Thank you.
Good afternoon. I'd like to thank all of you for giving me the opportunity to be with you today and for the opportunity to speak about the impacts of tariffs on Canadian businesses, companies and workers across the country.
First, I want to thank the committee for taking the time to study this important file.
I'm pleased to participate in this discussion, as we assess the impact of the United States' tariffs on aluminum and steel products. It gives me the chance to keep you informed of further developments in the file.
I know that members of this committee take this issue seriously, as does the government. We appreciate the committee's efforts to listen to witnesses and receive submissions by Canadians impacted by U.S. tariffs on Canadian steel and aluminum.
As you know, for nearly three years, the government has been making investments to grow the economy, strengthen the middle class and obviously help people who want to do better in our country. Our efforts are working. We're starting to see significant results. Our economy is thriving.
As a result of the hard work of Canadians, over half a million full-time jobs have been created in the past three years, our unemployment rate is close to its lowest level in 40 years, wages haven't increased this quickly in almost a decade, and we have one of the best performing economies in the G7. By investing in people and communities, this government has restored the confidence of millions of Canadian families.
As you know, the government has reached a new United States-Mexico-Canada agreement. It took more than a year of tough negotiations to reach this agreement. We held out for a good deal, and we got a good deal. It's one that's good for Canada, good for Canadian businesses and, most importantly, good for Canadian families.
It will sustain more than $2 billion a day in cross-border trade, and provide tariff-free access for more than 70% of Canadian exports. It preserves our preferential access to the U.S. market. It keeps in place an important dispute resolution chapter that protects workers and companies against trade actions.
Our new trade agreement gives the business community the certainty and the confidence it needs to continue to invest in Canada. It can make those investment decisions knowing that this critically important trade relationship is safe and secure. This deal makes Canada the only country to have deals with all of its G7 partner countries.
We've created stability with our largest trading partner, and helped ensure that Canada's current pace of economic growth will be able to continue. The United States-Mexico-Canada agreement is good for Canadian workers, and we know if it's good for Canadian workers, it's good for the middle class.
Combined with the Canada-EU trade agreement and the comprehensive and progressive agreement for trans-Pacific partnership, it will provide even more opportunities for Canadians. Together, these three trade deals will give Canada access to over 1.3 billion customers around the world. As the agreements come into effect, the government will work with Canadian businesses, to ensure they have the right tools to invest, grow and create good, well-paying jobs.
We remain, however, committed to addressing outstanding trade issues, such as the unjustified tariffs imposed by the United States last June on Canada's steel and aluminum industry.
We responded to these tariffs by applying reciprocal countermeasures on products from the United States, for a total of $16.6 billion, dollar for dollar. These countermeasures will remain in place until the United States eliminates the tariffs on Canadian steel and aluminum products.
I'm optimistic that our ongoing discussions on that front will reach a positive outcome. In the meantime, we'll also follow the course that we set on June 29, when the government announced it would make available up to $2 billion to defend and protect the interests of Canadian workers and businesses in the steel, aluminum and manufacturing industries. This comprehensive set of measures included earmarking up to $1.7 billion to help businesses deal with financial and risk management in the face of these tariffs.
Since that support was made available, dozens of Canadian companies have made use of the financial support provided by the Business Development Bank of Canada and Export Development Canada, in the amount of $131 million and $44 million respectively to date.
We're doing everything possible to stand up for Canadian workers and protect the competitiveness of the affected businesses. That's why, just last Thursday, we also announced new steps to provide targeted relief from surtaxes collected on certain products imported from the United States, and why we announced additional measures to prevent import surges from injuring our domestic industry.
I'd like to provide the committee with some details on these new measures.
As the government works toward the complete repeal of the U.S. tariffs, we recognize that these tariffs and our own countermeasures may be having an impact on Canadian businesses and on workers.
Last week, we made two important announcements. First, we announced targeted relief from surtaxes collected on steel, aluminum and certain other products imported from the U.S. since July 1, 2018. Companies that have applied for and have been granted relief can now import these goods without paying surtaxes.
Second, the government will also create a committee in which relevant stakeholders can bring forward issues around domestic supply challenges that are triggered by counter-tariffs. Last week, the government also announced provisional safeguard measures on seven steel products. These safeguards respond to a surge in imports of foreign steel that are causing or threatening harm to Canadian steel producers and workers. The safeguards are consistent with Canada's international trade obligations, and they respond to comments heard during recent consultations.
We've found that, as a result of the unfair tariffs imposed by the United States earlier this year, many countries are looking for markets to sell their steel products. One of those markets is Canada, and our imports of steel products from these countries have recently reached an unusually high level.
In response to this phenomenon, imports of steel products that exceed the historical average will be subject to a 25% surtax as of October 25.
These provisional safeguards will give Canadian steel producers and workers relief from the harm caused by excessive imports of foreign steel products.
As part of this action, the government has asked the Canadian International Trade Tribunal, CITT, to conduct an inquiry into whether final safeguards are warranted. We continue working with stakeholders to monitor steel imports and supply conditions in Canada. We stand ready to take further action to protect our producers and manufacturers and to stabilize the market.
In closing, the government has created stability with our largest trading partners by reaching an agreement with the United States and Mexico. The result will be more stability and a greater level of confidence for the business community to make investments in Canada, as well as in the other North American countries. We're equally committed to diversifying our trade beyond North America and around the world.
We'll pursue this agenda by continuing to address the remaining trade issues, including the elimination of the unjustified tariffs on Canadian steel and aluminum.
Once again, I want to thank the committee members for their important work. I'm grateful for the opportunity to provide this update on our latest trade actions and on the United States-Mexico-Canada Agreement concluded recently.
I would now be pleased to answer your questions.
Thank you.
