Thank you, Mr. hair.
Thank you for the opportunity to address the committee. My name is David Hutchison and I am the Director General of Trade Portfolio Strategy and Coordination at Global Affairs Canada. My branch is a part of the Canadian Trade Commissioner Service, or TCS.
Canada's trade commissioner service, the TCS, is a network of over 1,000 international business professionals working in over 160 locations around the world and across Canada. The TCS is a client-service organization that helps Canadian businesses export goods and services to the world.
Over 90% of TCS clients are small and medium-sized Canadian exporters of goods and services. The TCS also promotes foreign direct investment into Canada.
Given the committee's focus on Canadian institutional investors, I should note that promoting Canadian direct investment abroad, CDIA, is not a core mandate of the TCS. Our engagement with Canadian investors abroad is limited and takes place on a responsive basis.
I would like to give you an overview of how responsible business conduct, or RBC, fits into the consulting services of the TCS. It is important to have robust RBC practices to get the best human rights and sustainable development outcomes. By encouraging businesses to identify and mitigate risks, robust RBS practices also contribute to making them more resilient and more competitive. Hence, training our clients in RBC is very much a part of the TCS' consulting services.
It is important to note that TCS services are offered on a discretionary basis. They can be withdrawn at any time. When credible questions about a client's conduct are raised, the TCS will engage with the client to reinforce expectations concerning RBC.
It is important to note that the vast majority of Canadian exporters and TCS clients are honest and ethical business people, and they are a credit to our country. However, in rare instances, when we are made aware of clear violations of Canadian law and/or policy related to RBC, we have withdrawn and will withdraw services for clients.
The TCS also has procedures in place to alert the RCMP to allegations of bribery involving Canadian companies.
With respect to China in particular, I would like to start by giving you an overview of the Canada-China economic relationship.
China is Canada's second-largest export market. Canadian exports to China totalled $36.7 billion in 2022.
With a population of 1.4 billion people, China remains an important market for Canadian businesses of all sizes and from all sectors, including many clients of the Trade Commissioner Service.
We recognize that doing business in China requires a sober strategy that allows us to take a clear look at the situation. We know, for example, that there is substantial and credible evidence of systematic human rights violations in China and of the use of forced labour in various sectors of the economy.
As with other markets, the TCS aims to help our clients understand not only the opportunities, but also the potential risks of doing business in China, and to help them mitigate those risks.
Engaging with clients about the situation in Xinjiang is especially important. Committee members may be aware that in January 2021 the government announced a range of measures, including a Xinjiang integrity declaration for Canadian companies seeking support from the TCS, a business advisory on doing business with Xinjiang-related entities, and enhanced education and advice on this issue for TCS clients.
These measures are in addition to Canada's existing prohibition on imports of goods made using forced labour. Just to note, the TCS does not oversee or administer Canada's import prohibition. This work is led by ESDC and CBSA.
Let me end by noting that promoting responsible business conduct is a priority for the Trade Commissioner Service and an essential part of the services we offer our clients.
The TCS will continue to support Canadian exporters working in China and in other foreign markets. We will continue to advise them on international trade opportunities and on the relevant risks and challenges, including on human rights abuses.