International Trade Committee on Sept. 22nd, 2016

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

Thank you.

I want to follow up on the change of the definition of “label” under the Pest Control Products Act. I think some concerns were raised previously by some industry participants.

Would you explain, Mr. Flint, why significant changes—I think we can call them significant—were needed in the definition?

[Jason Flint]

Sure. As I said, the last time the Pest Control Products Act was revised, in 2002, the definition of “label” was combined somewhat with packaging. Packaging was designed to include a label. In order to facilitate the regulation of packaging for goods in transit, we separated those out and introduced a revised definition of “label”. We went back to look at, for consistency, what was used in other pieces of legislation, such as the Safe Foods for Canadians Act, the previous Pest Control Products Act, and the current Pest Control Products Act to develop a new definition for “label” that would be more consistent with what exists in other pieces of legislation.

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

Thank you. I'm done, Mr. Chair. Thank you.

[The Chair, Liberal, Mark Eyking]

Perfect timing there, Mr. Peterson.

We'll move on to the NDP. Ms. Ramsey, go ahead.

[Tracey Ramsey, NDP, Essex, ON]

Thank you all so much for the briefing. I appreciate it. It's such a technical, specific piece, and I appreciate your expertise in the briefing you provided to me individually as well.

I live down near Windsor, down near the border, where we will have a new border crossing. After this TFA is implemented, presumably trade at our ports and borders will increase. Has the department looked at capacity issues, and are you predicting that additional resources will be needed at the border for CBSA or in any other way?

[David Usher]

Thank you very much for that question. In terms of increasing trade, the agreement is designed to facilitate the trade that is occurring. Trade might increase if other countries say, “Oh, wow. We have the trade facilitation agreement. Maybe it'll be easier now for me to export”, but there's not a direct link between the agreement and an increase in trade. It's designed to facilitate the trade that occurs now, if you know what I mean.

[Tracey Ramsey, NDP, Essex, ON]

Yes. I'm just anticipating that when people know that they're able to get products through that they couldn't previously get through, it could potentially increase—

[David Usher]

Yes.

[Tracey Ramsey, NDP, Essex, ON]

—trade through our country and hopefully grow that in some way.

The second question—

[David Usher]

I can respond to your question about resources, if you like.

[Tracey Ramsey, NDP, Essex, ON]

Yes, please.

[David Usher]

You asked about whether Windsor or other border crossings would require new resources to allow us to implement the TFA. Our assessment is that they won't, because the vast majority of the provisions under the TFA for which the CBSA, for example, will be responsible already build on CBSA processes and best practices. Our colleagues at CBSA have indicated that the overall impact of the TFA on the CBSA is expected to be manageable within existing resources.

[Tracey Ramsey, NDP, Essex, ON]

Thank you for that information.

You've mentioned SMEs, and we know that in 2011 only 10.4% of Canadian SMEs were exporting. I'm wondering if the department has a plan to support Canadian SMEs in taking advantage of the opportunities around the TFA.

[David Usher]

Thank you again for that question. I know that SMEs are very important for the department. I cannot comment on the specific plans of the department in that regard, but if you look at Minister Freeland's mandate letter, there's talk of developing a trade and investment strategy, so I would encourage follow-up questions in that regard to her.

[Tracey Ramsey, NDP, Essex, ON]

I have one last specific question around pest control.

Clause 36 repeals subsection 8(3) of the Pest Control Products Act and adds new text after subsection 8(4) that removes specific reference to material safety data sheets, or MSDS, from the requirement to provide product safety information. Obviously MSDS are a fantastic tool and hugely important to the safety of those dealing with pest control products, so why did this change take place?

[Jason Flint]

The reference specifically in that section of the act was removed and just went with the more generic term of product safety information. We've always used “MSDS” as the term, but then when GHS, the globally harmonized system, was introduced, it became “safety data sheets”, and so rather than tie ourselves particularly in that part of the act to the term, we just used “product safety information”.

If you look under clause 59, I believe, we do modify the regulation-making authority under paragraph 67(1)(s) of the Pest Control Products Act, and it specifically says that the regulation-making authority relates to product safety information, including safety data sheets. It does make that clarification, so I don't think the change will actually affect our ability to regulate safety data sheets in any way.

[Tracey Ramsey, NDP, Essex, ON]

Another thing is hazardous goods. There's been a lot of conversation about what this could potentially mean. I know I had questions when you came earlier to present to me. I'm wondering how Canada will mitigate the increased risk of these non-compliant goods that are transiting through our communities to enter the marketplace. Also, what are the protections or what is in place for our environment with regard to these products travelling through our communities?

[David Usher]

Thank you. I'll start and my colleagues may wish to add to what I say.

If we talk about non-compliant goods at this stage, there are current measures under the Customs Act that limit the risk that goods in transit could be diverted into the Canadian market. Pursuant to the Customs Act, CBSA does customs controls on goods in transit to ensure they're not diverted into the Canadian market and that goods in transit are not a threat to Canada or in fact their international destination. During the process of transit, these goods remain under control of the CBSA from the customs office where they enter to the office where they exit, and there are various methods of customs control that are quite specific.

[Tracey Ramsey, NDP, Essex, ON]

In transit specifically, the product is obviously going to travel down our railways or highways throughout Canada. Will there be notification to those communities that the product will pass through? Will they have an identified path that they'll be taking so that we can mitigate any risks that could potentially happen?

[The Chair, Liberal, Mark Eyking]

Give a short answer, please.

[David Usher]

Thank you. Maybe I'll turn to my colleagues to talk about the Hazardous Products Act.

[Jason Flint]

For that particular provision of the TFA, the bill that we're looking at now only amends the Pest Control Products Act and the Food and Drugs Act with respect to the prohibitions that are currently in place. This is because we have a free market system that requires that the products be authorized prior to being used or sold in Canada. Those are the only ones where the goods in transit were different.

Currently, there is the needed authority under the Hazardous Products Act and in the other pieces of legislation that we're talking about today to address any goods in transit. There is also, as David mentioned, the Transportation of Dangerous Goods Act, which applies to certain of these goods in transit, as well as provincial legislation that may also be applied.

[Tracey Ramsey, NDP, Essex, ON]

So it will be—

[The Chair, Liberal, Mark Eyking]

We might have time for you to come back. We're going to move over to the Liberals now.

Mr. Fonseca, go ahead.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Thank you, Mr. Usher, for spelling out some of the major benefits of this bill for business, for the environment, and for consumers, and the protections that are in place. You also mentioned in your remarks that in its study, the WTO saw that there would be a 14% savings for developed countries, I guess, and for some others it was 17%.

Have we done our own study here in Canada, and looked at what savings would occur here?