International Trade Committee on June 13th, 2024

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

There are MPs sitting in this House today, according to the NSICOP report, who are working in the best interests of foreign hostile regimes. This is well known around the world. It's embarrassing for Canada, under your government, this has happened, even though your government knew about it since 2020. More importantly, with our trading partners, our allies, what trust would our allies have in any type of agreements with Canada if there are sitting MPs who could possibly be involved in those, and they could be from anywhere?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

I have a point of order, Madam Chair.

I'm sorry—

[The Chair, Liberal, Judy Sgro]

Just a second.

Mr. Hallan, the minister is here to answer questions on the CUSMA review. If you could direct your question there, it would be appreciated. It is the CUSMA review we're doing.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Absolutely, but it does tie in with trade, and she is the trade minister.

[The Chair, Liberal, Judy Sgro]

That's going about it in a very sideways way.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Trade and security is a part of the minister's mandate, is it not?

[The Chair, Liberal, Judy Sgro]

You have 30 seconds remaining. If you could direct it to the CUSMA review, it would be appreciated. That's what the minister is here to speak to.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Minister, how can our allies trust that sitting MPs would be making trades that are in the best interests of Canadians and not for foreign hostile regimes?

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

Maybe a way to answer this, because I'll make it about CUSMA, is that in the last Free Trade Commission, which was just about three weeks ago in Arizona, we committed to working trilaterally to make sure that we stand up to policies or practices that may be unfair and injurious to the Canada, U.S. and Mexico agreement and defend—

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We go on to Mr. Sidhu, please, for five minutes.

[Maninder Sidhu, Liberal, Brampton East, ON]

Thank you, Madam Chair.

Thanks to the minister and the entire GAC team for taking time to join us here today to speak about CUSMA and, of course, trade.

Minister, as you know, Canada last year was number three in the world for foreign direct investments, after the U.S. and Brazil. That means companies from all around the world are coming to Canada, setting up plants, creating industry and creating jobs in thousands of communities across our country. It's because of our collaborative approach, but it's also because of the many trade agreements we have with over 50 countries in the world.

When I was down in Washington, there was a lot of talk around friendshoring and nearshoring, and how we're working collaboratively within the North American market to support industries. Can you perhaps give this committee some concrete examples of how we're supporting industries in North America and working with the U.S.?

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

Well, I'll start at the high level and then perhaps give you one example.

At the high level, it's essential that we continue to collaborate on energy security in the area of building out the green economy—particularly around automobiles and in areas that are really important like semiconductors, AI and quantum science and technology—so we've made commitments to do this and we are doing this.

I think the most interesting tangible example is what CUSMA has provided all three countries. At the recent Free Trade Commission meeting, we were getting an update on all things in the textiles committee. You might wonder why this would be so important and how it would be an example for friendshoring or nearshoring. Well, it's a commitment to work together for North American integration and greater resiliency. What I heard there was that, in Canada, there are two firehose manufacturers that depend on an input, and the input is high-performing technical yarn. It's a very specialized textile that is used in the production of firehoses. Today firefighters are dealing with devastating forest fires that are caused by climate change, so making sure this particular yarn is available for those firehoses is absolutely essential. Canada found itself in a position where its supplier no longer existed. It was specifically through the committee of CUSMA working together that we found and sourced a Mexican supplier that can produce and provide the Canadian firehose manufacturer with this specialized textile.

I use that as an example because it's a practical example that speaks to the commitment of trading partners looking for sourced input within the North American marketplace. The reason this is so important is that, as I think everyone will agree, fighting fires—today more than ever—is very important. Imagine not having the resiliency. Imagine not having that particular set of equipment in Canada or in North America. This is a practical example of how that committee worked to solve that particular practical issue and the resiliency that will come from that.

[Maninder Sidhu, Liberal, Brampton East, ON]

Thank you for that.

You mentioned fighting fires. Of course, many of us are concerned about the environment and climate change. Trade brings with it the potential for support to help countries adapt to the impacts of climate change and to build future resilience. Minister, maybe you can share with this committee how a strong environmental policy can benefit Canadian businesses that want to reach markets around the world. What would be at stake if we didn't have such a strong environmental policy to support these businesses in these regions?

