International Trade Committee on March 17th, 2019

[The Chair, Liberal, Mark Eyking]

Good afternoon, everyone. Happy St. Patrick's Day to those who are Irish and to those who, like me, are fortunate enough to be married to someone who is Irish.

On behalf of the committee, I think we should show a little respect for our friends in New Zealand. During TPP and other discussions at this committee, we've had the High Commissioner of New Zealand here. There have been tragic terrorist attacks there, and I think our hearts go out to them. If I may say so, on behalf of the committee, for the record, we'll pass on our condolences to them and hope for the best. If I may send a letter from our committee to the high commissioner, it would be a good thing to do for them at this trying time.

This afternoon we're gathered here, as requested by the opposition, pursuant to Standing Order 106(4). Without further ado, I think everybody wants to move along this afternoon, so if someone wants to speak to this, go ahead.

Mr. Hoback, you have the floor.

[Randy Hoback, Conservative, Prince Albert, SK]

Thank you, Chair, and I thank our colleagues for showing up here on a Sunday.

This is a very important issue for western Canada. What we're talking about is the matter of China basically having put a limit on Winnipeg-based Richardson International's canola shipments two weeks ago.

I think everybody around this table understands that our canola is the safest in the world. This is not at all a quality issue with our canola. This is a political issue. Thus, this is the reason for asking the Minister of Agriculture, the Minister of International Trade Diversification and the Minister of Foreign Affairs to come here: because it interacts with all three officials and all three departments.

To give you some insight on what canola means to Canada and why this is so important for everybody across Canada, about $26 billion to $27 billion is what the canola sector means to Canada. It's huge. It supports 250,000 Canadian jobs and $11.2 billion in wages, and it generates a quarter of all farm cash receipts.

There are some 43,000 canola producers across Canada and, as they go into the planting season, they're all very concerned about what this looks like. China buys about 25% of our canola, so they're a big buyer, and we export 90% of our canola, so exports are very important. We don't have a big enough domestic industry to take it all.

That's why, when it comes to a trade issue such as this, where you're seeing political interference on that quality issue becoming a factor, it's very concerning. We must have a political answer to it.

As I said, we're going into the spring planting season right now. Farmers are sitting there and looking at what they're going to plant this year. Probably 90% of that is already figured out, but when they see something like this happening, they have to take a step back and look at this. Are they going to plant 500 or 600 acres of canola on 2,000 acres now or not? I think a lot of those decisions will be based on the market price, which has been taking a nosedive since this started to happen.

We're seeing the canola sector really being hampered not only by the issue with China but by the market itself taking a downturn because of the insecurity created by China in the international marketplace. We think it's very important that we have a game plan or that we understand what that game plan is going forward. That's why we need to have all three ministers come in to speak about it.

Of course, this is an agriculture industry, so that justifies the Minister of Agriculture, and CFIA is involved, so that comes under the Minister of Agriculture. It is a trade issue, and the trade minister is the one who negotiates the trade deals and sits back and solves the trade issues. The reason I asked for the Minister of Foreign Affairs to be here is that the Minister of Foreign Affairs has inserted herself into other trade issues in the past. The USMCA is an example of where she has done that, where she has taken the lead. The U.S. is our number one customer for exports from Canada, but China is our number two, so I don't think you can not have her involved in this situation, considering the political nature of the decision that was made.

There is a lot of blame to go around on why we're in this scenario. I think the reality is, though, that we've seen a situation in Canada where our relationship with China has deteriorated since 2016. If you look at 2016, you see that the government had some lofty goals and good goals. They signed an MOU of co-operation between the Canadian Grain Commission and China's State Administration of Grain and announced a goal of doubling bilateral trade by 2025, an exploration of discussions on a Canada-China free trade agreement and an MOU with China that would secure canola into China until 2020.

If we look at it today, all of that is out the window. Basically, nothing they agreed to in 2016 has actually come to fruition at this point in time. They haven't done it. There's a variety of reasons for that not happening, but I think the Prime Minister has to take a lot of the blame on this. I think he has to shoulder the responsibility. When he laid out these goals, he didn't follow through, and he didn't do it in a manner such that it actually would allow our producers to benefit. Now our producers are paying the costs because of that.

The motion is pretty straightforward. One of the things I would maybe add to it or look at talking about would be that we would be open to discussions with officials, for sure, and then with some people in the industry. Maybe you'd want to bring in JRI and maybe the Canola Council.

I think the reality, though, is that we need to deal with this rather fast. This can't linger on. We can't dwell on it for three or four weeks. It needs to be dealt with rather quickly so that we here in Canada know and our farmers know that we have their backs and we're fighting for them.

I think I'll wrap it up there, Chair, and maybe open it to discussion.

