Evidence of meeting #62 for International Trade in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was spp.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Alain Beaudoin  Executive Director, Innovation Partnerships Branch, Department of Industry
William Crosbie  Director General, North America Bureau, Department of Foreign Affairs and International Trade
Peter Fawcett  Deputy Director, United States Relations Division, Department of Foreign Affairs and International Trade
Gordon Laxer  Director, Parkland Institute

11:20 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Mr. Beaudoin.

11:20 a.m.

Executive Director, Innovation Partnerships Branch, Department of Industry

Alain Beaudoin

I agree with Mr. Crosbie. These issues are not part of the discussions.

11:20 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

There is talk about further harmonizing our trade relations. Apparently there is an effort to reduce our tariffs and to further promote trade relations through the SPP. I imagine these issues are discussed.

11:20 a.m.

Executive Director, Innovation Partnerships Branch, Department of Industry

Alain Beaudoin

The issue of tariffs is an integral part of NAFTA, and that is not part of the SPP as such. As I mentioned earlier, the issues discussed among the three governments have been made public. I must also say that I have not seen the study that you are quoting.

11:20 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

You talked about reducing the cost of trade, Mr. Beaudoin. What do you mean by that?

11:20 a.m.

Executive Director, Innovation Partnerships Branch, Department of Industry

Alain Beaudoin

I'm thinking of regulatory cooperation, for example. We want to determine whether we can work with our American and Mexican partners to achieve more compatible regulations among the three countries that would avoid delays at the border. Decisions could be made more quickly if there were joint recognition, cooperation and exchange of scientific data among the three countries.

Countries are sovereign as regards decision-making and regulations. However, regulations are seen as an important issue for companies. The leaders have mentioned that they thought it was genuinely possible to increase competitiveness while protecting people, health care and the environment. This is the guiding principle of our discussions.

11:25 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

How does the partnership deal with the issue of energy security, oil, and so on?

11:25 a.m.

Executive Director, Innovation Partnerships Branch, Department of Industry

Alain Beaudoin

I must confess that I am not an expert on that. The Department of Natural Resources is responsible for energy matters. I do not think I have the knowledge required to answer your question.

11:25 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

But that is one of the mandates of the Security and Prosperity Partnership, is it not?

11:25 a.m.

Executive Director, Innovation Partnerships Branch, Department of Industry

Alain Beaudoin

It is true that energy is one of the issues discussed among the countries.

11:25 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Can you answer the question, Mr. Crosbie?

11:25 a.m.

Director General, North America Bureau, Department of Foreign Affairs and International Trade

William Crosbie

Only in general terms, because it is up to officials from the Department of Natural Resources to discuss this issue with their Mexican and American counterparts. A number of issues have been raised in the discussions, such as the size of oil wells and the regulations regarding the tiles that are used. The effect is not to reduce our standards. Canada has to decide on its own safety standards. However, we do want to increase trade opportunities for energy products. The regulation of our electricity system is another subject discussed by the three ministers. Our website gives you a work plan on these discussions.

11:25 a.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Very good, thank you.

11:25 a.m.

Conservative

The Chair Conservative Leon Benoit

Thank you, Mr. André.

Your time is up.

We'll go now to the government side, to Mr. Menzies for seven minutes.

May 10th, 2007 / 11:25 a.m.

Conservative

Ted Menzies Conservative Macleod, AB

Thank you, Mr. Chair.

Thank you, gentlemen, for your presentations today. It is a very interesting discussion, and I'm glad you do actually have a website where people can find the facts. I think that will be very helpful.

I may appear to be deviating a little from your presentation, but there's something I want clarified.

Mr. Fawcett, I see you are deputy director of U.S. relations. I'm going to tap into your wealth of information, if I can. You may not know, but we are in the process of discussing a motion at this committee, and I will suggest to you that I and my colleagues on this side of the committee find it factually incorrect. We're very concerned with this committee putting forward a motion that is factually incorrect. I would like your help with this. I won't read all of it, but probably the most relevant statement in it is:

—the Standing Committee recommend that the government quickly begin talks with its American and Mexican counterparts to exclude water from the scope of NAFTA—

To clarify your expertise, if we can, you are and have been involved in U.S. relations for some time. Can you give us an idea of how many years?

11:25 a.m.

Peter Fawcett Deputy Director, United States Relations Division, Department of Foreign Affairs and International Trade

Thank you very much for the question, sir.

I've been working in this capacity since 2001. I participated in the amendments to the International Boundary Waters Treaty Act as it was in both the House and the Senate.

11:25 a.m.

Conservative

Ted Menzies Conservative Macleod, AB

And thereby you understand this implicitly.

11:25 a.m.

Deputy Director, United States Relations Division, Department of Foreign Affairs and International Trade

Peter Fawcett

I do. I should also mention that I served at the Canadian embassy in Washington from 1988 to 1992.

11:25 a.m.

Conservative

Ted Menzies Conservative Macleod, AB

You are very knowledgeable on the issue, then, I would suggest. Thank you.

We have a statement, which I read out at our last committee meeting, stating that NAFTA creates no rights to the natural water resources of any party to the agreement. Do you believe that to be accurate, and do you agree with it?

11:30 a.m.

Deputy Director, United States Relations Division, Department of Foreign Affairs and International Trade

Peter Fawcett

I'm sorry, could you repeat that question, please?

11:30 a.m.

Conservative

Ted Menzies Conservative Macleod, AB

The NAFTA creates no rights to the natural water resources of any party to the agreement.

11:30 a.m.

Deputy Director, United States Relations Division, Department of Foreign Affairs and International Trade

Peter Fawcett

There is a statement that was issued by the three parties to the NAFTA agreement in 1993—

11:30 a.m.

Conservative

Ted Menzies Conservative Macleod, AB

I'm reading from that.

11:30 a.m.

Deputy Director, United States Relations Division, Department of Foreign Affairs and International Trade

Peter Fawcett

—but it's important that you look at the entire statement, because it is quite a good, comprehensive statement that the NAFTA does not create rights to water as a natural resource. Only when water becomes a commodity or a good is it governed by trade agreements. The full statement makes it quite clear.

11:30 a.m.

Conservative

Ted Menzies Conservative Macleod, AB

Okay. I just didn't want to take up a bunch of time. I can read the entire statement, but I don't think we want to take up the committee's time nor your time. I recognize the credentials you bring to this discussion, and I appreciate that.

I guess, Mr. Chair, we can take this as proof positive that this motion that we shall be re-discussing is factually incorrect and would show a tremendous weakness in this committee if it ever went forward.

Thank you so much for clarifying that. I appreciate the clarification.