Evidence of meeting #18 for International Trade in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chair.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Susan Yurkovich  President and Chief Executive Officer, BC Council of Forest Industries, BC Lumber Trade Council
Andre Harpe  Chair, Grain Growers of Canada
Jesse Whattam  Coordinator, Trade Justice Network
Claude Vaillancourt  Member, Réseau québécois sur l'intégration continentale
Erin Gowriluk  Executive Director, Grain Growers of Canada
Clerk of the Committee  Ms. Christine Lafrance

12:15 p.m.

Liberal

Sukh Dhaliwal Liberal Surrey—Newton, BC

Yes, in the past.

12:15 p.m.

President and Chief Executive Officer, BC Council of Forest Industries, BC Lumber Trade Council

Susan Yurkovich

On those, when we do get resolution, of course we have greater certainty of what the operating conditions are. It allows companies to choose to make investments and to know what the rules of the game are going to be.

I would say those two decisions were out of the former NAFTA process, but we can't get there until we have these international bodies eventually finding in Canada's favour and putting pressure onto the U.S. system, which is where we ultimately have to get resolution.

12:15 p.m.

Liberal

Sukh Dhaliwal Liberal Surrey—Newton, BC

You say that we have to have a well-functioning WTO and an effective appellate body as well. Now the decision has been appealed by the U.S. Under the circumstances, how long do you think this appeal process will take? Exactly what do you mean by the appellate body, if we have to pin down that time frame?

12:15 p.m.

President and Chief Executive Officer, BC Council of Forest Industries, BC Lumber Trade Council

Susan Yurkovich

The situation with the WTO is that we have the decision from the summer, which finds...it's a very strong victory for Canada. Every party always has the right to appeal a decision. The U.S. has the right to appeal, so it has chosen to appeal.

Unfortunately, it has appealed to a body that is not properly constituted. The appellate body doesn't have enough members to hear the appeal because the U.S. won't appoint its members. Basically, that decision is in limbo. I can't really tell you how long it will take, because I can't tell you when the U.S. might choose to appoint its folks to the appellate body.

12:15 p.m.

Liberal

Sukh Dhaliwal Liberal Surrey—Newton, BC

Even if we have a body—if the U.S. appoints those—how long do you think that appeal process would be, if we had all the members in the appellate body?

12:15 p.m.

President and Chief Executive Officer, BC Council of Forest Industries, BC Lumber Trade Council

Susan Yurkovich

If we had the appeals process, it would still take us a couple of years, likely, to work through it. You have to remember that with the lumber file we have appeals, and then we have administrative reviews under CUSMA, or the new NAFTA side of things, in addition to the WTO. We use both mechanisms.

Basically, it's ongoing until you can reach resolution, which is what has happened in the past. In the case of 2006, we got to a point where there was enough pressure and we negotiated the deal.

12:15 p.m.

Liberal

Sukh Dhaliwal Liberal Surrey—Newton, BC

You also said that, when it comes to the lumber industry, 30% is new markets. What else can be done, from a government perspective, so we have much bigger shares in other countries and we are not dependent on the U.S.?

12:15 p.m.

Liberal

The Chair Liberal Judy Sgro

Give a brief answer, if possible, Ms. Yurkovich.

12:15 p.m.

President and Chief Executive Officer, BC Council of Forest Industries, BC Lumber Trade Council

Susan Yurkovich

We're continuing to diversify markets. We're continuing to work through the Canada Wood Group program that the federal government is a partner in, and has been for many years. We'll look to continue to diversify both products and markets, but that takes time.

The U.S. needs our lumber, and we would still like to be able to sell it to them.

12:15 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

We'll move to Mr. Savard-Tremblay, for two and a half minutes.

12:15 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

I will return to Mr. Vaillancourt and pick up the conversation where we left off in the previous round of questioning.

Mr. Vaillancourt, you mentioned intellectual property. Could you expand on that idea further?

12:15 p.m.

Member, Réseau québécois sur l'intégration continentale

Claude Vaillancourt

Currently, the WTO rules are really in favour of extending the protection of brand-name drugs as much as possible, which poses a problem of accessibility to generic drugs.

For the countries of the south, we can say that the situation has been really catastrophic. Basic medications are becoming extremely difficult to access, which causes illnesses and leads to real tragedies.

This is currently seen with the COVID-19 situation, where two WTO member countries, India and South Africa, have in fact asked that this protection be suspended, so that they can manufacture vaccines themselves and make them accessible to the greatest number of individuals quickly. They do not want to depend on private companies, which are also making considerable profits in this regard.

This is really about disease and the survival of populations. So it's absolutely important that Canada step in and support these two countries so that this can be done as quickly as possible and so that accessibility to vaccines is as widespread as possible.

So we can see how regulation, that is, everything related to intellectual property, is extremely constraining and at the heart of the WTO, but also in other agreements signed by Canada.

12:20 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

So this is not a good idea at all...

12:20 p.m.

Liberal

The Chair Liberal Judy Sgro

Make it a very short question, please.

12:20 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

In the pandemic context, it is not a good idea at all to provide extended brand-name drug protection.

12:20 p.m.

Member, Réseau québécois sur l'intégration continentale

Claude Vaillancourt

Absolutely not, and the WTO can really intervene on this. Indeed, it can require that the duration of these protections be reduced in exceptional circumstances.

12:20 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

We'll move to Mr. MacGregor, for two and a half minutes.

12:20 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Thank you, Madam Chair.

I would be remiss if I didn't ask a question of the Grain Growers of Canada, who are frequent witnesses at the Standing Committee on Agriculture and Agri-Food.

The new director general of the WTO was elected on a promise to update the WTO rule book to take into account 21st century issues like the green and circular economy. She has put the world on notice that the environment and climate change are quite important to her.

You, along with other groups, have joined together to form the agriculture carbon alliance in Canada. In the context of WTO reform, what does your participation in an organization like that do for Canada's efforts in leading this conversation about WTO reform?

12:20 p.m.

Chair, Grain Growers of Canada

Andre Harpe

I've been listening during the morning, and the interesting thing is the connection between trade and the environment. As a producer myself.... Basically, the agricultural industry in Canada—

12:20 p.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

I have a point of order, Madam Chair.

There is no interpretation because of the sound quality.

12:20 p.m.

Liberal

The Chair Liberal Judy Sgro

Let's hold for a minute. We have an interpretation problem.

Please hold on, Mr. Harpe. We need to make sure we have interpretation.

12:20 p.m.

The Clerk

You just have to raise your mike, Mr. Harpe.

12:20 p.m.

Chair, Grain Growers of Canada

Andre Harpe

Is this better?

12:20 p.m.

The Clerk

Yes. Please continue.

12:20 p.m.

Chair, Grain Growers of Canada

Andre Harpe

Okay, thank you.

As producers, we are so connected to the environment. I believe trade will have to be connected to the environment, as with our connection to the newly formed carbon alliance.

The reason we formed the alliance was to show everybody else, including the world, how effective we are in capturing carbon and how effective Canadian agriculture is in dealing with carbon already. We look forward to being able to do better. We believe we are doing quite well right now, but, as they say, there is always room for improvement.

I look forward to seeing what the new director general will come up with for the World Trade Organization guidelines.