Evidence of meeting #64 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 chile.
A video is available from Parliament.
Liberal
The Chair Liberal Mark Eyking
Thank you.
Before we go to the second round, I have a quick question for you. You said you were speaking to the BBC, so one would assume you were speaking mostly to the British. Did the conversation come up...? You were talking about the lobster, but they are planning on leaving the union. What did you say to the British audience about former agreements? How did that play out?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
As you would expect, in London people are focusing on Brexit. What we have been saying is that we will have a free trade agreement with the U.K. very soon. It's called CETA.
As long as the U.K. remains in Europe, and depending on the time of their process, they will have a free trade agreement. Even Dr. Liam Fox recommitted to me to push that along in their own Parliament, to ratify CETA.
What I have been saying, as well, is that this is our largest trading partner in Europe, so we are very committed to continuity, stability, and predictability. This is in Canada's best interest, as well as in their own interest.
What I have been saying to them—there are informal discussions taking place—is that things that work well should continue. Now, in what form they will continue, we'll have to see over time, but certainly on both sides we want to ensure stability and predictability, and continue that very good relationship that has been beneficial for both Canada and the U.K. This is what I repeated when I was in the U.K., and this is what I say when I'm in Canada. I think that's a message that people understand very well on both sides of the Atlantic.
Liberal
Liberal
The Chair Liberal Mark Eyking
Okay. We're going to go with five minutes for the Liberals and five minutes for the Conservatives.
Go ahead, Mr. Peterson.
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
Thank you, Mr. Chair.
Thank you for being with us today, Minister. We appreciate your insight.
I want to look at the macro level. You've been effectively travelling for the last 100 days, learning a lot about international trade, and speaking with some of our partners in international trade. I want take a step beyond CETA for a moment and ask if you have any indications—
Liberal
Liberal
Kyle Peterson Liberal Newmarket—Aurora, ON
It was a great interview. Do you have any insight or thoughts about what other countries we are looking at? What sorts of trade opportunities are available for Canada, especially in light of some of the more protectionist sentiments that might be in some other countries? Do you feel this is an opportunity for Canada and, if so, what are we doing to tap into that opportunity?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
Very much, indeed.
We talk a lot about CETA and obviously provisional applications, so we know that this is coming.
As I said, Asia-Pacific is obviously engaging very constructively with.... Canada, I think, was one of the leaders in these discussions to make sure that countries would recommit to open and rules-based trade in that part of the world.
We mentioned Japan. We said that we would be happy to restart a bilateral.
There is also ASEAN, which is obviously a very big grouping in that region. As you know, my predecessor had asked for a preliminary feasibility study. I have been pushing. Canada is more than ready to go ahead. It seems that the institute that has been tasked by ASEAN may need a bit of support, so I have been talking to the Philippines and Singapore to try to ask them to be our ally in pushing the issue a bit. We want that study to be done very quickly because I would like to start engaging with ASEAN. Obviously this is an essential step that was put into the process, which we are very much.... I have discussions with my counterparts every time, asking them to try to make sure that on their side they put in the resources needed to go to that feasibility study.
If I have a few seconds, Chair, I would say that as you may have seen, the Pacific Alliance has also mentioned recently that they would have a tiered approach. Canada was first, but they are looking at a potentially different level of integration, so we're in discussions with them.
We are also, as you would expect, in contact with the Mercosur countries to make sure that we are engaging, to see where we could push.
My premise, capacity being available, is that for us, we need to be in pretty much.... The point you touched on is diversification. This is what I wake up and say every morning, “How can we diversify our market and touch on different files that we are facing now?” For me, diversification is key. Every time I think there is a net benefit for Canadians, I am willing to engage constructively, as I said, whether it's with China, Japan, or in the South American region.
I just came back...with the free trade agreement we have with Chile and the modernization. Everywhere we can, where it makes sense for us, we want to engage proactively and constructively but also take a leading role as we've been doing in Chile.
