International Trade Committee on Nov. 20th, 2020

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

If your department were presented with a trade agreement of the size and scope that you're contemplating between Canada and the U.K. and you were told to analyze it and make the decision about it within a couple of weeks, would you say that would be an adequate time frame for your department?

[Doug Forsyth]

I would say that we have the expertise and the resources at our disposal to make sure that it is analyzed properly and be ready to move forward on that basis.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

If it were a group of people without the expertise—

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Blaikie.

We have Mr. Aboultaif, please, for five minutes.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Thank you.

Mr. Forsyth, you said that this is a replica agreement of CETA, but it is not an exact replica. Can you specify where the “not exact” is and in which areas, which industries and which sectors? Also, is it on our side or on both sides, ours and the U.K.'s?

[Doug Forsyth]

Thank you for the question.

It does have a lot of similarities to the CETA, and then there are some differences.

When I speak about where the areas of similarities are, I'm speaking very much about how it looks, the chapters, etc. I'll give you an example. Issues that can be replicated easily from the CETA include some of the institutional chapters, definitions, transparency exceptions, trade remedies, customs and trade facilitation and mutual recognition of professional qualifications, etc.

Areas that would require some minor technical changes from the CETA would include sanitary and phytosanitary measures, technical barriers to trade, government procurement and financial services.

The areas that require substantive discussion to bilateralize the outcomes would include market access for goods, rules of origin and origin procedures and investments.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

When did you start negotiating?

[Doug Forsyth]

We started negotiations officially, as I said in my remarks.... The Prime Minister indicated in September 2017 that we should do our best to ensure a seamless transition. We launched the Canada Gazette notice in 2018, and we started negotiations shortly thereafter.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

After all the preparations that we've made so far since the beginning of negotiations, it looks like you're saying it's going to take another year, maximum. That's your target within 2021 in order to get the comprehensive agreement. Is that correct?

[Doug Forsyth]

Madam Chair, in order to launch the negotiations. That's when we will officially launch the bilateral negotiations. I think we would plan to begin the consultation with stakeholders sometime in the first half of next year, move forward with seeking a mandate in the latter half of next year and then sit down at the table with the U.K. shortly thereafter.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Do you believe that we are ready on this side and that you have all the mandates to do that and achieve that within the time frames that are targeted?

[Doug Forsyth]

That's a good question. I think my own assessment is that, yes, I think the time frame is reasonable. We're anticipating some keen interest from stakeholders as we launch the consultation process, and I think there is a strong interest, as I said, on our side and on the U.K. side to get things done as quickly as possible. I think it's a reasonable timetable, yes.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Does it concern you that the Prime Minister is talking about the bandwidth on the U.K. side? Basically it's a negative signal when we're trying to put together an agreement with a partner such as the United Kingdom. Does it concern you that it's going to delay the whole process or the time frame that you're looking for?

[Doug Forsyth]

I don't think so. Having sat across from the U.K. for the last two years, I think they are getting more and more experienced. I think that will certainly help our bilateral negotiations once we get them launched. No, I'm not that worried about his remarks about bandwidth. No.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

How often do you go back and report to the cabinet on your progress on this?

[Doug Forsyth]

We will get our mandate from cabinet. I presume we'll get one, as I said, in the latter half of next year. That will provide us with the scope as negotiators to get a deal in place.

If there are issues that come up during the negotiations that are outside of our mandate or that require further discussion with cabinet, then we would bring an item forward for them to discuss, and then if it's all within the mandate, once we can conclude those negotiations we would bring forward a package of recommendations to ministers.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Based on your experience, under normal circumstances would you wait six months before you get any signal or mandate from cabinet?

[Doug Forsyth]

We would have to wait, yes, for a mandate from cabinet before we launched those negotiations. Absolutely, yes.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

You're talking six months. Is that the indication you got from the government or from cabinet, or is that what you're anticipating?

[Doug Forsyth]

No, we haven't heard from the government or whatever. It's just the timetable we have internally about when we have a reasonable expectation of being able to launch the consultations, process the consultations and then get a mandate from cabinet.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

What triggered those—

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Aboultaif. Sorry, but your time is up.

Mr. Arya, please.

[Chandra Arya, Liberal, Nepean, ON]

Thank you, Madam Chair.

I think the witness mentioned something about the implications of the transitional agreement depending on CETA being ratified by all the member states.

Would you kindly elaborate?

[Doug Forsyth]

Madam Chair, I think the reference was around an investor-state dispute settlement and ratification of the CETA by all EU members. The investor-state dispute settlement provisions under CETA will not come into place until all EU parties have ratified it, and all have not finished that process yet.

[Chandra Arya, Liberal, Nepean, ON]

Okay.

You mentioned that negotiating this transitional agreement has been unique. What are the challenges you've faced, or are still facing, in negotiating this, sort of, fast-tracked deal?