Evidence of meeting #6 for International Trade in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was workers.
A video is available from Parliament.
Liberal
Liberal
Chandra Arya Liberal Nepean, ON
Thank you, Madam Chair.
Mr. Volpe, you mentioned the increase in local content and that the $16 average or minimum wage will increase investment in Canada. Yesterday we had the association of steel producers and the association of aluminum producers. They, too, used the words, “increased investment”, but when you dig deeper, the aluminum industry has not seen any new smelter investments in the last 15 years. The steel industry, 20 years back, was producing 16 million tonnes. Now they are producing 15 million tonnes.
When they talk about increasing investment they don't usually mean increasing investment to increase the capacity. When you use the words “increasing investment”, are you referring to the increase in capacity?
President, Automotive Parts Manufacturers' Association
Yes. The current NAFTA rules say, if you want to sell a car to a consumer in any of the three countries, 62.5% of that car and 60% of the qualifying parts have to come from that region. The way we do it is that we track 29 parts components.
Liberal
Chandra Arya Liberal Nepean, ON
Basically, you're saying that we are going to increase the capacity to manufacture those additional products that are required. Is that correct?
President, Automotive Parts Manufacturers' Association
I'm saying $6 billion to $8 billion of incremental purchases in automotive supplies manufactured in Canada annually, at full transition, from a baseline of $35 billion.
Liberal
Chandra Arya Liberal Nepean, ON
Thank you.
Mr. Sobot, the pipe manufacturing, because of the nature of this product, which is voluminous, I don't think you export outside the North American market. Is that correct?
Director, Corporate Affairs, IPEX Group of Companies
No, we export to 66 countries.
Liberal
Chandra Arya Liberal Nepean, ON
Good. Whenever the buy American model comes in, you want us to have a fund ready to help, which is a good thing. Why don't we focus on more diversification of the markets?
Director, Corporate Affairs, IPEX Group of Companies
No amount of exports will replace the American market.
February 19th, 2020 / 5:55 p.m.
Liberal
Director, Corporate Affairs, IPEX Group of Companies
They're taken care of by companies that are there already.
Liberal
Chandra Arya Liberal Nepean, ON
Good.
Mr. Benson, this agreement, will it lead to an increase in the number of your members?
Liberal
Lobbyist, Teamsters Canada
Actually, this is not true for the teamsters. We're constantly maintaining or growing, and we're one of the few unions in this position, partly because we are in the transportation sector. Without market studies, it's hard to really understand what's going on.
In all trade agreements there are wins and losses. Often, when an agreement is done, it's only at a later date that you find out if it was successful. One of the confusing things—if you look at dairy, it's something that comes up—is this: Just because a company can't do something under CUSMA doesn't mean they can't do it under CPTPP. In negotiating Mercosur and free trade of the Americas, we could end up with countries like Mexico with perhaps three or four trade agreements. The answer is that we don't really know because it is becoming so complicated, but we will grow.
Liberal
Chandra Arya Liberal Nepean, ON
I have a comment, not a question, although maybe it's a question too.
If we don't allow other countries to export into our market, how can we ask other countries to open their market for our products?
Lobbyist, Teamsters Canada
We have a supply management system, and America has their subsidy—
Lobbyist, Teamsters Canada
I'll give you one thing we raised, just for a moment. The suggestion was that if they got rid of their subsidies we'd get rid of ours, and their answer was no.
Liberal
Chandra Arya Liberal Nepean, ON
It's not just with America. Whether it is Europe or Asia-Pacific, the question always remains—
Liberal
Chandra Arya Liberal Nepean, ON
—that you don't export to our market but we want you to open your markets to us.
Ms. Hatch, in your talk it almost appeared that going for Energy Star is bad. I have to disagree. I think we should focus on more of our products going to Energy Star. I look forward to information on what percentage of those products that will not be available are actually manufactured in Canada. You said you don't have it but you could always send it to us later.
Amongst the manufacturers based in Canada, what percentage of their products are qualified under Energy Star?
