International Trade Committee on Aug. 14th, 2017

[The Chair, Liberal, Mark Eyking]

Thank you, Minister.

We're going to go over to the Liberals. Madam Lapointe, you have the floor.

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

Thank you, Mr. Chair.

Minister, thank you for appearing before the committee this morning. I appreciate your being here.

I'm going to continue along the same lines. As you know, my riding is in the northern suburbs of Montreal. I'd like to know how the province and the Quebec government are contributing to the NAFTA negotiations. As we all know, Quebec was involved in CETA.

Could you describe the role that Quebec, the provinces and territories play in the negotiation process?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I'd like to thank you for your work, Ms. Lapointe, as well as your question, which is a very important one.

Not only are the provinces and territories involved in the NAFTA negotiations, but they are also at the centre of our trade relationship with the United States. As everyone knows, a number of issues and challenges affect the Canada-U.S. relationship. We continue to work closely with our provincial and territorial friends and counterparts.

As you highlighted, Quebec has a special role to play given its extensive relationship with the United States and Quebec's importance to the U.S. On that point, I have told the U.S. administration on numerous occasions that the electricity for Trump Tower is supplied by Quebec. It's key that our American counterparts never forget the importance of those economic ties.

As I mentioned, we consulted Canadians quite widely, including the provinces and territories, and those consultations will continue throughout the negotiation process. The CETA negotiations proved that Canada was stronger when the provinces, territories, municipalities, and federal government all worked together. The strongest team we can have is one that truly represents Canada.

Quebec played a special and very key role during the CETA negotiations, and, once again, I want to thank the province for that. On Thursday, I discussed NAFTA with my provincial and territorial counterparts, highlighting the federal government's approach and our desire for continued co-operation. Many provinces and territories are sending their experts and officials to Washington for the first round of negotiations, and that will be incredibly beneficial.

Mr. Hoback indicated that state governors play a very significant role and have a lot to bring to the table. I feel the same way. Perhaps it has to do with the fact that governors have a solid grasp of the economy because they are closer to the day-to-day reality in the country.

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

I have another question about the involvement of the provinces.

We all know that Quebec had a strong presence during the CETA negotiations. What lessons did you learn from the CETA negotiations? What did you take away from that experience? You were the Minister of International Trade at the time. In light of that, what are you bringing to the table now? A bit earlier, you touched on CETA elements that you would like to see addressed as part of the NAFTA renegotiation.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

The provinces and territories played a key role in the CETA negotiations. Lessons were learned, and they will inform the NAFTA negotiations.

This is important for a number of reasons. For one, because we are in constant consultation with the provinces, we've gained a lot of information that will help us during the negotiations.

Another reason the role of the provinces and territories is so important is that they've developed vital ties with our partners and therefore have the potential to exert influence. What we saw during the CETA negotiations was how Quebec was able to influence the governments of France and Belgium, particularly in the case of the Walloons.

As for ties with the U.S., the provinces and territories have formed their own relationships. Quebec, for instance, has worked a great deal with the State of New York.

Thank you.

[The Chair, Liberal, Mark Eyking]

Thank you, Minister.

That ends our first round. We're going to go to our second round, but, Minister, before we go there, I'd like to mention that we've done a western tour, as you know, and, in the United States, a central tour, and we have also visited Washington. We mentioned your negotiators and people here, but the people down on the ground in the United States were really tremendous for us, especially in putting meetings together. In Washington, I think one of the most important meetings was with the ways and means committee, one of the most powerful committees. We had a good time with them and good discussions there, so I'd like to thank your team on the ground in the United States for pulling that together. We're going to be visiting there again.

We're going to the second round, starting with the Liberals.

Mr. Fonseca, you have the floor.

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

Thank you, Mr. Chair.

Thank you, Minister. When we look at Canada and the United States, we've had the longest trading relationship in the world. Four hundred thousand people cross our border every single day as well as $2.4 billion in goods. In my community of Mississauga East—Cooksville, I have a huge a very diverse diaspora. They were very excited about our CETA agreement and the amount of trade they're going to be able to do between Canada and Europe and many other countries where they have roots and linkages.

