Evidence of meeting #35 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 agreements.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Andrew Casey  Vice-President, Public Affairs and International Trade, Forest Products Association of Canada
Robert Blackburn  Senior Vice-President, SNC-Lavalin International, SNC-Lavalin Inc.
Martin Lavoie  Assistant Executive Director, Canada Pork International
Todd Tucker  Research Director, Public Citizen's Global Trade Watch
Richard Montroy  Deputy Assistant Commissioner, Compliance Programs Branch, Canada Revenue Agency
Brian McCauley  Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency

November 17th, 2010 / 3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Good afternoon, Mr. Casey and Mr. Blackburn.

To a certain extent, you both made the same presentations to inform us that both the Forest Products Association and SNC-Lavalin are in favour of a free trade agreement with Panama. But you also know—Mr. Blackburn, you alluded to this as well earlier—that representatives from the Revenue Agency are going to be appearing later on.

The OECD views Panama as a tax haven. In the assessment that you undertake before you decide that you are going to make an investment and establish yourselves there, and before you say that it will be easier to do so with a free trade agreement, do you look at the positive or negative impact that this could have on your employees and the senior managers of the business? Do you do this type of analysis initially? Could you both please respond to the question.

3:55 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

Andrew Casey

We sell products to Panama. We do not employ any staff. We simply sell softwood lumber and pulp and paper. This may be more—

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

So this question is more for Mr. Blackburn.

3:55 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

Andrew Casey

—up to him to answer.

3:55 p.m.

Senior Vice-President, SNC-Lavalin International, SNC-Lavalin Inc.

Robert Blackburn

Before we initiate negotiations we do a very detailed analysis of the tax consequences. In our opinion, Panama sells goods and we sell services. This mine will not belong to us, it will belong to Inmet. We employ the engineers who will design and build the mine. Consequently, we have representatives and a project office there. We pay very close attention to the economic circumstances of the staff that are there.

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

We heard that there is a project to enlarge the canal, I believe.

3:55 p.m.

Senior Vice-President, SNC-Lavalin International, SNC-Lavalin Inc.

Robert Blackburn

Yes, but we are not participating in that project.

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Do you intend to participate in this project?

3:55 p.m.

Senior Vice-President, SNC-Lavalin International, SNC-Lavalin Inc.

Robert Blackburn

No, we are not participating in it.

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Would this not be a rather attractive opportunity for you?

3:55 p.m.

Senior Vice-President, SNC-Lavalin International, SNC-Lavalin Inc.

Robert Blackburn

Perhaps so, but this expansion project is already underway, and there are other companies that are involved.

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

So this project does not fit in with your area of expertise.

3:55 p.m.

Senior Vice-President, SNC-Lavalin International, SNC-Lavalin Inc.

Robert Blackburn

No, it does not fit into our current planning. But there are numerous other opportunities in this location in the mining, transportation or port sectors. For example, there is going to be a port close to this mine, and the other ports will have to be modernized to be able to import Canadian lumber as well.

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

So you work in cooperation with—

3:55 p.m.

Some hon. members

Oh, oh!

3:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Mr. Casey, earlier, you said that you were always interested in free trade agreements given that forestry products are among the most sought after raw materials and that exports of such products will tend to increase.

4 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

Andrew Casey

Currently, we are talking about paper and lumber.

4 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

It varies.

4 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

4 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

How much do you think these exports will increase?

4 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

Andrew Casey

Currently, the market is worth $120 million. We sell only $8 million worth of products. So there is a potential for another—

4 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

There is a market worth $120 million there.

4 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

Andrew Casey

At present, yes. However, this figure increases by 10% every year. So there is potential there. In addition, as I stated, we are almost certain that a Quebec plant is selling the paper and a British Columbia plant is selling the lumber.

4 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

In your opinion, is there currently a free trade agreement between Panama and countries that are competing with you—either you or SNC-Lavalin—in the forestry products sector? Are there any agreements between Panama and countries that are able to provide the same services or products?

4 p.m.

Vice-President, Public Affairs and International Trade, Forest Products Association of Canada

Andrew Casey

Currently, there is an agreement with the United States. This is the other country that sells lumber and paper to Panama. Our share of the market is $8 million and the United States has a market worth $112 million.