Bill C-4 (Historical)

Canada–United States–Mexico Agreement Implementation Act

An Act to implement the Agreement between Canada, the United States of America and the United Mexican States

This enactment implements the Agreement between Canada, the United States of America and the United Mexican States, done at Buenos Aires on November 30, 2018, as amended by the Protocol of Amendment to that Agreement, done at Mexico City on December 10, 2019.
The general provisions of the enactment set out rules of interpretation and specify that no recourse is to be taken on the basis of sections 9 to 20 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Agreement, provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement and gives the Governor in Council the power to make orders in accordance with the Agreement.
Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement.
Part 3 contains the coming into force provisions.

International Trade

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I have the honour to present, in both official languages, the first report of the Standing Committee on International Trade in relation to Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

The committee has studied the bill and has decided to report the bill back to the House without amendment. It has been an honour for all of us as parliamentarians to work on a bill that is going to create thousands of jobs and provide lots of opportunity for growth in our country and to ensure that we continue to work in a very positive way with the United States and Mexico as we move forward.

I want to thank the committee members and all of the staff who worked with us. We had over 102 witnesses. The clerks did a great job. My thanks as well to our deputy prime minister, Ms. Freeland, who did a tremendous amount of work along with our Prime Minister and all of the other witnesses.

It is a great honour to present this report to you, Mr. Speaker.

[Rachel Bendayan, Liberal, Outremont, QC]

Further to some discussions that were had last night at the end of our committee meeting, I would like to put forward a proposal for discussion and vote, if my colleagues so wish this morning. That is, further to the hearing of testimony these past two weeks:

That the committee tasks the analysts to prepare a letter from the committee to the Deputy Prime Minister for release after the Royal Assent of Bill C-4; and that the letter briefly summarize the testimony of witnesses and the recommendations made by witnesses for the Deputy Prime Minister to consider.

Thank you.

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I call to order this meeting of the Standing Committee on International Trade.

Pursuant to the order of reference of Thursday, February 6, 2020, we are studying Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Today we are going to be doing clause-by-clause consideration of Bill C-4.

We are joined by the Department of Foreign Affairs, Trade and Development, with Nicola Waterfield, deputy director, trade negotiations, North America division; Steve Verheul, chief negotiator and assistant deputy minister, trade policy and negotiations; Robert Brookfield, director general, trade law, deputy legal adviser; Andrew McCracken, director, trade negotiations, North America division; and Vickie Iacobellis, counsel, trade law bureau.

Thanks to all of you for coming this morning. Before we commence our clause-by-clause consideration, we will hear from Ms. Bendayan.

[Francis Schiller]

I think what's wonderful about the opportunity you have before you is that softwood is in Bill C-4. The reference to softwood offers the opportunity to amend that reference to include, in the case of Mr. Young, an independent study of the finished products that are not intended in the scope of the dispute. So we're not talking—

[Mike Beck, Operations Manager, Capacity Forest Management]

Thank you.

I'm Mike Beck with Capacity Forest Management. I'm their operational planner. We have managed over 20 first nation clients in B.C. We help gather tenure through government to government as well as licencee negotiations. We've also been instrumental in two foundation agreements that have taken place in B.C. with the shíshálh Indian band as well as Lake Babine Nation.

I've been invited to discuss the impacts of the softwood lumber dispute and how it is creating issues with first nations businesses and collaborations with forestry licensees, businesses and lumber mills in B.C.

As you know, a few people have already noted that the softwood lumber agreement has basically been a long outstanding issue between Canada and the United States. Basically, this agreement that we've been sitting on has been expired since 2015. The current government hasn't seemed to place the softwood lumber agreement as a top priority to settle during the negotiation processes and ratification of NAFTA between Canada, the U.S. and Mexico. The softwood lumber issues around the competition between Canada and the United States lumber companies are a major problem resulting from differences in their respective forest management principles.

The dispute is based on the U.S. lumber industry opposing the low Canadian stumpage rates and transportation costs, perceived by the U.S. as an unfair advantage that subsidizes our lumber industry. The U.S. has been imposing duties and tariffs on Canada since the early 1900s, and the softwood lumber dispute is not going away any time soon.

Canadian forest management principles are vastly different, and to compare one against the other is very onerous and well documented. A healthy Canadian log and lumber business requires certainty and fair market pricing. In order to achieve this, the Canadian government needs to bring the softwood lumber agreement to the forefront and finalize a long-term deal that avoids protectionist measures on both sides of the border.

