International Trade Committee on May 9th, 2024

[Jean Simard]

I have no concerns at all, quite the contrary. As you know, we're no different from any other sector. We have full employment in Quebec and Canada, even more so in the regions. When you look at the workforce statistics of the future, you can see that there will be fewer and fewer people available for the same jobs.

The industry is working very hard to maintain its operations and production capacity for the decades to come. In our sector, as in many others, this means increasing automation where possible.

We're also starting to use artificial intelligence more and more. This is no different from what's being done in China, the Middle East or closer to home, in Europe or the United States. We have no choice but to modernize how we do things. However, this modernization won't come at the expense of jobs. Both will evolve at the same time. The person who will be working as an operator in an aluminum smelter in 10 years will have received completely different training from what's currently being given. Changes will take place based on needs, which will evolve over time.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you, Mr. Simard.

Mr. Guénette, what's the biggest challenge for our SMEs and Canadian companies when it comes to participating in the international market?

[Jasmin Guénette]

I will let Mrs. Auger answer that question, because she's done a lot of work on the issue.

[Michelle Auger]

I hope you don't mind if I answer in English.

The big challenge for small business is the fact that they're not experts in customs procedures. Filling out all the documentation, border transactions and having access to agents all contribute to the issues they experience at the borders.

There are a lot of penalties, and what we've been saying to CBSA for years is that rather than penalizing our small businesses, take an education-first approach to trade because they're not experts in customs procedures.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you.

Do I have enough time left, Mr. Chair? I have a question for Mrs. Smith.

[The Vice-Chair, Conservative, Kyle Seeback]

You have one minute left.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you.

Mrs. Smith, what do you think are the biggest problems facing our rail services right now?

[Lora Smith]

I think our railways right now are facing an incredible amount of regulation, in particular stacking regulations. Investment is what moves supply chains rather than prescriptive regulation. The railways feel that they need a policy and regulatory framework that would encourage investment and allow them to grow, along with their shippers, into global markets.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

I may be imagining things, but I've heard before that, when you're transporting goods, you prioritize certain sectors and others come second and third.

Is that true? Do you favour certain sectors more than others when it comes to your freight cars? Is it based on demand? How do you go about it?

[Lora Smith]

Absolutely. It depends on the demand that comes in. Our freight railways have a common carrier obligation, and they move what's presented to them. They also ensure that there's a system approach so that their cars are moving most efficiently to serve their customers at three coasts. Productivity gains in the rail industry have been incredible in the last decades. At this point, as we measure the revenue-ton miles per employee, we have improved over decades.

So there is no preference. The railways will move their customers' goods as presented to them on the three coasts in Canada as well as the U.S.

[The Vice-Chair, Conservative, Kyle Seeback]

That's all.

Mr. Sidhu, you have six minutes.

[Maninder Sidhu, Liberal, Brampton East, ON]

Thank you, Mr. Chair.

I'd like to thank all of our witnesses for being here today and sharing their important feedback with us. Having spent 13 years in international trade prior to my career in politics, I understand the importance of supply chain resiliency and continuing to invest in our infrastructure to allow for more trade to flow as we build out the economy.

One infrastructure project that always comes to my attention in my riding with the trucking community is the new Gordie Howe bridge. It's the port of entry at Windsor, the busiest border in our country. The Cross-Border Institute at the University of Windsor has done a recent study estimating that the new route will include and save truckers over 800,000 hours, translating into billions of dollars in savings. It means that truck drivers in my riding can get home to their families quicker.

Mr. Laskowski, you mentioned in your opening statement the Gordie Howe bridge. Can you can provide more insights into what this bridge would mean to your members?

[Stephen Laskowski]

As we've said for a number of years, it's probably the most important investment to international trade in decades, the building of the Gordie Howe bridge. In essence, what you have hit on as key is the time savings. Prior to the construction of this bridge, all the trucks literally had to go through the downtown streets of Windsor. That meant stoplight after stoplight, queuing after queuing. That will go away with the Gordie Howe bridge, once it's operational.

Also with the Gordie Howe bridge comes the opportunity for designers to work with the trucking industry, which they have done, to design plazas for modern trade. We will build a modern gateway to our largest trading partner. It's a great example of how to invest in international trade.

[Maninder Sidhu, Liberal, Brampton East, ON]

It's a spectacular bridge to look at and to see how the construction is going. I was in Detroit a few months ago to have a look. I know that many of the truckers in Brampton are looking forward to it.

You mentioned the importance of rest stops. This is something that comes up a lot with my constituents. They talk about the infrastructure down the I-75 in the U.S., or the I-90 or I-95. I'm wondering how those discussions are going with the Province of Ontario, because I know that's along the routes they control.

[Stephen Laskowski]

The province, under the previous minister of transport, Minister Mulroney, made a number of significant investments in truck rest areas. The rest of the provinces are continuing to keep up with that, but the reality is that we are decades behind across Canada, in all provinces. The reality is that this needs to be corrected.