Definitely the key is diversification. We're looking east, west, and south to make sure that we can open as many markets as possible for SMEs, with a focus on making it work for workers, but also for SMEs, which have the biggest potential, in my view. If we can engage SMEs, an under-represented group in trade, we will have achieved something great for Canada.
Liberal
The Chair Liberal Mark Eyking
Thank you.
We're going to move over to the Conservatives, and you can wrap it up.
For five minutes, go ahead, Mr. Ritz.
Conservative
Gerry Ritz Conservative Battlefords—Lloydminster, SK
Thank you, Mr. Chair.
Thank you, Minister. Tim, it's good to see you. Deputy Sargent, sorry. You have a title now.
The one thing with the Japanese bilateral is that you never get the same level of ambition that you do in a multilateral. I'm still very much in the camp that we need to resurrect TPP 2.0—whatever it takes—and I think I've seen a growing desire from Australia, New Zealand, and Japan themselves to make that happen.
The best way to bring the Americans onside is to leave them out. I think we'd have a lot stronger stand in NAFTA when we're looking at other markets like that.
You mentioned that diversifying your portfolio is important whether you're investing or trading. You're absolutely right.
The first question is a fairly short one. Will you maintain the agriculture and CFIA presence in the embassies and consulates around the world? It was helpful on a lot of the issues we fought. Deputy Sargent, you're well versed in some of the BSE situations and so on. Will you seek to maintain that footprint dedicated to agriculture and CFIA?
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
I think that would be under the purview of the Minister of Agriculture, but let me say, as a personal story—
Conservative
Liberal
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
In some markets you prefer that.
In a very good sense, I was at Gulfood, one of the largest food exhibitions—
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
—and we had someone, and I want to thank that person. In the program that is in place, someone from Agriculture Canada was with me, and we had a round table. To your point, Mr. Ritz, his advice, his relationship, his determination was instrumental, I thought. The feedback I got from industry at the round table was that they welcomed that presence.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
On that basis, I would say that things that work well should continue.
Conservative
Gerry Ritz Conservative Battlefords—Lloydminster, SK
Just to follow up on negotiations with China, I've been there a number of times and I'm a huge booster of Canada-China trade on our terms and our timeline. I'd love to be a fly on the wall when you break the news to them that they have to include gender parity in an agreement. I think that would be an interesting discussion.
Market economy, extradition agreements, and so on, are markers that China has put down before they'll even continue with their talks. I know you say it's the finance minister who will make the decision on market economy, but is he not seeking your counsel on that? I would certainly think this would be a whole-of-government approach; it wouldn't just be Minister Morneau making that off-the-wall decision on his own. So I would hope he's seeking your counsel.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
I would not expect the Minister of Finance to do that without talking, but despite the comment in the article, I think China very much understands, as you said, sir, that we will do that on our terms and our time.
The progressive elements have been part of our policy. They are clear to everyone. I think they have been clear to the officials from day one, but as you said, we will do that on our terms, and our terms include that we want some progressive elements. Human rights have been part of our foreign policy and our trade policy, and I think people register what I'm saying now and should take that into consideration if we are going to have a win-win discussion together to pursue trade between our two nations.
Conservative
Gerry Ritz Conservative Battlefords—Lloydminster, SK
Right. I'll shift gears. There could be a downside to going too far with China when we're still negotiating with the U.S. There's a bit of concern there. I understand that Trump and Xi did have a good meeting the other day.
That said, President Trump has presented before Congress a list of 40 issues that he wants addressed in NAFTA. Some pertain to Mexico. Some will get caught in the crossfire.
Are you providing a list such as that to your cabinet? I would imagine your deputy minister is hard at work on that list to present before Parliament in Canada, to say, here are our offensive positions, and here are our defensive positions. Is that work under way, and when will we have a chance to look at it? President Trump has gone public with his list.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
Yes, he has gone public.
As you rightly say, my colleague Chrystia Freeland, is taking the lead on that.
