Evidence of meeting #124 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 product.
A video is available from Parliament.
12:40 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
We could have had it. I'm telling you right now we could have had it a long time ago.
This is the worst negotiating I've seen. He can't stand negotiating with her because she's just not a business person. She's way out of her league.
12:40 p.m.
Conservative
Colin Carrie Conservative Oshawa, ON
As I said, we're hearing from people on the ground. People are hurting. This is an urgent matter.
12:40 p.m.
Conservative
Colin Carrie Conservative Oshawa, ON
We hope that the minister is going to be taking this extremely seriously.
In my community of Oshawa, we're manufacturing. If we lose these jobs, they're not coming back. That's the biggest concern.
12:40 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
I agree with you.
I'm telling you this deal could be done this afternoon. They're waiting for it.
Just like on the chapter 19 resolution, I told Minister Freeland that the sunset clause is a red herring. It was there anyway. It's a state of mind. I told her to agree to the six-year... It was a month and a half before that. That's how long it took, and they finally did it. They have stalled and blown this, big time. Our consumers and our industry in Canada are suffering because of it.
12:40 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
They need to get off of it and get the deal done.
12:40 p.m.
Liberal
12:40 p.m.
Sault Ste. Marie, Lib.
Thank you very much.
I appreciate your leeway, Mr. Chair, in taking a little more time than Peter. I understand I'll have a shorter window now, to keep us on track.
It's such an important issue for us to continue to work on. I think the best answer that we've heard in testimony is to get rid of all tariffs and all quotas. That would be the ideal situation, in particular because of just how integrated our markets are. We've heard stories about different businesses in the United States also hurting.
I've travelled with both Tracey from the NDP and Randy from the Conservative Party down to the United States. We've put that message forward that tariffs, no matter what product they are on, mean an increase in prices for consumers. It's a tax on Canadians and Americans. It's not good.
We saw with the softwood lumber example—I just met with the Canadian Forestry Association's president—that the average price of American homes for the middle class just went up $10,000. It's not who we are. We are both countries of free trade, as well as Mexico. Hopefully we can get down to that particular program.
There are some other relief programs that are in place for steel companies. Has my friend in P.E.I. applied for any of that particular programming? Then after hearing from him, I'll ask Barry as well to comment on that.
12:45 p.m.
Liberal
The Chair Liberal Mark Eyking
Can you stop the clock there for a second?
I have to remind MPs of something. We have a couple of conversations going on. If you're going to have a conversation, please get away from the table a bit, because it could be interfering with what we're doing here.
Go ahead, Mr. Sheehan. You have the floor again.
12:45 p.m.
President, MacDougall Steel Erectors Inc.
MacDougall Steel is working with the local Prince Edward Island government, trying to navigate the different systems that we can try to get through on this.
12:45 p.m.
Sault Ste. Marie, Lib.
I would just comment that a number of programs have been developed, as we've been pointing out to the companies over the last three and a half months. If you want to contact the Department of Finance, we can provide you with the details of the person who can get you straight to the heart of the matter, and get you through the program expeditiously.
Thank you.
12:45 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
Absolutely not. I do not want a handout from the government. I want to run our business. I don't believe that long term it's the way to build a business. I think we need to solve the problem.
I don't want any handouts.
12:45 p.m.
Liberal
The Chair Liberal Mark Eyking
Thank you for shortening it up there.
We're going to the Conservatives. Mr. Allison, I think you're splitting time. You're starting off, anyway. Go ahead.
12:45 p.m.
Conservative
Dean Allison Conservative Niagara West, ON
Thank you.
Thanks again, gentlemen, for joining us here today.
Barry, I just want to pursue that last line of questioning we had there. In terms of the deal, I get that. We've said all along that if we had dealt with that issue up front, we would have had a deal. Thank you for confirming what we always felt, even though we didn't, on the ground, have the direct link you had with Lighthizer.
Talk to us about the section 232s, or safeguards, that are going to go into place on October 25. Is that going to be enough for them to lift tariffs? Is that going to be enough for them to eliminate tariffs, or do we need to go past that in terms of quotas?
12:45 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
What the U.S. is very concerned about is steel coming into Canada and then making its way through the back door into the U.S. I think the safeguards help. They're similar to what they have in terms of section 232 for a foreign country, so I think it helps keep that back door shut.
I think a stronger measure that would promote Canadian steel and, quite frankly, even U.S. steel would be better. I'd rather import steel into Canada from the U.S. than from Russia.
I think those measures will help, but really what it comes down to is the quota itself. What's on the table right now is 2017-level shipments, with some exceptions that could be put in there for the likes of Algoma and/or Stelco on Canadian slabs, which would be welcome into Canada and, if there's not a historical pattern there, I think Lighthizer would be willing to give a waiver to up that, because U.S. steel mills need those slabs as well.
The real deal here is 2017-level shipments. I think in a couple of years down the road you can revisit it, but I think everybody would be very happy with that in two waves.
What Canada and Mexico have asked for is 20% or 30% increases, and I can tell you right now that it's not going to happen. They won't do any deal with anybody who has increased shipments. They will do reduced shipments or level shipments as they've done with others, but they will not do increased shipments. Korea did a deal at 70%. Brazil did a deal at some reduced and some level, depending on the product. Canada could easily have a deal done this afternoon at 2017 levels and move on.
12:50 p.m.
Conservative
12:50 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
Yes, but to be honest with you, they're fine. They're there. Again, it's a feel-good measure. It doesn't help us. I'll never be able to open my plant up in Welland with that there.
12:50 p.m.
Conservative
Dean Allison Conservative Niagara West, ON
What are we waiting for, then? We're being destroyed. Our SMEs are getting killed.
12:50 p.m.
Chairman and Chief Executive Officer, Atlas Tube Inc.
12:50 p.m.
Conservative
Dean Allison Conservative Niagara West, ON
We'll make sure we raise this at question period—maybe not this afternoon, but certainly this week.
My last question is getting off topic. It's a wide topic. What are your thoughts on trade with China in terms of trade deals? I realize they're a huge market, and we're not just talking about steel here, but do you have any advice as we embark or have conversations with them, other than the fact that we have given up our sovereignty through the USMCA on that issue? Talk to us about China.