International Trade Committee on May 10th, 2016

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Thank you.

Mr. Forget, my question to you is on trade training. Statistically in Canada, 75% of first-time exporters are not exporting in their second year. Often they didn't know what they had to know.

Certainly I do appreciate the role of the chamber in terms of promoting trade training. What services are being used currently through the chamber of commerce to help new exporters and existing exporters find new markets, sustain themselves in those markets, and expand into further markets?

[Stéphane Forget]

The reality is that many companies forget that their first exporting experience should be in the Canadian market. We know that companies that deal with neighbouring provinces often improve, allowing them to better tackle markets in other countries. This is the first aspect.

There is a second aspect.

We have implemented programs. We are responsible for the Quebec-New England trade corridor. Specifically, we have implemented the Corex Program to foster relationships between local companies and those in the north-eastern United States. This program uses a B2B platform in particular. There are meetings between companies to promote exchanges and relationships, including training sessions for the participating companies. A number of chambers of commerce also provide training programs. We often invite partners like the federal government to go on tours to raise awareness and attract businesses.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Thank you.

[The Chair, Liberal, Mark Eyking]

You have another minute.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Great.

My last question is to Mr. Vaillancourt, but also to all of you.

We've heard from different stakeholders across the country about human rights, the protection of the environment, sovereignty, and the issues of labelling, so thank you for bringing those issues forward.

For the other presenters, how do you respond to those claims and those concerns regarding the TPP?

[Claude Vaillancourt]

These issues are very important and essential.

When we think of international trade, we must also think about how it is done. I feel that this agreement leaves the door wide open, with no questions asked.

Earlier, you mentioned infrastructure, which is an interesting question. We must think about changing our infrastructure, by electrifying transportation. That would be the main investment to make. We must also think of ways to really protect the environment. As I said in my presentation, we must move toward local economies and allow federal, provincial and municipal governments to stimulate the local economy.

The current free trade agreements are using quite the opposite approach. Ontario, for example, had a green plan that encouraged not only renewable energy but also local jobs. Because of a complaint to the World Trade Organization, the province had to give up that green plan. In my view, that is extremely serious. Yet this was a democratic decision. The withdrawal of that green plan is devastating for the future of Ontario, where energy transition absolutely must happen.

[The Chair, Liberal, Mark Eyking]

Thank you.

That's well over your time.

We're going to move over to the Conservatives.

Mr. Van Kesteren, you have five minutes.

[Dave Van Kesteren, Conservative, Chatham-Kent—Leamington, ON]

Thank you, everyone, for being here this morning. It's been most interesting.

In a former life I served on the finance committee. I can tell you that our meetings with Quebec business groups were quite extraordinary. You have a class of businessmen in the that province that is perhaps unequalled anywhere else. They're very aggressive. They're very excited about business and the possibilities.

My colleague Mr. Lebel was zeroing in on the aerospace industry and the different avenues to which that will take you. I'm wondering if you could talk to us about those possibilities, and the new markets you would be able to access should this agreement become a reality.

I'll speak specifically to the chamber.

[Stéphane Forget]

Thank you.

It is true that I did not mention aviation in my speech, but it is an extremely important part of our exports, in Quebec. To date, the first concern we have is clearly the capacity to support our industry in Canada. If we go by the news in recent weeks, which will continue in the coming months, we know that this will inevitably depend on the government's decision on the Bombardier C Series aircraft. Clearly, we strongly support a favourable decision on the government’s part.

We are talking about free trade agreements and export markets, and it is clear to us that supporting our major economic sectors in Canada is extremely important. The C Series aircraft are a good example. We are very hopeful about that.

Furthermore, as I said earlier, 45% of Quebec’s products and services are exported. We have a presence in some advanced sectors such as aviation, but we are also present in more traditional sectors. But given the speed at which innovations are being developed, I think our biggest challenge will be to support our manufacturers and our businesses so that they can produce value-added products. Indeed, to remain competitive on the international market, we desperately need value-added products. This requires a great deal of innovation in our businesses in Canada.

[Yvon Boudreau]

I would like to stress that we have one, two or three years before the agreement is ratified and implemented. Those who will come out ahead—because there will also be losers—will be those taking the lead. It is very important to take advantage of this time to help the industry develop strategies suited for every sector and region, so that they are really more competitive in the markets that will open, and to ward off the blows in sectors where it will be a little more difficult to handle international competition. The information and mobilization strategy of the business community is very important, because things are going to play out differently from one sector to another.

[Dave Van Kesteren, Conservative, Chatham-Kent—Leamington, ON]

You mentioned there will be winners and losers, and that's very true. Which businesses in the Quebec business environment do you feel would be potential winners?

[Yvon Boudreau]

Those studies are not very detailed. The federation has about 20 committees, which include large companies that are leaders in their field. One of the issues those committees are studying is the positive or negative impact that the agreement is likely to have on those industries. The work is under way. We know that the federal government has also been conducting extensive studies and that they are in progress. We are not able to say today who will likely be in the winning camp and will be in the losing one.

[The Chair, Liberal, Mark Eyking]

We're going to have just two rounds of three-minute sessions.

Madame Lapointe, you have three minutes.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you very much.

