Evidence of meeting #108 for International Trade in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was canola.
A recording is available from Parliament.
Conservative
Randy Hoback Conservative Prince Albert, SK
I know visas were an issue going into Brazil. It was frustrating. You'd wait and wait for a visa.
Vice-President, Global Sales and Marketing, MacDon Industries Ltd.
That doesn't seem to be an issue for us anymore. We have six people on the ground there today in Brazil. We're at a major farm show in Brazil this week. It's quite easy.
President, Agricultural Manufacturers of Canada
Can I just add to that? From the perspective of the financing and the credit availability, I'd like to just share with—
Conservative
President, Agricultural Manufacturers of Canada
Yes.
We have a small member who says one of their fears, given the current volatility in leadership in Brazil, is that EDC may not be consistently available.
Our organization took great advantage of EDC availability in Russia and Ukraine. When EDC's policy on this area changed, we were left sitting on several container loads of product specific for the area that we could not ship. Unfortunately, the relationships that we had spent years cultivating were severed. The loss was acute.
For our industry, the tariffs are not necessarily the biggest impediment. It's the development—as you know with your background—of the distribution model. When you sell something into Brazil or Argentina, you need to make sure you have the service available on the ground to work with the farmers and ranchers using your products. That's more of a risk.
Conservative
Randy Hoback Conservative Prince Albert, SK
One thing about farm machinery is that it's something you service all the time. You're always fixing it. You're always adding parts, changing parts. It's wear, componentry—
Conservative
Randy Hoback Conservative Prince Albert, SK
—so you need to have those dealers there too.
From MacDon's perspective, are there any componentries that you'd see buying out of those markets that would add to your competitiveness internationally? You sell all over the world. Are there any items that you could say if we could get that cheaper out of Brazil or Argentina, it would bring down our global costs and make us more competitive.
Are there any items like that?
Vice-President, Global Sales and Marketing, MacDon Industries Ltd.
We have looked at that. It's no secret. We have looked at the localization in that marketplace. It is not something that is high on our priority currently, because of the uncertainties of government. It's employees, it's all the things you get into when you enter a marketplace and say you're going to produce the product in that region.
Conservative
Randy Hoback Conservative Prince Albert, SK
That gets into my ISDS.
With ISDS, under NAFTA, we did some $5.3 trillion in sales. That's how much volume is moved through NAFTA. We've had about $140 million in payouts, so it's less than 0.0004%.
When we hear about people talking about ISDS—I think Brendan, you'd probably comment on this—for you to go into Argentina without ISDS or some sort of protection equivalent to ISDS, I don't think it would be that attractive. There have been many Canadian mining companies that have gone into Argentina and said this looks great and then left in tears. You'd need some sort of ISDS, I assume, protection for investment in that region, would you not?
Vice-President, Economic and Northern Affairs, Mining Association of Canada
Yes.
Liberal
The Chair Liberal Mark Eyking
That's it.
Mr. Marshall, it doesn't always happen this way. It seems that everybody has had the last question for you, and it's always a good question. It's just—
Vice-President, Economic and Northern Affairs, Mining Association of Canada
That's okay. I appreciate that my copresenters here also have important views to share.
Liberal
The Chair Liberal Mark Eyking
It's all good.
Anyway, we've got time for one more MP, and Mr. Fonseca, you have the floor.
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
Thank you, Chair.
Let's give Mr. Marshall a chance here.
Mr. Marshall, on the financing of projects, would much of that financing come through Canada? Would that be the Scotiabanks, the EDCs, etc., for those mines?
Vice-President, Economic and Northern Affairs, Mining Association of Canada
A lot of capital is raised within Canada and spent within Canada but also invested abroad.
Over a long time, the Canadian mining industry has developed a business ecosystem that is broadly representative across the supply chain of the business, ranging from exploration to finance to supply to mining to equipment. It's holistic.
Over the course of that development, the Toronto Stock Exchange has become the world-leading exchange for mining investment and capital raising. That's found money for Canada. When we say things like $90 billion has been invested outside of Canada's borders, that doesn't mean there's not a significant benefit to Canada or Canadians from that money and the infrastructure that the industry has within Canada—white-collar jobs that support mining development and practice in Toronto, Vancouver, Edmonton, etc.
These are opportunities and benefits that Canada has and should robustly protect.
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
I take it that's the exchange, the banks, large law firms—
Vice-President, Economic and Northern Affairs, Mining Association of Canada
Environmental engineering organizations.
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
Environmental engineering. All of that is value added. That's great to hear.
I want to go to Mr. Sinclair.
Canada is a trading nation. As we negotiate these trade agreements, there are compromises that are made. Everybody has to put a little water in their wine, as they say.
I know that you were offside, maybe on NAFTA or on Mercosur.
I want to get an idea of what agreement you do like, and what you would say is a good agreement. Is it CETA, CPTPP? What component? Is there a trade agreement that is favourable to you that you like in the world?
Senior Research Fellow, Canadian Centre for Policy Alternatives
I tried to make the point that Canada keeps reproducing the same template over and over again, and there hasn't been, as yet, a significant difference, even with the new government, the Liberal government, from the Conservative template although—
Liberal
Senior Research Fellow, Canadian Centre for Policy Alternatives
—just one moment—with the NAFTA negotiations, there are some promising proposals on the table on labour and other issues that I view as constructive, and I have said so publicly. However, as I said, our concerns mainly relate to the non-trade elements that have been “glommed onto” trade agreements, for example, intellectual property and investment protection. There is considerable evidence that these have gone too far in interfering with our public policy autonomy and our ability to have a balanced and good government.
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
Thank you.
Ms. Olson, does your group fall under the Canadian Manufacturers & Exporters? Are you part of that association?
President, Agricultural Manufacturers of Canada
We are more niche. Many of our members are members of both, however we represent farm equipment manufacturers, and so in Canada all of the manufacturing of farm equipment—except for one facility in Saskatoon, which is a CNH facility—is what we call short-line farm equipment, and so with MacDon, for example, they specialize in harvesting equipment. We have other members, as I said in my opening, that specialize in other types of equipment, from livestock to whatever, so our members are pretty unique in that way.