Thank you, Mr. Chair and members of the committee, for the opportunity to appear today.
I'm the president and CEO of the Chemistry Industry Association of Canada, and I'm here to speak to the essential role chemistry and plastics play in Canada's economy generally but specifically in the metallurgical processing sector, and to highlight the risks posed by recent U.S tariff action.
Chemistry is not adjacent to metallurgical processing. It is foundational to it. Across the value chain, chemical inputs are indispensable. They are used to separate minerals from ore, refine metals to exacting specifications and ensure operations are safe, efficient and environmentally responsible.
When we talk about critical minerals, I often like to say they are rocks without chemistry, because, to a certain extent, that's exactly what they are. You can see this across Canada, from Sudbury to Fort Saskatchewan to Montreal, and across Ontario’s steel and mining sector. Chemistry enables the production of nickel, cobalt, aluminum, steel and other materials that feed into manufacturing supply chains.
This integration also extends into plastics and manufacturing, where Canadian companies produce the moulds and materials that underpin thousands of everyday products, both consumer and industrial.
These are not separate sectors. They are part of a single, integrated industrial system, and that system is now under pressure. Canada’s chemistry and manufacturing sectors are deeply integrated with the United States. Each year, nearly $120 billion in chemistry and plastics products cross the border, often multiple times during production. Metallurgical supply chains function the same way. When tariffs are introduced at any point in that chain, the impacts compound: Costs rise, delays increase and uncertainty spreads.
While those impacts are immediate, supply chains cannot be reconfigured quickly. These are highly specialized inputs and long-standing relationships built over decades. The result is clear: Investment slows, competitiveness erodes and, over time, Canada’s industrial capacity is at risk.
We cannot control U.S. trade policy, but we can control how Canada responds. This is not just a trade issue. It is a competitiveness issue, a resilience issue and a jobs issue.
To respond effectively, I would highlight four areas for focus.
First, strengthen industrial competitiveness. We need policies that attract investment through competitive capital, efficient regulation and support for innovation.
Second, build more resilient domestic supply chains. Integration with the U.S. is a strength, but recent tariffs highlight the need to expand Canadian capacity, particularly in chemical production, metallurgical processing and critical minerals.
Third, use the upcoming CUSMA review strategically. CUSMA enables highly efficient North American value chains. The review is an opportunity to reinforce investment certainty, secure access to key inputs and ensure the smooth movement of goods.
Fourth, improve trade and transportation infrastructure. Reliable ports, rail and border systems are essential. When they fail, supply chains feel it immediately, and our reputation as a reliable trading partner is diminished.
As Minister MacKinnon said recently, “Canada has everything it needs to succeed...but none of that matters if we can’t move our goods efficiently, reliably and affordably.” We should all agree with that statement.
In closing, chemistry and plastics sit at the core of Canada’s industrial economy. They enable the transformation of raw materials into high-value products, support advanced manufacturing and underpin the supply chains that connect our economy. Investment decisions in these sectors are long-term, and they depend on predictability in trade, regulation and infrastructure.
The more certainty Canada can provide, the more successful we will be in maintaining and attracting investment and building resilient supply chains. This is a moment to focus on what we can control to strengthen our industrial base, improve our competitiveness and ensure Canada remains a reliable place to do business.
Thank you. I look forward to your questions.