International Trade Committee on Feb. 4th, 2014

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you, Mr. Chair, and witnesses.

As a member of Parliament from British Columbia in the Okanagan, Kelowna—Lake Country, I've had the privilege of touring the port in various capacities over the years. It's always good to see the excitement. Even this morning I woke up and watched a helicopter land and the shuttle going across to North Vancouver, and all the activity. It is very vibrant and encouraging.

From your opening remarks and your printed presentation, you're obviously very supportive of TPP.

In 2008 the trade committee travelled to Panama. I was wondering about your expansion and the timing of the Panama Canal and what implications that would have on TPP and the expansion with our aggressive trade agreements, with CETA and the rest of the ones that are in the hopper.

[Robin Silvester]

As we look at the Panama Canal in aggregate, we see it as having probably not a huge effect on the port here in Vancouver, particularly on the import side, because so much of our imports are handled through eastern Canada by rail. On the export side it opens up some increased opportunities undoubtedly, certainly to Europe, the numbers we were just talking about. Interestingly, there's also the potential of potash being exported from Saskatchewan out through Vancouver and down to Brazil, which is a route already, but will be improved by the Panama Canal.

There is some upside opportunity, and little downside impact. The real economic growth opportunity we see through TPP is with the fast-growing Asian economies that are already part of, or seeking to become part of, the TPP arrangement.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

As alluded to, Mr. Woo was here earlier and he was advocating to have China join as well, to have a 13th member, a baker's dozen.

Mr. Winter, welcome to the committee. We chatted earlier. You are active with our Kelowna Chamber of Commerce. We have the Lake Country Chamber of Commerce as well. I know you've been out to visit. We're one of the top three chambers in British Columbia out of 125 chambers, and I think you said they had 36,000 members.

I don't think very many Canadians realize the aggressiveness with which Prime Minister Harper and Minister Fast have been working on our global market strategy to expand trade. One of the startling realities with CETA would be a GDP of about $17 trillion and 500 million consumers, and with the TPP it would be about $27.5 trillion and 792 million consumers. Combined with NAFTA, Canada would be the only country in the world with comprehensive trade agreements with 75% of the world's GDP. It's really exciting. That's the message we've heard from business organizations such as yourself, representing the private sector.

I wonder if you could comment on how as a government we can get the message out. It seems to be the civil society groups are opposed to these trade agreements, and the job creators such as your organizations and the port, are supportive. What can we do to try to get businesses engaged more in understanding the benefits and the opportunities of these trade agreements and convince the public that a globalized world is where we are and the opportunities are immense?

[John Winter]

Continue doing what you're doing. There is a significant effort within the federal government, whether it's through Western Diversification or other ministries that are involved, Industry Canada, International Trade.

We perhaps need more information flowing back to us with respect to some of the specific benefits that are accruing for us in various parts of the world, so that we in turn can be players in that discussion perhaps more than we are. As an organization, we don't spend a whole lot of time talking about international trade to our members. I think the time has come for us to perhaps change that a little bit and to be more focused on opportunities as opposed to worrying about a lot of internal issues.

As has been already mentioned, we're the recipient here on the west coast of a significant investment in infrastructure through the Asia-Pacific strategy, and we are expecting even more. Between Prince Rupert and the port of Vancouver, the airport, and any number of other investment opportunities that exist, we're ready to begin acting and being a catalyst in the growth of international trade for Canada, for British Columbia, and the west coast.

It's continuing to do that, and doing it in a way that continues to work. I'm not sure that you'll ever be as successful in convincing the detractors, but the issue is that since NAFTA, and the Canada-U.S. Free Trade Agreement before it, the evidence is clear. If we look around us, our standard of living has never been better. I think it can only get better because of these kinds of agreements.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

I'd appreciate it if you'd spread that to your members. That would be great.

Mr. Silvester, the committee was in Halifax in November and we saw the great opportunities with CETA. I think it's a day shorter from Europe to Halifax. We know Prince Rupert has great opportunities.

From your perspective, from your industry working together with bulletins and newsletters, working with civil society in trying to engage them in conversation, do you have an industry strategy as well? I know you're dealing with a dialogue on expansion. That's always an ongoing challenge. Are you looking at that discussion explaining what's happening as far as the future of trade goes as well?

[Robin Silvester]

We are absolutely, and particularly in the community here in the Lower Mainland where a significant number of jobs are generated, but it's very easy to lose sight of the impact of trade on the economy.

Actually going back to the earlier question, we've taken a very proactive approach in telling the small-business stories, because people relate to those much better. So there's the seafood business based in Vancouver that is able to access a market in Japan or increasingly in China because of the sort of trade infrastructure created in the port, and indeed there are the improvements in trading relationships that are available through trade agreements. So it's really going to personalize the stories. We're putting a lot of effort into that and we're finding that is a way that resonates with the community here. We certainly will be continuing to do that.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you for that. What better to go on the ship than some wine, some cherries, some B.C. apples, and all the rest of it.

[The Chair, Conservative, Rob Merrifield]

He's always promoting his local industry.

We'll now move into the second round.

Mr. Sandhu, the floor is yours for five minutes.

[Jasbir Sandhu, NDP, Surrey North, BC]

Thank you.

Thank you to the witnesses for being here this afternoon.