Canadian logs and lumber require unencumbered access to world markets in order to return the highest possible pricing. Protectionist measures in this case create an unnecessary cost to Canadian sawmillers, and these costs are passed on to the log sellers, which pushes log prices down domestically. Recent court decisions and reconciliation agreements for first nations are providing control of their timber resources within their unceded territory. The federal government needs to create forestry policies that will ensure success, sustainability and create long-term, meaningful jobs in the industry as well as first nations businesses and ventures.

Imposed U.S. countervailing duties and tariffs have denied the maximum price on logs, which has impacted profit margins for first nations businesses that sell to Canadian mills. There's a requirement for major reforms and policy to remove restrictions on log exports in order to eliminate uncertainty in the Canadian forest industry and allow the highest return and highest prices for our renewable resource.

Duties and tariffs need to be eliminated and a long-term softwood lumber agreement needs to be ratified to ensure a healthy, sustainable and stable forest industry in Canada. The impacts for first nations forestry businesses are, again, another vital component. It's impacting negatively with our first nations businesses, agreements and collaborations with Canadian forest industry partners.

Canada is required to challenge and amend the Export and Import Permits Act that would ratify the softwood lumber agreement, as there are significant impacts. The current U.S. countervailing duties and tariffs are affecting the economic success of the Canadian forest industry, including first nations businesses that are selling their logs to local Canadian lumber mills.

Some Canadian first nations bands, as part of the ongoing reconciliation process such as foundation agreements, are receiving timber rights to harvest Crown timber within their unceded territories. These first nations forestry opportunities, timber tenures and licences provide economic benefit and stability, long-term employment and training opportunities for first nations communities and future first nations business investment opportunities. The impacts of the current softwood duties and tariffs on the Canadian first nations forestry business is that Canadian local sawmills are basing their log purchase pricing on current log markets but factor in the percentage of the tariffs and duties so that the mills pay to reduce the log prices, which impacts first nations businesses and projects negatively.

As well, the U.S. countervailing duties and tariffs impact the bottom line for first nations businesses and ventures. They're looking for the highest economic benefit for their timber resources within their unceded territory.

Currently, with the economies of scale of first nation forestry businesses being upstream log sellers, they are additionally impacted financially as their businesses will not see any reimbursement of duty deposits from the United States once a dispute is settled, as these costs are typically factored into the local mill log purchase pricing agreements at the beginning of the projects.

Ultimately, I'm drawn back to the current government mandate, in which one of their top priorities is reconciliation with Canadian indigenous people, as well as wanting to implement the United Nations Declaration on the Rights of Indigenous Peoples to allow government to bring federal laws and policies for Canadian first nations to pursue economic, social and cultural development needs. Based on the government non-action to settle the long-standing softwood lumber agreement, it is not placed in value for Canadian first nation forestry businesses and the Canadian forest industry. Again, there is a requirement to ratify in NAFTA, Bill C-4, regarding the long-standing softwood lumber agreement, to remove the tariffs and duties. If that is not in place and there's no agreement, this will create considerable adverse effects and restrictions for the first nation forestry businesses.

As for some of the impacts that we're currently seeing with the softwood lumber agreement, some first nations forestry businesses are having a hard time being successful and sustainable. As well, first nation business-to-business agreements and collaborations with other Canadian forest industry partners, ultimately impacting forest economic earnings to the nations and bands, are also creating some issues. Lower lumber market pricing and duties and tariffs, creating mill closures or curtailments, are creating some issues as well around the nations and territories. We're also seeing major licensees establish more mills in the United States than Canada due to the additional duties and taxes, to ensure market competitiveness and balance their dependence on local Canadian log supply. These moves create fewer good-paying jobs for Canadians, as well as first nation band members, and limit log-pricing competition to sell logs at lower market pricing, or better, with these mill closures.

In closing, I want to ensure that the softwood lumber agreement stays at the Canadian government's top priority for settlement and is ratified in some way that will make first nation businesses stay competitive and not be penalized any longer by the unfair and unjust United States' lumber tariffs and duties.

We need our Canadian government to defend our forest management systems and challenge the subsidy, to remove the tariffs and countervailing duties, since wood is used in a wide range of industries and doesn't qualify as a subsidy under U.S. law. As well, the actions of the U.S. are driven by protectionism rather than unfair management practices and stumpage rate determination.

