Evidence of meeting #2 for International Trade in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was procurement.
A recording is available from Parliament.
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
I will have to have a look at the statistics. Can I get back to you on that question in writing?
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Yes, you can send us your answer in writing.
The U.S. clearly wanted to protect its markets by introducing the new stimulus package. Canada reacted strongly by saying that the new rules made no sense. The agreement has brought about a change in that the provinces are now allowed to participate.
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
Something has changed. Under the GPA, that is, the agreement under which the U.S. opened the markets in its states, Canada had no access to these markets because it had not established the same obligation. However, the other GPA parties did have access to the 37 markets. Therefore, the 37 markets were available to all the GPA parties, except for Canada. This is what has changed.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
When Canada moved to, or at least when it wanted to pressure the U.S. government into opening its markets under trade agreements that have always existed, had you conducted an economic analysis of some kind before entering into negotiations? What kind of analysis was conducted? I assume that you did not simply come out and say that you absolutely must be given access to the markets. I assume that an analysis was conducted.
Director, North America Trade Policy, Department of Foreign Affairs and International Trade
This is somewhat related to the subject of estimates that we have talked about earlier. We are faced with the same difficulties when it comes to data on government procurement, to information available in the act and the way everything would turn out.
However, as my colleague mentioned earlier, we worked in close collaboration with provincial representatives who made their needs known. A certain number of private groups, industry associations and companies even wrote to us to share their concerns when the act was adopted. They contacted us and met with us. We also worked with them to get an understanding of how this new development affected them.
We conducted analyses to determine what kind of tangible impact this development would have. You no doubt remember that in June 2009 the Council of the Federation issued an official statement asking that measures be adopted. Industry associations also issued similar statements. The Federation of Canadian Municipalities also reached a decision at its summer 2009 meeting regarding government procurement. These events, along with the information we could get by looking at the numbers, contributed to our analysis. This is related to the answer that was given...
Bloc
Director, North America Trade Policy, Department of Foreign Affairs and International Trade
We gleaned information from the estimates. We worked with the information that was available to us. It was very difficult, considering the content of the U.S. act.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
I know that you are used to working with concrete matters, but I will ask you a more random question.
Rumour has it that a second U.S. stimulus package could eventually be proposed, one that could possibly include Buy American provisions again.
Are there any options in the current agreement that would help us deal with the possibility of another stimulus package containing Buy American provisions? Is there a possibility that we might again encounter provisions that we have already negotiated to enable us to access the U.S. market?
Director, North America Trade Policy, Department of Foreign Affairs and International Trade
As you were saying, we work with concrete, factual issues. Therefore, we follow bills tabled in the United States. With the help of our embassy in Washington, we try to obtain as much information as possible. We need to see how the legislation that will be adopted is worded. We also need to see what the legislation contains to be able to see how it fits into the current context. With regards to the actual content of the agreement, I will let my colleague Dany provide you with more information.
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
The agreement consists of two, even three components. The first component guarantees our access to the markets of the 37 States. Rather than losing ground, we are taking a step forward. The third component of the agreement...
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
We are talking about a fast-track discussion process. The third component of the agreement is aimed at exploring the possibilities of expanding the agreement, of going beyond...
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Have the negotiations pursuant to the third component of the agreement already begun?
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
No, they have not.
Bloc
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
No, the deadline for starting preliminary discussions, to see if more long-term negotiations can be initiated...
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
...is 12 months after the agreement takes effect.
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
That's correct.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
September 30, 2011 is not an implementation deadline. It applies to the Buy American Act or to the stimulus plan.
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
No, that is the deadline for temporary bids for municipal construction projects. That initiative ends in 2011. It is also the deadline for spending the funds allocated under the American Recovery and Reinvestment Act.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
What would happen if the deadline were extended?
Director, Multilateral Market Access, Department of Foreign Affairs and International Trade
An agreement could always be worked out if that were to happen.
Bloc
Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC
Fine.
I will turn the floor over to my colleague.
Conservative
