Evidence of meeting #14 for International Trade in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was jobs.
A recording is available from Parliament.
Liberal
John Maloney Liberal Welland, ON
You also said they're concerned about their human rights. I'm just trying to draw a connection here. How would that happen?
Senior Researcher, Canadian Labour Congress
When increasing liberalization is visited upon workers already facing precarious situations, they will face downward pressure, continued opposition to union organizing and to the exercise of free collective bargaining. They're finding that the threat of the new liberal agenda is going to have an impact.
Liberal
John Maloney Liberal Welland, ON
Ms. Lamoureux, do you have any comments on this line of questioning, on the concerns of the Korean workers?
Union Advisor, Confédération des syndicats nationaux
Yes. We can say that information is easily available. As I said earlier, the International Trade Union Confederation produces an annual report that lists violations of human and union rights. If you want a copy of their report, I can get you one. The organization, I feel, is concerned about the fact that when basic rights are under attack, especially those of the ILO, the workers bear the brunt of the comparative advantage. But this comparative advantage from the trade that the workers make possible is not real.This is a great concern for trade unions in all countries, not just in Korea. This is why we are calling for basic rights to be respected. If they are not, that very fact means that some companies get an advantage and that competition is unfair.
Liberal
John Maloney Liberal Welland, ON
Ms. Lamoureux, you also indicated that obviously you're concerned about potential job losses if this trend continues, when we also look at the increasing value of our dollar and the declining value of the U.S. dollar and the concern about a recessionary period in the United States. Are you saying this is perhaps the wrong time for a trade deal with Korea, or are you saying we should never have a trade deal with Korea?
Union Advisor, Confédération des syndicats nationaux
What I am saying is that, at the moment, we do not have the conditions to properly evaluate the effects of free trade in an already-difficult business climate. For that reason, it is quite difficult to give an informed answer to the question. The current situation concerns us greatly, and the job losses that we are going through at the moment add to the concern, as I said. There is nothing here that puts our minds at rest. I do not want to wage a war of economic studies, but I am astonished that we have so little information. It was only this year that the department published its first study, although negotiations have been going on since 2005. It would have been good to have much more evaluation and analysis, especially analysis by sector and by province. Then we would have been in a better position to judge the possible consequences of such an agreement.
Conservative
The Chair Conservative Lee Richardson
Mr. Moynahan, I'm sure you'll have an opportunity to get back in.
We're going to proceed to Monsieur Cardin.
Bloc
Serge Cardin Bloc Sherbrooke, QC
Thank you, Mr. Chair.
Ladies and gentlemen, welcome to the committee.
My first question in a way stems from Ms. Lamoureux's answer about studies and/or possible consultation. Have the five groups that you represent here—whether they be companies, industries or anything else—been consulted in any way by the department with a view to discussing the potential impact or analyzing the effect of a possible agreement with Korea? I put the question to Mr. Westcott, Mr. Khan, Ms. Helie, Mr. Moynahan and Ms. Lamoureux in that order.
President and Chief Executive Officer, Spirits Canada / Association of Canadian Distillers
Yes, we have. We are an export-oriented industry. We've been highly successful. We have identified markets around the world where we have gone and worked hard to introduce our products into them and to successfully sell them. It's an ongoing aspect of the business.
Many years ago we identified South Korea as a prospective opportunity market for Canadian goods, particularly for Canadian whiskey. We explored that market, developed that market, and see continued opportunity. And yes, we have had ongoing discussions with the Department of Foreign Affairs and International Trade to apprise them of the opportunity to discuss any particular issues or problems we have had.
Generally speaking, I think we would say that for those people who want to go out and do business as exporters and are willing to go and do things there are those opportunities. But you actually have to go and seize the opportunities and try to do something.
I would hope and I would expect that this kind of collaboration between businesses that want to sell their goods overseas and the Government of Canada would continue.
