International Trade Committee on Feb. 20th, 2020

[Philip Vanderpol]

The implications for dairy come into effect three months after ratification of CUSMA, so if it comes in after May 1, that would be August 1. The caps are based on a dairy year, which runs from August 1 through to July 31. If CUSMA is ratified before that date, for year one, as I mentioned, the restriction is 55,000 tonnes. That would in fact be in effect already now. If it is not implemented and does not come into force until August 1, at least we have from August 1 to July 31, 2021, to be able to utilize the 55,000 tonnes. Otherwise, effective August 1, we immediately go to the 35,000-tonne restriction.

[Ed Fast, Conservative, Abbotsford, BC]

The fix you're proposing is just a short-term fix. The long-term problem will remain. Is that correct?

[Philip Vanderpol]

That is correct.

[Ed Fast, Conservative, Abbotsford, BC]

All right.

You've shared with me that you had some very ambitious plans to expand your company's reach around the world. You have operations not only on the west coast but also in Winnipeg. Is that correct?

[Philip Vanderpol]

That's correct.

[Ed Fast, Conservative, Abbotsford, BC]

How will this cap impact your willingness to invest in your company and expand your product lines?

[Philip Vanderpol]

Significantly, because first of all we need assurances that we will receive the compensation that has been promised to us as processors, in order to be able to invest into the required infrastructure to produce products that are not subject to the caps. Second, it takes some time to continue to develop those value-added markets. Those are the right markets for Canada for the long term, but they take a significant investment in capital and time in order to achieve those markets.

[Ed Fast, Conservative, Abbotsford, BC]

I'm going to go to Mr. Robertson.

Welcome, Colin. You and I have known each other for a long time. You made a curious statement. You said that this was the best agreement under the circumstances.

“Under the circumstances” sound like weasel words. Essentially, we didn't get a better deal. We didn't get a win-win. We got the best we could under a Donald Trump. Is that what you were implying with those words?

[Colin Robertson]

Yes, sir.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Fast. Your time is up.

[Ed Fast, Conservative, Abbotsford, BC]

Thank you for your honesty.

[The Chair, Liberal, Judy Sgro]

We'll go on to Mr. Dhaliwal.

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

Thank you, Madam Chair, and welcome to all the presenters here.

My first question is for Mr. Vanderpol from beautiful British Columbia. You mentioned all the issues that you will be facing with CUSMA, but you only slightly mentioned that you need tangible support from the government in these circumstances.

Could you please elaborate on what type of support you would like to see government provide you in future years?

[Philip Vanderpol]

First of all, as I mentioned, we would like the implementation of CUSMA to not take effect until August 1. That's the first request.

The second request is that, as dairy processors, we have been promised compensation based on the previous trade agreements and CUSMA. We are still awaiting that. The dairy producers have been promised and have been granted funding. We have not yet. We're still waiting for that, even though it has been promised. That will help us invest in making products that will not be subject to the caps.

Third, we would like to continue to have the support of the government to defend our industry from further erosion and restrictions born from possible future trade deals.

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

Okay. Thank you.

My next question is for Mr. Vaillancourt.

Mr. Vaillancourt, as I understand it, by modernizing this agreement, it preserves Canada's cultural exemption, which will give Canada flexibility to adopt and maintain programs and policies that support almost 660,000 Canadian jobs in the cultural industry, which is going to help Quebec and the rest of Canada. Do you agree with that?

[Claude Vaillancourt]

Yes, absolutely. The overall protection of culture, including on the Internet, is a very good thing. But there must be a follow-up. The Government of Canada really must take measures to promote Quebec and Canadian artists. Now we have a tool, and we must use it to promote culture.

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

Thank you.

My next question is for the Canadian Global Affairs Institute. It is my understanding that you had a conference to discuss aspects of CUSMA with a range of experts, diplomats and consultants.

[Colin Robertson]

Yes, we have an annual trade conference in Ottawa.

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

What were the key messages from that conference about this deal?

[Colin Robertson]

The conference was held while the negotiations were still taking place. We've had two, and in each case we discussed various aspects of the agreement and what Canada should be seeking. We had participation from the current trade team, including people such as Steve Verheul.

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

Are you satisfied that most of those discussions are implemented in this agreement?

[Colin Robertson]

Yes, sir. Trade negotiations are a give-and-take. Again, as I was saying in response to Mr. Fast, the circumstances were that the United States came in, and as Mr. Ross, the commerce secretary, put it quite succinctly, it was for Canada and Mexico to give and the United States to get. I think we did extremely well under the circumstances. We preserved that access to the U.S. market, which is vital, as has been pointed out by other witnesses, and we were able to add new chapters on labour and the environment.

It's not a perfect agreement. I would just also point out that we shouldn't expect a trade agreement to be the be-all and end-all for anything. We have, after all, the Paris climate accords, which I think are the appropriate vehicle to deal with climate. We have the International Labour Organization measures, which we abide by. Trade agreements should not be seen as the catch-all for everything, because then they sink.

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

My next question goes to NorSask. It is my understanding that, throughout the negotiations, one of Canada's objectives for the new NAFTA was to better reflect the interests of indigenous peoples. It is my understanding that Canada was able to secure that.

Do you agree with that, or are you aware of that?

[Al Balisky]

I have to admit that we're not experts in the international trade negotiations, but in our personal experience in the softwood lumber dispute, we would like to see a little more provision in there around the protection of indigenous business interests across the entire spectrum of industry in Canada. As a stand-alone operation in Canada, we are very negatively impacted. Of course, it impacts our ability to reinvest and continue this good story in Saskatchewan.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Dhaliwal.

We'll go on to Mr. Savard-Tremblay.