Evidence of meeting #52 for International Trade in the 41st Parliament, 1st Session. (The original version is on Parliament’s site.) The winning word was product.
A recording is available from Parliament.
3:55 p.m.
Owner, Brian Moore Log Homes
Could you clarify what infrastructure could be defined as?
3:55 p.m.
NDP
Annick Papillon NDP Québec, QC
Japan's implementation of this law is another factor that could increase the Japanese demand for wood and Canadian wood products. What I would like to know is whether the capacity exists to address that reality given the increasing demand for wood.
3:55 p.m.
Conservative
The Chair Conservative Rob Merrifield
Is your question whether there is no product or whether there is enough infrastructure to move the product?
3:55 p.m.
NDP
Annick Papillon NDP Québec, QC
I am referring more to what we have in place to promote that measure. At the end of the day, are we able to handle the requirement?
3:55 p.m.
Owner, Brian Moore Log Homes
Okay.
Yes, we are. As far as our product is concerned, which is log homes, I'm happy with the infrastructure that we have in place.
3:55 p.m.
Conservative
The Chair Conservative Rob Merrifield
There are 15 seconds left; that's the problem I have. We'll have to see whether there is another round.
We'll now move to Mr. Cannan.
3:55 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Thank you, Mr. Chair, and thank you to our witnesses. I appreciate your insight.
You may be aware that some of the committee members will be heading to Japan on the weekend to meet in Tokyo and Osaka with different government officials and industry. In one segment of the round table, Mr. Moore, we'll be meeting with forestry officials.
I want to get a better perspective. I come from British Columbia and represent Kelowna—Lake Country in the Okanagan Valley. The provincial minister of forests is actually from that riding as well. A very important economic generator for the west coast is the forest industry.
Which countries are Canada's main competitors as log home builders in Japan?
3:55 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Yes. Which countries are Canada's main competitors in the log home builders' market in Japan?
3:55 p.m.
Owner, Brian Moore Log Homes
There are some American companies that do export, but by far the two major competitors are Russian companies, and also manufacturers from Scandinavian countries, Finland primarily, but also Sweden.
3:55 p.m.
Conservative
3:55 p.m.
Owner, Brian Moore Log Homes
I don't think Russian companies do. Actually, I'm not sure.
4 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
You would just like to eliminate the 3% to 6%, but you're not sure whether this is competitive with your competitor countries, whether we're in the ballpark.
4 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Okay.
As I come from the Okanagan Valley, I'll go on to another great economic generator for British Columbia, the wine industry.
Thanks for being here, Mr. Paszkowski, from the Canadian Vintners Association. I have a couple of questions.
You commented on the issue of counterfeiting. You have a definition in your presentation where icewine is concerned. Has it been agreed upon by all the members of the Canadian Vintners Association?
4 p.m.
President and Chief Executive Officer, Canadian Vintners Association
Yes, it's a matter that I sense is supported by all the members of the Canadian Vintners Association. As I mentioned, it's included within two trade agreements that Canada is a party to.
4 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
My understanding is that some were taking grapes and freezing them and putting them in a freezer, and others were taking grapes off the vine and freezing them off the vine and trying to sell the product as icewine as well. Is that correct?
4 p.m.
President and Chief Executive Officer, Canadian Vintners Association
That's right. There's a unique practice in Quebec whereby they pick the grapes before they get to the internationally accepted level of minus eight degrees, and then they hang them in nets in the vineyards and process them once the temperature reaches minus eight. That is not the internationally accepted definition of icewine in Canada or in countries around the world that produce icewine, or of the International Organisation of Vine and Wine.
4 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Do you have any idea of the volume, either quantity or value, of how much Canadian producers lose because of counterfeit wine?
4 p.m.
President and Chief Executive Officer, Canadian Vintners Association
We don't have an estimate because we have difficulty estimating how much counterfeit wine is actually out there. There have been some estimates that as much as 50% of the icewine sold in China is actually counterfeit. This is one of the key reasons that we attempt, with every opportunity, to have icewine defined in international trade agreements. We attempted to do that in the Korea agreement; however, we didn't have a definition in Canada. We're trying to get it now into the Japan agreement. We're waiting for Gazette part I to come forward with the internationally accepted definition of icewine, hopefully within the next few days.
4 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
The other key issue for you, then, is phasing out the elimination of the import tariff.
4 p.m.
President and Chief Executive Officer, Canadian Vintners Association
That's right. It is a very large tariff that's in place, at 15% ad valorem. It does have a maximum in place of $1.57, but if you think of a $10 Canadian wine being sold in Japan with a tariff of $1.50 and a $500 bottle of Bordeaux being sold in Japan with a tariff of $1.57, it creates some significant competitive disadvantages. In the Canadian circumstance, there were a number of key tariffs that were eliminated on wine in 2010, but our tariff rates range from 2.8¢ to 13¢ per litre, which are nowhere near the maximum tariffs that are in place in Japan.
4 p.m.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
One issue on non-trade barriers, maybe you could elaborate on what your concern is on Japan's accepting our wine-making practices to ensure there's compatibility in the countries. Maybe you could give a specific example of your concern.