[The Chair, Liberal, Mark Eyking]

Thank you, Mr. Hoback. You and I have been on trade and agriculture for many, many years up here. We know it's a $26.7-billion industry and there are thousands of jobs. I appreciate your comments.

I have a list of other opposition members, but I encourage other opposition members to keep their comments tight so that we can move on to business here.

Mr. Maguire, go ahead, sir.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Thanks, Mr. Chair.

I want to thank my colleague for the excellent—

[Randy Hoback, Conservative, Prince Albert, SK]

Point of order, Chair.

[The Chair, Liberal, Mark Eyking]

Yes, Mr. Hoback.

[Randy Hoback, Conservative, Prince Albert, SK]

I just want to make sure I moved the motion.

[The Chair, Liberal, Mark Eyking]

Yes, I think it's moved.

[Randy Hoback, Conservative, Prince Albert, SK]

Okay.

[The Chair, Liberal, Mark Eyking]

I think there's discussion on it right now. Okay?

[Randy Hoback, Conservative, Prince Albert, SK]

Yes.

[The Chair, Liberal, Mark Eyking]

We'll have discussion on it, and then....

Mr. Maguire, go ahead.

[Larry Maguire, Conservative, Brandon—Souris, MB]

When I finish, Mr. Chair, I might have a small amendment to that.

I just want to make the point that Canada has the safest food in the world. I did spend six years as a farm leader on the Canadian Grain Commission western grain standards committee, and I know the stringent requirements and standards that our Canadian grain industry has. They are tops in the world. Our companies all know what those are. The CFIA does excellent work in managing to make sure that every shipment that leaves our country meets those standards. The Canadian Grain Commission sets standards as well that are extremely stringent so that we do end up being recognized as the country in the world that provides the safest quality of food when it leaves this country for export and to help with other areas in the world as well.

I just want to say that we have been dealing with a number of other issues. The amount of trade was brought up. The Barton report has an $85-billion target by 2025. The canola industry is just a big, big part of it. I know that the companies have concerns with these non-compliance orders that have been coming back to CFIA. I understand that there have been 10 or 11 of them since December 1. It's a situation now where the companies are feeling that perhaps China might be a market of last resort if they don't end up coming to the table, so I would encourage the government....

We can get into that with officials, but I think an excellent case has been made to have the three ministers appear before us. It's certainly an agricultural and agri-food industry issue, because we've heard from our farmers that this is extremely concerning to them, not only because of what my colleague Mr. Hoback indicated in regard to the amount of closeness we're getting to spring seeding but also due to the amount of product that's still in the bins this year that will need to be marketed prior to the summer as well. That would have a devastating impact on many farmers who have already called me in regard to their land payments and operating budgets. It's a financial concern they have with the industry.

There is one other thing I want to say. The situation that we've seen already in trade, in terms of having the trade minister here, is exacerbated, I think, by the fact that unfortunately we do not have an ambassador to China at this particular time. For almost two months that has been the case. It would help, I think, if we had a chance to offer that to the ministers in regard to the replacement of an ambassador there, to show the sincerity and the concern we have in this industry. I know that the officials are doing the best job they can there with this, but we want to make sure that we continue to operate under these MOUs we've had and that they're not seen as just pieces of paper that can be discarded when someone wishes.

I want to leave it there by saying that that CFIA would be good to have here, and perhaps the Canadian Grain Commission as well, to talk about the standards. The CFIA could do that. Certainly James Richardson International would be willing to come and provide a short synopsis of exactly how this has impacted them and perhaps other grain companies as well. I know that our phytosanitary issues that we deal with are met stringently around the world and in the production of the daily markets we have.

With that, Mr. Chair, in closing, the original motion said that we'd like to have the witnesses appear no later than Friday, March 15, the Ides of March, and this is March 17. Could we amend that to an appropriate date, such as March 22 or 29 or...?

[The Chair, Liberal, Mark Eyking]

Yes. That's a good idea. When we come to wrap up, we'll try to figure out what the dates are on that.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Okay. I will leave it until then, as long as we don't forget that we want to come back to that.

Thank you.

[The Chair, Liberal, Mark Eyking]

Thank you, Mr. Maguire.

For anybody who is listening or watching us, if you want to get more information on canola, the Canola Council of Canada has a lot of information on it. If you look on their website, almost every province produces canola, so it's very important.

We have an MP from Quebec here.

Mr. Berthold, you have the floor.

[Luc Berthold, Mégantic—L'Érable, CPC]

Thank you very much, Mr. Chair.

First, I want to thank the members of the committee very much for being here. Indeed, the canola issue does not affect only the west, it affects all of Canada as well. Thank you, Mr. Chair, for mentioning that fact.

I also want to thank the members of the committee for having given me some time today as opposition critic for agriculture and agri-food.

