Evidence of meeting #36 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 negotiations.
A recording is available from Parliament.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
So the U.S. is going to have what they get through USMCA, plus any they can fill through the CPTPP.
Director General, Market Access, Department of Foreign Affairs, Trade and Development
It would depend. That would certainly be part of the negotiation in terms of what they would put on the table. Again, they have not asked or requested to join the agreement. Different people think different things about whether they will or they won't. The only country that has put forward an application is the U.K.
Conservative
Ben Lobb Conservative Huron—Bruce, ON
Okay.
It's to my best friend Tom Vilsack, the U.S. agriculture secretary. I'd love to say that the U.S. is our greatest trading partner, and they are, but Secretary Vilsack sure doesn't prove it with his rhetoric about COOL. How do we complete a deal on USMCA? It's a different regime with a different President, but now we're right back into this again. It's very disheartening.
Director General, Market Access, Department of Foreign Affairs, Trade and Development
On country of origin labelling, we did win a WTO case on that. We do retain the right to retaliate if the United States were ever to implement something that was offside from the WTO commitments. We could implement that rather quickly, if need be.
Liberal
The Chair Liberal Judy Sgro
Thank you, Mr. Forsyth.
Madam Clerk, I understand that you've been able to clarify Mr. Blaikie's motion.
The Clerk
Yes.
Mr. Blaikie's motion is in order, except that because it goes against Standing Order 75 on the consideration of a bill in committee, whereby we have to do clause-by-clause study and then the title and everything, we would need unanimous consent to pursue this motion.
Liberal
The Chair Liberal Judy Sgro
In order to proceed with Mr. Blaikie's motion, we need unanimous consent from the committee.
Liberal
The Chair Liberal Judy Sgro
Thank you, Madam Clerk. Thank you, Mr. Lobb.
Mr. Arya, you have five minutes, please.
Liberal
Chandra Arya Liberal Nepean, ON
Thank you, Madam Chair.
Whenever the issue of supply management comes up, I think of poor Canadian families. Milk is so expensive that many poor Canadian families find it very hard to buy milk. In fact, according to Statistics Canada, milk consumption has been declining in Canada since 2004. If my numbers are correct, in 2004 milk consumption per capita was 85.6 litres. In 2018 it was 65.85 litres. That's a decrease of almost 20 litres per capita.
Then there's the quality. There were reports earlier this year that the butter available in Canada is no longer soft enough and is not like what we were accustomed to. In fact, I'm told that now we have to pop a slab into the microwave to ease the butter back into better spreading consistency.
My question is about the agreements, when our market opened a little bit. We had agreements like CPTPP. We had agreements that said we were allowed imports of certain products. There was a little bit of that, but let's say I want to have New Zealand butter. Why am I not getting it, when New Zealand farmers are willing to export to Canada? I know I can't import it as an individual.
My question is with regard to the administration and allocation of imports. Why is it that I can't import? Why is it that the local convenience store can't import? Can you quickly explain how this works?
Director General, Market Access, Department of Foreign Affairs, Trade and Development
Maybe I will ask my colleague from Agriculture and Agri-Food Canada to elaborate on that.
Chief Agriculture Negotiator and Director General, Trade Agreements and Negotiations, Department of Agriculture and Agri-Food
The reality is that generally speaking, there is more interest in importing products in the supply management categories than there is volume to be imported. Canada requires a system to organize itself and to allocate those import rights in a coordinated fashion, one that maximizes the commercial and economic benefits to Canada—
Liberal
Chandra Arya Liberal Nepean, ON
No, no; my question is about why it isn't available now. We have had this agreement for quite some time. Who is actually stopping it? For instance, who's creating the hurdles or constraints for consumers like us to get New Zealand butter?
Chief Agriculture Negotiator and Director General, Trade Agreements and Negotiations, Department of Agriculture and Agri-Food
Again, the imports from New Zealand or from any of our CPTPP countries that meet Canada's food quality requirements are eligible to be imported. Global Affairs Canada, through its trade controls directorate, administers the import and export controls regime, including import licences for dairy products that are covered by the CPTPP, including imports of those products from New Zealand. Now, what the holders of those licences choose to import is up to the holders of those licences.
Liberal
Chandra Arya Liberal Nepean, ON
Okay, so who has the licences? Can I, as an individual, apply and get a licence to import New Zealand butter?
Chief Agriculture Negotiator and Director General, Trade Agreements and Negotiations, Department of Agriculture and Agri-Food
I would defer that question to colleagues at Global Affairs who administer the import and export controls regime.
Director General, Market Access, Department of Foreign Affairs, Trade and Development
I can add to that, then.
To pick up on what my colleague from Agriculture Canada was saying, in order to participate in the importation of butter and other TRQs, you have to meet the terms and conditions of an import licence, and one of those is that you're active in the dairy sector. Then, there are other issues—
Liberal
Chandra Arya Liberal Nepean, ON
Okay, so what you're saying is that to be active in the dairy sector, only the people who are already in the business of supplying to the Canadian market can apply for an import licence. Why should they import if it's going to affect their own market here in Canada?
Director General, Market Access, Department of Foreign Affairs, Trade and Development
If I could finish the other components...?
Director General, Market Access, Department of Foreign Affairs, Trade and Development
Thank you, Madam Chair.
There are other components regarding the ability to import. We allow provisions for new entrants, people who are new to the sector, who may be interested in doing that. It's not just producers and processors who have imported in the past.
All of the terms and conditions are available on our website—
