Economic Relationship between Canada and the United States Committee on April 8th, 2021

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

Thank you, Minister.

With respect to the border, I recognize that now is not the time to open the border, but as you mentioned, we are making progress and the Americans are as well. From small business owners to large corporations to just individuals, Canadians need to be able to plan.

Can you tell us when you will be able to provide the conditions under which we can reopen the border and, if you could, speak specifically to what impact vaccination might have on that?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

We evaluate that on a continuous basis and, as you know, we renew our orders in council and we fine-tune them as we move forward. Two months ago, when the situation was moving downwards from the second wave, I don't think anybody could have anticipated the third wave. I don't think anybody could have predicted—

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

No, Minister, and I'm not looking for a time in terms of when, but rather the conditions. What's the plan? How do we know what those conditions look like, so that we'll be able to open?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Those conditions depend on the state of the situation between the two countries. That's what we have to continuously bear in mind as we revise our orders in council, and always, as I say, with the priority being health and safety. It's a movable target that we keep adjusting on a monthly basis.

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

Thank you, Minister.

[The Chair, Liberal, Raj Saini]

Thank you, Ms. Alleslev.

We'll go now to Ms. Romanado for five minutes, please.

[Sherry Romanado, Liberal, Longueuil—Charles-LeMoyne, QC]

Thank you very much, Mr. Chair.

Minister, thank you very much for joining us today.

It is not easy to take the floor after five members, as a number of my questions have already been asked.

Therefore, I have to switch my strategy a bit.

With respect to the border, obviously we are both from the Montreal area. Being 45 minutes away from the St-Bernard-de-Lacolle border, I hear about this often, from both sides: that we don't want to open the border, that we do want to open the border, or that we could at least let people go in, especially those who have property on the other side of the border.

You've mentioned that it's an evolving issue and that month by month we're looking at that, but is there a possibility, given the vaccination rates ramping up both in the United States and in Canada, that we will see the border open before the end of summer?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Well, I don't know if my crystal ball is any better than yours, colleague. I would say that the fact that more and more Canadians and Americans are being vaccinated certainly moves us in the right direction. At the same time, as anybody can notice if they check the current situation, there's concern about the third wave, and there has even been discussion in some quarters about a potential fourth wave. We're not out of the woods, and we must always bear in mind that the health of Canadians and their safety are paramount.

I fully understand the frustration that this is causing a lot of people. You've named some examples of people who are directly affected. I hear, for example, from Brian Higgins, an American congressman who represents the northern states. They would like to reopen the border more and have that greater opening. We're hearing from our stakeholders and, of course, from industry as well. We have to look at all the information we have and make the right decision for Canadians.

Like everybody, I hope things will get better and we'll be able to loosen things up, but I would not want to be the one to make a prediction right now about exactly when we're going to be able to open that border like it used to be.

[Sherry Romanado, Liberal, Longueuil—Charles-LeMoyne, QC]

Thank you, Minister.

I want to shift now to probably one of the most important relationships we have with the United States, that of NORAD. I know you are very aware of our relationship with NORAD.

Having just celebrated the relationship, we're hearing talk in Canada about closing “NORAD of the North”, as we call it in North Bay. Can you elaborate to the committee, which may not be as familiar with our relationship with the United States with respect to NORAD, just how important it is?

You mentioned the Arctic. You mentioned our northern passage. Could you elaborate a little for the committee on that importance and on that continued relationship?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

When we speak about the priorities for our American neighbours, I have spoken about economic priorities with regard to trade between the two countries, but security is also paramount for them. We have strong alliances with the United States, first in NATO with many other countries, but also with NORAD, which is unique between Canada and the United States. It's the bilateral arrangement we have had for many decades for the protection of North American territory. It involves a presence in the Arctic.

NORAD is in need of modernization. We have specifically identified this as an area on the road map that we will be discussing with our U.S. neighbours with respect to modernization. It is also true to point out, as you alluded to, that the Arctic is changing at the moment, primarily because of climate change, and this has huge implications with respect to many things, including increased traffic across the north. A greater awareness and modernization of the capabilities we have within NORAD is something both Canada and the United States are going to be discussing and implementing.

[Sherry Romanado, Liberal, Longueuil—Charles-LeMoyne, QC]

Thank you very much, Minister.

[The Chair, Liberal, Raj Saini]

Thank you, Ms. Romanado.

We will now go to Mr. Savard-Tremblay.

You have the floor for two and a half minutes

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

Thank you.