Mr. Winters, I know the port of Vancouver plays a very important part in the economy of the Lower Mainland. I know a number of people who are directly or indirectly employed through the port.

There's a fairly good labour relationship with the longshoremen. They recently negotiated a long-term agreement. We see that. I also saw a couple of months ago that the United Truckers Association had some concerns. You know you would hate to have a stoppage of work or some sort of disruption. It would be detrimental to the economy of the Lower Mainland. Can you maybe highlight what's going on with the United Truckers Association and whether some of their concerns are being discussed or addressed?

[Robin Silvester]

We've had a lot of dialogue with them. It's undoubtedly a complex supply chain given that it's employing tens of thousands of people, but there's been some very good dialogue with the group you mentioned in particular amongst others. The concerns they were raising were in a large part related to some of the challenges we've addressed structurally through the infrastructure we were building over the course of last summer, which exacerbated the problem. But I'm pleased to say it opened in the middle of December, and that is alleviating the problem to a large extent.

We're also investing, with government support, in GPS tracking equipment, which is allowing us to understand where all the trucks are at any one time and how long they spend waiting in the terminals so that we can bring the stakeholders and the gateway together to have a dialogue about how to improve the system and how to liberate further capacity in the system to accommodate the growth opportunity we see. It's been a constructive dialogue and we certainly appreciate their input.

[Jasbir Sandhu, NDP, Surrey North, BC]

Did you see a successful conclusion with regard to some of the concerns they have for the next two months, three months, four months?

[Robin Silvester]

Even already, with the exception of our short-term challenges related to the railcar supply, which have a knock-on effect through the supply chain because of the very cold temperatures in the east, which we expect to be resolved in a matter of days and weeks, we've seen significant improvements and reductions in wait times with the opening of the infrastructure, as I described, in the middle of December. We certainly expect to see those improvements be maintained and continue going forward.

[Jasbir Sandhu, NDP, Surrey North, BC]

You also talked about building an infrastructure, which takes a long time, and I'm the Asia-Pacific gateway critic. Do you have a commitment from the government on long-term funding for some of the development that you're undertaking, which is needed for the infrastructure development, whether it's the port or the roads locally?

[Robin Silvester]

We as the port are in the middle of delivering about 200 million dollars' worth of infrastructure as part of the $700 million Asia-Pacific gateway program, which is committed. All 17 or 18 projects funded by that will be completed by the early part of 2015. Those commitments are very tangible and are in progress.

As part of the ongoing dialogue, there are a number of other areas in which we see opportunities for infrastructure improvements that would increase capacity, and we continue to have constructive dialogue about those. We have a very big program that is nearing completion, and we have some other key projects that we're having dialogue about.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Winter, you talked about not missing the opportunity of being at the table. The TPP talks started in 2005. It was 2008 when the real negotiations started happening, and Canada actually joined those talks in 2012. That was after 14 rounds were already completed. A part of the conditions of our getting into TPP was that those 14 rounds would not be renegotiated.

Do you think that was a missed opportunity? We weren't at the table when some of the negotiations took place.

[John Winter]

Well, I think it's better to be there than not to be there, and I think it's important that Canada be a party to the final—

[Jasbir Sandhu, NDP, Surrey North, BC]

I understand that, but do you think it's a missed opportunity?

[John Winter]

I can't comment, because I think, as I said earlier, we're not sure what the agreements were that went on in the earlier years. Certainly, Canada's track record in terms of completing trade agreements on behalf of Canada has been exemplary. I think from that perspective to walk in at this point—

[Jasbir Sandhu, NDP, Surrey North, BC]

I have only a short time, and I do want to finish up. I actually would disagree with you in regard to completing trade agreements with other countries. We completed trade agreements with countries such as Liechtenstein, Peru, Panama, and Jordan.

Being from the west coast, I understand the importance of the economy in Japan and also in South Korea, where we have failed to complete those agreements in the last years. Do you think that is also a missed opportunity? Is it a missed opportunity that we have not been able to complete trade agreements with those two countries, which we trade a lot more with than we do with some of the countries we have already made trade agreements with?

[John Winter]

I don't know what your expectations are. I think being at the table is better than not being at the table.

I suspect that an agreement with Korea or Japan is obviously a difficult thing to agree to. I can imagine some of the issues that are on the table that Canada has to deal with in that regard, so the fact that we're still talking, the fact that there is optimism that these agreements will be put in place, is an awfully good sign from our perspective.

[The Chair, Conservative, Rob Merrifield]

Thank you very much.

Mr. Hiebert.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Thanks, Mr. Chair.

I'm delighted to see my colleague, Mr. Jasbir Sandhu, emphasizing how urgent these trade agreements are and how we need to get on.

[Some hon. members]

Hear, hear!

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Mr. Winter and Mr. Silvester, thank you for being here. I have a lot of businesses, indirect or direct, and a lot of port employees who live in my community of South Surrey—White Rock—Cloverdale. I'm sure they're delighted that they're being represented by you as well.

Mr. Winter, in your opening remarks, you made reference to Singapore and Malaysia as countries with a growing middle class. Then you transitioned to a list of service industries that were going to benefit from this growing middle class. I didn't catch all of them. There were things like government procurement and financial services. Can you just refresh my memory? What else was on that list?

[John Winter]

I will try. On goods and services and future trade agreements, we talked about investment services, financial services, access, temporary entry and labour, and government procurement contracts.