that.

I don't have much time left, so I'll ask if the Pork Council has anything else it wants to add on this. How do we really continue to work with the Ukrainian government and businesses to increase the prosperity of both our countries?

12:25 p.m.

Chair, Canadian Pork Council

René Roy

There are opportunities. Yes, it is a country that has a lot of agricultural products, but as with the United States, there is a lot of trade between our two countries, even if there is a lot of agriculture between us. We see this opportunity as a trade opportunity whereby we can share, because pork is made up of several cuts that suit different tastes. Some people prefer some pieces to others, so we could trade among ourselves to find what benefits our industries.

12:25 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

We go now to Mr. Savard-Tremblay for two and a half minutes.

Go ahead, please.

12:25 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Thank you, Madam Chair.

For the representatives of the Canadian Pork Council, please correct me if I have not understood correctly. To summarize your comments, what is in the agreement with Ukraine is much better for you than what is in the agreement with the European Union. Is that correct, yes or no?

12:25 p.m.

Chair, Canadian Pork Council

12:25 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

That's fine, thank you.

Can you explain to us how the agreement with Ukraine is better than the one with the European Union? What recommendation would you make to ensure that Canadian pork keeps its foothold in the Ukrainian or European market?

12:25 p.m.

Chair, Canadian Pork Council

René Roy

The major challenge with the agreement with the European Union is the existence of non-tariff technical barriers that prevent our products from reaching the European market.

What are those barriers? For example, the European Union requires that carcasses be washed with specific products, so the cost goes up. Other products work very well, such as lemon juice or an equivalent, but we are required to use a very specific product, which comes from the European Union.

Great Britain, on the other hand, is asking us to conduct tests for specific diseases that are not found in Canada. Britain is asking that these tests be done on all carcasses, which increases costs and means that we will not have access to their market.

12:30 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

As you know, there is talk of Ukraine joining the European Union. I imagine that this situation raises additional concerns for you.

12:30 p.m.

Chair, Canadian Pork Council

René Roy

That is indeed the case. Whether it's the U.K. joining the Trans-Pacific Free Trade Partnership or Ukraine becoming a member of the European Union, there are problems in both cases when non-tariff barriers are added.

12:30 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

In other words, all these barriers would be compounded. There are two major agreements that have significant non-tariff barriers. At the moment, Ukraine is offering you fairly favourable terms, but if it enters into these two major agreements, the benefits associated with the current agreement will be cancelled. Is that correct?

12:30 p.m.

Chair, Canadian Pork Council

René Roy

Yes, it is.

Regarding zoning agreements for disease cases, I would add that we have agreements with certain countries. We hope to conclude one with Japan very soon. We have one with the European Union. However, we have to hope that it will be implemented.

12:30 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

Mr. Cannings, go ahead for two and a half minutes, please.

12:30 p.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Thank you.

I'll go back to Mr. Soule.

The steelworkers represent, as you say, a large number of workers in a wide variety of sectors. You mentioned a bit about, perhaps, the effects on workers in steel manufacturing. In my riding, we have a lot of steelworkers in the Trail smelter. We have steelworkers in sawmills. I'm wondering whether you could comment, perhaps, on which steel sectors in Canada would benefit from this agreement, in terms of investing in Ukraine, exporting materials to Ukraine or helping Ukraine rebuild.

I'm wondering whether you could expand on that a bit.

12:30 p.m.

Legislative Staff Representative, United Steelworkers Union

George Soule

Sure.

Steelworkers are in all kinds of industries, from your cup of coffee at Starbucks to the steel in your car. We represent members in all kinds of industries.

As I said at the beginning, with this trade, but certainly not exclusively, steel, potash and our workers in the energy sector would be particularly impacted. Again, trade back and forth with steel production in Ukraine is important. We've had some cases recently of, and concerns about—as I said earlier—dumping of steel from Ukraine here in Canada. We are trying to make sure we can get that slowed down.

As I said, with steel in particular.... We're very proud to have some of the lowest carbon-emitting steel in the world. That is something for which, I think, Canada has a value-add that we can share in order to export our steel more and continue to support that industry here in Canada. That would include exports to Ukraine but also, absolutely, particularly with a country such as Ukraine, in what we hope is soon to be a postwar era, it's supporting their domestic attempts to decarbonize. I was speaking to some of the other members of the committee about that earlier today. That is something we could certainly help with, but we also want to make sure that, through this, we're not facilitating any further dumping.

Again, these agreements allow us to support our own industries and share our expertise globally.

12:30 p.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Could you expand on the green steel issue and how Canada is, perhaps, leading the world in some ways? How could this help Ukraine, and how would that benefit Canada? These could be, I assume, Canadian companies going into Ukraine and helping them with that process.

Is that what you envision?

12:30 p.m.

Legislative Staff Representative, United Steelworkers Union

George Soule

Hopefully. We're seeing more and more Canadian companies becoming less and less Canadian. Certainly, the expertise developed here in Canada—the fact that we have this expertise—is something we could gain some credit with on the world stage.

Quickly, I have a note on potash as well.

If you were to remove Ukraine's dependence on potash coming out of Russia.... Obviously, it is important during this time, but also in the postwar period. With Canada being the largest producer and our members being the ones mining that potash, it's obviously something we are encouraged by. I think this agreement would help with that as well.

12:35 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

It's on to Mr. Martel for five minutes.

12:35 p.m.

Conservative

Richard Martel Conservative Chicoutimi—Le Fjord, QC

Thank you, Madam Chair.

I would like to thank the witnesses for being here today.

Mr. Roy, what is the impact of the carbon tax on Ukrainian producers? As we know, they are already in a conflict situation.

12:35 p.m.

Chair, Canadian Pork Council

René Roy

Since it is difficult for me to speak for Ukrainian producers, I will talk to you about Canadian producers. What we are experiencing as Canadian producers is that our production costs are increasing, which is reducing our ability to offer affordable products to consumers, who are currently facing challenges because of inflation.

12:35 p.m.

Conservative

Richard Martel Conservative Chicoutimi—Le Fjord, QC

Thank you, Mr. Roy.

Mr. Soule, based on my understanding of your comments, this agreement fails to protect Ukrainian workers.

12:35 p.m.

Legislative Staff Representative, United Steelworkers Union

George Soule

There is no doubt that we could do better to protect Ukrainian workers.

12:35 p.m.

Conservative

Richard Martel Conservative Chicoutimi—Le Fjord, QC

I would like to move on to another topic.

You say that you have the greenest steel and that you are green. It's a bit like saying that we have the greenest aluminum in the world. What added value does being greener bring? Does it attract people who want your steel? Does that increase your market share? If not, is it the fact that you simply have the greenest steel, but that there are no other advantages to that?

12:35 p.m.

Legislative Staff Representative, United Steelworkers Union

George Soule

Our steel and aluminum are the greenest. When I say “our”, I mean Canada; I'm not just talking about steelworkers.

What do I think that does for us? I think it helps us secure a future for our industry globally, but I think we can do more to promote it. I don't think there has been enough to promote it. Has it done enough yet? I don't think so, but can it? Yes.