Industry and Technology Committee on Feb. 9th, 2026

[Kyle Seeback, Conservative, Dufferin—Caledon, ON]

We're against giving Donald Trump Canadian taxpayer dollars for our vehicles.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

No, it's more ideological than that. Fundamentally, there is something that I don't understand, because it is about embracing where the change is happening in the sector. It is about making sure that we can build the best cars in the world for the world. It is to stop being a hostage of our geography and being able to export around the world. It is about also addressing the real affordability issue at a time when people want to invest and buy new vehicles, but they need a bit of help.

Everybody is in favour of our auto strategy, including the EV incentives. Only the Conservatives are against it.

[The Chair, Liberal, Ben Carr]

Thank you very much, Mr. Seeback.

Mr. Bains, the floor is yours for five minutes.

[Parm Bains, Liberal, Richmond East—Steveston, BC]

Thank you, Mr. Chair.

Thank you, Minister, for joining us today and for all your hard work during this difficult economic trade war with the U.S.

You've stated that Canada will invest in those companies that will invest in us. Can you please explain how this process is under way already?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Yes. Depending on auto production in Canada, if, for example, U.S. automakers produce a number of cars in Canada, they have the right to bring in cars from the U.S. without tariffs, but if they reduce their production, then we put tariffs on the number they're basically reducing. Fifty per cent of the auto production of Stellantis last year was tariffed. That is making cars that are sold by Stellantis in Canada much more costly, and then they will be over the $50,000 threshold, which is the threshold to have access to EV vehicle incentives.

At the same time, we obviously have a strategic response fund to help Honda, Toyota and companies that are investing more in Canada. We think it's a good way to make sure that in Cambridge, Alliston and Woodstock, people continue to be employed, and more than that, we can have the next generation of Civics built in Canada. The good news is that the RAV4, a new model by Toyota, was just announced. Karim Bardeesy, my parliamentary secretary, was there. We also want to make sure that we have the new Lexus model built in Canada.

That's our goal, to really protect the jobs, anchor them for the long run, be partners with these companies and, at the same time, be able to attract new investment from Korea, Germany and China.

[Parm Bains, Liberal, Richmond East—Steveston, BC]

You talked about the strategic response fund. Bank of Canada research suggests that food inflation last year was almost entirely due to rising import costs. The government is setting aside $500 million from the strategic response fund to help businesses address the cost of supply chain disruptions without passing those costs on to consumers.

Can you outline how this funding will strengthen Canada's food sovereignty, domestic food production and processing?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

We know that some of the food that is sold in our grocery stores is impacted by the American tariffs. While we have no tariffs on food, sometimes through their supply chain, they will go from Brazil or Asia to the U.S. and then from the U.S. to here. When the goods enter the U.S., they are tariffed. The tariffs are included in the prices. Then they come to Canada. That's a problem.

We also need to make sure that we increase our food processing and production in Canada. We need to be much more sovereign when it comes to our food production. That will decrease the cost of food, and it will also create good jobs. That's why we have more funding in the strategic response fund to attract investments.

My team and I are in conversations with companies these days to make sure that is the case.

[Parm Bains, Liberal, Richmond East—Steveston, BC]

Could you explain the issue around the $400 million loan to Algoma, which then laid off 1,000 employees just days later?

Canada needs to have a strong domestic steel sector. Can you touch on why that loan was necessary?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

It was because Algoma is deeply impacted by the tariffs. The entire business model of Algoma and all our steel plants was based on the fact they would send steel to U.S. automakers on the other side of the border. That's basically how these plants would become profitable, based on the free trade agreement that we had, and still have, with the U.S., but unfortunately there are now 50% tariffs on the steel and aluminum sector.

What happened is that we offered liquidity, but I really think that by the end of next year we will be able to bring back at least 500 employees to Algoma. I went to Sault Ste. Marie twice last year, including back in December when the announcements of the layoffs happened. I met with the union. I know how frustrating and difficult this is.

We're in conversations as we speak. Actually, I'll be meeting with Algoma this week to support the building of a new beam mill and also a new plate mill. We think that will allow Algoma workers to offer products for the housing sector and for infrastructure building, and at the same time, the military and defence sectors. That's our goal.

It is a really difficult time, but we're having conversations with Algoma. We think we can get to a deal. Also, we are in conversations with Tenaris to create more jobs in Sault Ste. Marie.

[Parm Bains, Liberal, Richmond East—Steveston, BC]

Thank you.

[The Chair, Liberal, Ben Carr]

Thank you very much, Mr. Bains.

Mr. Ste‑Marie, you have the floor for two minutes and 34 seconds.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you, Mr. Chair.

