Evidence of meeting #3 for International Trade in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was panama.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Don Stephenson  Assistant Deputy Minister, Trade Policy and Negotiations, Department of Foreign Affairs and International Trade
Kirsten Hillman  Director General, Trade Negotiations Bureau, Department of Foreign Affairs and International Trade
Barbara Martin  Director General, Middle East and Maghreb Bureau, Department of Foreign Affairs and International Trade
Ken Macartney  Director General, South, Southeast Asia and Oceania, Department of Foreign Affairs and International Trade
Neil Reeder  Director General, Latin America and Caribbean, Department of Foreign Affairs and International Trade

12:50 p.m.

Assistant Deputy Minister, Trade Policy and Negotiations, Department of Foreign Affairs and International Trade

Don Stephenson

Is that permitted, sir?

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

It's actually out of order. If you accelerate that answer, we'll get on to it.

12:50 p.m.

Conservative

Ron Cannan Conservative Kelowna—Lake Country, BC

I second that it's out of order.

12:50 p.m.

Assistant Deputy Minister, Trade Policy and Negotiations, Department of Foreign Affairs and International Trade

Don Stephenson

I would like to say, however, that less than ten years ago, it was 85% or 87% of our trade. So Canadian exporters are already moving in significant, measurable numbers to diversify Canada's trade. That can't be a bad thing. Clearly the U.S. is still job one, and that's what I said.

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

Okay--

12:50 p.m.

Assistant Deputy Minister, Trade Policy and Negotiations, Department of Foreign Affairs and International Trade

Don Stephenson

With respect to a rush, well, we'll see how we do.

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

Okay.

Mr. Keddy.

12:50 p.m.

Conservative

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

Maybe a quick wrap-up, Mr. Chair, and I realize I only have two minutes. I have more of a statement than anything else.

With respect to Mr. Easter's statement, 74.9% trade with the U.S. is absolutely right. And Mr. Stephenson is absolutely right that in 2002 our trade balance with the United States was 86%. Geography, our adjacency, and a number of issues will always make the U.S. our largest trading partner. That doesn't mean that our companies shouldn't be able to diversify, and if we don't sign free trade agreements around the world, they won't be able to diversify.

The reality is.... Mr. Chisholm mentioned that tariffs were really primarily non-existent and simply weren't an impediment to trade any more. Unfortunately, that is simply incorrect. You listened to Madam Hillman discuss the tariffs in Panama--15% on wood, 30% on oil and fats, 50% on machinery. I don't need to go over them again; it's on every single tariff line. We're negotiating this agreement, a comprehensive economic trade agreement, with the EU, and we're facing tariff lines on fish coming out of Nova Scotia, which is a significant export item for all of Atlantic Canada. In Nova Scotia alone we make up more than 30% of the entire Canadian fishery. We're facing tariff lines of 17% on frozen lobster, 7% on live lobster, 25% on cod loins. I mean, it's simply on and on and on.

We have to find a way to cut those tariff lines down. Every percent that we drop is one more percent of profit for our SMEs, our manufacturers, our small businesses, who are going to take advantage of these trade opportunities. I can't stress it enough.

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

Thank you very much.

I want to thank the department for coming in and giving us this overview. It certainly gives us a good sense of where we're at with the pieces of legislation, and we look forward to having them introduced in the House, particularly Panama and Jordan. You have served the committee well. Thank you very much.

With that, Mr. Easter, you have a notice of motion, I believe.

12:50 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Yes, I do. Do you want me to read the motion, Mr. Chair?

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

Not really. I think we've all got it.

12:50 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

I think the motion is pretty straightforward. It was sent out, so you should have it.

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

It was sent out.

12:50 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

The motion is pretty straightforward, Mr. Chair. It was referenced that the government has a comprehensive strategy plan. Officials at the last meeting from the Department of Foreign Affairs and International Trade, in response to a question, established that they did have a comprehensive strategy plan on how to deal with Buy American. I'll give a little bit of background.

As I indicated in the motion--

12:50 p.m.

Conservative

The Chair Conservative Rob Merrifield

We don't need a lot of background.

12:50 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

As I indicated in the motion, it was evidence presented by government officials at committee, and Mr. Holder had, I thought, asked a good question after he was finished giving me a little tuning. He asked if there was a comprehensive Team Canada approach, which is, I think, a good question. The response from the department was clearly that they have an advocacy package that's been agreed government-wide, that ministers have seen and approved and that the government is using. We have people from the Prime Minister on down speaking about this, the officials said.

I'm surprised that maybe Mr. Holder and others on the government side weren't informed about that government-wide strategy. But I do think for our efforts going forward, when we hear from Ambassador Doer, the Minister of International Trade, and other witnesses on Buy American, that the report to that strategy that the department talked about would be very valuable to us as committee members in seeing that it's coming together properly.

That's why the motion's on the floor.

12:55 p.m.

Conservative

The Chair Conservative Rob Merrifield

We've heard your motion. That's fair enough.

I actually think the department had a fair amount to say about this, that a comprehensive plan was in place and they described that fairly well at the last meeting, so I was a little surprised to see this. I thought maybe your microphone was out.

I'm not going to entertain an awful lot of debate on this. Mr. Keddy, go ahead.

12:55 p.m.

Conservative

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

I appreciate that, and I think it does need to be said.

As has been said in the House already, the minister has been extremely proactive on this. He's been in direct contact with Ambassador Jacobson and trade representative Kirk. He has been all over this file, along with Ambassador Doer. We have a full-court press on this.

Obviously, taking confidential information from an in-depth government plan and just putting it out there to the general public and telegraphing all of our plays to the opposition team I don't think is helpful to this debate, quite frankly.

12:55 p.m.

NDP

Robert Chisholm NDP Dartmouth—Cole Harbour, NS

There is no “the opposition” on this one, Gerald.

12:55 p.m.

Conservative

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

I meant the Americans.

12:55 p.m.

Conservative

The Chair Conservative Rob Merrifield

We have a motion on the floor. I'm going to call the question.

(Motion negatived) [See Minutes of Proceedings]

The meeting is adjourned.