Evidence of meeting #219 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was products.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Patrick Halley  Director General, International Trade Policy Division, International Trade and Finance, Department of Finance
Michèle Govier  Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance
John Layton  Executive Director, Trade Remedies and North America Trade Division, Department of Foreign Affairs, Trade and Development

4:10 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

But the bill repeals all of that.

4:10 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

4:10 p.m.

Director General, International Trade Policy Division, International Trade and Finance, Department of Finance

Patrick Halley

That's right. They remove the moratorium of two years, and if the previous measure was less than 180 days, the moratorium is one year. These are repealed for a two-year period and reinstated two years after royal assent of the bill.

4:10 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Does clause 2 have a similar effect?

4:10 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

Michèle Govier

There's a reference in the Canadian International Trade Tribunal Act to those provisions, so it's just making a consequential amendment to remove that reference.

4:10 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Clause 2 is just consequential to clause 1.

4:10 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

4:10 p.m.

Director General, International Trade Policy Division, International Trade and Finance, Department of Finance

4:10 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

And clause 3 is a coming-into-force clause?

4:15 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

4:15 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Okay. So that's the whole bill. I just wanted to make sure there were no surprises.

Has the Canadian International Trade Tribunal in the last, let's say, five years found that other countries have engaged in steel or aluminum dumping in Canada?

4:15 p.m.

Director General, International Trade Policy Division, International Trade and Finance, Department of Finance

Patrick Halley

The dumping and the subsidization—the countervailing process—are complaint-driven. Companies would complain first to the CBSA, the Canada Border Services Agency, and the CBSA determines whether or not there is dumping—

4:15 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

And have they?

4:15 p.m.

Director General, International Trade Policy Division, International Trade and Finance, Department of Finance

Patrick Halley

—or subsidization.

In a parallel process, the Canadian International Trade Tribunal looks at, if there is dumping, whether or not that dumping is injurious to Canadian producers. The CITT really looks at the injury portion of the process and does not determine whether there is dumping occurring in the Canadian market. That's done by the Canada Border Services Agency.

4:15 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Have either of those bodies found that dumping has existed in the last five years with respect to steel and/or aluminum?

4:15 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

Michèle Govier

Yes. I think Patrick referred earlier to 77 measures being in place, with anti-dumping and countervail cases against a number of different countries related to steel products.

4:15 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

What were they? What was the time frame during which those dumping incidents occurred?

4:15 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

Michèle Govier

Some of them go back quite a long time. Measures are generally imposed for five years, but they can be extended if it's found to be warranted and if it's likely that the dumping and subsidization that are causing injury are likely to continue. For some products, I think it goes back even 10 or 15 years.

4:15 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Is China on the list of countries?

4:15 p.m.

Senior Director, Trade Rules, International Trade and Finance Branch, Department of Finance

Michèle Govier

Absolutely. I think for virtually all products, China is one of the countries that are subject to those measures.

4:15 p.m.

Liberal

The Chair Liberal Wayne Easter

If there's more later, Pierre, we can come back to you.

Mr. Fragiskatos.

4:15 p.m.

Liberal

Peter Fragiskatos Liberal London North Centre, ON

Thank you, Mr. Chair.

Thank you to the officials for being here.

I want to ask a question about international legal obligations from a trade perspective. Can you tell us how this legislation is consistent with Canada's international legal obligations in that regard?

June 11th, 2019 / 4:15 p.m.

John Layton Executive Director, Trade Remedies and North America Trade Division, Department of Foreign Affairs, Trade and Development

I think the legislation is consistent with our legal obligations in the sense that there's no obligation to have this time period or moratorium on new measures. There's no obligation to have that in our law. However, if Canada imposed another measure within the two-year period, because we've removed it from our law, I think other WTO members would have questions about how that were consistent with the obligation in the WTO agreement. That is the obligation, but it only applies if we impose another safeguard measure.

4:15 p.m.

Liberal

Peter Fragiskatos Liberal London North Centre, ON

Okay, but just to be clear, as far as this bill is concerned, we are not offside with the WTO in any way? We wouldn't face any complaint or anything like that?

4:15 p.m.

Executive Director, Trade Remedies and North America Trade Division, Department of Foreign Affairs, Trade and Development

John Layton

I think we will face questions about why we're doing it, but my understanding is that there wouldn't be a WTO dispute launched because of our law.