International Trade Committee on March 31st, 2009

[David Bradley]

I would just add that when you walk into the Canadian embassy next week or the week after, you're going to see a map of North America with all of that data in terms of how much we buy from the U.S. by individual product. It's excellent. They do a great job on that.

[Jean-Michel Laurin]

Just to answer your question very quickly, the issue of “buy America” is changing very rapidly. Working with our U.S. counterparts, we have asked for clarifications on how the rules are going to be interpreted. We've asked that of the Congressional Budget Office and the U.S. trade representative.

I don't know when you're going to Washington, but we'd be more than happy to provide you with an update in terms of where things are going. We're also getting input from our individual members with individual cases we can bring to U.S. lawmakers. I think there's something in it for them.

I think if they want to roll out this infrastructure money and infrastructure spending very quickly, if they put in very stringent “buy America” regulations, some of the U.S. manufacturers are going to have to find new suppliers for some key components. In many cases, Canadian companies can provide solutions that are not available elsewhere in the market. In other words, we innovate. We have innovative companies that can provide customized solutions that are not available anywhere else. I think they would be shooting themselves in the foot...but as my colleague said, we've had a pretty good working relationship with associations in the U.S. We've been driving those messages across, but I think it's important that we continue doing so as the plan is rolled out and as the regulations are being issued.

[The Chair, Conservative, Lee Richardson]

That pretty much takes care of that round and the next one for that side.

We'll wrap up here with two quick comments, first from Mr. Guimond, and then we'll close with Mr. Murphy. Take about two or three minutes each if you could. Thanks.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Mr. Chairman.

You organized a summit in Washington. A delegation of Bloc Québécois members recently went to Washington. The members returned very concerned about American protectionism. On February 19, the American President came to Ottawa. A big show was organized, and we have to admit that there was a lot of window dressing. Knowing that you are people of action, what actual steps should the government of Canada take right now to improve trade with the Americans?

You can each answer me in turn.

[David Stewart-Patterson]

That's a very complex question. It's hard to pick only one action that should be taken. As I mentioned to your colleague, it's first a matter of leadership. We have to have clear authority in each country to find solutions. It's the process that has to be improved first. Solutions to the practical issues will come. First, the mandates of the ministers in each country must be clear.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

So it's a matter of leadership.

[Jean-Michel Laurin]

I would say the same thing as David. A few years ago, we talked about the Smart Border Declaration. Some positive things happened six or seven years ago. At the time, there was clear leadership on both sides of the border. In addition, the relationship between the two partners was good on both the individual and team levels, and so on.

We could give you a host of measures that the Government of Canada and the U.S. government should take. If you're interested, we can definitely send them to you. My colleagues have written a number of documents on the subject. Ultimately, those measures will be implemented if there is clear leadership on both sides. I think the comments—

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

So it's still a matter of leadership.

[Jean-Michel Laurin]

The comments by my colleagues from the Canadian Trucking Alliance are quite clear in that regard. Many people are involved. It's a complex issue that affects the industry, international trade and the Canada Border Services Agency. We have to work together and adopt a coordinated approach, particularly when we go to the United States. The Americans expect us to take the lead on these issues and to have a coordinated approach and concrete measures. We have to propose solutions and sit down with them in a spirit of cooperation.

[David Stewart-Patterson]

We also have to have a positive approach. We have to tell the Americans that we don't just have complaints, but solutions to suggest as well.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Bradley.

[David Bradley]

Precisely.

[Serge Cardin, Bloc, Sherbrooke, QC]

My colleague asked you what you had to say about the United States. The G20 summit will be held on April 2. If you had to address the G20 today, what advice would you give those people and our representatives who will be in attendance, to get the ball rolling again?

[David Stewart-Patterson]

We've just written a letter to Prime Minister Harper, which was published yesterday, and I can't give you any details on that subject. Protectionism is very important issue not only for Canada and the United States, but for the entire world as well. That has to be a topic of prime importance in London.

