International Trade Committee on Feb. 9th, 2017

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

Thank you, Mr. Chair.

The Standing Committee on International Trade submitted a report in June 2015. You must be familiar with that report. It said that, often, the problem for a company is obtaining affordable financing. SMEs were having difficulty getting it. Is that still the case, two years later?

[Elise Racicot]

In a sense, I think that a tool like this does allow SMEs seeking to export to access some financing. We also work with partners, like the BDC and others, that provide companies with that kind of financing.

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

Particularly in terms of venture capital, it was just when SMEs were ready to export that financing became difficult to obtain.

[Elise Racicot]

In a sense, that is somewhat the role of this program: to share the risk with companies wishing to export. It did not exist at the time of the report you mention. I would say that there has been an improvement since this program has gone into effect.

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

Earlier, my colleague was talking about the new free trade agreement with Europe. Discussions are already under way. You mentioned the Maritimes and the Prairies. Have you become involved in Ontario and Quebec, specifically to prepare companies there for the agreement with Europe?

[Michael Danagher]

Yes. We have planned a lot of events with our provincial partners. Actually, in British Columbia, there were several events in the fall of 2016. We have a very close relationship with Quebec. Six events are scheduled for the coming months. To my knowledge, all provinces are very interested in sharing in the benefits of the accord.

[The Chair, Liberal, Mark Eyking]

Thank you.

Everybody has had a chance to ask questions. There are a couple of minutes left. It's the Conservatives' turn, but they have given a couple of minutes over to the NDP, so Ms. Ramsey, if you want to ask a quick question, go ahead.

[Tracey Ramsey, NDP, Essex, ON]

I do have a quick question.

You've mentioned feedback, formal and informal, that you receive from participants. I know that you only provide financing, but I'm wondering if SMEs are also raising concerns or issues with non-tariff barriers, and how you share this information with other programs or departments. Essentially, what kind of collaboration exists currently?

[Michael Danagher]

I'm not aware of any specific concerns that have been raised of that genre. When we get a business case, we discuss it with our geographical and sector experts and try to identify in advance where there might be issues. That shouldn't suggest that there's 100% control over circumstances. Countries can change their regulations or refine their regulations very much on an ad hoc basis.

We do try to give the best advice. I think it's fair to say that one of our goals is to ensure that a relationship is established between the client and the trade commissioner service so that ongoing business in a country will provide the applicant with the best possible advice and the most current advice.

In my experience as a trade commissioner overseas, I've helped companies come into markets and I haven't heard from them for years. If everything is going well, there's no need to talk to us, but they may come and knock on our door one day and say, “Oh, remember me? We've been in this market and done well, but suddenly we have a problem.”

[Tracey Ramsey, NDP, Essex, ON]

Thank you.

[The Chair, Liberal, Mark Eyking]

You're kind of like the doctor: if they're not coming, everything's going well.

Thanks very much for coming, folks. It was very informative. Everyone got a chance to ask a question. If you all can come next week when the minister is here, we would appreciate it. Thank you very much.

We're just going to suspend for a few minutes and then go in camera.

[Proceedings continue in camera]