International Trade Committee on Oct. 6th, 2010

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you, Mr. Chair.

Thanks again for coming to the committee.

I have a couple of questions. We know that the United States has had an agreement with Jordan for quite a while. How does this compare to theirs? What are the major differences?

[Douglas George]

The U.S. has had an agreement since 2001. Our agreement is focused primarily on goods, and as I said, there are side agreements on technical barriers and labour and environment. The U.S. has a more comprehensive agreement covering, in addition, services, investments, and intellectual property. We cover investment through a FIPA, which was signed at the same time the FTA was negotiated. Their agreement was signed in 2001 and comes fully into effect in 10 years--in other words, at the end of this year. The day our agreement comes into effect, all of the Canadian tariff changes will be implemented.

On Jordan's side, their tariff changes, which affect approximately 99% of our trade, will come into effect immediately, and the remaining tariff changes will come into effect over three or five years.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thanks.

I have a supplemental question. As far as the implementation date goes, when Parliament passes this, it's already been ratified on the Jordanian side. Is that correct?

[Douglas George]

Yes. Once Parliament passes this and we finish the necessary procedures here, we'll be consulting with the Jordanians and reaching a mutually agreed-upon implementation date, which we hope would be as early as possible.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Generally we've been very active with the trade agreements in the last four and a half years that I've had the pleasure of working with this committee. We travelled to the Middle East, to Saudi Arabia, Yemen, Dubai, and Abu Dhabi, and one of the discussions was that once we get Jordan in, it will open the doors to having other agreements. Maybe you could just update us on the status of this and the next steps as far as the United Arab Emirates or any other agreements are concerned.

[Don Stephenson]

We are in the process of examining our options and interests in respect of individual markets, but also the GCC, the alliance of Middle Eastern countries, for trade purposes. We have not made recommendations yet with respect to next steps specifically, but clearly have an interest.

The minister has been active in visiting that region of the world and in having exploratory discussions with his ministerial colleagues.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

So this is a good door-opener for you, then.

[Don Stephenson]

Indeed.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you.

I'll pass this to Mr. Keddy.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Welcome to our witnesses.

I have just a quick question specifically over the sensitivity of chicken. The idea that chicken is taken off the table wouldn't take off our ability to sell feed, genetics, and processing equipment and all of that, right?

[Gilles Gauthier]

No. I believe the exclusion pertains only to chicken products per se.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

To the chicken itself?

[Gilles Gauthier]

Yes.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

That's what I thought.

I have one quick question on the labour agreement and the whole idea of fines. I would expect that not having a number there actually strengthens the agreement instead of weakening it, because an individual or company literally could sue for any amount.

[Debra Robinson]

Thank you for that question.

Of course, there are differences of opinion. The focus of the agreement really is on cooperation and trying to resolve issues through cooperation--

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Absolutely.

[Debra Robinson]

--and of course the assessment of fines would only happen if there were an absolute lack of commitment to remedy a violation. The fines would be the amount necessary to remedy the violation. That could be any amount. As to whether it's better or not better, there are differences of opinion.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Thank you.

That's all I had. Devinder has one question.

[The Chair, Conservative, Lee Richardson]

Go ahead, Devinder.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Thank you, Mr. Chair.

Thank you to the witnesses once again for coming this afternoon.

I have a quick question, but before that I want to make a comment. It's very good news for everyone sitting here that the government has been working very aggressively for the last few years to reach out to these markets, whether it is the South Asian or the Middle East markets. We are getting the results.

As for my quick question here, I was reading “Canadian Trade and Investment Activity”, which says, “In 2009, Canada had a trade surplus with Jordan in most product categories”. The exceptions were textiles and metals and mines.

Once we sign this free trade agreement, would this help to reduce the deficit in these areas?

[Douglas George]

I think if you look at our relative trade we are at anywhere from two to four times the amount being exported to Jordan that we're getting in; in these particular areas, which I guess would be largely apparel items, their trade with us is relatively small at about $10 million. We'll remove tariffs, but I think our strengths lie in other areas, both agricultural and paper products, and manufacturing. It may offer some opportunities for our exporters as well in those areas.

[The Chair, Conservative, Lee Richardson]

Thank you, Mr. Shory.

Thank you, Mr. George.

That wraps up the time we have for today. Again, it's a short appearance, but we do appreciate your coming. I'm sure that we'll welcome you back along the course of this discussion. Thank you again for appearing.

Committee members, we will now go in camera. Thank you.

[Proceedings continue in camera]