International Trade Committee on April 2nd, 2019

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Nothing at all?

[Fred Gorrell]

In the regular course of business there are always issues in trading, but we have nothing in the context of what we're talking about here with China.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

So they feel that our canola's safe and it's good for them to consume and they're going along regularly?

[Fred Gorrell]

That's correct.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

I guess that highlights and underlines our position with our science-based approach that everything's all right. Is it possible to get some backing from Japan and Mexico in this discussion at this time?

[Fred Gorrell]

I think, obviously, the Chinese importers, the Japanese importers the Mexican importers are all looking at it from a contractual point of view as well. We, the government, don't know the contracts between the companies and the importers, but they have signalled very clearly that they're happy with our product. They will buy more if they're able to, because again, it's all supply and demand, based on what they need on the other side. They haven't said whether they are going to support us in this particular thing with China. I think that's the nature of your question.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Probably they don't want to bother, but I think it's important to highlight and underline that they see our canola products as the great products they are, and these continue to flow.

The last question I have—and I know the chair said I only had a little time—is what is the value of this working group that was formed that the minister announced, and what can it do to deal with this expeditiously?

[Fred Gorrell]

I think they're having the first meeting on Thursday, or first call relative to that. I think Minister Carr identified that they're going to be looking at what programs could be needed by the farmers, and at diversification.

I think they would also be looking.... I forget, Steve, what was the third one?

They're going to be sharing the information and making sure that all stakeholders and governments are on the same page and then looking at what we can do together.

I think it's a good use of our energy. It shows that we're all working together because, at the same time, we're going to need to make decisions together as we move forward. That's my assessment of what the first call may be like.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Okay.

[The Chair, Liberal, Mark Eyking]

Thank you, Mr. Sheehan.

We're doing pretty well with these four-minute rounds, but when we're splitting time, I suggest that members ask just one question so your colleagues can get a shot in there too.

We're going to go to the Conservatives now. Mr. Kitchen, you're splitting your time with Mr. Maguire. Go ahead.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Thank you all for being here.

I come from the southeast corner of Saskatchewan, and I might have a little contention with my colleagues here who would say they might have more canola farmers than I do. Let's just say we're equal. The reality is that we have seeding just around the corner, not even weeks away. A carbon tax is being dumped on them, and now they're trying to deal with an issue of how and where they're going to market their product.

I appreciate your being here and the emphasis on the science, because that's what we truly believe is going to prove our point and continue to do that.

You brought up an issue about bacteria. I'm interested to hear about that. What is China saying to you on this avenue, and where are we showing them the science to say differently?

[Fred Gorrell]

They brought to our attention a number of weed seeds that we've talked about—quarantined pests. The other issue that you made reference to is a bacterium. They've told us what the bacterium is and they've asked us to look into it. We're doing testing on that. We've asked for the methodology, which they've provided to us. Again, we don't have all the answers on that, but we're looking at it.

At the end of the day, when canola is processed, when you put it through and it's pressured, all these things are killed. At the same time, they've identified that, so we have to do our due diligence and look at it to see exactly what they're doing, to see if we can replicate what they're doing, and then have that engagement with them. It is not a food safety issue at all; they've found this in their seeds and said they want us to look at it.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Thank you.

[The Chair, Liberal, Mark Eyking]

Mr. Maguire.

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

We already have the working group, and at some point, there will be a group going to China—I'm assuming that from the minister's comments today.

You've been on the trade side, Mr. Verheul and Mr. Forsyth. There are others as well—Ms. Donohue. When you're going on a mission like this, what level of people would you expect to meet with in China with regard to the normal participation of business? Once we get acceptance and clearance, what level of people would you expect to meet? Our inspectors are going to go in. What level would you expect to be meeting with over there as well?

[Fred Gorrell]

It's being led by the president of the CFIA, as you heard. That's deputy minister level. It would be supported by an ADM, as well as technical officials, both as directors or under. These are the people, and plant health experts—some of them are in the room behind me—who have been working on it.

You're looking at a senior-level delegation supported by a broad range of technical people. It would also be strongly supported by our embassy at the senior level. That's the nature of the delegation, sir.

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

I'm clear on that, but what level of people in China would you be meeting? Whom would you be meeting with in China?

[Fred Gorrell]

It would be comparable, if you look at it. They're very level conscious. We would meet similar levels.

[The Chair, Liberal, Mark Eyking]

Thank you, sir.

I have a quick question following up on what Mr. Kitchen asked.

My understanding is that we have the whole grain, and then we have the crushing industry and oil. Right now, is the problem just with the grain? Is crushing and the oil industry...? Do we sell a lot of oil? There's no problem with that product, is there?

[Fred Gorrell]

That's a good question.

It is just the canola seed. As you indicated, there's also canola oil, and then there's canola meal. The only issues that we're having right now are with canola seed. Honestly, we export canola oil around the world, and we consume a lot of it in Canada, as well.

[The Chair, Liberal, Mark Eyking]

China buys a lot of oil and crushed also?

[Fred Gorrell]

They do.

[The Chair, Liberal, Mark Eyking]

And it's not being affected?

[Fred Gorrell]

It's not being affected, sir.

[The Chair, Liberal, Mark Eyking]

Thank you.

For the NDP, Mr. MacGregor, go ahead.