Evidence of meeting #6 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.
2:25 p.m.
Liberal
Randeep Sarai Liberal Surrey Centre, BC
Thank you, Madam Chair.
To give Mr. Forsyth a break, I would like Mr. Verheul a question.
What industries provide the biggest opportunity for diversification in order to increase our exports to the U.K.?
2:25 p.m.
Steve Verheul Chief Negotiator and Assistant Deputy Minister, Trade Policy and Negotiations, Department of Foreign Affairs, Trade and Development
In terms of the best opportunities, you might go back to Mr. Forsyth to answer that question. He's most familiar with that, unfortunately, although we have a representative from Agriculture and Agri-Food Canada as well who can speak to the specifics around the agriculture sector.
2:25 p.m.
Aaron Fowler Chief Agriculture Negotiator and Director General, Trade Agreements and Negotiations, Department of Agriculture and Agri-Food
Thank you, Steve.
Madam Chair, I'll take a run at that question.
We would be of the view that there are extensive opportunities available for agricultural exporters in Canada's agriculture, food, fish and seafood sector in the United Kingdom market, both as a result of maintaining continuity in terms of market access via a transitional arrangement, and then over the longer terms with respect to what we would obtain, hopefully, in a permanent FTA.
The United Kingdom is Canada's eleventh largest destination market for agriculture, food, and fish and seafood exports globally. We've exported a little over $550 million to that marketplace over the last couple of years. As Mr. Forsyth previously mentioned, it's one that is particularly attractive to the grain sector. It's one that our red meat sector has identified as a key growth market for them in the European space. They have significant interest in that market, as do a wide range of other primary agricultural producers, commodity groups and value-added food processing industries, that they have communicated to us.
I wouldn't know where to rank it against non-agricultural interests, but I do see the U.K. market as one of significant opportunity for agriculture.
2:30 p.m.
Liberal
Randeep Sarai Liberal Surrey Centre, BC
Thank you.
The U.S. is one of Canada's biggest competitors in trade with the U.K. With the new U.S. administration coming in, might we see an increase in interest in their market? If so, how could we mitigate any negative consequences towards Canadian firms?
I'll let anyone of you answer that.
2:30 p.m.
Janice Charette High Commissioner for Canada in the United Kingdom of Great Britain and Northern Ireland
Madam Chair, perhaps I could chip in on this.
It's Janet Charette. I'm the high commissioner for Canada here in the United Kingdom.
2:30 p.m.
High Commissioner for Canada in the United Kingdom of Great Britain and Northern Ireland
It's a pleasure to be with you this afternoon.
From our perspective in London, certainly we are seeing here in the United Kingdom that it is very interested in exploring the opportunity for an independent trade policy by which they will have more flexibility and more control over their trade policy after they have left the European Union. Of course, they're in a transition period now. As of January 1, they will be fully out of the European Union, out of the transition period.
Therefore, as Mr. Forsyth was saying, they have launched negotiations. Obviously they have the negotiations with the EU as a priority, the continuity agreements or these transitional agreements with parties that already have an agreement with the European Union, but they have identified the United States, Australia and New Zealand as really priority targets for bilateral trade negotiations.
Having been through the Canada-U.S.-Mexico agreement, we know, and Mr. Verheul knows better than all of us, the challenges of negotiating with such a significant trade partner. Also, the political events in the United States will also have an impact on the timing of negotiations.
Our objective here in the U.K. is to support Canadian businesses, Canadian exporters, to pursue whatever market opportunities they choose. We have a trade commissioner service. My senior trade commissioner, Nathalie Dubé, is also with us this afternoon and can talk about some of those services.
Really, I think the objective is to make sure we have the right framework in place. That's what a continuity or a transitional trade agreement will provide, the continuity of the benefits that we have through the CETA, and then really to be able to promote the opportunity of the U.K. as a business destination and make sure that we're supporting the development of those business relationships and really being ahead of the game. That's really our strategy here in terms of trying to make sure that we have solidified our advantages in this marketplace.
2:30 p.m.
Liberal
The Chair Liberal Judy Sgro
Thank you very much, Ms. Charette.
We'll go now to Mr. Savard-Tremblay for two and a half minutes.
2:30 p.m.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
Thank you, Madam Chair.
If you don't mind, I am going to read another excerpt from the briefing package we received last week.Canada and the U.K. are replicating the provisions of the CETA on a bilateral basis in a transitional trade agreement. Many areas can be easily replicated or require only minor technical changes. However, in certain areas, for example market access outcomes, discussions are required to establish appropriate outcomes on a bilateral basis.
In a nutshell, it says that substantive discussions will be necessary in areas such as market access. What does that mean? Can you clarify that for us?
2:30 p.m.
