Thank you for inviting us to participate in the work of your committee. I will speak on behalf of the Aluminium Association of Canada.
Our ecosystem benefits from economic development centred on its natural resources and its vast potential for renewable energy production. As a critical material, aluminum is also a strategic metal subject to numerous trade pressure measures between major trading regions. Often exploited to affect the position of a country hyper‑exposed to global trade, it is directly and constantly affected by global geopolitics.
Canada's low population density relative to its size positions it as a key supplier of high‑value‑added processed resources to its strategic allies. The United States, which is more densely populated, has fostered the development of its aluminum manufacturing sector. The development of both sectors would not be possible without a deep synergy between the two economies. This allows Canada to benefit from its abundant energy resources, while the United States can benefit from its manufacturing process and critical mass. As a result, Canada accounts for 84% of North America's primary aluminum production, with 2.7 million tonnes of exports to the United States. This represents $12 billion in export value, 70% of U.S. imports and 50% of U.S. consumption of primary aluminum.
I will now share with you a few elements of our brief submitted to the Canadian government as part of the supply chain consultation that took place in February. We have submitted this document to the committee. My remarks will focus mainly on the transportation aspect.
Ensuring a consistent regulatory approach across all levels of government is critical, particularly in the area of commercial freight transportation. This collaboration between the various levels of government and Canada's trading partners is all the more important given that Canadian trade routes have suffered in recent years by rail strikes on the east and west coasts and on the St. Lawrence Seaway that disrupt trade flows. These disruptions, combined with pressure on international trade routes during the pandemic, have damaged Canada's reputation as a reliable source within North American value chains.
As I mentioned earlier, in addition to the importance of the Canada‑U.S. border, the industry has also faced border issues with Mexico that have affected supply chains and can make North American surface transportation less competitive than options for importing directly into Mexico.
Consistent trade flows are essential to our industry and to the Canadian economy. In this sense, commercial freight routes must be considered an essential service. To address this, the Canadian government should prioritize strengthening the resiliency of the logistics network for moving goods across the Canada‑U.S. border as part of its regulatory review.
Managing and protecting future trade routes with high economic potential, including the Arctic sea route, should also be a priority for the government. Complementing this policy approach, it would be wise to adopt customized treatment for importers and exporters based on their trade history. The Aluminium Association of Canada advocates the possibility for Canadian economic players who meet all standards and have an exemplary track record to benefit from accelerated or preferential treatment when importing or exporting goods and services. If, for any reason, the flow of goods on a trade route were to be restricted, Canadian players meeting all these criteria should be given priority access.
In response to the growing challenges facing our freight transportation sector, and given the high value of aluminum shipments, we are also proposing a vital policy change. Building on the successful U.S. model, we are advocating for mandatory commercial load marking for all freight vehicles in Canada, as well as the creation of a centralized national vehicle registration database.
These measures will not only improve the security and efficiency of our supply chains, but they are also part of our ongoing efforts to strengthen the sustainability and resilience of our national freight logistics. We believe this streamlined approach is essential to maintaining Canada's reliability in North American value chains, and we look forward to a collaborative effort to achieve these goals.
Regulatory frameworks could also play a key role in encouraging and supporting experimentation with new environmentally friendly freight transport options. As part of the search for sustainable practices, regulations can be developed to encourage the adoption of zero‑emission vehicles for freight transport, thereby encouraging the reduction of carbon emissions in freight logistics. An innovative approach to reducing—