International Trade Committee on Nov. 30th, 2020

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you very much, Minister.

First, I want to give a shout out to you, all the officials and the parliamentary secretary for accomplishing this during these unprecedented times. As we know, the U.K. left the EU on January 31, 2020, after concluding a withdrawal agreement. That agreement is to conclude on December 31, 2020, so congratulations on getting the continuity agreement to where it is.

The U.K., as you have identified, is an extremely important trading partner to Canada. You mentioned it is in the top five.

To have no deal would have been devastating for our economy. Which sectors of our economy benefit the most from the U.K. market as a result of this particular agreement?

[Mary Ng, Liberal, Markham—Thornhill, ON]

The member has hit at the very core of why it's so important to have this continuity in place with the European Union. It's really important that we maintain the 98% tariff reduction for our businesses.

It's really important for our agriculture and agri-food exporters that they continue to have access to this important market. It's really important that our services and our financial services continue to have access to this market. It's really important that our Canadian businesses, and I hope women's businesses, as well as small and medium-size businesses, get access to the lucrative—

[The Chair, Liberal, Judy Sgro]

Sorry, we need to go to the next round.

[Mary Ng, Liberal, Markham—Thornhill, ON]

—government procurement market, which is estimated to be $118 billion annually. It's really important to make sure that access is maintained for our Canadian businesses.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you for that.

I've also asked this question of some of the witnesses we've had. You recently announced support and funding. We're talking about continuity. We have to continue to trade, and we have to continue to look for opportunities.

Can you make a couple of comments on the virtual trade missions and explain to the committee how these would continue to support Canadian businesses, since we're talking about continuity of those agreements?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Yes, indeed, trade agreements are absolutely terrific because they give our businesses that predictability. Businesses understand what the rules are to operate in places where we have trade agreements.

The other part that is equally important is to help our Canadian businesses benefit from trade agreements, making sure that trade and the benefits of it yield to our small businesses, our indigenous businesses, and youth-led businesses.

I am very pleased with the work that my department continues to do to provide tools. There are many tools the federal government has, working with our provincial and territorial colleagues and counterparts, to support businesses as they grow and as they are looking to grow into those international markets.

It's what I call Canada's trade toolbox. It includes our trade commissioner service and programs like the CanExport program. It's working with EDC, BDC and the Canadian Commercial Corporation. We are all literally working as team Canada to continue to provide support to businesses so they can pursue those opportunities in the international marketplace, and certainly in the U.K., through this continuity agreement.

[The Chair, Liberal, Judy Sgro]

You have time for a short question, Mr. Sheehan.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

In the continuity agreement there's a provision that requires Canada and the U.K. to return to the negotiating table. What would you like, if anything, to add to this agreement?

Maybe a short answer will not be possible.

[Mary Ng, Liberal, Markham—Thornhill, ON]

Well, we're going to return to the table within a year. Both countries have already stated how important it is to bring about greater trade benefits for women entrepreneurs, preserving the commitments we've made to the environment and creating more opportunities for digital trade. However, I'm looking forward to talking to Canadian businesses about what's important to them.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you, Madam Minister.

Mr. Savard-Tremblay, you're back. Please go ahead.

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

Good morning.

I thank all the witnesses.

Allow me to first apologize for the microphone quality, which is not ideal. I also want to apologize to the interpreters. I will speak loudly and slowly.

I thank the minister for joining us.

You brought up the fact that there would be an investor-state dispute settlement mechanism.

Why, after removing such a mechanism from CUSMA, is it being brought back in the first agreement negotiated following the adoption of CUSMA, especially in a context of a health crisis where such mechanisms could be used to undermine the special measures we have implemented?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Thank you very much.

It's really wonderful to talk to you again. Thank you for taking the time with me the other day as well so that we could talk about this important continuity agreement.

What is top of mind for me, and certainly for the businesses and producers and stakeholders who have talked to me about this, is ensuring that the access to the U.K., as it leaves the European Union, continues to be made available to them. That is what this agreement does. I'm pleased that we have reached an agreement to replicate CETA. I'm also pleased that we will be able to do more work, building on this agreement, with a new FTA. We'll begin those discussions within a year.

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

Apologies, I will repeat my question.

Some of our witnesses who were on the department's negotiation team were saying that it would not be a complete copy of CETA, either.

[Technical difficulties]

[Mary Ng, Liberal, Markham—Thornhill, ON]

We can't hear—

[The Chair, Liberal, Judy Sgro]

I'm sorry, Mr. Savard-Tremblay, it's impossible for the interpreters to hear the question and get the translation done. You have about half a minute left. Should we go back to Mr. Barsalou-Duval for that half-minute?

Okay: I'll go back to Mr. Barsalou-Duval for half a minute.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Okay.

Thank you, Madam Chair.

Technical issues sometimes happen.

My question is for the minister.

The interim agreement apparently has no expiry date. However, we will have to vote on this agreement, and we will have to examine it very quickly. Things will go so quickly that we probably won't have time to analyze it.

Wouldn't voting very quickly on an agreement that could be applied for years be problematic?

[Mary Ng, Liberal, Markham—Thornhill, ON]

That is a very important question. I want to assure my colleagues that it is really important that you get the time to do your work. I absolutely respect that. I respect the work of the committee. As I said earlier, officials are working very hard and very quickly, as fast as they can, to make sure that work is completed. I commit to sharing this with you as soon as we possibly can.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Blaikie, you have two and a half minutes.

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

Thank you very much.

Madam Minister, I'm wondering if you can just walk us through the scenario where either the agreement isn't signed in time for December 31 or the enabling legislation doesn't pass through Parliament by December 31. What kinds of contingencies are you putting in place? What does supporting Canadian business, in the event a deal isn't enacted by December 31, look like?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Thank you very much. That is really important.

Of course, we are taking that into consideration. I know that all of us here are committed to doing whatever we can for our businesses by way of the agreement, but I also want to make sure that we have plans in place so that we are minimizing disruptions. We are looking at a range of options that will mitigate the impact of any delays that may occur. I can assure you that we are absolutely doing both pieces of work in tandem, because I think we all agree that what is really important here is to make sure that our businesses get that predictability and the continuity they are looking for.

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

Does there exist already, or have you sought, an understanding from the U.K. government that it won't assess Canadian imports that would qualify for tariff exemptions under the transitional agreement, so that tariffs won't be assessed against them, notwithstanding whether or not enacting legislation passes through the Canadian Parliament by December 31? Likewise, is there a sense that enabling legislation will pass through the U.K. Parliament by December 31?

[Mary Ng, Liberal, Markham—Thornhill, ON]

That is the work that is ahead of us. I can assure you that the U.K. is as committed as we are. I think that both governments do not want to see any undue delays for their businesses on both sides of the Atlantic. We are working very hard and as fast as we possibly can and both of us together are looking at options for how we can minimize the disruption to our businesses and how we might be able to mitigate that. Certainly that work is under way.

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

I'm going to jump in if the chair does not cut me off.

[The Chair, Liberal, Judy Sgro]

You can have a short question.