You're done.
Evidence of meeting #16 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was tpp.
Evidence of meeting #16 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was tpp.
3:50 p.m.
Conservative
Ed Holder Conservative London West, ON
So I'm done, but thank you.
I think that's a very important point, Chair, that we can absolutely take forward.
Thanks to both of you.
3:50 p.m.
Conservative
3:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you, Mr. Chair.
“I'm done, I'm done”.... That's what takes a long time.
Thank you, witnesses, for coming here to give us your testimony.
I will start with Mr. Kassam.
To go on with what Mr. Holder was asking you, your duties are anywhere from 20% to 30%. Where do you sell most of your products?
3:50 p.m.
Vice-President, Business and Corporate Development, Ballard Power Systems Inc.
That 10% to 30% would be the number. As for where we sell our products, when I think about product sales, it would be the U.S., where there are no duties, and then Japan and China. The list goes on. There are about 20 different countries that we sell our products to. In each of those countries, we have a different allocation.
3:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Because you wouldn't get immediate relief even if we're talking about TPP countries, for example—
3:50 p.m.
Vice-President, Business and Corporate Development, Ballard Power Systems Inc.
That's correct.
3:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
—because first there would have to be an agreement. I think the TPP has been in negotiation since 2005, so that's around nine years and there hasn't really been.... It's been two years since Canada has been part of the negotiations.
What do you actually sell? Do you actually sell the fuel cell or do you sell the technology? Is it hard goods?
3:50 p.m.
Vice-President, Business and Corporate Development, Ballard Power Systems Inc.
There are three things. We sell our core stack technology. That's manufactured here in Vancouver. That has the highest IP. We sell product solutions, so that's the actual generator that goes in as backup power in telecom stations, and we also license our know-how, which is really more of a service where the duties wouldn't apply.
So it's really on the first two. Also, on the core stack, we'll usually get exemptions on the stack. It's really that the system fails when we get into selling our telecom generator. That's when the duties get applied. That is specifically where we get hit with them.
To your question about whether it means that we're not selling in those markets, not at all. To me, all that does is open up a broader market. Instead of selling a certain amount, we see a multiple of that if we're able to get those duties down.
3:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
That leads me to my next question, which is about your competition. Where is the bulk of your competition?
3:50 p.m.
Vice-President, Business and Corporate Development, Ballard Power Systems Inc.
In the telecom space, our two competitors would be in the United States, and there are some growing new companies coming up in China, as well as South Korea.
3:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
So it's to your benefit to get a heads-up on the Chinese if they're not part of the TPP? That would benefit you.
3:50 p.m.
Vice-President, Business and Corporate Development, Ballard Power Systems Inc.
That's right, absolutely.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay. Thank you.
I have a quick question for you, Mr. Calvert. More than once, I think, you referred to drug costs increasing in Canada continuously. I think you mentioned that on a few occasions.
3:55 p.m.
Associate Professor, Health Sciences, Simon Fraser University, As an Individual
Over the last 25 years.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Yes. How does that have anything to do with the TPP? Do you feel that by signing the TPP the patent protections being given to the traditional pharmaceuticals will increase drug costs?
3:55 p.m.
Associate Professor, Health Sciences, Simon Fraser University, As an Individual
That is what will happen, because it will delay generics getting on the market.
A number of different components of the TPP proposals cumulatively would have the effect of delaying generic copies, as it were, of products getting on the market, and generics are much cheaper than the patents. Also, there will be patents applying to new areas that currently are not covered by patents. Again, that would raise the price.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
With the CETA, we had to increase the patent protection for two years.
3:55 p.m.
Associate Professor, Health Sciences, Simon Fraser University, As an Individual
Yes.
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
In the TPP countries, what is the highest patent protection length?
3:55 p.m.
Associate Professor, Health Sciences, Simon Fraser University, As an Individual
Do you mean beyond the 20 years in TRIPS?
3:55 p.m.
Associate Professor, Health Sciences, Simon Fraser University, As an Individual
I don't know either, because I don't have a final text of the agreement to make any calculation about—
3:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
There is no agreement. They are in negotiations.
3:55 p.m.
Associate Professor, Health Sciences, Simon Fraser University, As an Individual
Yes.