Again, it will be vital to have collaborative discussions and engagement between government, first nation forestry businesses, and the Canadian forest industry to ensure a fair ratification of the softwood lumber agreement to make certain first nation businesses and ventures, and the Canadian forestry industry, economically successful and sustainable in Canada.

That is all I have to say. If you have any questions, I'll look forward to responding.

[Kevin Young, Chief Executive Officer, Woodtone Industries]

Madam Chair, committee members and staff, thank you for the opportunity to talk with you about Bill C-4, softwood lumber, and Woodtone. I think there are some commonalities in some of the presentations here this evening.

I am Kevin Young, and I serve as chief executive officer of Woodtone Industries, a family-run company with facilities in Chilliwack, B.C.; Armstrong, B.C.; and Everett, Washington. We employ over 300 people across our operations, which are built on a 40-year legacy of excellence and integrity.

At Woodtone our overarching belief is that everybody should live in a great-looking home that lasts a lifetime and doesn't sacrifice the environment to achieve this goal. Our teams design, manufacture and market Woodtone's finished building products for home interiors and exteriors. Our family at Woodtone is proud to offer some of the finest finished building products available anywhere in the world.

We don't cut down trees, and we don't make commodity two-by-fours, but we respect and appreciate the primary producers that do. Our specialty at Woodtone is high-value finished wood products. Our products are unique in that they have no grade stamps and are not intended for structural construction purposes. All of our products are prefinished—either pre-stained or pre-painted—and are ready for installation in new home construction.

Although our products can be found around the world, the United States and Canada remain our key markets. We welcome and embrace future efforts by governments to address the softwood lumber dispute in earnest after CUSMA is concluded.

The asymmetrical impact of the softwood dispute has been uniquely devastating for Canada's value-added sector and workers. At Woodtone we've had to make tough choices, like many others, including relocating technology, processing knowledge, and moving jobs south. In January 2018, we announced the move of 20 direct jobs and over $1 million in technology from our Canadian operation to our facility in Everett, Washington.

While primary producers have enjoyed sustained demand and record prices during the dispute, processors down the value chain have not. We've lost exports and we've lost jobs. This dynamic still exists. We believe that, when you consider spinoffs including transportation and other suppliers, up to 120 direct and indirect jobs are in play in our operations. We want to recalibrate before it is too late. That is why we are here today.

We don't want to lose the opportunity to repatriate some of this work for finished products not at the core of the softwood dispute. Our products fall outside the intended scope of the softwood lumber dispute. They can be readily differentiated at the border at the time of export. At the border we need a solution that works for authorities; a solution that is feasible, administrable and enforceable well into the future.

This brings us to Bill C-4. We support members of the committee amending Bill C-4 to provide for an independent study mechanism on finished exports outside the dispute. Specifically, we seek a review by a panel of experts for finished wood products that is consistent with past Canada-U.S. trade precedents. This, we believe, could be done by amending the reference to softwood in Bill C-4. This will provide reassurance to U.S. authorities that the scope language is enforceable, administrable, and will reduce circumvention.

Possible positive outcomes here include hyphenating the product codes 4407 and 4409, which can be done to assist local border agents in processing our exports with confidence. This is similar to efforts to accommodate U.S. plywood manufacturers back in the Canada-U.S. Free Trade Agreement.

With a simple majority vote at clause-by-clause, committee members can make an independent review happen by amendment. I'm not here to ask members of the committee to renegotiate NAFTA or the new CUSMA. It would not be wise to reopen negotiations with either Mexico or the United States. Enhancing Bill C-4 as it relates to softwood lumber is not changing the trade deal. You can take or leave the deal, but the legislation can be improved in this one area.

We want to work with committee members on appropriate language for an amendment. We encourage the members of the committee to act with confidence, supported by past precedent and sound public policy in the public interest. Our approach is collaborative and is achievable. Not only will it benefit Woodtone, but other operations in B.C., Quebec and the Maritimes will also benefit.

The Woodtone approach is not a cure or a solution to the softwood lumber dispute, but it is an effort to help a volume of exports that should not otherwise be in the dispute. We want to take the steps necessary to address the concerns. What we are talking about does not impact Mexico. It is specific to local border entry points to help local officials process our finished products.

We commend the co-operation of members on the committee and the positive initiatives to use Bill C-4 to improve Canada's future trade deals and arrangements.

We thank our local MPs and all members of the committee for this chance to be heard. By working together now, we can improve Bill C-4 moving forward and improve cross-border trade in finished wood products not in dispute.

