Foreign Affairs Committee on May 28th, 2019

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Thank you for that important question, Mr. Baylis.

Again, I would like to publicly thank Steve Verheul and the entire Canadian negotiating team. Our negotiators are really the best in the world. I think I can tell you what one of the negotiators working with Mr. Verheul told me during the negotiations. He said,

You know, we're like the navy seals of Canada.

It was in Washington, after a very long day. All Canadians should be proud of the professionalism and patriotism shown by our negotiators. It is a privilege and an honour to work with Mr. Verheul and his team.

With respect to the new NAFTA, I would like to highlight two points that are important to Canadians. Our priority has always been to maintain access to the American market. We have access to it right now because we have NAFTA. This agreement is now in effect and offers us very significant economic opportunities. As everyone knows, this access was threatened. Indeed, the Americans wanted to hold new negotiations and modernize the agreement. However, we have been able to negotiate a new agreement that will allow us to maintain our access to the American market, which is so important to us.

As I said in my remarks, the following two elements were very important to us during the negotiations. We wanted to maintain chapter 19, which is very important for all Canadian industries, perhaps especially for the softwood lumber industry. We also wanted to maintain the cultural exception, which is also very important for all Canadians.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

Especially here in Quebec.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

It's important even for anglophones.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

In your negotiations, something that I thought was quite prescient that you picked up on is now becoming a threat to the rest of the world.

A couple of weeks ago, the American president laid the groundwork for another executive order, another section 232 national security threat, to put tariffs on automobiles. It's my understanding that you foresaw that and took some actions with a side letter that will maybe protect our Canadian automotive industry or steer us clear of that, if I understand correctly.

Can you explain what that side letter is about and how that might help us, given this new threat?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I certainly can, Frank. I would be happy to do so.

Steve and I spent quite a lot of time on that side letter, as did a much broader group. Maybe this is an opportunity for me to single out Martin Thornell, for his extremely hard work on the car issue. He is our rules of origin negotiator. He is a really brilliant person and he is very committed.

On the car sector in general, I also want to take this opportunity to thank Flavio Volpe, the Canadian car companies and car parts manufacturers and the union leaders, all of whom we worked with very closely on this effort. In fact, as the final details of the side letter were being negotiated, Steve and I were on the phone constantly, hour by hour, with these people. They really helped us shape the final agreement.

Another important thing for people to understand is that the side letter has entered into force already. It was signed on November 30 in Argentina by me and Ambassador Lighthizer. It now applies.

That's a very important point for—

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

The threats won't impact us.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Yes, I think that's what you're getting at, Frank. It's a really important point because as the United States has said publicly, the U.S. section 232 investigation on cars is now complete and the U.S. has said that over the next six months they want to have negotiations with Japan and the European Union.

The Canadian car sector is safe because that side letter is essentially an insurance policy, which means that in the event of section 232 action, our industry would not be affected.

[The Chair, Liberal, Michael Levitt]

You have 30 seconds.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

Thank you. Good work on that.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Thank you.

[The Chair, Liberal, Michael Levitt]

Thank you very much.

We shall now move to MP Caron, s'il vous plaît.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Mr. Chair.

Welcome, Madam Minister.

On October 25, 2018, the Prime Minister announced that the government would review all export permits for arms to Saudi Arabia. It was announced seven months ago already, in the aftermath of Mr. Khashoggi's murder. Where are you with the review of export permits?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Thank you for this question.

Welcome to the committee. I think this is the first time we've spoken here, you and I.

I can assure you that after Mr. Khashoggi's murder, no new arms export permits to Saudi Arabia were granted. That's what we have announced, that's what we have done and continue to do. It's a matter we take very seriously. We are looking at the situation.

I would like to highlight something important. Agnès Callamard, the UN Special Rapporteur, is currently investigating the murder of Jamal Khashoggi. I spoke with Ms. Callamard on the phone, and I have also met with her at the UN. We fully support her work.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

I don't necessarily want to talk about Mr. Khashoggi now.

I didn't get an answer to my question. I know there haven't been any new export permits. That's the first announcement. The second announcement, which was made at the same time as the first, stated that the existing arms export permits to Saudi Arabia would be reviewed. It's been seven months now since that was announced, but Parliament still has no idea where this review process stands.

I'll remind you that Germany, Finland, Denmark and the Netherlands have suspended arms sales, despite the fact that they had existing contracts.

So, I ask again: where are we with the review of arms export permits to Saudi Arabia?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

That's an important question. One of the elements of this revision is the investigation into the death of Jamal Khashoggi. That's why I talked about Agnès Callamard's work. The death of Jamal Khashoggi is one of the causes that inspired the press rights conference in England, which I have already mentioned. Jeremy Hunt, the British Secretary of State for Foreign and Commonwealth Affairs, and I announced the conference in France during the G7 meeting. We mentioned that the death of Jamal Khashoggi was one of the elements that inspired the conference.

You know, from speaking in the House, that the war in Yemen is one of the issues we're working very hard on. This is a significant part of this big issue. A few weeks ago, I had a conversation with Martin Griffiths. Canada is strongly committed to the process. With Mr. Griffiths, we are looking for a way to reach a ceasefire, to find peace in Yemen.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

I fully understand the situation. You raised the issue of Yemen. However, it isn't just the murder of Mr. Khashoggi that's at play. There is also the fact that these people are using these weapons both against their own people and in the conflict in Yemen. I find that paradoxical. Saudi Arabia is using the weapons we send to it to block ports and embargo the humanitarian aid we want to bring to Yemen. I think that's problematic.

I find it difficult to understand how Canada can take more than seven months to review arms export permits when its partner, Germany, which has major sales contracts with Saudi Arabia, immediately suspended its exports and extended the suspension of arms sales. Human rights are at stake, whether it is Mr. Khashoggi or the conflict in Yemen. I remind you that there are more than 22 million displaced people in this country who have been victims of the conflict.

Meanwhile, a permit for arms exports to Saudi Arabia is still being reviewed. This review, I remind you, came after the Prime Minister mentioned that it would be too expensive to break the contract and that some of your comments were quoted on the radio saying that it was very important for Canada to be a trusted partner in the world—

[The Chair, Liberal, Michael Levitt]

You have 30 seconds.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

—for a longer period than that guaranteed by election cycles. You were talking about the sale of weapons in Saudi Arabia.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

You said there were 30 seconds left?

[The Chair, Liberal, Michael Levitt]

You have 20 seconds remaining for the answer.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Okay.

So I'll raise two points. I share your concerns about the war in Yemen. I think this is a crucial issue and a very important part of this discussion. For that reason, Canada is very committed to this. I would like to stress something, because it's important—

[The Chair, Liberal, Michael Levitt]

That's time, Minister, sorry.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

May I finish my intervention?

From the moment Jamal Khashoggi died, new export permits were not granted. This is an important fact.

[The Chair, Liberal, Michael Levitt]

Thank you.

Next up is MP Sidhu, please.

[Jati Sidhu, Liberal, Mission—Matsqui—Fraser Canyon, BC]

Thank you, Mr. Chair.

Thank you, Minister, for coming to the committee this morning.

I'm pretty sure most Canadians across the country are very thankful to you for your hard work on steel and aluminum tariffs. Your persistence, effort and engagement with the U.S. resulted in Canadians securing the full removal of the section 232 U.S. tariffs without quotas. The tariffs were only lifted in Mexico and Canada. It's not big, but it's a unique accomplishment.

Since everything is said and done, can you share some of the strategies that were used during the negotiations with the U.S.?