This matter is extremely important. As my colleague Mr. Maguire mentioned a few minutes ago, the Barton Report indicates that Canadian exports are expected to increase to $85 billion by 2025. It is clear that stakeholders in the agricultural sector and international trade will have to work hand in hand in the future.

Unfortunately, the Minister of Agriculture and Agri-Food who has been in the position for three years has not taken part in the discussions on international trade. I wanted to mention that, because it is important for agricultural representatives, farmers and Canadian producers to know that the Minister of Agriculture and Agri-Food is an active participant in important activities like international negotiations. When the previous government was in power, the Minister of Agriculture and Agri-Food took part in these international negotiations. Unfortunately, since 2015, no place is being set for this minister at the negotiation tables.

I wanted to mention that fact to the committee because it is important. I strongly encourage you to ask the government to see to it that the Minister of Agriculture and Agri-Food take an active part in the various international negotiations, especially when agriculture is being discussed.

As you mentioned, Mr. Chair, canola is an important part of Canada's agricultural exports. Forty per cent of Canada's canola exports are sent to China. In 2017, this amounted to about $3.6 billion. This is a major crisis, and that is why the members on this side of the table requested emergency meetings. We also asked the Standing Committee on Agriculture and Agri-Food to hold a meeting on this subject, but unfortunately, for all kinds of reasons, our NDP colleague could not approve such an emergency meeting.

I commend the decision of the Standing Committee on International Trade to hold this meeting, because it is very important to show Canadian canola producers as well as all other Canadian agricultural producers that their government, their Parliament and their MPs are concerned and are focusing on what is happening to relations between Canada and China.

What is at stake is maintaining the trust of buyers and of producers who export their products, as well as the agreements that were established. Unfortunately, doors are closing. Companies have stopped buying and producers are stuck with their products. We absolutely have to head off this situation, all the more so since there are already issues with grain transport to the west despite the adoption of Bill C-49. We thought that this project would miraculously solve everything and allow the export of Canadian products. We thought it was a panacea and that everything would be settled as if by magic. This year we can already see that that is not the case. We are going to have to be even more vigilant in the future.

The trust of producers and buyers is at stake. Buyers have to know that Canadian producers can provide the merchandise. Without going into all of the details of the context and of China's claims, it's important to know the political response of the Canadian government to this situation.

That is why I unreservedly support the motion that this committee to simultaneously invite the Minister of Agriculture and Agri-Food, the Minister of International Trade Diversification , and the Minister of Foreign Affairs. This is a political crisis, and we have to obtain answers from the people who are politically responsible for the current situation.

More than half of the agri-food products grown in Canada are exported, which makes agriculture highly dependent on exports and international markets. We can't simply observe this crisis and expect it to magically resolve itself.

I strongly urge the members of the committee to hold this meeting with the three ministers as soon as possible. This crisis urgently needs to be resolved. We cannot wait for other productions to be threatened or for the advent of new obstacles to the Chinese market. We must react as quickly as possible.

I know that the budget will be tabled this week, but I think that nothing prevents the members of the committee from showing good faith. We can hold a meeting with the ministers as early as this week, at any time of the day or night. We are here today on a Sunday, which proves that we are willing to travel at any time. We are ready to receive the ministers and you will have the full support of the opposition if you decide to hold this meeting this week at any time of the day. We are available.

The members of the committee are ready to hold this meeting to shed light on this topic and obtain answers to the questions of Canadian canola producers with regard to the current crisis.

[The Chair, Liberal, Mark Eyking]

Thank you very much.

We're going to move to Mr. Barlow.

Go ahead, sir.

[John Barlow, Foothills, CPC]

Thank you very much—

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Chair, on a point of order, I'm not sure, but I think there are three Conservatives normally and they get their time, but I don't know if we extend the courtesy.... I'm happy to let everybody speak, but I don't know if we have to follow any procedure to make that happen.

[John Barlow]

I'll be very quick, Mr. Chair.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

I'm happy to let you speak. I just don't know if we have to ask for unanimous consent. I'm happy to have everyone speak who wants to speak. I just don't know if we have to do something procedurally first.

[The Chair, Liberal, Mark Eyking]

From my perspective, some of the members are visiting members to our committee. You'll find that this is a very efficient, not very hyper-partisan committee. We like to give everybody the time they require, but keep it short and tight.

I figured I'd do the opposition first, and then—

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

That's what I was going to say. Whatever courtesy we need to extend, we're happy to do so.

[The Chair, Liberal, Mark Eyking]

Yes, and for the record, we moved this to be an hour earlier for the opposition because at three o'clock they have some important things they have to be at. I want everybody to keep that in mind.

Let's keep it tight and short, and let's move on.

Go ahead, Mr. Barlow.