Thank you, Madam Chair and committee, for the invitation to speak with you here today.
I'm here as the national director of the United Steelworkers. I am representing the hundreds of thousands of Canadian workers who are members of our international union. Across North America, we represent more than 800,000 men and women who work in every sector of the Canadian and U.S. economies, many of whom work in trade-exposed industries. We also have formal links with organizations in Mexico. Our interest in ensuring that fair trade in the Canada-United States-Mexico agreement is very obvious. With me is my chief assistant Mark Rowlinson, who will help answer any questions you may have in both official languages.
First, let me say that the final version of this agreement is an improvement to both NAFTA and the original version of CUSMA signed in 2018. Our written submission goes into greater detail, but for the few moments I have before you now, I want to focus on what remains unfinished business on this file and what pitfalls may lie ahead if shortcomings are not addressed going forward.
In terms of the vital domestic steel industry, United Steelworkers applauds the requirement that 70% of steel used in vehicles must be melted and poured in North America. This represents a step forward for the Canadian steel industry. However, in my view, the seven-year timeline for this to come into place is just too long. The delay will allow the continued use of too much offshore steel in the auto supply chain, which will limit growth in the Canadian steel industry.
Our union also represents the vast majority of unionized workers in the aluminum sector, most of them in Quebec. We're very disappointed that similar provisions requiring aluminum to be smelted and poured in North America are not part of this final agreement. Prior to the conclusion of the final agreement, we outlined our position in November 2019 with a letter to Minister Freeland, urging her to ensure that aluminum articles that enjoy CUSMA benefits must be produced in Canada, Mexico or the United States from primary aluminum that's smelted and poured in these countries. Instead, the final deal contains weak language that the parties shall consider this given issue again 10 years from now. This is simply not good enough. As a result, CUSMA fails to ensure that high-quality aluminum produced by workers making community-sustaining wages will be used in automobile production in North America. Of particular concern is the growing reliance by the Mexican auto industry on scrap and billets from low-cost offshore producers due to the lack of primary smelting capacity in Mexico. As the main aluminum-producing country in CUSMA, it was incumbent on Canada to insist on this protection for Canadian aluminum producers and its workers. It's disappointing that Canada's government failed in this regard.
The USW was at the forefront of the fight for a full cancellation of the U.S. tariffs on Canadian steel for the bogus national security reasons that were put forth. Unfortunately, CUSMA side letters still leave open the possibility for future section 232 tariffs. We believe the government must continue to push for a full and sustained commitment from the United States that it will not deem steel, aluminum or other products from Canada a threat to their national security. Canada has also collected $1.2 billion from the tariffs imposed in retaliation for the U.S. section 232 measures. That money should be invested in the Canadian steel and aluminum industries, particularly into training our workforces to meet the demands of the 21st century industrial economy.
Let me now ask you to look at the forest industry. Chapter 10 of CUSMA, under “Section B: Antidumping and Countervailing Duties”, will not protect our forest sector because it does not prevent the U.S. from applying duties to softwood lumber. This dispute has never been resolved. Canada has once again missed the opportunity to permanently settle this issue before us. Meanwhile, our union represents more than 20,000 forestry workers, who have experienced layoffs and uncertainty because of this failure.
What is needed to sustain this vital industry is a combination of trade and domestic measures that promote value-added manufacturing.
As I said at the outset, the steelworkers stand in solidarity with independent Mexican trade unionists. While CUSMA improves the prospects of free collective bargaining in Mexico, the proof will be in the enforcement and remediation for suspected violations of free collective bargaining, as set out in chapter 30.
As we told this committee in the last Parliament, the labour chapter should have included core conventions of the International Labour Organization. These should be included in any future trade agreements that Canada negotiates. We are also concerned that article 23.9 is not strong enough to protect workers from discrimination.
More generally, the labour chapter will achieve its stated goal of raising the labour standards in North America only if all three governments take their role of enforcing these rights seriously. This means putting in place mechanisms that will ensure that Mexico, the U.S. and Canada are living up to their labour commitment under CUSMA.
We are disappointed that there is no gender chapter and no reference to the United Nations Declaration on the Rights of Indigenous Peoples. All three of our countries should have committed to this 21st-century obligation to righting the wrongs of colonialism.
On procurement, our union is also concerned about allowing increased U.S. access to Canadian agricultural and dairy markets. ln contrast, Canada did not make any gains on obtaining access to the large U.S. government procurement market.
A significant misstep, in our view, is the provisions of chapter 28, which allow advance notice to corporations of any impending regulatory changes that affect food safety, rail safety and workers' health and safety, amongst others. Using gentle words like “harmonization”, this provision undermines the ability to regulate in the public interest by providing corporations with the right to challenge the implementation of these regulations. This is unacceptable and, frankly, when we look back at events like Lac-Mégantic, very dangerous.
The environment has not been given enough consideration in CUSMA. Although some improvements were made to chapter 24, there is no commitment to the Paris Agreement on climate change. Nor is there any reference to combatting climate change. This is out of step with everything that we have come to understand about the climate crisis in the 21st century
ln closing, our union will continue to advocate for a fair and progressive trade system. Rather than periodic piecemeal progress in individual trade deals, we seek a trade regime that puts working Canadians at the forefront. This means agreements that do not hamper the ability of our government to ensure high labour and environmental standards and that do not make it easy for unfairly traded goods to enter our markets from countries with poor labour and environmental standards.
Despite the improvements to CUSMA, this deal is insufficient on its own to revitalize the Canadian manufacturing industry. We must use policy measures to promote domestic manufacturing and the use of Canadian-made products in infrastructure projects. We must protect our market from dumped goods from offshore by continuing to improve our trade remedy system, including allowing unions to initiate trade cases and not merely to participate. We also demand a more meaningful analysis of the sectoral and employment impacts of trade agreements, including real consultation and collaboration.
Thank you for the opportunity. Mark and I are happy to answer any questions you may have.