Bloc
Serge Cardin Bloc Sherbrooke, QC
Forgive the interruption, but I am tight for time. You are confirming that your company has been consulted by the department, but I would really like to find out if the other organizations have been consulted by the department on a possible free trade agreement with Korea.
President, Platinum Tool Technologies, Canadian Association of Mouldmakers
Mr. Cardin, to answer your question, this is the first time I've been approached about it. I've been working at the provincial level with the provincial government, because 93% of all mould manufacturing takes place in the province of Ontario. So although it is a Canadian issue, it is also a provincial issue for us. But to answer your question, no.
Senior Researcher, Canadian Labour Congress
As you know, the labour movement is very diverse and regionally based across the country.
It might be the case that labour representatives whom I have not heard of have spoken to the Department of Foreign Affairs in the context of the negotiations. But to my knowledge, we have not been approached.
We have found the process quite closed and would echo the concern that there's not enough information being shared. It will be one of our recommendations that the committee suggest that in this negotiation and in others there be a free and open discussion about the issues that are being dealt with before the negotiations are heading towards the end of the path—right at the inception, right when the actual concepts about the free trade agreements are even thought of. We think there should be open discussion all the way along.
Union Advisor, Confédération des syndicats nationaux
To my knowledge, the CSN has not been consulted either.
Executive Vice-President, Fission Energy
No, I have not had any other, prior discussions regarding this.
Bloc
Serge Cardin Bloc Sherbrooke, QC
I have a question for Mr. Westcott. Your organization seems to be the only one to have participated actively in discussions with the department, because of the potential market.
Could you explain this sentence in your statement “...total spirits consumption in Korea is approximately the same as in the United States.”
What is the population of Korea?
President and Chief Executive Officer, Spirits Canada / Association of Canadian Distillers
I believe the population of Korea is about 50 million people.
Bloc
Serge Cardin Bloc Sherbrooke, QC
That is a sixth of that of the United States and consumption is the same. Are they still in a condition to carry on these discussions?
President and Chief Executive Officer, Spirits Canada / Association of Canadian Distillers
You can understand, then, why Korea represents such an important market. I don't think Korea is out of step with a number of Asian and South Asian countries, and we've identified a long time ago that they're important markets for Canada.
C.J. Helie Executive Vice-President, Spirits Canada / Association of Canadian Distillers
I'd just clarify that when we talked about the size of the Korean market, we were talking about the spirits consumption, not total beverage alcohol consumption. There is virtually no wine being consumed domestically in Korea. There's a huge difference in the types of beverage alcohol products being consumed.
Bloc
Serge Cardin Bloc Sherbrooke, QC
That is what I was saying, the consumption.
Mr. Khan, you are working in nuclear fission. Do you export uranium?
Executive Vice-President, Fission Energy
We have not gotten to that stage right now. We are still an exploration development company. We have a project in which we are hoping to find a uranium resource.
But the Koreans have decided to expand their program to secure international sources. To that end, it will help us develop a potential resource that we feel has very good prospects.
Bloc
Serge Cardin Bloc Sherbrooke, QC
If you found some uranium and wanted to export it, the government has signed something called the Global Nuclear Energy Partnership. The agreement could mean that people exporting uranium to foreign countries would have to go and get it back once it was spent and radioactive. So Canada would be responsible for its spent uranium.
Have you heard about that and the impact it would have?
Executive Vice-President, Fission Energy
I wouldn't believe that's the case. Korea generates a significant amount of nuclear energy. They have 20 nuclear power plants now and are building six others as we speak; they have their own reprocessing facilities; they have their own storage facilities; they currently stockpile spent uranium. Those types of products are not a two-way street. Once they buy that product, they're responsible for ensuring the safety and the ongoing containment of the spent nuclear fuel. It's not something that would find its way back into Canada or North America or anywhere. It's a product for which they themselves, as members of nuclear non-proliferation treaties, as well as because of their own commitments, would have to ensure they provide a safe storage mechanism for the spent fuel.