Evidence of meeting #5 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 europe.
A recording is available from Parliament.
National President, Unifor
Okay.
So there is no question, the bottom line is that we build large vehicles. Now, when Ford, GM, Chrysler, Honda, and Toyota want to sell to European markets, they have plants there. That's how they satisfy the European markets. It's with their own assembly plants building vehicles for that market.
We build large vehicles. We build vehicles that are heavy on gas. They're big for the roads in Europe. The bottom line is, our cars are built in Canada specifically for the North American market. That's not the way it works in Europe. European automakers make cars that are global cars built not only for the European market, but for the other markets around the world. So it's a totally different animal. So--
November 19th, 2013 / 9:15 a.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you, Mr. Chair.
Thank you to the witnesses for coming today.
My first question would be to you, Mr. Dias. Trade unions were not included in the negotiation. Were they were not consulted at all?
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Is there a reason for that, that you're aware of?
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Don't you play an important role in providing at least some type of direction? It boggles me that you would not be able to provide any type of input into the negotiations. Were none of your sub-unions, none of your affiliates, consulted?
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
That's very strange.
I have a quick question because my time is limited. Getting back to cars, seeing that you mainly represent unionized workers in the car sector, I agree with what you were saying, that the European cars that we import are in a sort of niche market, and the Canadian or North American cars that would be exported are, again, a niche market in Europe. So would there be no potential for the automobile industry to increase their numbers in terms of whether it would be, as you stated, finished cars? But even to be able to export automotive parts, is there no potential for growth there?
National President, Unifor
It's negligible at best. The auto parts sector has been hammered here in Canada. We've lost probably 50,000 direct auto parts jobs in the last five years as a result of the recession in the auto industry.
There may be some minor additional sales, but these would be so insignificant that they don't help balance out the increase that will be imported to Canada.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
When we look at the European cars imported—let's say Mercedes and BMWs being manufactured—is there no equivalent manufacturing of those vehicles being done here in North America? Is that correct?
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I'm talking about BMWs and Mercedes in particular. They serve a niche market. They would come in, the tariffs would be reduced on those vehicles, and they would compete at a lower price range. Would that be your assessment?
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
In corresponding fashion, the North American car could not be sold in Europe, because they already have plants. So whether we reduce the tariffs or not.... Is that the logic there?
National President, Unifor
That's correct. It makes European cars cheaper. The trade imbalance will continue to grow, and to grow significantly, and there doesn't seem to be any net benefit for Canadians as a result.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Mr. McGuinness, you spoke about opening new markets. You spoke a bit about the reduction in tariffs. Is it your viewpoint that the reduction in tariffs will open new markets, plain and simple?
President, Fisheries Council of Canada
Most definitely it will, in the sense that what I see now—for example, in the cooked and peeled shrimp sector—is that they will be moving into modified atmosphere packaging and will be selling cooked and peeled shrimp directly into Marks & Spencer, directly into retail and food service.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Just because the tariffs come down, you'll be able to—?
President, Fisheries Council of Canada
It's 20%. The tariff is going from 20%—
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
What is the competition right now...the 20%? Are they buying the cooked and peeled shrimp somewhere else, or are they buying other products?
President, Fisheries Council of Canada
Basically they're buying cooked and peeled shrimp for retail out of Iceland and Norway, because they have agreements for zero—