Chief Negotiator for the Canada-United Kingdom Transitional Trade Agreement, Department of Foreign Affairs, Trade and Development
I could take a shot, Madam Chair.
I'm not clear what the reference is to, but nevertheless, I think the earlier part of the question is perhaps more pertinent. I would just say that towards the end of negotiations is always difficult. A number of issues that needed to be determined were still in play in the last week or so. Part of it was around market access writ large, but specifically how we administer our tariff rate quotas and how the United Kingdom would administer theirs. Again, I think I mentioned in my remarks that towards the end of a negotiation these are the more difficult aspects that get decided last and the ones where each country has the strongest interest. I think that's certainly the case here with the United Kingdom, and that's why those issues were left to the end.
2:35 p.m.
NDP
Daniel Blaikie NDP Elmwood—Transcona, MB
Thank you.
I take it from Canada's decision to walk away when the U.K. announced that there would be a no-tariff position applied to other nations that Canada was surprised by that announcement.
Given that we've already seen that the U.K. can be surprising in trade negotiations as a relatively new entrant on the scene, I'm wondering what leverage Canada would have if the transitional agreement doesn't have any kind of sunset clause in it and the U.K. decides that it is satisfied with the terms and conditions in the transitional agreement. How would Canada get them back to the table if they have a change of heart?
2:35 p.m.
Chief Negotiator for the Canada-United Kingdom Transitional Trade Agreement, Department of Foreign Affairs, Trade and Development
Madam Chair, there are aspects of the agreement that do have...I wouldn't call them “sunset clauses”, but they will more or less compel the United Kingdom to have a strong interest in wanting to move forward and then finalize a new bilateral agreement with Canada. I'm not too concerned about the transitional agreement stretching on forever.
2:35 p.m.
NDP
Daniel Blaikie NDP Elmwood—Transcona, MB
I guess as parliamentarians we can't evaluate that because we've yet to see the agreement and we've yet to see the implementing legislation. I suppose they'll be very quick studies if we are to conclude something before December 31. I share Mr. Hoback's skepticism about the possibility of that.
You have also said quite clearly that the ISDS provisions would be contingent upon ratification by all EU members. Are there any other aspects of the deal where the implementation of this transitional agreement would depend upon the approval or ratification of EU member states?
2:35 p.m.
Chief Negotiator for the Canada-United Kingdom Transitional Trade Agreement, Department of Foreign Affairs, Trade and Development
No.
2:35 p.m.
Liberal
2:35 p.m.
Conservative
Tracy Gray Conservative Kelowna—Lake Country, BC
Thank you, Madam Chair.
It's obvious that we have questions that the officials aren't quite able to answer for us today. We've heard that direction has been given by the minister and that this has to come to Parliament, so it's really appropriate to have the minister here at committee so we can ask some questions. I know that when the minister was here a few weeks ago, she was very receptive about coming back to committee, which was really great.
Therefore, I move:
That, pursuant to Standing Order 108(2), that the committee invite the Minister of Small Business, Export Promotion, and International Trade to appear before the Committee at any time that accommodates her schedule, before December 4, 2020, for a meeting of 2 hours on the subject of a potential transitional trade agreement between Canada and the United Kingdom.
2:35 p.m.
Liberal
The Chair Liberal Judy Sgro
Thank you very much, Ms. Gray.
Is there debate on the motion that Ms. Gray has put forward?
2:35 p.m.
NDP
Daniel Blaikie NDP Elmwood—Transcona, MB
Thank you, Madam Chair.
I want to express my support for the motion. One of the reasons is that I think—and it's been the subject of some conversation already today—that the parliamentary timelines with respect to a deal are very real constraints. I appreciate the work of public servants but I also appreciate that they're not in a position to speak to House business in a way that a minister of the Crown would be.
I think it is important for the committee to try to understand exactly how the government imagines implementing legislation for such deals through the House in time for the deadline. I think the minister, among representatives of the department, would be uniquely qualified to speak to that because I don't think we can expect to get answers from departmental officials on that. That's one of the reasons I think it's important that we invite the minister to speak to this issue. It's one of the reasons I'll be supporting this motion.
2:40 p.m.
Liberal
Rachel Bendayan Liberal Outremont, QC
Madam Chair, I agree on the importance of hearing directly from the minister. Of course my colleague Ms. Gray is right that the minister did indicate that she would be open to coming back any time this committee thought it would be necessary.
I just wanted to flag that, given that it is Friday afternoon at this point, if we take the exact wording of Ms. Gray's motion, we are looking at the minister coming in the next essentially nine days, if we look at the working days left in the calendar before December 4. I wonder if it would be possible to amend the deadline of December 4 so that we can ensure that we meet the wording of the motion. I would suggest that perhaps we include the week of December 7—