Thank you, and I welcome questions and comments and wish the committee good luck and wisdom in your continued work.

[Bob Fay, Director, Global Economy Research and Policy, Centre for International Governance Innovation]

Thank you very much.

Good evening, and thank you, Madam Chair and committee members, for the opportunity to present the views of the Centre for International Governance Innovation.

By way of introduction, we go by “CIGI”. We're an independent, non-partisan global governance think tank based in Waterloo, Ontario, and we conduct policy-relevant research exploring global economics, security, politics and international law, with a focus on digital economy issues. Given this background, my comments will relate to Bill C-4 and data and intellectual property.

Canada has focused substantial resources and effort on new trade deals to reinforce the rules of the game in international trade, and rightly so. Trade is at the heart of our prosperity. New trade agreements are necessary to open up new markets and preserve old ones, and revised rules are necessary as economies change and to minimize trade frictions.

We fully understand that trade-offs were necessary in negotiations of CUSMA and that hard choices had to be made. We believe that the ratification of this agreement will remove some of the trade uncertainty that has dampened economic growth, and my remarks are not designed to hold up ratification.

Rather, my objective tonight is to highlight how commitments made in CUSMA related to data and intellectual property may inhibit Canada's ability both to innovate and to develop our own domestic policies. Then I'll offer some suggestions on the way forward.

In particular, CUSMA fails to consider the implications of how the nature of trade is changing, moving away from scale and cost efficiencies to, first, intellectual property creation; second, the rise of big data as an economic and social asset; and, third, the resulting imperative of asset protection.

What Canada agrees to in these areas has very wide-ranging repercussions for Canada in many forward-looking areas, including our ability to harness data in new technologies such as artificial intelligence, as well as fundamental domestic policies related to privacy, security, intellectual property, foreign direct investment, competition and innovation.

Yes, that list is long, and it touches upon all aspects of our economy, and indeed our daily lives, yet we are dealing with these issues currently largely through a trade lens, via a trade agreement that is dominated by U.S. interests. I would also note that the recent mandate letters charge the ministers for ISED, Heritage and Justice with the main task of coordinating new digital and data rights, which recognizes that there are substantial societal issues related to the use and monetization of personal data.

Indeed, data is an extremely valuable resource. Statistics Canada—and very good for them—has placed the value of Canadian data at over $200 billion, which is about two-thirds of the value of our oil assets. This number is extremely large, but it pales in comparison with other countries, namely, the United States. For example, the market cap of U.S.-based Facebook, Amazon, Netflix and Google is about $4 trillion U.S., and that high valuation results from their monopoly positions and huge data stores.

Further, these companies are cementing their market positions each and every minute with their continued acquisition of all varieties of data through user engagement with their platforms and fierce protection of their assets by a combination of the de facto rule-setting in the absence of national regulations; trade deals that enshrine open data flows; strong intellectual property protection of their data and AI assets; takeovers of innovative firms through their vast reserves of cash; the acquisition of top talent; and, the powerful information asymmetries that they gain with their data and their technologies.

The bottom line is that the data is their intellectual property, and their interests are behind the digital chapter in CUSMA.

We have three examples of some of the commitments in that trade agreement that favour them.

The first is the treatment of data localization. This part of the agreement is short and not so sweet. It says, “No Party shall require a covered person to use or locate computing facilities in that Party's territory as a condition for conducting business in that territory.” From a commercial perspective, that makes a lot of sense, but this is problematic for many non-economic dimensions. For example, if we took the smart city partnership in Toronto that's proceeding right now with Sidewalk Labs, which is a subsidiary of Alphabet, Canadians may well desire that their detailed data that will result from that city remain in Canada and not be transferred to the U.S., but Canada may be limited in its ability to do so.

Second, under CUSMA, localization is permitted if organizations collect, hold or process that information when those activities are undertaken for or on behalf of a government. However, for national security reasons, if the data were held by a private organization, then CUSMA would technically require the government to allow those data to be released to the other two partner countries.

Third, CUSMA contains a safe harbour provision to liberate digital platforms from responsibility for the content that they carry. On the one hand, free speech advocates see this as desirable. On the other, some see the weaponization of platforms like Facebook and YouTube during recent votes such as the 2016 U.S. presidential election as indications of the unwillingness and/or the inability of the digital platforms or governments to regulate content. This is a trade issue because the platforms' business model is supported via massive cross-border data flows.

ln summary, it is not clear how much policy flexibility CUSMA will ultimately allow the federal or provincial governments in adopting new laws and regulations to achieve objectives like those to protect people's privacy, prevent algorithmic bias, protect critical infrastructure, ensure national security or promote domestic innovation.

