Evidence of meeting #47 for International Trade in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was quota.
A recording is available from Parliament.
11:40 a.m.
Liberal
11:40 a.m.
Director, Policy and Trade, Dairy Farmers of Canada
If I can, yes.
I'm not surprised to hear Mr. Littler say that 100% of the cheese quota should go to the retailer. That's been their position for a long time. We're obviously on different pages from that perspective.
I disagree with Mr. Littler that the farmers will benefit by allocating 100% to the retailer. We believe allocating the cheese quota to the cheese makers themselves is a win-win situation from our perspective now that these 17,000 tonnes of cheese will enter the Canadian market. Rest assured, they will be entering the Canadian market. There is no doubt from our perspective.
We should not forget the fact that year after year, the dairy farmers are investing the equivalent of $120 million in promoting the consumption not only of Canadian cheese but dairy products in this country. We think if we are facing some growth these days, it's largely in part because of the investment from the dairy farmers across the country into the Canadian marketplace.
From that perspective, we think we should target those who are better positioned to help the sector grow in the future by allocating that quota to the cheese makers, and we are of the view that this will indirectly benefit the farmers who will be able to continue to supply milk to the cheese makers.
11:40 a.m.
Liberal
The Chair Liberal Mark Eyking
Thank you.
We'll have to move on, but before I do, I would just remind MPs that when you have a question that could have a long answer, try to get it up front instead of at the back end. That way I don't have to cut off the witnesses.
We're going to move over to the NDP.
Ms. Ramsey, you have the floor for five minutes. Go ahead.
11:40 a.m.
NDP
Tracey Ramsey NDP Essex, ON
Thank you, Mr. Chair.
Thank you to everyone for presenting today. There are a lot of familiar faces in the room today.
Mr. Sinclair, I would like to thank you for your comments. Unlike my colleague, something that I'm hearing continually is the concern for the cost of pharmaceutical drugs in Canada. Canadians overwhelmingly are suffering under the high cost of drugs. Twenty-five percent of Bill C-30 is patent changes. This will have an overarching cost impact on things like Canadians' retail purchasing power. It will be taken out of their hands, because they will have to pay higher costs for pharmaceuticals.
We've asked for an analysis from the lead negotiator, and we don't have one. The Liberals in previous Parliaments also pushed for a comprehensive analysis on the impacts to provinces and to Canadians for the loss.
Can you tell me if you know of any such analysis that exists at the government level, and then can you speak to the analysis that the CCPA has done on this issue?
11:40 a.m.
Senior Research Fellow, Canadian Centre for Policy Alternatives
Thank you.
The analysis that was published by CCPA, and subsequently published in a peer-reviewed journal, was by two academics, Joel Lexchin and Marc-André Gagnon. The study was done in 2013. The $850-million-per-year figure that I just cited comes from the two changes that are in the final CETA text, the supplementary protection certificates, which can extend patents by up to two years, and a new right of appeal in patent linkage cases. Coincidentally, that figure actually cancels out the potential benefits from the elimination of all current tariffs on EU imports into Canada, which is about 600 million euros.
To my knowledge, the government has looked very carefully at least at the patent term restoration aspect of CETA. There have been several news stories, and in another committee, I think, officials have referred to this analysis. So I would be very surprised if it doesn't exist, at least in terms of the supplementary protection certificates. I would hope that the government would table that before your committee.
11:40 a.m.
NDP
Tracey Ramsey NDP Essex, ON
I appreciate that. I think it was the health committee, and it was the assistant deputy health minister who admitted there would be costs. I don't know about the analysis, but we will look into it further.
The second piece I want to discuss is the ISDS. This is the other provision where we're seeing large push-back. This is essentially what nearly stopped the signing in Belgium; it was because of this provision. This is where we have this interpretive declaration, which we've been told at this committee, as of this week, doesn't hold legal weight, doesn't have the same legal weight as the text.
I wonder if you can speak to the inclusion of the ISDS and how you feel it will impact us here in Canada.
11:45 a.m.
Senior Research Fellow, Canadian Centre for Policy Alternatives
I think it could have quite a serious negative impact in Canada—if it is eventually put fully into place...it won't be provisionally applied. There's still quite strong concern about it in Europe, and each member state has to ratify it.
Having said that, to expand the system under which we've been so attacked under NAFTA I think is quite unwise. European investors are very active users of ISDS. In fact, over half of all the cases that have ever been brought under ISDS provisions in all the treaties, including bilaterals, have been brought by European investors. Last year, of the top ten home countries for investors, seven were members of the European Union. If this system comes in place, we can expect to see an intensification of the kinds of lawsuits we've seen under NAFTA against non-discriminatory public interest regulation—like the environmental assessment in the Digby Neck quarry, or the moratorium on offshore wind farms in Ontario, the Windstream case, both of which we lost very recently.
11:45 a.m.
Liberal
The Chair Liberal Mark Eyking
Thank you, sir.
The time is up for the NDP. We're going to move over to the Liberals.
Mr. Peterson, you have the floor for five minutes. Go ahead, sir.
November 24th, 2016 / 11:45 a.m.
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
Thank you, Mr. Chair.
Thank you, everyone, for being with us this morning. We have seen all of you before, except for Mr. Fine.
It's great that you are here, and what a fascinating story. I'm so happy to hear about the success story of the Manitobah Mukluks.
You mentioned that half of your business is done through e-commerce, and you must have the numbers for where that market is. Where is most of that e-commerce going? Is it local, or is it also exported?
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
About 20% of that is exported, and about 80% is domestic. Within that export market, the vast majority is in the U.S., because we can offer the same value proposition we offer to our consumers here at home.
In Europe it's a really different value proposition. We're a hugely premium product because of all the barriers in between. I think we could see the same success in Europe. Certainly our traffic shows that there is the interest, but we just don't deliver that same value proposition because of the extra costs.
11:45 a.m.
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
That cost, of course, is the duty that you referred to in your opening statement.
This brings me to my next question. Do you see the European market perhaps becoming as big as the American market for you, should this deal come into effect?
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
I don't think this deal will necessarily make that difference; it certainly won't in the short run. I think it increases our chances of developing more markets in Europe.
11:45 a.m.
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
Mr. Littler mentioned a little bit about free trade being not just about exporting goods without duties but also about Canadian manufacturers purchasing inputs that are duty free as well, which helps lower the costs for that reason.
Are any of your inputs purchased from foreign markets, or is everything...?
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
Many of our inputs are—but not from Europe. More of the footwear components are in Asia, so we're purchasing from Asia. It's stuff that the TPP would help us with overall, or it would have helped us with.
11:45 a.m.
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
This is just fascinating. You mentioned the Storyboots, and I'd love to hear much more about that when we can maybe chat another time or something. It's a remarkable success story.
You mentioned that your company is indigenous-owned. You're one of the partners, I think you said.
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
That's correct. I'm not indigenous myself. My partner Sean McCormick is indigenous. She's the founder of the company.
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
I became a partner about eight years ago.
11:45 a.m.
Liberal
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
Depending on the season, we have 80 to 120 employees.
11:45 a.m.
Liberal
11:45 a.m.
Chief Brand Officer, Manitobah Mukluks
No, I'm actually based here in Gatineau. We have a showroom and sales office. Our sales marketing and e-commerce are done here, just outside of Ottawa, and then manufacturing, distribution, and finance are done in Winnipeg.
11:50 a.m.
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
I'll have to cross the bridge and come see you sometime. I didn't realize you were so close. That's excellent.