Before I start my two minutes and 34 seconds, I have a point of order.

You made a comment about the quality of the interpretation, that is to say that, when there are cross-conversations, it causes problems for the interpreters. There were others that were reported to us afterwards.

Obviously, I remind my colleagues to please respect decorum for our interpreters, who do an extraordinary job.

[The Chair, Liberal, Ben Carr]

The message is received. That's a good reminder.

Thank you, Mr. Ste‑Marie.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Yes, thank you.

Madam Minister, can you give us an update on the assistance program for the forestry industry?

How many businesses, ideally by province, have used it? How many loan guarantees have been granted?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

What I know right now is that we have already provided support in the form of $200 million dollars. We committed to disbursing that money to 15 companies. Many of the regional development agencies are also there to help the sector with economic development.

The problem right now is that a number of companies in the forestry sector are worried. They're reluctant to take on more debt. Basically, the business model is very difficult because of extremely high tariffs, which make it difficult for businesses to operate.

So it's a huge challenge for companies in the forestry sector, because they have to find a way to change their business model while dealing with liquidity challenges. My colleague Tim Hodgson, the Minister of Energy and Natural Resources, has created a working group to try to find an even better solution. We're already seeing that what we're offering is good, but there's still more to be done.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

On that point, we adopted the proposal put forward by the forestry sector unions and many sawmills.

Since most of the duties are held in trust until the dispute is resolved, they proposed that the government advance them half of the funds that were set aside there, in the meantime, which would allow them to continue selling their products to the United States.

That potential solution could work, but we are still discussing it with your colleague.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Yes, that's right.

I know that Minister LeBlanc is very aware of the situation. There have been a number of discussions with American representatives. Let's just say that negotiations with them are very difficult.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Yes, that is indeed the case.

I have very little time left.

On Wednesday, you're going to announce the defence industrial strategy. What can you tell us about that?

In the media this morning, it was mentioned that 75% of procurement is currently linked to imports from the United States.

Are you aiming for a specific percentage, as part of this strategy, that would flow back into the Canadian economy?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

For us, it's going to be very important to create jobs through the defence funding. This reliance on the U.S. defence sector must end.

The government is going to create more than 100,000 jobs in Canada. Our procurement rule will be, first of all, to build here. If it's not possible to build here because Canada doesn't have the necessary skills, it will create partnerships and associations. If we can't do that, then we will buy products elsewhere.

I'll give you an example. Bombardier, which is an aerospace manufacturer, can certainly build planes. It's the same thing for the Davie shipyard in Quebec City. If Canada can't do it alone, Bombardier and Saab can work together to create and build a surveillance aircraft, like the GlobalEye.

Let's take the example of submarines, which we don't build in Canada. The idea is not only to buy German or Korean submarines, but also to create jobs at Marmen in Trois-Rivières.

The government could also create AI jobs at Cohere in Toronto. It could also create jobs at Algoma Steel, or in Sorel in the steel sector or, of course, in Saguenay—Lac‑Saint‑Jean in the aluminum sector, thanks to investments and procurement.

[The Chair, Liberal, Ben Carr]

Thank you.

Mr. Ste‑Marie, you're always doing a good job of finding an extra minute in your speaking time. The minister also helped you this afternoon.

Mr. Guglielmin, the floor is yours for five minutes, followed by Mr. Ma, and that will conclude our time today.

[Michael Guglielmin, Conservative, Vaughan—Woodbridge, ON]

Thank you, Chair.

Thank you, Minister, for taking our questions.

Minister, you've been in government for a long time. Is it fair to say that you believe government should be transparent and accountable?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

As always, of course.

[Michael Guglielmin, Conservative, Vaughan—Woodbridge, ON]

As many Canadians are well aware, we're here discussing the budget implementation act. It sounds rather innocuous, but what most Canadians wouldn't be aware of is that it's a 600-page omnibus bill.

Buried on page 300, in part 5, division 5, clause 208, is a provision that allows you as minister and other of your ministerial colleagues to exempt any individual, corporation or organization from being subject to federal laws, with the exception of those that fall under the Criminal Code. From my understanding, those exemptions don't require parliamentary approval. They can last up to six years. They're being justified with vague terms like “public interest”, “innovation” and “competitiveness”.

Minister, do you believe your government should be able to selectively suspend laws behind closed doors, passed by Parliament?

[Karim Bardeesy, Liberal, Taiaiako'n—Parkdale—High Park, ON]

I have a point of order, Mr. Chair.

[The Chair, Liberal, Ben Carr]

Go ahead on your point of order, Mr. Bardeesy.