International Trade Committee on Oct. 21st, 2024

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

Minister, European lumber exports are not subject to import tariffs in the United States, whereas Canadian ones are. It's hard to understand. We're right next door to the United States, and we trade with them all the time.

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

We need to get to an agreement, and we're working hard on that.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Miao, please go ahead for five minutes.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you, Madam Chair.

I'll be sharing my time with Vance Badawey. I welcome him to our committee.

Before I pass it over to him, Minister, thank you for appearing at our committee again.

With Canada being the largest trading partner of the United States, I, as a member serving the community on the west coast of B.C., know we engage in a lot of cross-border business. What will the impact on the Canadian EV sector be if the federal government does not put a tariff on Chinese EVs, and how will this affect our border trade?

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

I have visited your neck of the woods, and I know how important Richmond is to this relationship between Canada and the United States.

You have seen us take very strong action to make sure that Canada continues to build out this very important sector across the country, not only by building electric vehicles but by building the entire supply chain that is going to create, and is creating, great jobs in Canada.

I'm so pleased to see some really great innovations of late that are taking place in British Columbia, some of which, no doubt, are being looked at very carefully through PacifiCan so that we can continue to develop this supply chain to create those jobs all along the value chain and the supply chain for EVs. It's really important that Canada stands up for fair trade and for open trade. It's really important that Canada protects its workers and its industries against the oversubsidization and overcapacity we are seeing, which have an effect on the global trading system in a distortive way. What you're seeing Canada take leadership on here is addressing those very real issues that we are seeing as a pattern across global trade.

I want to thank my colleague for the input he always gives to me from his domestic companies and investors on how important this is.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you.

I'll pass it over.

[The Chair, Liberal, Judy Sgro]

Mr. Badawey, you have two minutes and 30 seconds.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you, Madam Chair.

Minister Ng, with global supply chains facing unprecedented challenges, from geopolitical tensions to climate change impacts, Canada's role as a key player in international trade is more important than ever. I know you recognize that, especially with your travels of late.

Given the importance of ensuring resilient and innovative supply chains—particularly for critical sectors like manufacturing, agriculture and technology—can you elaborate on the government's current investments in strengthening these supply chains? Specifically, how are we working with both international partners and local industry to future-proof our trade corridors and ensure that Canada remains competitive in the global market?

I'm going to get a bit deeper with my second question on binational collaboration. Given our critical trading relationship with the United States, what efforts are being made to harmonize supply chain strategies between Canada and the U.S., particularly along key trade corridors like the Great Lakes and St. Lawrence regions?

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

What a wonderful question coming from my honourable colleague.

It's really important work, particularly along the border. You and I have talked about this. I have visited many in and around the Great Lakes region about creating a more dynamic and fluid hub that allows for more of that intermodal trade between our two countries.

To your first question, we are really working through Canada's trade architecture to create resiliency in supply chains. I think everyone has seen, especially most recently during the pandemic, how impacted and how fragile those supply chains can be. Canada is the only G7 country with a comprehensive trade agreement with every other G7 country. That predictability of trade serves Canada well. That's why you're seeing investments come through that are not only between Canada and the U.S., or Europe and Canada. Think about the wonderful announcement that was made in Port Colborne just recently by a Japanese multinational company of $1.6 billion for an EV battery plant. That's right around your neck of the woods. This is going to create 500 jobs in and around Port Colborne in Niagara and in Ontario.

It is this part of the work and creating the right conditions through our trade architecture that are giving confidence to other investors and other countries to partner with Canada. Through doing that together, we will have greater resiliency across the globe.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister. I'm sorry to interrupt, but everybody wants their two minutes.

Two and a half minutes go to Monsieur Savard-Tremblay, please.

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

Thank you, Madam Chair.

As we know, China has initiated dispute settlement proceedings with the World Trade Organization by requesting that consultations be opened with Canada on the surtaxes imposed by Canada on certain products of Chinese origin.

I would like you to give us an update, Minister. Where do things stand on that front?

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

Thank you for that.

We are certainly disappointed that this is the action China has taken. We know, as I said earlier, that our agri-food sector is among the best in the world, and that our farmers and our producers are always trade compliant.

The particular matter you referred to is at the WTO. We will work with our sector—as I do with the Minister of Agriculture—and at the WTO to defend it vigorously, as we always do.

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

Of course, we know that a review of the Canada-United States-Mexico Agreement is planned for next year. You will recall that, when the debate and vote on the issue were held in 2020, it was pointed out that the agreement did not give the steel and aluminum sectors the same status or the same protections. Our party initially intended to vote against this agreement, but we reached an agreement with the government following its written promise to closely monitor Chinese dumping in Mexico and its willingness to reopen discussions so that aluminum would be given the same status as steel.

