Chair and honourable members, it's a pleasure to be back at committee. Thank you for having me.
I want to share at the outset the Canadian Chamber's profound shock at the human tragedy currently unfolding in Ukraine, which is certainly nothing short of a strike against the international norms that underpin our democratic societies. Through the chair, I'd like to express our sympathy and solidarity to Mr. Shevchenko, everyone in the Ukrainian government and the Ukrainian people who are currently there right now.
In the few moments available, I want to cover both what the conflict has meant for Canadian businesses and what we should do on the path looking ahead. Besides the obvious geopolitical uncertainty that has been disruptive for Canadian businesses, there are a number of specific impacts that have arisen from the conflict.
Foremost among these has been the aggravation of inflationary pressures on companies. According to the most recent Canadian survey on business conditions, half of businesses expect rising input costs to be a challenge over the coming three months, which is up 8% from the previous quarter. This includes the impact of commodity prices in a variety of products across the market.
There are also the impacts that we've seen on commercial shipping through the Black Sea. Recent reports from various media outlets have highlighted work by Turkey, for instance, to disarm mines in the Black Sea, but there are more reports of other mines that have been placed there. Put simply, this places commercial shipping at risk today and in the future, after the conflict ends.
As reported in the media, there are a number of companies that have pulled back their operations from Russia. The Canadian Chamber has also made its contribution by ceasing to issue certificates of origin for Canadian exports that are bound for the Russian market.
The committee's motion of March 21 asked what we should be doing in response to the conflict from an economic standpoint. I would like to mention five items briefly today.
The first is sanction symmetry. Sanctions mean that western countries will feel pain in order to do the right thing. Therefore, Canada should continue to press its allies to ensure they maintain a high standard and consistent approach in the application of sanctions within their domestic frameworks.
Second, the federal government needs to continue to ensure a clear and regularly updated flow of guidance to businesses. We are in a fluid situation, and I would like to acknowledge the tireless work of the trade commissioner service in keeping up with the flow of announcements. I urge the TCS to continue to do so, to provide companies with the latest information.
Third, Canada should actively support efforts to ensure safe navigation through the Black Sea for commercial traffic.
Fourth, we need better integration between our defence policies and our defence industrial policies. This conflict has underscored the importance of a strong defence industrial base, and an increase in investments in defence will need to be done wisely going forward. We have a once-in-a-generation opportunity with the modernization of NORAD. We need to see stronger government and industry collaboration.
Finally, we need to increase our efforts to contribute to global energy security. The path to net zero becomes feasible only with access to a wide range of energy sources, and we have to step up to the plate if we want Europe to reduce its dependency on Russia. There is equally an opportunity for our critical minerals sector as the world turns away from Russia, but we need to build out more robust supply chains domestically.
In closing, what is happening right now is nothing short of a seismic event whose implications have yet to be fully understood. The conflict presents serious choices for the government, parliamentarians and businesses, in addition to all of our allies. More than ever, Canada needs to project strength at home and abroad. This is a genuine chance to be a leader on the global stage.
I want to thank the committee for initiating this timely study, and I look forward to your questions.