International Trade Committee on Feb. 25th, 2020

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

The only person I have who has indicated they want to speak is Mr. Sheehan.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Well, that's a lot of pressure.

[The Chair, Liberal, Judy Sgro]

Well, you don't have to accept it.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

I'll be very quick, then.

To everyone, there's a small business chapter in the new agreement. We've had some testimony from the Canadian Federation of Independent Business and others. One question or suggestion we looked for from witnesses is how we get small businesses more involved in scaling up into trade in the North American free trade agreement. What would your suggestions to the government be as to how to get the small business community more engaged in trade by using the NAFTA as a tool?

I don't know if you're in Toronto or if you're somewhere else, but I'll start with the Board of Trade in Toronto. I know you're involved in trade quite a bit, too, so I'll start with you.

[Leigh Smout]

Thank you. I am in Halifax because we are away at our first trade accelerator program on the east coast today.

Our entire focus is on convincing companies that they should look at trade internationally. We also want to get them to diversify markets, because it's uncomfortable being so dependent upon one single market. However, that single market is the closest to us culturally. It's miles across the border. It has similar rule of law. It's the easiest place, in many ways, to trade. It's challenging in other ways because each state is also a place unto itself and the rules and regulations can be different in each one. However, it's still easier than trying to sell into China and trying to sell into Africa and trying to sell into distant markets.

We feel that the government needs to, first of all, ratify this agreement. We don't want to go backwards in terms of tariff-free trade with the U.S. Second, it needs to continue to support, because the federal government through ISED does support the expansion of the trade accelerator program that we are running. We started in Toronto, but now it runs literally across Canada now that we're in Halifax. They have supported that expansion. I think they saw the value in developing capacity in companies to trade and encouraging them to develop the capacity.

The third thing that's really critical is that you have to get them into market. We tell people who come in that if they don't like to travel, they shouldn't get into international trade. You actually have to go to the markets. You have to learn to work with these people. It may seem that the U.S. is similar to us, but if you're trying to sell something into Texas, you're going to find the culture is a bit different there than it is here. You have to go there and learn how to do it. You have to go to trade shows. You have to take advantage of those.

We would encourage the government to do all the things it's doing and to put more emphasis on helping businesses get into those markets. The trade commissioner service has wonderful, amazing people and resources in all sorts of countries around the world. What we need to do is to get more of our companies over to see them and to get their help connecting with opportunities in those markets.

That's where I'd place the emphasis.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you.

Do you have anything to add, panellists?

[Bridgitte Anderson]

I would say a couple of things and perhaps tell you an anecdote. J

Just in the last couple of days I was talking to a greater Vancouver business operator who is starting an operation in the United States. When you think about the red tape that exists in Canada, in some jurisdictions there is more than in others, but certainly there is red tape and regulatory burdens among Canadian businesses. This individual is going to Arizona to set up a new business operation and was able to get a permit approval in one day and was also able to get some approvals on a Sunday. I think anything that can be done to remove barriers for business is really important.

The other thing I would say, particularly about small businesses, is that while they are nimble, they have very strapped resources. When you think about the uniform regulations, the playbook of the CUSMA deal, it is important that we're going to have to understand what those rules are so that people have an idea how they can implement and operationalize CUSMA. I think it's really important that small businesses have that as soon as possible.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Tabatha.

[Tabatha Bull]

I agree with the other witnesses. The one thing, and I mentioned this earlier, is trade missions for indigenous business specifically. We have seen interest in that work. I have a few meetings this week about some of those opportunities, which is excellent, but part of that is getting them to market and ensuring that other countries and markets are aware that there are indigenous businesses available and building awareness around that.

Also, whatever programs are developed specifically for indigenous businesses as allowed through the trade agreement need to be developed in coordination with indigenous people and indigenous business, so we need to ensure that we continue that engagement on the development of programs supports.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you. That was great.

[The Chair, Liberal, Judy Sgro]

Mr. Dhaliwal.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Back to you, Ms. Anderson.

When I was on the doorstep, every business that I went to and every worker that I talked to, particularly in the Surrey area, and I'm sure more widely, would agree with me, and every person that I met was very positive, and they wanted to get CUSMA signed, ratified and put in place. Did you see the same thing when you were talking to the businesses and people outside?

[Bridgitte Anderson]

We represent close to 5,500 members, most of them small and medium-sized businesses in greater Vancouver. Two-thirds of our members are small and medium-sized businesses. For them it is about certainty and opportunities to grow their business. It's also about being able to access markets and particularly diversification of markets. While the Asia-Pacific region is important for us, the United States remains our most important trading partner. CUSMA does give the certainty that is needed and that allows businesses to understand what the rules are when we see those uniform regulations and how to operationalize the agreement.

Yes, we're seeing a lot of support among our members and that is why we're here in support of the deal.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

You talked about businesses. When I talk about ordinary, middle-class workers and their families, how does this deal going through help them, particularly in the region you come from?

[Bridgitte Anderson]

Many average, ordinary people from greater Vancouver work, and they work for businesses. As I mentioned, 98% of businesses in British Columbia are small businesses, meaning five people or fewer. Those are the average greater Vancouverites. This does give them certainty and allows them to have access to markets and a level playing field, which is really important.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Do you think it will have the gender gap pay equity as well?

[Bridgitte Anderson]

I think lots more needs to be done on gender equity, but this is a step in the right direction.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Thank you.

[The Chair, Liberal, Judy Sgro]

I'm not seeing any further questions.

Thank you very much to our witnesses. It was very informative. Thank you for taking the time.

I remind the committee that at 12:30 tomorrow, in advance of having the chief economist come, we're going to take a group picture so that we'll have something to remember our experience of doing the NAFTA. That's all I had to say.

[Randy Hoback, Conservative, Prince Albert, SK]

Were we able to get a copy of the economic analysis today? I know you were going to check. It would be nice to have that before we sit down with her tomorrow.

[Rachel Bendayan, Liberal, Outremont, QC]

I have not had news from officials. I did go back, but it's not ready yet, as far as I understand it from the chief economist.

[Randy Hoback, Conservative, Prince Albert, SK]

It's not ready yet. Then what's she going to present tomorrow?

[Rachel Bendayan, Liberal, Outremont, QC]

I believe she's here to answer questions from the committee.

[Randy Hoback, Conservative, Prince Albert, SK]

How do you ask questions if you don't have the document?