Is this something Canada will request?

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

We are, right now, out talking to Canadians and various sectors on the 2026 review. I think there's an opportunity for us to get into a more robust conversation there.

With respect to your comment about Mexico, Canada is looking at this and paying attention to it very carefully. It's really important that all of us, as trading partners in North America, stand up not only for our obligations that are in the agreement but for actually making sure that the level playing field, which needs to exist for us to be competitive in North America, remains so. I'm happy to have more conversations with you on that piece in particular.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister.

Mr. Desjarlais, you have two and a half minutes, please.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Thank you very much, Madam Chair.

Thank you again to our witness for being present.

Minister, it's really important that we have the opportunity to ask these very important questions. I know there's limited time, so I apologize that, in order to get clarity, I may interrupt.

I apologize to the interpreters as well for what I understand to be a difficulty with the time constraint.

This is an important piece. It's important that we understand, I think, the need for and purpose of an economy, which are—whether it's a small, local, little community, a province, a federal government or our world economy—to serve people and to make certain that we can share resources with those who need them most. I think this is what Canadians believe we build an economy for, so that we can make sure that, when they go home at the end of the day after putting all the work in, they get a good paycheque, have a good job and are contributing to the social good.

Indigenous communities here in Canada have had bad relationships, to put it frankly, whether it was with the Hudson's Bay Company, the very first monopoly—which wasn't all that long ago because our history is quite new in Canada—or more modern iterations.

You talked about the trade architecture and how important that is to Canada. I suggest that the trade architecture is really weak in a certain area, in regard to indigenous peoples and the impact on indigenous peoples by way of our trade agreements. This is historic. Canada had many movements. We don't have to look all that far in our own past to know that the Save the Rainforest campaign against international mining—which Canadians took up in a historic way—is just one example of how much Canadians deeply value land and people's connection to it.

It's also true that this committee here passed a motion—and I thank my colleagues for that motion—in reference to a study on the trade agreement for Ecuador. Recommendation five actually suggests:

That the Government of Canada ensure that no trade agreement between Canada and Ecuador is concluded without full, transparent and effective consultation with, and no agreement is implemented without the free, prior, and informed consent of, affected Indigenous peoples in Ecuador.

I ask again, because I think it's really important, that you see the consensus that this House, committee and, I think, Canadians have, which is that we must respect indigenous peoples' right to free, prior and informed consent, even above Canada's very narrow trade interests. It's more important to protect our integrity and values than it is to ramrod a policy that would damage indigenous people.

Do you agree it's important that we protect indigenous peoples' free, prior and informed consent in relation to projects domestically, but in your portfolio in particular, when it comes to international trade agreements?

[The Chair, Liberal, Judy Sgro]

I'm sorry, Mr. Desjarlais, but your time is up and there isn't sufficient time for the minister to—

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Maybe she could respond in writing.

[The Chair, Liberal, Judy Sgro]

Okay.

I'm trying to complete this round so that Ms. Fortier and Mr. Baldinelli get an opportunity. It will be four minutes and then four minutes for Ms. Fortier, but Minister Champagne is here and we need to get moving on.

Mr. Baldinelli, the floor is yours, please.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you, Chair.

Minister, it took your government four months, after the U.S. imposed tariffs on the Chinese EVs, steel and aluminum, to act. Despite the fact that you announced these tariffs, late last week the government also announced that businesses can now request exemptions from these tariffs on Chinese EVs, steel and aluminum products.

Minister, who asked or lobbied you to make these changes?

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

I think you're talking about remission orders, and I think you would agree that listening to Canadian supply chain partners is really important. Some companies will or could be impacted directly as a result of these tariffs, and if companies—

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Would that be Volkswagen and Stellantis...?

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

—are impacted by these tariffs, small and medium-sized companies, then there should be a remission order process through which we can help them.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Then what's the point of having the tariff in the first place, Minister?

Did Volkswagen and Stellantis request these changes because of your government policy? What's the point of having the tariff in the first place if you're going to allow companies to be exempt from them, essentially, through this remission order?

You have huge investments—half a billion dollars to build the Stellantis plant and $778 million to build the VW plant. Are you now saying to our steelworkers that these two companies can use steel products in the production of their facilities and in their products?

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

Surely, in your question, you're not saying to me that some construction company that might need to retool their supply chain and might need the time to do it, because they're getting imports from China at the moment, wouldn't need some help in order to rejig their supply chain. That is what remission orders are intended to do. They're there—