Economic Relationship between Canada and the United States Committee on March 4th, 2021

[The Chair, Liberal, Raj Saini]

Ms. Bendayan, you have 45 seconds.

[Rachel Bendayan, Liberal, Outremont, QC]

Thank you, Chair.

I would just mention that at the last meeting we discussed the importance of a team Canada type of approach, a lobby effort in which we were all involved, in which we were all on the same page. Minister, given that you will be leading much of this charge, I wonder if there's any message to opposition parties, to premiers, to Canadians listening as to how we can all be working together in order to ensure that we get this right and that we get this done.

[Seamus O'Regan, Liberal, St. John's South—Mount Pearl, NL]

We need to work together. It's too essential. It is essential not only for our country's energy security but also to the binational relationship that we have with the United States. Canada is expected to lead on lowering emissions, and that is a challenge, no question. We are the fourth-biggest producers of oil and gas in the world. We are also the largest democracy with the greatest bounty of natural resources in the world, so the way we do it must be transparent, as the world is watching us. They don't have much time, nor do most Canadians, on matters of such importance with people fighting all the time.

I've made it a top priority of mine to make sure that I work with our provincial ministers, but particularly with those provincial ministers of energy-producing provinces. It will bear and it has been bearing fruit. Things are getting built in this country. We will lower emissions, and we will create jobs.

[The Chair, Liberal, Raj Saini]

Thank you, Mr. O'Regan, Minister, very much for taking the time out of what I know is a busy schedule, especially with the new administration.

[Seamus O'Regan, Liberal, St. John's South—Mount Pearl, NL]

This is very important.

[The Chair, Liberal, Raj Saini]

On behalf of all my colleagues, I want to thank you for answering our questions and responding to our concerns. We look forward to carrying on the conversation.

Now we will move to the officials. Thank you again, Mr. O'Regan, on behalf of the committee.

[Seamus O'Regan, Liberal, St. John's South—Mount Pearl, NL]

Thank you.

[The Chair, Liberal, Raj Saini]

For the officials, the first question goes to the Conservatives, but I don't have a name. Whoever wants to take the question has six minutes.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

That would be me, Mr. Chair.

Thank you very much.

I would like to start by exploring where and what the Americans have said and acted on to date.

They have been very clear in the messaging to us around self-sufficiency and the repatriation of jobs, be that from the national security tariffs we saw on steel and aluminum to the tax reforms that incentivized American companies, to repatriating jobs to the U.S., to signalizing that they want to modernize trade rules so that taxpayer dollars can spur domestic investment to climate change, where, obviously, we've seen the cancellation of Keystone XL, and now the controversy over the situation with Line 5.

The message is serious. The opposition to Line 5—and to decommission it, not just to suspend the underwater portion—has been increasing since 2015, and now we have a looming deadline of May 2021, which is just around the corner.

What possible outcome and what probability do we have of being able to turn this around before May?

[Jean-François Tremblay, Deputy Minister, Department of Natural Resources]

As the minister said, we're quite confident that we will be able, of course, to turn and to go beyond May. The recent decision of the judge in asking for a mediator between the parties is actually very good news. As the minister said, we also are exploring all the other possibilities to make sure that the continuation of the pipeline is not at risk. That's for sure.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Unfortunately, there have been, with Enbridge, over 33 spills on Line 5 of 1.1 million gallons. Line 6B, which is also in the Kalamazoo River in Michigan, has experienced a significant spill of one million gallons. This is fuelling the influence in the U.S.

The understanding I have is that the U.S. is saying “it doesn't really affect us”, that it's oil from out west in Canada that's going out east in Canada, so there's much more of a downside for them, the Americans, to continue—that's what I'm hearing from them—than there is an upside.

I wonder if you could counter that. Why is it more in the best interests of the U.S. to keep Line 5 going underwater than it is to cancel that and go through with what the Michigan governor has said?

[Jean-François Tremblay]

If you'll allow me, I will turn to Glenn, who is the ADM in charge of this issue.

Before I turn to him, I just want to remind people that there are 70 pipelines crossing the border, and there are 30 transmission lines. Our systems are totally integrated. Energy goes from south to north and north to south. It's beneficial for both countries. It's the way it has been. It's the way it is. It's also the same thing for Line 5. You have some of that energy, as was mentioned, that is going to Quebec and Ontario—

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

But I'm hearing that in fact that's not how it's being viewed. This particular—

[Jean-François Tremblay]

You're right. There are always proponents who are presenting things differently—

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

So—

[Jean-François Tremblay]

—but I would just.... If you'll allow me, I'll ask Glenn to provide you some numbers on what exactly Line 5 provides and brings to the economy of the United States and, of course, to the people of the United States.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

If I can—I'm short on time—I just wanted to ask, what is Canada's plan B? What is the government looking at for a plan B? We're looking at over 2,100 truckloads a day if this were to arrive, and it could arrive as soon as May 2021. What is Canada's plan B?

[Jean-François Tremblay]

Our plan A is to make sure that the pipeline is going to continue to operate. We're not working on scenarios where it's not going to happen. We have discussions with provinces on a regular basis on what the impacts are, how that works, who is impacted by the pipeline and what exactly the benefits of the pipeline are for them. We are doing all our work at all levels with our friends in the U.S.—

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

We certainly hope that you're right.

I would like to talk quickly, though, about critical minerals if I could. I know the United States has already a federal strategy to ensure secure and reliable supply of critical minerals. I know that the European Union has an EU raw materials strategy whereby they are looking at being independent, from a critical mineral perspective, as do Japan and Australia.

Could you share with us where Canada's critical mineral list is and where Canada's strategy for self-sufficiency is in this area?

[Jean-François Tremblay]

Jeff, maybe you want to answer this question.

[Jeff Labonté, Assistant Deputy Minister, Lands and Minerals Sector, Department of Natural Resources]

Thank you, and thank you for the opportunity to perhaps address this question.

Our strategy on working on critical minerals has been under way for a number of years. You mentioned the EU, for example, and the United States. We have a working group with the United States that has been in place for well over a year in which we're working on five specific areas. It includes industry engagement, joint research and development, defence supply chains, improving information on resource potential, and mapping and collaborating in multilateral fora.

All of that work has been under way. We are working on it. We have worked with the United States to continue that. Last week the Prime Minister and President Biden continued that by reinforcing that we're going to focus on battery—

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Do we have a list of minerals that we consider—

[The Chair, Liberal, Raj Saini]

Ms. Alleslev, your time is up. I'm sorry.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Thank you.

[The Chair, Liberal, Raj Saini]

Next is Mrs. Romanado, for six minutes, please.