Yes. You have another minute.
Evidence of meeting #133 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 way.
A video is available from Parliament.
Evidence of meeting #133 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 way.
A video is available from Parliament.
11:40 a.m.
Liberal
Karen Ludwig Liberal New Brunswick Southwest, NB
Great.
We've certainly heard before this committee, as my colleagues have mentioned, about the challenges for small to medium-sized enterprises just to become more aware of the services that are available. About 54% of businesses in Atlantic Canada are made up of one to four employees.
In terms of taking advantage, where do you see the greatest opportunities for our really small businesses? How do we connect some of them to the supply chain, even in Canada on the domestic side?
11:40 a.m.
Minister of International Trade Diversification
I don't know that there is a one-size-fits-all answer to that question.
Just in these last few days, meeting with start-ups in Saskatoon and Edmonton.... This is a classic example of the companies you're referring to, with one, two, three or four employees, and there's very limited awareness. The best way to inspire people to get interested is by example of other companies that have taken advantage of it so that the narrative becomes real.
I'll give you one quick example. We were in Montreal meeting with Cecilia Malmström, the trade commissioner of the EU. We visited a bicycle manufacturer in Montreal that had just won a competition to supply 7,000 bikes to Barcelona because of the European agreement.
What are the two elements of the agreement that made it possible for them to win this competition? They are a reduction of tariff from 15% to 0%, and the procurement chapter that allowed them to compete for government work. They won it—7,000 bikes.
I was in the west, as I've told you, and I asked a bike manufacturer if they knew the story about how this Montreal bike manufacturer took advantage of CETA. No, they didn't.
That's an example of how, through the narrative of similar companies in a sector or an industry, you can inspire them to look beyond to other export markets.
11:45 a.m.
Liberal
The Chair Liberal Mark Eyking
Just before Mr. Carrie—what's the number? How much trade do we do right now with Israel?
November 29th, 2018 / 11:45 a.m.
Kendal Hembroff Director General, Trade Negotiations, Department of Foreign Affairs, Trade and Development
That's total.
11:45 a.m.
Minister of International Trade Diversification
It's $1.7 million total. We'll get you the breakdown.
11:45 a.m.
Conservative
Colin Carrie Conservative Oshawa, ON
Thank you, Mr. Chair.
Thank you, Minister, for being here. Of course you know you have our support. We're very much free traders.
However, I do want to talk about competitiveness. You mentioned today we seem to be competitive, but major policy changes are coming, and I want your comments on that.
Frankly, as well, I found your metaphor at the beginning a little insensitive. In Oshawa this week we found out that we were going to be losing 2,800 jobs, which means we're not going to be exporting anything from Oshawa. Bridges go both ways, not just one way.
The United States is going to be losing 3,600 jobs and Mexico zero. To put it in perspective, the Americans have ten times our population. With the multiplier effect, that would be like 28,000 jobs, and I think Mr. Trump would even be a little louder if that were the case.
Frankly, businesses need clarity. I'm going to try to get some clarity from you today, sir.
When we're talking about competitiveness, one of the biggest things we've heard around this table is the cost of energy. I know the Prime Minister is committed to a carbon tax as his major way of getting to those commitments in Paris. The United States and Mexico don't have that same policy, and just last month, the United Nations reported that governments would need to impose up to $5,500 per tonne of carbon tax by 2030—$20 a tonne is not going to do it.
Businesses need certainty. They need to understand what their costs are going to be, because companies don't invest billions of dollars in plants for a six-month investment.
I know investments in the auto industry are going out to 2030. Very simply, I'm hoping that maybe we can reverse that decision in Oshawa.
I was wondering if you could be very clear: when will your government be increasing the carbon tax to $5,500 per tonne, or what are your proposed increases, so businesses can know?
11:45 a.m.
Conservative
Colin Carrie Conservative Oshawa, ON
It's just the last one, Minister—when are you going to increase the carbon tax?
11:45 a.m.
Minister of International Trade Diversification
—that aren't directly related to CIFTA, but I'm glad to answer them anyway.
First of all, we are deeply disappointed in the decision that General Motors has taken. Our line of communication to the company is open to look at possibilities of making that plant continuously viable. Minister Bains has said that publicly. We continue to believe that an ongoing conversation with the company is important, and we make that offer.
On the issue of a price on pollution, if someone is trying to make a link between a price on pollution and the closure of the Oshawa plant, then they're going to have to address the closure of three American plants at the same time.
11:45 a.m.
Conservative
Colin Carrie Conservative Oshawa, ON
As I said, I'm not trying to make that direct link right now.
Business wants certainty, and as you said right now, it appears we're fairly competitive. GM just shut down their premier plant. It's an award-winning plant. The employees did everything they needed to do. You do have a policy. The American plants are consolidating, and as I said, their job losses are significant—3,600—but to put that in perspective, they're ten times bigger than we are, so that would be like 28,000 jobs in the United States.
You have this unique policy in North America with the carbon tax and the United Nations. Your Prime Minister has been very clear that he believes it is really important. In terms of overall competitiveness in all our agreements, whether Israel or the USMCA, this decision happened just after the USMCA was made. We had the economic update; obviously it wasn't enough to keep this plant viable here in Canada.
The simple question is this: When will you be increasing the carbon tax so that business has certainty for these long-term investments? If you can't provide that today, sir, could you give us the schedule and send it to the committee so we would know how these increases are going to be occurring over the next few years? It's because business does need to know inputs, and this carbon tax is a significant new policy that the Americans and Mexicans don't have.
11:50 a.m.
Minister of International Trade Diversification
You are linking it—you are linking our price on pollution to this decision, and you're linking the decision from GM to the timing of the Canada-Mexico-U.S. agreement.
11:50 a.m.
Minister of International Trade Diversification
You know the answer to your question.
11:50 a.m.
Minister of International Trade Diversification
There is a schedule of the pan-Canadian framework decision on the price of pollution. It's $10, $20, $30, leading to $50 a tonne by...2023?
11:50 a.m.
Conservative
Colin Carrie Conservative Oshawa, ON
That's 2023. However, the United Nations report, which the Prime Minister holds in great regard, says it has to be up to $5,500, and that's to 2030.
That's what I'm asking, because business needs certainty.