Good morning, everyone.
Thank you very much, Mr. Chair and members of the committee, for having John and me here today. I'm Catherine Cobden, the CEO of the Canadian Steel Producers Association. John and I are very pleased to join you to discuss the importance of the buy Canadian policy to the Canadian steel industry.
First, let me say that the Canadian Steel Producers Association represents 100% of Canada's domestic steel production, from Alberta through Quebec, as well as significant steel users in our downstream market. One of them, Janco Steel, joins us today and will be sharing our five minutes.
Canada's domestic steel industry generates $15 billion in economic activity and supports 123,000 direct and indirect jobs across the country. As I sit here today, you will be aware that we are facing the most consequential trade action by the United States, with 50% section 232 tariffs on all Canadian steel exports. These tariffs have now been in place for over a year. In 2024, the U.S. was the destination market for over six million tonnes of steel. Today, our shipments to the U.S. have plummeted. We're now down 60%, and over 1,000 workers have lost their jobs.
In the face of this threat, the domestic industry's core strategy has been to pivot to the domestic market by addressing unfair steel trade in Canada and increasing market opportunities for Canadian producers. This is where the buy Canadian policy fits in. Mandating domestic steel in federal procurement for construction and defence projects gives us a much-needed market opportunity when we really require it. The government adopted appropriate thresholds and requirements in the policy—including proving that steel was melted and poured in Canada—that will ensure that it meets the intent.
We urge comprehensive implementation of the policy across all federal departments and relevant federal transfers, grants and contributions. We look forward to assisting the government to make sure exemptions are granted in limited circumstances that cannot be met by the domestic industry. We hope all levels of government in Canada will follow the federal lead and introduce mandated requirements that steel be melted and poured in the country.
In closing, I would like to say that the domestic industry does not believe this policy will create supply chain shocks or uncompetitive price escalations. We can produce what the country needs. We have the scale. We have the capacity.
Thank you for your attention.