What you are saying is very interesting. Your views are different, and I appreciate it. That will help us when the time comes to prepare the report.

Earlier, I told the representatives from the Fédération des chambres de commerce du Québec that I would come back to them.

You said, in response to my colleague’s question, that there would be winners and losers, and that the winners would be those taking the lead.

What are the best practices in your opinion? What programs could help businesses take the lead, so that they become winners?

[Stéphane Forget]

First, I think we should reach out to companies and make them aware that there are business opportunities. Let us not forget that there are a number of potential clients in their own backyards, but there are many more when we look around the world.

We have also been having a lot of meetings for some time, particularly with the Quebec government, which is developing an export strategy.

We have had meetings recently with some EDC representatives, who are also thinking about how to improve our exports.

During the discussions with the EDC representatives, they tried to target a number of companies. They do not want to focus on everyone at the same time. The idea is to target businesses that have a real potential for development, growth and openness to foreign markets, because this adventure is not for everyone. Let's then try to target businesses and then work with them to prepare them to seize opportunities and face international markets. Those are the kinds of discussions we have had recently with the EDC representatives. In addition to providing information, let's develop and find businesses that have real potential for development. That is the type of thing that we are working on with them.

Finally, we should not try to cover all the markets in the world. Can we focus on a certain number of markets? Let me remind you that Quebec has lost some market shares in the U.S., although today it still remains its largest export market.

We must therefore look at other countries, other markets, but in a focused manner, not by going off in all directions.

[The Chair, Liberal, Mark Eyking]

Be very quick.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

If we could reopen the agreement, if it were not ratified, what would the Quebec chambers of commerce like to change?

You don't have any hints...?

[Stéphane Forget]

That is an excellent question. However, this morning, I'm not able to tell you, point blank, what we should reconsider.

[The Chair, Liberal, Mark Eyking]

I remind witnesses that if there are thoughts you have or things you couldn't tell us, we will take your submissions at any time and enter them into the report. You might not get the chance here today.

We're going to have to move over to Mr. Hoback for three minutes to wrap it up.

Go ahead, sir.

[Randy Hoback, Conservative, Prince Albert, SK]

Thank you, gentlemen, for being here this morning.

I'm going to summarize a bit in my mind so I have it clear.

In the supply management sector, we've preserved in negotiations the integrity of supply management. Now, we have some issues with integrity of the border, and I'm sure the Liberals will consult with you, consult with you, and consult with you, until maybe they'll wake up one day and make a decision, but that's an issue. Compensation is crucial, though, because you have to mitigate some of the losses. You did give up some market access to allow other parts of the agriculture sector to get access into other countries.

Now, when it comes to the chambers—you're in Quebec—you're talking about how you need the deal itself so that your businesses can actually export, but you also need assistance from EDC and BDC. You need to know the programs that are available so that your manufacturers and service industries can take advantage of the opportunities they provide.

We had a plan called “Going Global”. We had workshops right across Canada explaining to small and medium-sized enterprises exactly what's happening in that area and how to take advantage of the EDC, the BDC, and the commercial crown corporations.

Mr. Vaillancourt, you talked about the need for small farmers and about local concerns and “buy local”. It's a romantic idea, it really is. In the province of Quebec you have eight million people, so with your ratio of farmers to people, I can understand that probably you could buy local and your farmers would do very well, but I come from Saskatchewan. I need to export.

With a million people in Saskatchewan, if we were to buy local, we'd take half our farmers and say “gone, goodbye”. We would take half our beef guys and say “gone, goodbye”. If they don't have that access to markets, they're not there, and they're family farms. They're big, no question about it, but everything is big out west. It's just the way it is in that environment.

How do you tell those families that we're going to shut down our borders and they're going to be out of business? How do you mitigate that?

[Claude Vaillancourt]

I think we need to question what needs attention. I am talking about examining the design of agriculture. Right now, free trade agreements foster on type of agriculture, agro-industrial farming based on exports.

[Randy Hoback, Conservative, Prince Albert, SK]

Excuse me for a second.

You have one problem with your theory. If you look at the new technologies in agriculture, they're carbon sinks. They're friendly. They're very friendly. When I look at the amount of work and the land irrigation that goes on in western Canada compared with what it was 20 or 30 years ago, and when I look at how the fields are run around here, which is different and smaller, with different ways of farming, I can see that it's totally different.

When you're looking at the Paris accord, I'll tell you that the western Canadian farmers and Ontario farmers and even Quebec farmers are doing a way better job today than in the romantic 1950s and 1960s.

[Claude Vaillancourt]

It is not necessarily romantic to think of another kind of agriculture, such as organic agriculture. At this time that type of agriculture does not receive much government assistance and finds itself the loser, to some degree, in free trade agreements. It should also be able to exist and should benefit from important support...

[Randy Hoback, Conservative, Prince Albert, SK]

Actually, the organics are looking for these agreements, so—

[Claude Vaillancourt]

There is a crisis in Quebec in small and medium farms. A beautiful book was written about it in Quebec entitled La ferme impossible. We need to advocate for greater diversity and encourage local farming.

The problem posed by free trade is that it only encourages one type of farming. In my opinion, the downside of that type of agriculture is that it is quite destructive to the environment and uses a lot of GMOs.