We are calling on all provinces and the federal government to address this, because the reality is that these rest stops are critical for the safety of our drivers and, quite frankly, for their respect. This is where they sleep. This is where they eat and shower. These investments need to be made. Many drivers will tell you that during the COVID crisis they were seen as heroes, and now I think it's time for public policy in the legislatures across Canada and here in Ottawa to show them that respect back by investing in their workplace.

[Maninder Sidhu, Liberal, Brampton East, ON]

Absolutely, and they are heroes. As you know, during the pandemic, they stepped up in huge numbers and continued to bring in the goods we needed and relied on. I think it's important that we continue to advocate to the provinces, and I'll continue doing that with my provincial counterparts as well to ensure they make those investments.

Turning to the CFIB, you mentioned the importance of more awareness to grow trade in Canada, and the Indo-Pacific strategy in fastest-growing region in the world. I'm noticing in my role as the parliamentary secretary for international trade that a lot of exporters are looking to that region. They want to expand into that region. Is CFIB doing internal workshops and information sessions for your members so that they can tap into this market?

[Michelle Auger]

Yes. I mean, we have been working closely with CBSA in terms of trying to educate them on the CARM portal. When it comes specifically to investing in certain markets, there are always opportunities for us to host webinars and educate our members.

That's certainly not something currently on our radar at the time, but educating our members on the programs that exist from the federal level is certainly something that we continue to do. We try to help and support the government, especially when it comes to CanExport and some of the other programs available through EDC for financing. Those are certainly programs that we see some value in, but I think the government also needs to do their part in making sure that small businesses have access to those programs.

[Maninder Sidhu, Liberal, Brampton East, ON]

Absolutely, and I know that our trade commissioner service is doing a wonderful job. Part of my role is to make sure that's expanded and more businesses are able to reach those services. I sat down with the Brampton Board of Trade and the trade commissioner service recently to highlight what they can offer.

Definitely, for the Canadians who are watching, if your product is market ready and you're ready to export, the trade commissioner service has offices across the country that can help your members to export into this new region. I know that there are many fast-growing opportunities. Minister Ng is taking trade delegations to the region quite frequently, and that's important as well. Follow the trade commissioner website as well, as I think that's a very important resource to have.

You mentioned CARM. That's something that we've been working on as a committee here and raising a lot of awareness about. It's a very important program that has been going on for close to 15 years, but I think it's important that we recognize the value of these new markets in the Indo-Pacific, because there are huge opportunities there.

Thank you.

[The Vice-Chair, Conservative, Kyle Seeback]

Unfortunately, that's the time, so perhaps you can get to that at another point.

We'll now go to Monsieur Savard-Tremblay for six minutes.

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

Thank you, Mr. Chair.

Mr. Simard from the Aluminium Association of Canada, I'd like to thank you for being with us. In a March 2024 press release, your association recommended the creation of a North American aluminum trade committee, particularly to “seek reduction and elimination of remaining distortions in North America driven by unfair aluminum trade”.

What are these unfair practices?

[Jean Simard]

The press release was the result of a meeting that took place between the three associations, those of Mexico, Canada and the United States, which are working together to consolidate the aluminum market under the Canada-United States-Mexico Agreement. We're constantly working to ensure that no metal that doesn't comply with the rules of the market crosses the borders of the three countries that are signatories to the agreement. In the past, we've seen this happen in Mexico, where metal entering the country was processed and then ended up on the American market.

This isn't a situation we have in Canada. Our country isn't a destination market, but a production market, exporting to the United States. However, Mexico has traditionally been an entry point for metal from China or Russia, metal that has been discounted so that it can enter the market, including the American market.

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

Thank you for the clarification.

In the same press release, you called for increased regional aluminum import monitoring. You also pointed out that the United States and Canada had put in place new or improved programs to monitor aluminum imports. However, Mexico hasn't done so. I imagine there's a connection with what you've just told us.

What are the implications of the Mexican government's failure to honour its commitment to a monitoring system? What's causing this resistance?

[Jean Simard]

That's a very good question, and it's a very complex answer.

We met in Ottawa just a few months ago, the second in a series of trilateral meetings. We were with our Mexican counterparts. The Mexican authorities were there, as were the Canadians and the Americans. We addressed this issue. The answer we received from Mexico is that the data would still be collected by the Mexican government, but it wouldn't be publicly available because of legislation that was introduced along the way in recent years.

In concrete terms, this means that statistical data on metal imports, which help determine how much metal comes from Russia or China, for example, have not been available or visible since 2021. This category is called “other”. There's no longer any information on this type of metal, which, as we know very well, crossed the Mexican border in various forms at the time.

Canada and the United States are demanding that Mexico put in place a system similar to the otherwise very robust one that Canada put in place in 2019. This system makes it possible to know exactly what metal is coming in, where it comes from, its value, and who the importer is. Mexico responded, on principle, that it was working to implement it, but we'll believe it when we see it.

The other element is that we are calling for the creation of a North American aluminum trade committee between the three countries and the three industry associations, in order to have a space for discussion to address these issues related to trade between the three countries.

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

We also know that a presidential election is due to be held this year in the United States. According to today's news, the prospective Republican candidate has asked the big oil companies to fund his campaign to the tune of $1 million.

[Jean Simard]

It's $1 billion.