Evidence of meeting #39 for Industry and Technology in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was investments.
A recording is available from Parliament.
Conservative
Liberal
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
My point is that I'm getting that from automakers themselves.
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay, so you believe that there is a business case that supports Canadian automakers' exporting vehicles globally to markets outside the U.S. Is that correct?
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
Based on my conversations with them, that's what they're proposing to us.
Conservative
Adam Chambers Conservative Simcoe North, ON
Has your department done economic analysis on this business case? Is there economic analysis that the government has done that shows it's viable for Canadian automakers to produce vehicles here to export them to Asia or Europe, as an example?
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
Or the Middle East.... That's exactly why the Prime Minister has been going around the world and signing 52—
Conservative
Adam Chambers Conservative Simcoe North, ON
The question is this. Are you aware of any economic analysis that your department or any department in the government has done that supports the notion that Canadian automakers will export or can export vehicles elsewhere?
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
I get your point, but it is not up to the government to make that assumption. If the companies want to do that, and they're proposing that, we will support them. I think they're also looking at passenger vehicles and defence production. You're going to see that more and more as we put into place our defence industrial strategy.
Conservative
Adam Chambers Conservative Simcoe North, ON
Is your testimony that Canadian automakers have approached the government to say that they believe there's a global market?
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay, so Honda and Toyota have told you, for example, that they believe they can build cars in Canada and export them to the Middle East, Asia or elsewhere.
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
I'll say two things on that point. First, we've been approached by companies, and I can't say which ones, because obviously that is confidential business information—commercial, private information.
Conservative
Adam Chambers Conservative Simcoe North, ON
Well, no company has come to any of the committees on Parliament Hill or gone to the media to suggest that this is a viable business plan.
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
Listen, I'm telling you that's what we're getting as information.
We also have free trade agreements with many different markets and countries around the world. That's also why it's important. What I would say also is, of course we know that the auto sector is affected by the tariffs. We know we need to protect the auto sector, and that is why we'll fight for it in the context of the revision of the USMCA.
Conservative
Adam Chambers Conservative Simcoe North, ON
Do you believe that the Canadian auto sector can survive without access to the U.S. market?
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
I think that we need to be able to work on many scenarios. Right now, as the conversation with the U.S. government is continuing, we're also finding solutions to reopen Ingersoll and Brampton.
Conservative
Adam Chambers Conservative Simcoe North, ON
My understanding is that there's supposed to be a remissions process set up for the auto sector. It's been a year. My understanding is that the remissions process is still not set up. Are you aware of that?
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
No, I think you're wrong. I think that the remissions system was put in place a year ago because we had countertariffs. I want you to understand the remissions system.
Conservative
Adam Chambers Conservative Simcoe North, ON
In my remaining time, if I'm wrong, do you think that you'd be able to provide to the committee the amount of money that's been remitted to Canadian automakers under the remissions process?
Liberal
Mélanie Joly Liberal Ahuntsic-Cartierville, QC
We can definitely work on finding you the right information.
What I can tell you is that the remissions framework is a year old, because it's based on countertariffs. What I think you're alluding to is the fact that, in the auto strategy, we would be reviewing this remissions framework, which we want to review because we want to be able to say to Honda and Toyota, which have increased their production, that they would be able to increase the market access of cars made in the U.S. without tariffs. That is why—
Conservative
Adam Chambers Conservative Simcoe North, ON
Well, I look forward to the information that you'll share with the committee that shows the dollar value that Canadian automakers have received from—
Liberal
The Chair Liberal Ben Carr
At this point, Mr. Chambers, I'm going to direct the discussion to our final line of questioning.
Mr. Ma, the floor is yours for five minutes, sir.