International Trade Committee on March 27th, 2013

Evidence of meeting #70 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 foreign.

A recording is available from Parliament.

On the agenda

Comprehensive Economic and Partnership Agreement (CEPA) with India

MPs speaking

Also speaking

Ailish Campbell Vice President, Policy, International and Fiscal Issues, Canadian Council of Chief Executives

Zhan Su Professor, Director of Stephen A. Jarislowsky Chair in International Business, Laval University, As an Individual

Nav Bubber Director of Operations, Scotia Private Client Group, Bank of Nova Scotia, Canadian Chamber of Commerce

Gus Van Harten Associate Professor, Osgoode Hall Law School, York University, As an Individual

Cam Vidler Director, International Policy, Canadian Chamber of Commerce

5:20 p.m.

Director, International Policy, Canadian Chamber of Commerce

Cam Vidler

The SMEs I think are more likely to face direct risks as they're doing business there. It's also more difficult. The costs they face to get themselves into the market are higher, so we have to look at different support mechanisms that can help them deal with those risks and those costs.

Again, I'm sounding like a broken record here, but the trade commissioner service in India has done a fantastic job of assisting SMEs in finding new customers and protecting themselves against situations that would jeopardize their business.

5:20 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

That would have been my next question. In your experience, are the trade commissioner service and EDC, which you mentioned, helpful to SMEs?

5:20 p.m.

Director, International Policy, Canadian Chamber of Commerce

Cam Vidler

Yes, absolutely.

5:20 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

How much time do I have, Mr. Chair?

5:20 p.m.

Conservative

The Chair Conservative Rob Merrifield

You have two minutes or a minute and a half.

5:20 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

Oh. Two and a half minutes?

5:20 p.m.

Conservative

The Chair Conservative Rob Merrifield

You don't have to take it.

5:20 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

Okay. He'll take it.

5:20 p.m.

Conservative

Ed Holder Conservative London West, ON

Well, if I may.... Thank you.

5:20 p.m.

Conservative

The Chair Conservative Rob Merrifield

Go ahead. You have a minute now.

5:20 p.m.

Conservative

Ed Holder Conservative London West, ON

Thank you, Chair.

Some of us were part of the Commonwealth Parliamentary Association that went to Bangladesh and India. What was very striking when we were there was, in one sense, the depth of poverty in different places, and then in the other, the optimism because of things like microcredit and what that meant with small amounts of money that would somehow elevate people out of their very sad circumstances.

Do you have any comments about the role—perhaps this is actually directed to our banker friend here—that microcredit has to play in all of this? I'd love to hear any thoughts or comments from any of the witnesses.

5:20 p.m.

Conservative

The Chair Conservative Rob Merrifield

Perhaps Mr. Bubber...?

5:20 p.m.

Director, International Policy, Canadian Chamber of Commerce

Cam Vidler

I'd suggest that Mr. Bubber—

March 27th, 2013 / 5:20 p.m.

Conservative

The Chair Conservative Rob Merrifield

Yes.

Mr. Bubber, go ahead.

5:20 p.m.

Director of Operations, Scotia Private Client Group, Bank of Nova Scotia, Canadian Chamber of Commerce

Nav Bubber

I could probably comment on that. Scotiabank has some very significant experience in micro-lending in South America.

The thing is, you can't do it as a standard loan operation in India. It has to be part of a larger financial institution. Because of the way the branches and the network work, it would probably work out better as part of a larger establishment, but the challenge is the restriction on one ownership of an Indian entity. Second, there is a severe challenge for foreign banks in opening new branches in India. The number of branches allocated to foreign banks in India is highly regulated, and it's not a level playing field when competing with Indian banks.

Those are the kinds of restrictions that will prevent foreign banks from going into that kind of lending. With micro-lending, the point of access has to be in the areas where micro-lending is required, typically in rural parts of the country, so that reach is possible only with unrestricted branch opening possibilities.

5:20 p.m.

Conservative

The Chair Conservative Rob Merrifield

Thank you very much.

Mr. Davies, I think we have time for two more questions of about two and a half minutes each. Go ahead.

5:20 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Thanks, Mr. Chair.

Mr. Cannan seems to think that people's personal political beliefs are relevant as to whether or not their testimony is valid here. So, Mr. Bubber, I'm going to ask you this. Have you ever been a member of the Conservative Party of Canada in your life?

5:25 p.m.

Director of Operations, Scotia Private Client Group, Bank of Nova Scotia, Canadian Chamber of Commerce

Nav Bubber

No. I'm a young Canadian and still have not decided where I lean to—

5:25 p.m.

Voices

Oh, oh!

5:25 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Yes, well, maybe the circumstances today might help you make up your mind.

Mr. Vidler, you said that you had been a member of the Conservative Party.