[Jean-Michel Laurin]

We have to be sure we send a clear signal to the G20 and say that we're going to keep our borders open to trade and that there won't be any recurring protectionism. However, the American industry can sign that declaration, but... The U.S. Congress has considerable legislative authority. That is why your trip and your efforts to educate American legislators and to inform them better about the impact of those measures can make a major difference.

In the context of the G20, we must ensure that markets remain open to trade and that we don't witness a return to protectionism, which would worsen the economic crisis and the recession. That's our priority in the short term.

[Serge Cardin, Bloc, Sherbrooke, QC]

Thank you.

[The Chair, Conservative, Lee Richardson]

Mr. Murphy.

[Brian Murphy, Liberal, Moncton—Riverview—Dieppe, NB]

I would just like to drill down on the enhanced driver's licence. I get the trucker's position on smart cards. Certainly, there's been uptake on them. Has there been sufficient uptake on these others? Is there something at the federal level that should be done?

Secondly, with respect to the enhanced driver's licence, is it a laudable goal? It's certainly more than just a trucker issue. Is it just more convenient for people to go skiing at Sugarloaf in Maine? Is that the only reason we're talking about these things, or is it something that's integral to easier flow across the border for citizens, business, and goods? I want to hear something on the enhanced driver's licence, because the people back home are asking about it.

[Ron Lennox]

As you have pointed out, it's only in B.C. that we've even reached the stage of a pilot project. I can speak only for the trucking industry, and we haven't promoted it very heavily within our membership. It seems like a good option, but as an industry we feel that we are prepared with the options we have before us. We have the FAST card. There have been almost 100,000 of those issued to Canadian drivers, if I'm not mistaken. CBSA could confirm that number with you. In addition to that, for drivers who don't want a FAST card, they can use a passport. Sure, we would support it if it meant getting passenger traffic across the border more quickly—that would be a good thing for us. But it's not a top-of-mind issue.

[David Stewart-Patterson]

There are a couple of pieces to that. On the one hand, the more we do to make it easier for people to get a document that will let them cross the border conveniently, the better. On the other hand, I think there is an issue of proliferation of cards. At the consumer level, I'm worried that the enhanced driver's licences aren't going to be ready in sufficient quantity to prevent back-ups this summer, and I'm not sure how long the implementation period may be.

Moreover, with the enhanced driver's licence at the consumer level, as with commercial accreditation like FAST or NEXUS, what's really important is that there have to be clear benefits if you go through the effort to get the enhanced documents. You have to make sure that they get you through the border faster and that people see it happening, feel it happening. Ultimately, that's what's going to convince people to go through the extra effort to get those documents. That's what's got to happen if we're going to get smooth traffic on any of our border points.

[Sam Boutziouvis]

Mr. Murphy, fewer than 30% of Americans currently have passports. A much higher percentage of Americans have a driver's licence. So the thinking—which we strongly supported through our members of the North American Competitiveness Council—was that under the western hemisphere travel initiative, there should be at least one other piece of documentation that would be acceptable for travel between Canada and the United States. The enhanced driver's licence was seen as a viable alternative, especially for short-term travel between various states in the region.

The simple addition of proof of citizenship as a criterion for you to get your enhanced driver's licence was deemed to be a very important imperative. The Department of Homeland Security in the United States, only recently, or within the last 18 months, said this was actually a viable strategy to proceed with when putting in place an effective strategy under the western hemisphere travel initiative. They supported the B.C.-U.S. state initiative, as well as other initiatives.

Broadly speaking, at least as far as the North American Competitiveness Council is concerned, the more provinces who set up arrangements with U.S. states to put in place an enhanced driver's licence program, the better.

[The Chair, Conservative, Lee Richardson]

Thank you.

I think that's going to have to conclude this, because we have other business.

I want to thank everybody for coming today. It was very useful, very helpful.

Mr. Bradley mentioned a chart that one can see when entering the Canadian embassy in Washington. I think it's available in brochure form as well, so we'll try to get it for the committee by the next meeting, or as soon as we can. It's a very useful chart, as Mr. Bradley suggested.

In any event, gentlemen, thank you for appearing today.

I'm going to take one minute, if I can, to switch over, and we'll go in camera for the other business session.

Thank you.

[Proceedings continue in camera]