Let me now conclude with three recommendations on the way forward. First, trade negotiators need to be more fully briefed on the wide-ranging implications of the data-driven economy and the implications arising from existing digital measures in CUSMA and those that could arise going forward with the negotiations that are about to begin at the WTO on e-commerce. We need to be mindful that there are vested interests pervasive in the digital realm and that regional trade agreements are an entry point to manage policy space for areas that go well beyond digital trade.

Second, we need new international rules of the game for trade, for foreign direct investment and for intellectual property. As part of this, what Canada could do is push for the creation of a new global organization to set international governance in these areas. Drawing on the experience of the Financial Stability Board that was created in the aftermath of the financial crisis, we have put out a proposal to create a digital stability board. Such an organization would develop standards, regulations and policies across the many realms that digital platforms touch; advise on policy actions needed to address vulnerabilities in a timely manner; and ensure that this work feeds into other international organizations such as the WTO.

Finally, we should use the six-year review built into CUSMA to rectify some of these issues that I have outlined.

Thank you for your time and attention, and I look forward to any questions you may have.

[The Chair, Liberal, Judy Sgro]

I call the meeting to order. Pursuant to order of reference of Thursday, February 6, 2020, we are studying Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

To our panel of witnesses, welcome to all of you this evening. Thank you for coming. I guess I could ask what the weather's like outside because most of us have been inside, but at least you managed to make it, no matter how much snow is out there. We appreciate your being here.

From the Centre for International Governance Innovation, we have Bob Fay, director, global economy; from Kalesnikoff Lumber Co. Ltd., Ken Kalesnikoff, chief executive officer; from Woodtone Industries, Kevin Young, chief executive officer, and Francis Schiller, adviser.

By video conference from Guelph, Ontario, we have Linda Hasenfratz, chief executive officer for Linamar Corporation, and from Vancouver, British Columbia, via video conference, Andy Rielly from Rielly Lumber Inc.

Welcome to all of you. We appreciate your being here.

Mr. Fay, I will turn it over to you for five minutes of comments.

[The Chair, Liberal, Judy Sgro]

I will call the meeting to order. Pursuant to the order of reference from Thursday, February 6, 2020, we are here to study Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Thank you to the witnesses for coming today.

We have Brian P. McGuire, president and chief executive officer of Associated Equipment Distributors, by video conference from Illinois; and from Toronto, we have Greg Johnston, President of the Songwriters Association of Canada, by video conference as well.

Here with us at the committee are Garry Neil, cultural policy consultant from Neil Craig Associates, and from the Canadian Union of Public Employees, we have Angella MacEwen, senior economist, national services.

We will start with Mr. McGuire via video conference.

The floor is yours, sir. Go ahead, please.

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I call the meeting to order. Pursuant to the order of reference for Thursday, February 6, 2020, we are studying Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Welcome to our witnesses who are here by teleconference and those with us in the meeting room. By video conference from Niagara Falls, we have CanadaBW Logistics, Kevin Jacobi, executive director; and from Tanzania, Eddy Peréz, international policy analyst with Climate Action Network Canada.

Here with us in Ottawa, from DECAST, we have Jim Tully, executive vice-president. We are expecting Bob Benner, from Hamill Agricultural Processing Solutions, shortly.

We will go with the video conference. Mr. Peréz, you are in Tanzania and I understand that you don't have the best connection in the world, so we will open with your comments, sir.

Please go ahead.

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I call to order the Standing Committee on International Trade.

We are meeting today, pursuant to the order of reference of Thursday, February 6, 2020, on Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Welcome to all the members. I appreciate your finding the time over your lunch-hour to come for this important meeting.

The witnesses today from the Department of Foreign Affairs, Trade and Development are Steve Verheul, the chief negotiator and assistant deputy minister, trade policy and negotiations; and Dr. Marie-France Paquet, chief economist at Global Affairs Canada.

Thank you both very much for finding the time to be with us today.

I will turn the floor over to both of you for your comments.

[Bridgitte Anderson, President and Chief Executive Officer, Greater Vancouver Board of Trade]

Madam Chair, I would like to thank the committee for the invitation to speak and for all of the hard work you are doing to make this important agreement as robust as it possibly can be.

