International Trade Committee on April 2nd, 2019

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

Thanks.

I just have a quick question now. I also have about six or seven questions here, Mr. Chair, that I was going to put to CFIA. I wonder if I could just hand them in and maybe have them supply the whole committee with replies.

[The Chair, Liberal, Mark Eyking]

Sure.

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

Thank you.

My question is this. There's no doubt about the quality. We're pursuing the scientific testing. We all agree on that, for accountability. To secure the long-term trading relationships that we need with our trading partners in the world—China being one of them—given what our colleagues have just said here in regard to the announcements at the table on this being more political, even from the Chinese themselves, how do we proceed from here? In relation to that aspect of it, while we try to keep it separate from the scientific side, are we in consultation, given that Chinese officials are in Washington this week talking about trade agreements between China and the U.S.? Are we in any consultations with the U.S. and our other counterparts in regard to this particular issue?

[Jim Carr, Liberal, Winnipeg South Centre, MB]

We are.

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

How should we handle that, and what can be done there, Mr. Carr?

Thanks.

[Jim Carr, Liberal, Winnipeg South Centre, MB]

In all of our conversations with our trading partners, we share what trading issues might be the focus of attention of our government and issues that may not even be associated with international trade. So there is a continuing conversation. You develop, in pretty short order, good relationships with your allies. You are able to pick up the phone and have these honest conversations, and we are doing that.

Just as important, we're also on the phone with our trading partners around the world to do whatever we can do now and in the medium term to expand and deepen our trading relationship with the countries with whom we do business.

We know where the bulk of the trade is. We know where the opportunities lie. We know where populations are growing. We know what the needs of those populations are. And it's not only the case with agri-food. It's also true with natural resources and all of the other commodities that we produce, and the services that we can offer internationally as Canadians.

So those conversations happen all the time.

[The Chair, Liberal, Mark Eyking]

Thank you.

That wraps up our time. We had a very productive time.

Thank you for coming, ministers.

As you know, our committee is very seized with this situation, and if you can send updates on this situation as you go along, we'd appreciate it.

Colleagues, we're going to suspend for a few minutes, so we can get the officials in. Then we'll go at it again. Thank you.

[The Chair, Liberal, Mark Eyking]

MPs, please take your seats.

We're continuing our meeting on the situation with our canola industry and trade, the challenges we're facing right now. For this last part, we have about 45 minutes and we appreciate the officials coming here. We have officials from Foreign Affairs and the Department of Agriculture and Agri-food, and also from the Canadian Food Inspection Agency.

Thank you very much for coming, folks.

We're going to change a little bit of the format. We're going to go with four-minute slots for the MPs, but I understand there's one official speaking.

Mr. Verheul, are you going to have opening comments? Okay. There will be no opening comments.

[Randy Hoback, Conservative, Prince Albert, SK]

What a good speech, wow.

[Some hon. members]

Oh, oh!

[The Chair, Liberal, Mark Eyking]

It was the shortest speech in the House. No, it's good to see you here, Mr. Verheul. You're not new to trade deals, trade challenges and trade agreements, and we've seen your face here many times. Thank you for coming. The rest of the officials are coming with us.

Without further ado, we're kicking this off with the Conservatives.

Mr. Hoback, go ahead for four minutes.

[Randy Hoback, Conservative, Prince Albert, SK]

Thank you all.

It's good to have the CFIA here, because we have to talk about checking off that box before we get to what really is the problem. I think everybody has come to that conclusion: you have to deal with the science part of it and then eliminate that from the equation as quickly has possible so that you actually get to the true heart of the problem. If it's political, then that's what it is.

In checking those boxes, have we changed our processes in how we examine canola? Is there any way that you think they could have made a mistake in the process that could have created a problem with what we sent to China?

Absolutely not. Okay. We'll get that on the record.

Is there anything you've seen in the samples, when you re-looked at them, that said “Hey, this is a problem” or raised concerns that would be unusual compared to other samples you've had from other companies?

[Fred Gorrell, Assistant Deputy Minister, International Affairs Branch, Department of Agriculture and Agri-Food, Canadian Food Inspection Agency]

No. We've checked the ones using the methodology we have, and the results came back negative. There's nothing to suggest anything is different this time or in the times before—

[Randy Hoback, Conservative, Prince Albert, SK]

As to the pictures of weed seeds, you're looking at the pictures, and those are the same pictures they would have in China, I assume.

[Fred Gorrell]

As noted, on the pictures, that's one of the issues. You can't really judge something by a picture. You really do need to examine them, because they're done by visually distinguishing, so you actually need to see them be part of it. That is one of the main reasons we would like to have a face-to-face meeting.

[Randy Hoback, Conservative, Prince Albert, SK]

One of the concerns I think would be is if people say, “Okay, I don't trust your science, and you don't trust mine”. So one of the paths forward would be to actually take the next vessel and say, “Okay, you come and inspect the vessel in Vancouver as we load it; you take your samples, with us, and we'll analyze the samples together; and if you want to do it again, we'll come and join you in China and re-analyze those samples.” That would show that we're actually dealing with true samples that haven't been doctored from us or from them.

Is that on the game plan? Is that a way you see the path forward here?

[Fred Gorrell]

Yes, from my perspective, with due respect, we wouldn't use language like “doctored”, but I think your point about—

[Randy Hoback, Conservative, Prince Albert, SK]

Be more appropriate, yes.

[Fred Gorrell]

—having joint export and arrival inspections would be an opportunity to make sure both people see it the same way.

[Randy Hoback, Conservative, Prince Albert, SK]

Okay.

Mr. Verheul, on the ground right now we have customers in China who actually need that canola. What are our trade officials, the trade commissioners and people like that, doing on the ground to make sure they understand what it means to them by not having this product available to the market...similar to what we did in the U.S. ?

[Steve Verheul, Assistant Deputy Minister, Trade Policy and Negotiations and Chief Trade Negotiator of the Canada-United States-Mexico Agreement, Department of Foreign Affairs, Trade and Development]

Well, we are doing considerable advocacy with the companies in China, to the extent we can do that. Our trade commissioners are very active and engaged in this file as well, and other officials in the embassy in addition to them. So we're making every effort we can to keep some constant touch and keep up to date and—

[Randy Hoback, Conservative, Prince Albert, SK]

Would you be able to share any intelligence? Do our customers there on the ground have any concerns with our canola?

[Fred Gorrell]

Do you mean our importers? I think at the AGRI committee this morning you had the major exporters, Richardson and Viterra. They talk about contracts. Obviously, there are contracts—people are pleased with our canola, our quality. I think that right now we and the importers are looking at it from a regulatory point of view, what the—

[Randy Hoback, Conservative, Prince Albert, SK]

So, it comes back to the Chinese officials, not the actual purchasers, that have an issue with this.

[Fred Gorrell]

That is correct.