Evidence of meeting #79 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 nafta.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Andrea van Vugt  Vice-President, North America, Business Council of Canada
David Suzuki  As an Individual
Adriana Vega  Director, International Policy, Canadian Chamber of Commerce
Derek Nighbor  Chief Executive Officer, Forest Products Association of Canada
Dan Paszkowski  President and Chief Executive Officer, Canadian Vintners Association

October 4th, 2017 / 4:30 p.m.

Derek Nighbor Chief Executive Officer, Forest Products Association of Canada

Thanks, Mr. Chair.

I think you're going to see some common themes among the business groups. I'm going to do a set-up here in terms of our industry and its importance.

I want to assure you that, because of the robust legislative and regulatory framework we have, we will not be losing our forests in Canada.

NRCan just put out the “State of Canada's Forests” report last week. We have almost 350 million hectares of forest in Canada. We harvested less than 0.5% of that. On top of that, we planted over 500 million seedlings. We can enjoy the social, economic, and environmental benefits of our forests forever. That's a priority we take very seriously in our sector. We work closely with our partners in labour, indigenous governments and communities, and all shared interests along that continuum. I want to table that.

I too support Mr. Suzuki in not wanting more rural migration. One of the best ways to do that is to continue to ensure that there are good economic opportunities in rural communities. Our sector has relationships in some 600 forest-dependent communities from Nackawic, New Brunswick, to Prince George, B.C., and points in between and out a bit.

That's one of the best parts of my job. For somebody who grew up in rural eastern Ontario, I take very personally and am very proud of the commitment of our sector to rural economies and to the spinoff businesses: some 230,000 jobs directly in wood, pulp, paper, increasingly bioenergy, biomaterials, and with a 3:1 ratio, 700,000 other jobs for outfitters, recreational folks, suppliers, and truck drivers who rely on those jobs as well.

Beyond the quality of our products, one of the key selling points on the global stage that I've seen in terms of trade visits I've done in the U.S., the EU, and Asia is the sustainability of our forest practices. People are looking for responsibly sourced products, and Canada is a world leader in that regard.

All the data in terms of our numbers and contributions are clearly in our submission, so let me get right to our primary interests.

You've heard a lot of talk about dispute resolution today. We would echo that very strongly. Any trade deal is only as good as its ability to solve disputes. That's an area where we have a lot of concern. For us, the chapter 19 piece is a biggie.

In regard to improvements to labour mobility, Andrea talked a bit about that, movement of talents across borders, to allow company professionals to cross in and out of the U.S. and Mexico more easily. We have some learning from the TPP. It's interesting to see the TPP come up again. We're interested in seeing how that's going to play, but a lot of work on the TPP was done around regulatory coherence, transparency, and anti-corruption. We would like to see the leveraging of that to support a new NAFTA.

Any work on safeguards should ensure that they cannot be used unfairly to discriminate against Canadian products. To repeat, rules of origin are beneficial for all three countries, especially related to machinery. We want to see clarity around that. We want to see equal access to government procurement. All three countries should have access to that.

I'll leave it there.

There are two things I want to applaud. On most days, the cross-partisan support and the team Canada approach is appreciated. We like seeing that.

Also, thank you to the trade commissioners and their group. They provide a very important function, as do the consuls in the U.S., as well, on this file.

4:35 p.m.

Liberal

The Chair Liberal Mark Eyking

Would the Canadian Vintners go ahead, please, for just a couple of minutes.

4:35 p.m.

Dan Paszkowski President and Chief Executive Officer, Canadian Vintners Association

Thank you, Mr. Chair.

I think many of you recognize that the Canadian wine industry was not believed to be able to survive after the Canada-U.S. Free Trade Agreement, but we clearly did. Industry leadership and government encouragement help us do that. Today we're a $9-billion industry, supporting 37,000 jobs. Canada is the second fastest growing wine market in the world, three times faster than the global average. We're also the sixth largest importer of wine in the world.

We're very small by global standards, with about 0.5% of global production. We're also small in terms of our comparison to the U.S. Where we have 600 to 700 wineries, they have 10,000. Our economic contribution is $9 billion; theirs is $275 billion. We have 31,000 acres; they have 678,000 acres. This is a David and Goliath story.

Nonetheless, we do support free and fair trade. Since 1987, we've seen wine sales in Canada double to 476 million litres. However, 85% of those sales have gone to imports over the past 30 years, while our market share has decreased from 50% to 32%.

Over that period, we've signed three major agreements: the Canada-U.S. Free Trade Agreement, NAFTA, and the Canada-EU wine and spirits agreement.

Since 2004, under the Canada-EU wine and spirits agreement, the EU has benefited from $478 million in increased sales. Our sales to Europe have increased by $838,000.

Since the Canada-U.S. Free Trade Agreement, sales to Canada from the U.S. have increased by $485 million to half a billion dollars. That's 13% growth every single year for the past 30 years. Our sales to the U.S. have increased by $8.2 million, or 25,000 cases, over the past 30 years.

4:35 p.m.

Liberal

The Chair Liberal Mark Eyking

Sorry, sir. I know this is very unfair to you, but you're the last guy, and I have to wrap it up. I do assure you we have the presentations and they'll be read. I'll just give you 30 seconds to wrap up and then we'll have to call it a day here.

4:35 p.m.

President and Chief Executive Officer, Canadian Vintners Association

Dan Paszkowski

Basically, we're not afraid of free trade. We'd like to modernize NAFTA. We'd like to maintain what currently exists within the North American Free Trade Agreement. We'd like to see greater access to the United States than what has been provided to us, and we'd like to see the trans-Pacific partnership agreement wine annex brought into a modernized NAFTA to support harmonization and streamlining of regulations.

4:35 p.m.

Liberal

The Chair Liberal Mark Eyking

Thank you, sir, and I have to apologize again. It's just been a rough day for us here. We're going to get the questions to you. I have to adjourn the meeting.

The meeting is adjourned.