My name is Bridgitte Anderson. I am the president and CEO of the Greater Vancouver Board of Trade.

I would also like to recognize that we are on the traditional territory of the Algonquin people.

For over 130 years, the Greater Vancouver Board of Trade has worked on behalf of our region's business community and our over 5,000 members to promote prosperity through commerce, trade and free enterprise. Our mission is to work in the interests of our members to promote, enhance and facilitate the development of the region as a Pacific centre for trade, commerce and travel.

British Columbia's economy relies on its trading relationship with the U.S. Our natural resources, including lumber, oil and gas, and metals and minerals, are some of our largest exports. The value of B.C.'s top five exports to the U.S. is $22 billion a year.

A wide spectrum of industries benefit from our trading relationships in two B.C. examples. B.C.'s tourism industry employed 138,000 people in 2017. It generated $5.4 billion in export revenue, an increase of 7% from 2016.

Film and television is another bright spot in our economy that is experiencing rapid growth. B.C. is now the third-largest motion picture production hub in North America. The sector's GDP increased at an average annual rate of 15% between 2010 and 2018, five times the economy-wide pace. The creative sector contributes over $6 billion to the B.C. economy, with a workforce of nearly 110,000.

B.C. has the most diversified trading relationships in Canada, but the U.S. is still our largest trading partner. As of 2017, just over 50% of our exports in goods went to the U.S., followed by China, Japan, South Korea, the EU and India.

Our country is a small trading nation that relies on access to other markets. Our economy depends on trade and on the trade agreements that help bring our Canadian goods to international markets. International trade is especially important to B.C., where we experience a double benefit from trade from selling Canadian goods and from moving the goods by means of our gateway sector, including port, rail, air and road.

Our gateway sector in greater Vancouver alone contributes $20 billion to the national GDP, supports nearly 185,000 jobs and contributes $2.4 billion to the Canadian government in taxes.

The Greater Vancouver Board of Trade supports the ratification of CUSMA and the passage of Bill C-4 and offers the following reasons for support and recommendations for the committee to consider.

First is certainty. The new agreement will bring much needed certainty to Canada's business community. Over the last few years, global trade has been disrupted by the rise of protectionist measures, particularly from our most important trading partner.

The uncertainty has only been intensified by the protests and blockades we've seen across the country over the last few weeks. Shutting down rail access, roads, ports and bridges has hurt and continues to hurt the livelihoods of thousands of people, communities and virtually every sector of our economy. In greater Vancouver alone, right now there are 60 to 70 ships sitting in port waiting to move Canadian goods. It will take weeks, if not months, to recover.

In addition, the effects that coronavirus, or COVID-19, will have on our small trading economy are still yet to be seen. These examples emphasize the importance of a predictable supply chain.

In light of these unfortunate and disruptive circumstances, our businesses need certainty so they can take the lead and propel the economy forward through commerce and trade. Above anything else, CUSMA would avoid the breakdown of our trade relationship with our most important trading partners and thereby help to remove much of the uncertainty facing Canadian businesses.

CUSMA will continue to guarantee tariff-free market access to our most important trading partner, to provide preferential access to commercial opportunities and to allow our businesses to sell more goods. This means more business, more jobs and the movement of more goods. When we move more goods across borders, our businesses can thrive. Ratifying CUSMA in a timely manner to lock in guaranteed market access with the U.S. is more important than ever in light of recent claims that suggest the U.S. is considering raising its WTO-bound tariff rates.

If implemented properly, CUSMA will unlock vast potential for greater Vancouver and Canadian businesses to compete effectively for jobs. These benefits can only be achieved if there is a similar amount of attention paid to non-tariff-related trade barriers.

CUSMA includes provisions on customs administration and trade facilitation to standardize and modernize customs procedures throughout North America to facilitate the free flow of goods, but we cannot stop there. We recommend that government continue supporting and working with industry on initiatives such as the beyond preclearance initiative, which is doing important work around ensuring Canada's gateway cities can build improved processes and border policies to take full advantage of CUSMA.

We also recommend that government continue with initiatives to reduce and remove red tape, and regulatory burdens more broadly, to help business thrive. There is a growing perception in Canada that it is difficult to get things done, especially with jurisdictions in the U.S. that are routinely removing barriers and making access for business easier and simpler. Efforts like this will help ensure we increase competitiveness.

