Evidence of meeting #15 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was steel.
A recording is available from Parliament.
4:35 p.m.
Conservative
Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC
Well, in my riding Alpine Aerotech is the star.
I appreciate your opinion on that.
How much time do I have, Mr. Chair?
4:35 p.m.
Conservative
Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC
I would like to talk about the Canadian International Trade Tribunal process because, Mr. Galimberti, you mentioned you'd like to see further reforms to it.
I don't know if you're familiar with the case of rebar in British Columbia. This is a case where many of your members took issue with the fact that imports from China, I believe, Turkey, and Korea, were dumping. An investigation was done, a 40% tariff was put in place, the whole tribunal process, intervenors and all that, happened. However, to me at the end of the show, we don't see more Canadian rebar products being used. I don't understand why someone hasn't taken it. In fact, the United States is now selling more rebar into British Columbia. It's a bit of a perverse issue because, yes, we don't want to see dumping. On the other hand, British Columbia consumers, who have some of the highest real estate prices, are paying on average 6% more for their rebar, not to mention what this could mean for the LNG industry.
I understand your desire to tinker with the system or to see further reforms, but what do you say when someone brings those concerns to you?
4:35 p.m.
Liberal
The Chair Liberal Dan Ruimy
Just so you know, you ran out of time, but I'll let you have some time to answer the question.
4:35 p.m.
President, Canadian Steel Producers Association
Okay, I'll be brief.
I was a witness at the public interest inquiry in British Columbia. AltaSteel is a producer of rebar in Edmonton that has increased shipping to northern British Columbia specifically, and demonstrated that at the tribunal. There was a commitment from both ArcelorMittal Long Products in Quebec, and Gerdau here in Whitby, to ship additional rebar. I believe they can demonstrate that they have done that.
We don't have a problem with U.S. imports. They do not distort the market because they are priced fairly and competitively. We have a problem where there is a demonstrated dumping, and subsidy. It's asking Canadian industry to compete with the Chinese government or the Government of Turkey. That is fundamentally unfair.
This is an interesting case and it goes back to what I was saying earlier about carbon. The Government of British Columbia supported that complaint. They want to source lower-priced imports.
Is it in the public's interest to source responsibly produced and environmentally friendly rebar that is in many cases produced by unionized workforces with a fair and safe work practice code, or does the public not care about products that are being sourced from China in ways that aren't necessarily in accordance with Canadian standards?
4:35 p.m.
NDP
Brian Masse NDP Windsor West, ON
Thank you to the witnesses for being here.
First I'll start with steel.
One of the things we have a problem with in my riding that has become international is that one of your members, U.S. Steel, has a facility in Detroit. Since they closed operations in Hamilton, there's been a transboundary noise issue that the previous government spent around $60,000, minimum-based, that identified U.S. Steel as a noise and vibration emanater of what's called the hum. I'm sure you're familiar with that.
What does the Canadian division have to say about this issue with regard to international co-operation and determining how to deal with this issue if you're asking for support from Canadian taxpayers for your industry?
We haven't had any favourable response with regard to this issue from U.S. Steel.
4:35 p.m.
President, Canadian Steel Producers Association
To be honest with you, it's not an issue I've had a discussion with U.S. Steel Canada about. They're in the middle of a CCAA sale process, and we're certainly optimistic that the outcome is going to be positive. But they don't have a relationship anymore with the U.S. parent beyond the extension of a couple of different contracts.
I have great sympathy for the problem that is being experienced in Windsor but, frankly, we have no avenue through which we can be advocates.
4:35 p.m.
NDP
Brian Masse NDP Windsor West, ON
That's their parent company. So maybe we can follow this up later and not spend time on it today. This is a story that's been in the New York Times and theGuardian. It's become an example of how industry can't work with populations. I know U.S. Steel is significantly represented in your organizational structure.
4:40 p.m.
President, Canadian Steel Producers Association
I think it's important to clarify something. Under that CCAA process, there is no corporate relationship between U.S. Steel and U.S. Steel Canada anymore. U.S. Steel Canada is a stand-alone enterprise. They are currently selling themselves. They don't have a relationship with U.S. Steel.
4:40 p.m.
President, Canadian Steel Producers Association
Inasmuch as there are some contracts, yes, but there is an entirely different corporate governance structure.
4:40 p.m.
NDP
Brian Masse NDP Windsor West, ON
There might be a different governance structure, and we can go around on that all we want. The reality is today it's one entity under law.
4:40 p.m.
NDP
Brian Masse NDP Windsor West, ON
I followed up with Ontario. They moved operations from Hamilton to Windsor.
4:40 p.m.
NDP
Brian Masse NDP Windsor West, ON
I'd like to spend some time on this because I don't think they've been contacted over here. They might have a better perspective.
4:40 p.m.
President, Canadian Steel Producers Association
Sure.
I don't want to come off as obstructionist.
4:40 p.m.
NDP
Brian Masse NDP Windsor West, ON
You're not at all. You're being quite helpful and open.
I want to move to another issue related to steel. There are two things. With oversupply from China, I'd like a recommendation on dealing with this in the long term. You mentioned a couple of options for the short term with China. There was dumping in the past from the U.S. That claim goes back a few years. But is there something there?
Second, with respect to procurement, we're building a new border in Windsor. The Gordie Howe International Bridge is significant because of the steel used there. Is that something related to a buy Canada act? Ironically, we still don't have a legal opinion on the Buy America Act. It could be Canadian money that finances the U.S. side and this could be subject to the legislation. Do we have the capacity to meet the requirements of building an international bridge with Canadian steel?
4:40 p.m.
NDP