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

Thank you for that. It's a really important question.

You hear a lot about the price on pollution these days. Certainly, on this side, we support the price on pollution. It actually will make Canadian companies more competitive. Why do you say that? The rest of the world is decarbonizing. When the rest of the world is decarbonizing and they have targets to meet in COP or the Paris Agreement, they are absolutely committed to making sure that in their value chain and in their supply chain, they are looking at suppliers and companies and goods that are meeting environmental standards. We've taken leadership for Canadian companies to be able to export globally and for it to not cost them more to export globally.

The reason the price on pollution works, aside from the fact that it also helps eight out of 10 Canadians—that's just fact—is that, when you look at the carbon border adjustment mechanism in Europe, we are pretty confident that with the price of pollution here in Canada, Canadian companies will not be subjected to potential future tariffs that will arise. If you're a climate laggard and you're in a jurisdiction that's a climate laggard, guess what, company? You are going to export and you're going to pay more because you're going to take on tariffs. You're going to potentially take on tariffs like the CBAM or any other tariffs that will be put forward because you are a climate laggard.

So a price on pollution is not only good for Canadians—eight out of 10 Canadians—it's also really good for businesses that will be competitive in the global environment. I'm glad that we have a climate plan. I'm glad we have a price on pollution. It's incentivizing companies to innovate and to go green, and when they do that, those very companies, when they export, are not going to be subjected to future tariffs, which we know are going to come. So, on this side, we have a plan, and that plan is going to work, and it's going to make companies competitive.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We will go to Mr. Blanchette-Joncas for two and a half minutes, and then Mr. Cannings for two and a half, and then we have to shift. The minister will be able to leave.

Please go ahead, Mr. Blanchette-Joncas.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Madam Chair.

Madam Minister, are you considering bringing back an investor-state dispute settlement mechanism as part of the CUSMA review, yes or no?

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

No.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

I will now turn to supply management.

Dairy Farmers of Canada stated on May 30 that they were concerned that even though CUSMA's second dispute settlement panel ruled entirely in Canada's favour on dairy tariff rate quotas, the U.S. could use the review mechanism in this agreement to try to get what it couldn't get through the complaint process.

Other supply-managed producers have also reached out to us with similar concerns. Their fears are justified, particularly because Donald Trump may get re-elected, and he has clearly stated publicly that if he does, he will attack the supply management system.

Do you feel that Bill C‑282, which was introduced by the Bloc Québécois and seeks to protect supply management, must be passed as quickly as possible?

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

Our government successfully defended supply management during the renegotiation of CUSMA. I'm very proud about that. We've been clear. I've been clear. The Prime Minister has been clear. Everybody on the government has been clear that we're going to continue to protect supply management in Canada, so Canadians should be clear about that, Quebeckers should be clear about that.

In the renegotiation of CUSMA, we also protected the dispute settlement mechanism, and it's precisely through that dispute settlement mechanism that there were a couple of panels on this very issue, and a panel has upheld Canada's position. It's an area where we need to work very hard and to continue to work very hard. We've been very clear. We're protecting Canada's supply management system.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

What are you going to do to reassure Quebec dairy producers that supply management will be protected?

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

I think you mentioned a piece of legislation that is making its way through Parliament, and the government has been supporting that. I think the proof is in the pudding, which is that we successfully defended it in the negotiation of CUSMA, and we're going to continue defending the supply management system in Canada.

[The Chair, Liberal, Judy Sgro]

We go now to Mr. Cannings for two and a half minutes, please.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Madam Chair, before my colleague asks is questions, I understand that the minister has a tight schedule and could be leaving shortly. Given the importance of the topic, our most important trading relationship, I was hoping perhaps the minister would consider one additional round of questioning, maybe even for three minutes from each side.

[The Chair, Liberal, Judy Sgro]

The minister was to leave at 4:30. I'm trying to complete the round with Mr. Cannings so that each party would have had another opportunity, which means it would end with Mr. Cannings with the other two and a half minutes.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

That only allows, essentially, two rounds from the main party.