This brings me to my third point. The new agreement will help underpin North Americans' competitive advantage through its new chapter on competitiveness and its chapter on good regulatory practices. The preferential market access and integration with the American and Mexican markets will open opportunities for growth and foster robust supply chains and fair competition that will sharpen the competitive edge of Canadian businesses.

The fourth point is that the new CUSMA modernizes NAFTA by including provisions for digital trade, which reflects the rise of e-commerce and other aspects of the digital economy that didn't exist when NAFTA was negotiated. In addition, CUSMA includes language on protecting gender and indigenous peoples' rights, which is an economic imperative.

The provisions for digital trade and cross-data flows included in CUSMA are based on the provisions in our most modern trade agreement, the CPTPP. This makes CUSMA a trade agreement of the 21st century and prepares us for what will become an increasing part of our economy.

CUSMA supports Canadian SMEs that want to tap into international markets. The World Trade Centre Vancouver finds that 95% of SMEs that go through its trade accelerator program choose the U.S. as one of their first export markets. The U.S. is particularly important for SMEs for its size and its geographical and cultural proximity. Many Canadian SMEs use the U.S. as their export beta market where they test and grow their export capacity before targeting other markets.

Last, we recommend the following keys for success.

First, B.C. is the largest Canadian exporter of softwood lumber to the U.S. As you all know, it is a challenging time for B.C.'s forest industry, which supports approximately 140,000 direct and indirect jobs. Thousands of jobs have been lost to mill closures and layoffs due in large part to high tariffs. Bringing CUSMA into force will ensure that the continued chapter 10 protections are available to the B.C. forest industry as it stands up for fairness and ensures that the trade of softwood lumber can continue to support B.C. jobs. We recommend that the government continue working towards achieving a negotiated softwood lumber agreement and defending the industry against any potential trade sanctions brought by the U.S.

Second, there is a critical need for continued investments in trade-enabling infrastructure in Canada, such as container capacity at terminals. In addition, greater Vancouver has a unique challenge in availability of industrial land to support trade-enabling activities. Our vacancy rate is at a record low of 1.2%. Collaboration and leadership is required to ensure growth of our region.

As the Canadian economy becomes more weighted towards services, we should consider a plan to grow Canada's service exports, including making it easier for professionals to work across borders. Our 2018 regional export framework report shows that global demand for service sectors will continue to grow.

Ninety-eight per cent of all businesses in B.C. are small businesses. In order to leverage the benefits of trade, we need a plan to support small businesses as they start to export and grow their exports.

Finally, another important item will be the uniform regulations, which is the fine print of the agreement, including the details that companies must follow to facilitate trade on a daily basis. Businesses are eagerly awaiting these details, especially given the 90-day implementation phase. We hope they can be made available as soon as possible.

I would like to conclude by imparting a sense of urgency to the committee to lock in the benefits I have listed. We recognize that no trade agreement is perfect and that no trade agreement is made without compromise. We support the passage of CUSMA and hope all parties vote in favour of ratification.

Thank you for your time today and for the opportunity to appear before the committee. I welcome any questions you may have.

[Tabatha Bull, Chief Operating Officer, Canadian Council for Aboriginal Business]

[Witness spoke in Ojibwa and provided the following text:]

Aanii, Tabatha Bull n'indignikaaz, Nipissing n'indoonjibaa, Migizi dodem.

[English]

Hello. My name is Tabatha Bull. I am from Nipissing First Nation, and I belong to the Eagle Clan.

Thank you, Madam Chair and all the distinguished members of the committee.

I want to begin by acknowledging the Algonquin peoples for hosting this meeting on their ancestral and unceded lands.

I am the chief operating officer for the Canadian Council for Aboriginal Business, CCAB. I'm honoured to speak here on behalf of our association regarding Bill C-4.

CCAB supports corporations and governments to engage directly with indigenous businesses so that they may take advantage of mutually beneficial opportunities. Our work is backed by data-driven research, recognized by the OECD as the gold standard on indigenous business in Canada, on the barriers and opportunities for indigenous businesses, business capacity and supply chain analysis that has informed both government and corporate policy.

Through our research, programming and events, CCAB has earned the confidence of both indigenous and non-indigenous businesses in Canada, established a leading procurement platform and achieved meaningful results for indigenous companies over the past 37 years.

Our research work has led to a threefold increase in corporate commitments to improve indigenous relations and procurement—over $100 million in provincial government funding commitments to indigenous businesses.

We currently have close to 1,000 indigenous and non-indigenous business members working toward a more prosperous and diverse Canadian economy.

