International Trade Committee on Aug. 14th, 2017

[Tracey Ramsey, NDP, Essex, ON]

It didn't happen with CETA, so I'm hopeful that it will happen with NAFTA. I think it's incredibly important to parliamentarians.

The next question I have is about Buy American and procurement. The policies of Buy American have really shut out Canadian companies from significant contracts in the United States. The Trump administration said that it wants to make things even worse in NAFTA. It would like to go even further. Is there a commitment that Canada will not accept any preferential, uneven access for U.S. companies to bid on Canadian contracts without reciprocity?

[Steve Verheul]

Without a doubt we will be looking for a fair and balanced outcome when it comes to government procurement. We have long expressed concerns about U.S. Buy American policies. We will be pursuing that in the negotiations and looking for improved access. If we are not going to be receiving improved access on the U.S. side, I find it hard to imagine that we would be putting much on the table on our side for increased access.

[Tracey Ramsey, NDP, Essex, ON]

My next question is about labour. I'm wondering if you can tell us how you'll address right-to-work states and jurisdictions in the U.S.?

[Steve Verheul]

On labour—and I think the minister has said this clearly—we will be pursuing a fairly ambitious outcome. With respect to the ILO core conventions, we'll be promoting those. We will also be promoting fair labour practices across the three countries. We do have some concerns about certain practices in the U.S. We will be seeking to pursue disciplines in those areas too.

[Tracey Ramsey, NDP, Essex, ON]

Thank you.

My next question is about energy proportionality.

NAFTA's energy proportionality provisions prohibit Canada from reducing our oil and gas exports to the U.S. even if we experience shortages ourselves. With non-renewable natural resources declining and climate change posing an urgent threat, will the government pull out of these regressive provisions that are outlined in article 605 of NAFTA?

[Steve Verheul]

There will be quite a bit of discussion on the energy chapter. The U.S. has indicated an interest. We have indicated an interest. I think the issue of the proportionality clause in particular will be something that we'll be discussing at the table without a doubt.

[Tracey Ramsey, NDP, Essex, ON]

My next question is one that the minister didn't have an opportunity to answer, and it really is around climate change.

The inclusion of the words “climate change” is incredibly important in this document. We, of course, in Canada are signed onto the Paris accord, which the U.S. has withdrawn its support from. I really would like to hear from you, then, as to how you envision us pursuing environmental protections with a country whose president has essentially said that climate change is a hoax—that's something that's quite public, which Canadians have heard—and has pulled out of commitments to the EPA, which has incredible impacts on the Great Lakes in my region. I'm wondering if you can speak a little bit to the challenges that you face, and how you will address those.

[Steve Verheul]

Similar to the case with labour, the minister has also mentioned how we will be pursuing an ambitious agenda when it comes to the environment. We will be bringing the chapter into the agreement, and not only that but will also be looking at much more ambitious objectives on the environment than we have in the past. In this day and age, it's hard to imagine that an environment chapter is not going to have some reference to climate change. We will be pursuing issues related to that when we negotiate the environment chapter.

[The Chair, Liberal, Mark Eyking]

You have only about 20 seconds, so it will have to be a quick question and a quick answer.

[Tracey Ramsey, NDP, Essex, ON]

In the time I have for my last question, I would like to give notice of a motion that I have presented to the committee. It really is about the submissions you've received online and the consultations you've done as well.

I'll read my notice of motion into the record:That the Standing Committee on International Trade requests that the Ministers of Foreign Affairs and International Trade submit in both official languages:

(a) a breakdown of consultations that have been done to date with Canadians on NAFTA, including the dates and names of stakeholders, industry lobbyists; provincial and territorial officials, civil society groups, aboriginal groups and leaders, academics, organizations, think tanks, student leaders, individuals, outside consultants and officials within Global Affairs Canada or other government departments;

(b) a breakdown of comments submitted to date via email to [email protected], and submitted to date via the online consultation form, including the number of comments both in support of and opposed to NAFTA;

and that the ministers submit this information to the Standing Committee on International Trade by August 31, 2017.

I think this would provide us with the information.

[The Chair, Liberal, Mark Eyking]

That's just a notice of motion, right?

[Tracey Ramsey, NDP, Essex, ON]

Yes.

[The Chair, Liberal, Mark Eyking]

We're going to move on to Madam Lapointe.

Go ahead.

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

Thank you for being here today.

I have two questions.

I have four minutes, is that right, Mr. Chair?

[The Chair, Liberal, Mark Eyking]

Yes.

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

The Standing Committee on International Trade went to Washington in June. We discussed the cultural exemption. Earlier, the minister told us that the exemption was something that had to be preserved. That's not at all what we heard in Washington.

I'd like to hear your comments on the issue. Some eight million francophones live in Canada, so we're talking about a lot of people.

We've spoken at length about the relationship with the United States but little about everything that's been done with Mexico. We should not lose sight of the fact that Mexico is also a key partner. The renegotiation of NAFTA includes Mexico.

Those are two different questions.

[Tim Sargent, Deputy Minister for International Trade, Department of Foreign Affairs, Trade and Development]

I'll answer your questions first, and, then, Mr. Verheul can provide additional details.

I'll start with the second question. NAFTA is a trilateral agreement. Mexico is a very important partner to Canada. The minister, Mr. Verheul, the team, and I have had many discussions with our Mexican friends about how to approach the negotiations. It's important to understand that Mexico, like Canada, wants a better deal that will generate more economic activity and international trade. We also want to make it easier for companies to create jobs. This is a three-way partnership, and our goal is to foster growth and jobs in all three countries.

Why is there a cultural exemption? We are very mindful of how important the exemption is. In the course of all negotiations, we work very hard to preserve the cultural exemption. It varies depending on the agreement, but we've always been able to preserve a strong cultural exemption.

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

I'd like to delve a bit further.

I said that the committee had gone to Washington; in September, we are heading to Mexico. Are there certain things we should keep in mind when we meet with our Mexican counterparts?

[Tim Sargent]

It's more or less the same thing as when we go to the United States. It's important to fully understand how integrated our three economies are. Numerous products are made in Mexico, the U.S., or Canada, and cross the two borders a number of times. We're talking about a highly integrated economy.

As the minister mentioned earlier, we build things together. That's true for Canada and the U.S., and it's also true for Mexico. When we talk to our friends and partners, we highlight how important it is to understand that we work together in this economic space. We aren't really competing with them but, rather, with other global regions. Mexico is an integral part of the North American economy.

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

Thank you.

[The Chair, Liberal, Mark Eyking]

Make it a short one.

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

As you know, my riding is south of Mirabel, where Bombardier and Bell Helicopter are located.

Do you have anything to suggest in terms of aerospace, specifically?

Is there anything aerospace-related we should keep in mind when we go to Mexico?

We talked about the auto sector, but we haven't talked much about aerospace.

[Tim Sargent]

Like the auto sector, the aerospace industry is very integrated. It's another sector where the focus should be on the changes that are needed. We shouldn't undo the relationship we've built since NAFTA was introduced, and even before. Plants in Canada make parts for plants in Mexico and vice versa.

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

Thank you very much.

[The Chair, Liberal, Mark Eyking]

We'll go on with Mr. Fonseca.

You have four minutes. Go ahead.