Minister, we were unfortunately interrupted earlier. I asked you a question, and you implied that Mr. Verheul could answer it; so I am putting it to him.

Do the early conversations with the new U.S. administration point to a new position on its end concerning the WTO Dispute Settlement Body?

[Steve Verheul, Assistant Deputy Minister, Trade Policy and Negotiations and Chief Trade Negotiator of the Canada-United States-Mexico Agreement, Department of Foreign Affairs, Trade and Development]

At this point Minister Garneau is exactly correct. The U.S. has not yet formulated its position on how it wants to deal with the issues of dispute settlement at the WTO. The big difference we see is that the Americans are open to a dialogue and are prepared to talk about it. They have made it clear that they have ongoing concerns they would like to see addressed with respect to the dispute settlement process, but at least we have the opportunity to start to talk about it and see if we can find some solutions.

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

Thank you.

I will continue to put my questions to the Minister.

On March 4, 2021, Canada's ambassador to the United States told this committee that, under the Buy America provisions, the United States could add goods to the list that currently contains iron, steel and certain manufactured products.

Do we have information, or even direct or indirect signs, suggesting that the United States may be preparing to amend the provisions in order to apply them to purchases of products other than the already targeted iron, steel and manufactured products?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

To my knowledge, no, there are no such indications at this time. This does not mean that there will not be any. Of course, we are keeping our finger on the pulse. If it does happen, we will deal with those changes and will obviously defend our interests.

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

So the United States has not, so far, provided an exhaustive list of products to which the Buy America provisions could apply.

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

It is important to remember that the new administration has been in power only since January 20. Although the president has issued executive orders along with some very bold statements, due process must be followed, just like in Canada. This must go through the U.S. Congress. We have to wait. We will know the details as we move along. In due course, the U.S. Congress will intervene and may want to make amendments. Although the new administration has taken quick action, it will take time for us to find out all the details.

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

For the time being, do you—

[The Chair, Liberal, Raj Saini]

Unfortunately, your time is up. Thank you, Mr. Savard-Tremblay.

We'll go now to Mr. Masse, please, for two and a half minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair.

Minister, the U.S. Centers for Disease Control issued a “high” warning for travel to Canada for American citizens. The point I have with regard to the order in council process is that it's secretive; it doesn't have to be inclusive of the different groups and organizations. The tentacles for it might reach out for advice from different groups and organizations or bureaucrats, but why not have a border task force to at least provide some public accountability and some innovative ideas on how to deal with this?

Who would have thought the U.S. would be issuing a travel advisory against Canada to its citizens? That's where we're at right now because of their advanced COVID immunization. Why not have some type of formal process like we've had in the past, which would untangle border issues on a regular basis and proactively work on solutions and proposals?

It has been very cruel for families who are waiting month by month for somebody, somewhere, to make a decision on whether they can actually have a process to be reunited, let alone the business decisions and the business engagements we have that are very particular to regions, like the moldmakers in my riding.

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

I certainly do not characterize the process as “secretive”. Certainly, we speak very openly with the stakeholders with whom we engage. We are constantly being asked by the media where we position ourselves on issues related to the border.

With respect to the CDC making decisions, they're a U.S. body. They make those decisions as a function of the situation that exists within the United States, and we in Canada make our own decisions as well. So far, there has been mutual agreement as we renew the border policies on a monthly basis. It's not to say that at some point there wouldn't be some differences, but not only are we listening to stakeholders, we're also working with the United States so that, as much as possible, we can harmonize our border policy.

[Brian Masse, NDP, Windsor West, ON]

I have a quick question on auto. I'll pivot to that.

Similar to batteries is the sharing of information, data and privacy, especially when it comes to vehicles that are autonomous. What discussions are taking place on that? Again, this is part of a larger vision of auto. If we don't have those things—and also data management and data costs—autonomous vehicles and trucks will be compromised. What is happening with that, please?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

I'm sorry. Could you repeat your question? I missed part of it.

[Brian Masse, NDP, Windsor West, ON]

I'm just looking for the status for us and the United States in sharing information related to privacy rights for the use of autonomous vehicles and trucks between Canada and the United States. For them to operate in both jurisdictions, we need to have comprehensive data and privacy management plans and also cost-sharing with regard to those plans. Otherwise, they'll be comprised and won't be able to work.

I'm just wondering if you can update us on what's going on with that. We want to do the same things with batteries, but if we don't do that with data management and autonomous vehicles, they'll become useless on each side of the border.