International Trade Committee on Dec. 3rd, 2013

[Devinder Shory, Conservative, Calgary Northeast, AB]

This question is for both of you. Moving forward, would the completion of CETA have a potential to open other emerging markets in the Asia-Pacific region?

[Jim Everson]

I would say CETA wouldn't directly. I think there is a clear success in demonstrating that Canada is capable of negotiating and finishing a really large, comprehensive, and broad deal like this. I think that creates some real credibility for our government and our negotiators when they're dealing with the Trans-Pacific Partnership, agreements with Japan, and better relations with China. I think in that way it's very helpful in terms of accessing Asia-Pacific markets.

[The Chair, Conservative, Rob Merrifield]

A very short answer.

[Ruth Salmon]

I would support what Mr. Everson said completely. I think it bodes well for future negotiations.

[The Chair, Conservative, Rob Merrifield]

Very good.

Mr. Pacetti, five minutes.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Thank you, Mr. Chair.

Thank you to the witnesses for coming.

Mr. Everson, in your brief you mention “exporters who export canola for processing at its destination”. So the first thing you refer to is the exporting portion. Where do you export to right now? Presently do you export everywhere around the world, or is it concentrated?

[Jim Everson]

The canola industry exports to some 55 to 60 countries around the world, but we have a very large export to China, to the United States, Mexico—

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

So Europe would represent how much of your market?

[Jim Everson]

A fairly small amount.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

So there is potential for expanding the market, like you stated. Are the tariffs the barrier right now?

[Jim Everson]

Yes. Tariffs are a barrier.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

The reason I'm asking that is, what is the competition from the other end? What are European canola producers being charged as tariffs if they were to export to Canada?

[Jim Everson]

We also have tariffs here that will be removed through the Canada-European trade agreement. There is a range of tariffs, both in Canada and in Europe, relating to oil. They're roughly the same.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

So if the tariffs come off on both sides will you be a winner?

[Jim Everson]

Yes.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

You'll still come out ahead. Okay, I just wanted to make sure.

In the second part of your brief you spoke about how the “EU's regulatory environment creates real barriers to trade and innovation” when it comes to biotechnology. Can you expand briefly on that?

[Jim Everson]

We have a biotechnology crop. Farmers in Canada have chosen to grow genetically modified canola because it provides all kinds of agronomic and competitive advantages for them in the international marketplace. In all markets around the world, and especially in Europe, there's a zero tolerance for any new technology brought into the market that is not approved in that market.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

That market would be Europe?

[Jim Everson]

That market would be Europe.

Companies that introduce innovation to the Canadian farmer in Canada have to get approval in all countries, including Europe. Europe is notoriously difficult for receiving those approvals. The timeframes are very long.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

How will that change?

[Jim Everson]

With this committee that we have on biotechnology, through the dialogue that we have and the cooperation we have, and through the regulatory cooperation provision of the agreement, we are looking for an improvement in the timeframes that Europe takes for approvals.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Is that a done deal? You're working on it.

[Jim Everson]

The procedures, the committees, are in place. It's not a done deal until they produce some deliverables.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Okay, that's what I wanted to hear.

I have limited time so I want to get a question to Ms. Salmon.

Of course, the first question I'm going to ask is, did your name have to correspond to the—

[Ruth Salmon]

I know. It sounds awful, but that's how I got the job.