The same thing happens when you look at Canada and the United States. We're probably the two most diverse countries in the world, bar none. I think about the small and medium-sized businesses within our diaspora. The Polish community in my riding will be able to do a lot of trade with places like Chicago. The Portuguese will with Massachusetts, along with the Indo-Canadian community. Can you explain to us how these communities are going to be able to benefit from this trade deal through NAFTA and how that will enable them to grow their businesses in the same way they feel is going to happen with CETA?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Thank you very much for the question, Peter, and for your very hard work on this file.

I strongly agree with the direction of your question. I also represent a diverse riding, as, I'm sure, many of us do. My riding in particular has very strong Portuguese and Italian communities, and there's been a lot of enthusiasm around CETA, which is going to enter into force on September 21, and we're so happy about that. It presents real opportunities for those communities in Canada to build even closer relationships with the communities in the countries they have come from, and also to use their cultural ties to build some economic benefit for both the EU and Canada.

I really agree with you that our relationship with the U.S. presents many opportunities of a very similar nature. When I am speaking to Americans, I like to say that we're not just friends and neighbours but that so many of us are relatives. It's hard to find a Canadian—and in some of the border areas of the U.S., it's hard to find an American—who doesn't have a close personal human connection with Canada. I think that's one of the reasons that our trading relationship has over time been so strong and so effective.

The former U.S. ambassador to Canada liked to tell a story about how when he travelled around Canada he would say, “So, do you guys do a lot of foreign trade with companies?”, and they would say, “Oh no, we only trade with the United States.” I think that anecdote tells a lot about how Canadians view trade with our biggest trading partner and neighbour.

When it comes to opportunities, you referred specifically to small and medium-sized enterprises. I think that is an important area to focus on. In the consultations I've personally done—and I know my negotiators have had the same experience—including in Edmonton on Friday, I have heard the same message that for those enterprises the red tape is a particular obstacle. We've even heard from people who have said they don't bother using the NAFTA preferences because it's so much of a hassle to fill out all the forms. One of our core objectives—and I think this has particular relevance for small and medium-sized businesses—will be to use these negotiations to cut red tape, to continue the really good work we've already been doing on harmonizing regulations, and to make this trading relationship even more frictionless.

Again here, I do want to emphasize that we see some real opportunity here in our negotiating approach, because this is really consistent with something we have heard in public and in private from this U.S. administration, which is that it is focused on cutting red tape and on making life easier for businesses, and that this is an opportunity for it to do just that.

When I was with the Prime Minister in Rhode Island at the governors' meeting, there was a lot of emphasis from the governors on exactly that point. They said, “Let's use this as a big opportunity to cut red tape to make things easier for businesses.”

I think Mark wants me to stop talking now.

[Some hon. members]

Oh, oh!

[The Chair, Liberal, Mark Eyking]

You know very well, Minister, that this light signal is working. Maybe other committees can start using it. Anyway, we're doing very fine here.

We're going to move over to the Conservatives now. Mr. Ritz, you have the floor.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Thank you, Mr. Chair.

Thank you, Minister, officials, and gentlemen. It's good to see you again.

I want to just step back one point. I know you were in Beijing late last week, Minister. Did you have the opportunity to raise the John Chang issue with China to make sure that John will have a chance to come home soon?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Yes, I did.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Good. Do you have any idea of the timeline on that?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I raised it directly with the foreign minister. He acknowledged that I had raised it, so let's hope that creates some opportunity—

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Will Ambassador McCallum follow up on that?

[The Chair, Liberal, Mark Eyking]

If I could interject here, Mr. Ritz, I would just remind you that we're going to try to keep to the trade issue.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

This is still trade. John will follow up—

[The Chair, Liberal, Mark Eyking]

That's why we have the minister here.

Go ahead.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Pardon me?

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Will John follow up that intervention? Will Ambassador McCallum follow up?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

He was with me at the time, as were our officials.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Thank you.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I do want to say this. I know we're here to talk about NAFTA, but that is an important case. We as a government have been very focused on it.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Yes, I can see that. Good.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

I was glad to have an opportunity to raise it. What I did say to the foreign minister was that this was an issue of great concern to Canadians, and concern particularly to Canadian businesses.