We were very pleased to be invited to participate as a member of the Global Affairs indigenous working group on trade.

We were also extremely pleased to see the involvement of National Chief Perry Bellegarde in the renegotiation of NAFTA and in the invitation to us here today.

As a result of this inclusive approach to trade negotiation, this work resulted in the most inclusive international trade agreement for indigenous peoples to date.

I echo the comments by National Chief Perry Bellegarde, when he testified on June 18, 2019, and those of Judy Whiteduck and Risa Schwartz, when they testified on February 20, 2020, that this agreement is not perfect but to date it is the best we have in Canada.

With the ratification of the Canada-United States-Mexico agreement, we would take a step to make international trade more aware of and more equitable in its treatment of indigenous peoples, and especially indigenous women entrepreneurs.

The aboriginal trade interest is not presumed but instead strongly asserted through the positive economic trends that have been observed by the CCAB within the aboriginal private economy.

ln 2016, aboriginal peoples contributed over $30 billion to Canada's GDP, $12 billion of which was generated by aboriginal businesses.

Through trade agreements and treaties, the Canadian Council for Aboriginal Business finds immense value in promoting and supporting the distinct demand of the aboriginal private economy to facilitate and substantiate economic growth.

By reducing barriers and creating fair, equitable and inclusive trade conditions, the aboriginal private economy will be provided with equal footing to Canadian and North American business and service providers through trade exclusions, intellectual property and provisions and by expanding labour mobility policies to honour the unique barriers and operations of aboriginal service providers and enterprises.

With the levelling of the economic playing field through targeted trade policies, aboriginal enterprises and service providers can benefit from increased market access, procurement and investment opportunities.

Importantly for the CCAB, we believe that with specific preferences to carve out procurement benefits and other opportunities for indigenous businesses and service providers, there is also a promise of future co-operation to enhance indigenous businesses.

Procurement is of interest for the CCAB, as our research has found that indigenous businesses can supply 24.2% of the goods and services purchased by the federal government annually.

We appreciate that the Government of Canada has committed, through the mandate letter to the Minister of Public Services and Procurement Canada, to have at least 5% of federal contracts awarded to businesses managed and led by indigenous peoples. This target is achievable, and the CCAB wants and is willing to work with the Government of Canada to meet and exceed this target.

CCAB believes that trade with the United States is directly tied to the future economic success for aboriginal business and hence directly tied to the prosperity of indigenous peoples across Canada.

Our research with Global Affairs Canada showed that indigenous businesses are twice as likely as non-indigenous businesses to export. Of indigenous companies, 24% export today, which means more than 13,000 indigenous firms are exporting. As well, indigenous women are more likely to export than indigenous men.

While the Canada-United States-Mexico agreement is a new example of the difference it makes to engage with indigenous people at an early stage, there must be increased opportunities for participation of indigenous peoples not only in international trade negotiations in decision-making as per UNDRIP but also in trade missions.

Programming and support need to be provided to indigenous communities and leaders to build capacity in trade to ensure that their participation is meaningful and resourced appropriately. The CCAB looks forward to continuing our important work on the Global Affairs indigenous working group to support the inclusion of language in Canada's current and future trade agreement negotiations, including with Mercosur and the Pacific alliance countries.

The CCAB also welcomes the opportunity to be more actively involved in the planning and execution of trade missions to increase indigenous exports.

Thank you for the time. Meegwetch.

[The Chair, Liberal, Judy Sgro]

I'm calling the meeting to order.

Pursuant to the order of reference of Thursday, February 6, 2020, we are studying Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

With us in this next short while we have, from the Canadian Council for Aboriginal Business, Tabatha Bull, chief operating officer; and from the Greater Vancouver Board of Trade, Bridgitte Anderson, president and chief executive officer. By video conference from Halifax, we have the Toronto Region Board of Trade, Leigh Smout, executive director, World Trade Centre Toronto.

I will open with Mr. Smout.

Please, go ahead.

[The Chair, Liberal, Judy Sgro]

I'm calling the meeting back to order.

Pursuant to the order of reference of Thursday, February 6, 2020, we continue our study of Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States. We're going into, I think, the seventh panel today.

Welcome to all of you.

We have, from Honey Bee Manufacturing Ltd., Jamie Pegg, general manager, and Scott D. Smith, manager of components, systems and integration. From Northern Cables Inc., we have Shelley Bacon, chief executive officer, and Todd Stafford, president.

Mr. Pegg, I'll turn the floor over to you.