International Trade Committee on April 6th, 2022

[Riva Walia]

Absolutely, the two are different. They all, for a period of time, need to co-habit and move toward the actual net-zero transition, for sure, but it's not going to happen overnight. It's not one or the other for a period of time. We have to learn to live with what we have as we move into newer technologies and newer ways of powering the world.

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

I want to be very sure I understand.

At the end of the day, what you are asking for today is for Canada to be a partner in the import of green technology and renewable energy.

Is that correct?

[Riva Walia]

That is certainly my request, but it's also to partner with companies and countries outside of Canada to accelerate the process.

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

I have understood well, Ms. Walia, and I thank you.

My next question is for the representatives of the two chambers of commerce.

Representatives of Canadian and Quebec companies have told us that they are unfortunately feeling the impact of the necessary sanctions.

Have you received such comments from your members?

[Delphine Adenot-Owusu]

Is the question addressed to me?

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

Yes, Ms. Adenot-Owusu.

[Delphine Adenot-Owusu]

Thank you.

Could you repeat it, please?

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

I was asking you if any of your member companies have been impacted by the sanctions on Russia. I would also like to know what steps you have taken in this regard.

I don't question the need for these sanctions, but we are still wondering how to compensate companies here so that they are not hurt as much as Russia must be.

[Delphine Adenot-Owusu]

As I said earlier, our companies are European companies based in Canada. Obviously, like everyone else, they have to deal with rising energy and commodity prices.

However, it is the head offices of these companies in Europe that deal with the direct consequences of the sanctions. In response and to support European companies, European governments have put in place tax breaks, which inevitably impact European companies here in Canada. These are targeted measures for fossil fuel-intensive companies and industries.

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

Thank you, Ms. Adenot-Owusu.

[The Chair, Liberal, Judy Sgro]

Thank you very much. I'm sorry. Your time is up, Monsieur Savard-Tremblay.

We're on to Mr. Green for five minutes.

[Matthew Green, NDP, Hamilton Centre, ON]

Thank you, Madam Chair.

I want to acknowledge again, to the witness who just returned from Poland, the cognitive dissonance you must feel in contemplating trade matters, having witnessed, even in proximity, the atrocities that are being committed in Ukraine. However, I want to pick up on a line of questioning that I think is an important and integral question, which is Canada's role in the reconstruction and rebuilding of Ukraine.

Mr. Markevych, you touched on investment, the EDC and the agricultural sector. There has been lots of discussion around the movement of goods. I would also like to add, for your contemplation, the idea of visa-free travel and the movement of people, entrepreneurial-class folks, who might be able to find refuge here while doing business abroad.

Could you contemplate, based on your experience and the roles you play here locally, how Canada can best position itself, now, in the future contemplation of the reconstruction and rebuilding of Ukraine?

[Markiyan Markevych]

You touched on all the important points, and I think that's all valid. I think we need to put mechanisms in place as far as what I'm talking about.

I've been part of the CUTIS program with the Canada-Ukraine Chamber of Commerce. I think one of the witnesses mentioned that educating people and educating companies never stops. Companies in Canada are not aware of the benefits they can achieve in Ukraine and what can be done through the ProZorro procurement system.

Prior to the conflict, say six months ago, we were trying to get Canadian businesses in oil and gas, where it's our bread and butter, to do the gas modernization in Ukraine. It's very difficult, almost impossible, so education is the key. Having programs to do—

[Matthew Green, NDP, Hamilton Centre, ON]

On that particular issue, I think you've touched on one where we may even find consensus around the table, which is that there is certainly expertise here on oil and gas. What you've suggested is the need for supports on the modernization of the sector in Ukraine, yet if I heard the testimony correctly, you said it was difficult.

Can you expand on that? I feel, even as a guest to this committee, that one of the recommendations of this study could be something that goes back to the House particular to that point. I'm sure that vital part of infrastructure within Ukraine will be important for their ongoing independence and democracy there.

Can you expand on where you see some of those difficulties coming from and recommendations you suggest that we send back to the House for further supports?

[Markiyan Markevych]

Number one is payment guarantees. Even though it was guaranteed, like all these contracts.... I'm talking about $250 million U.S. per gas transshipment facility that needed to be modernized. There were eight of them. We're talking about multi-million dollar contracts.

The EDC is not working. Companies are afraid of risking their money, even though they're prepayments from the Canadian government for the first batch of work. It's the risk and the unfamiliarity. It's all these little nuances. I think EDC is a big, critical part here to make things start flowing, first of all.

Second of all, it's the education. We need to have programs here with people, with the European chambers and with the Canada-Ukraine chamber. You have enough.... We're talking about free trade between Ukraine and Canada, and you have enough expertise here. Our embassy and trade commissioners in Canadian embassies—I'm a Canadian citizen, so I'm talking about our embassies and trade commissioners—are doing phenomenal work. I've been involved with them over the last eight years, and they're doing phenomenal work, but it's not enough. It's just a small portion of it.

[The Chair, Liberal, Judy Sgro]

I'm sorry, Mr. Green, your—

[Matthew Green, NDP, Hamilton Centre, ON]

I still have 15 seconds left. I have my timer going right here.

Thank you, Madam Chair.

[The Chair, Liberal, Judy Sgro]

You have 15 seconds.

[Matthew Green, NDP, Hamilton Centre, ON]

I'll use them. Thank you.

If you have anything in writing that you'd like to contemplate or you'd like the committee to contemplate, I urge all witnesses who may not have had the time to fully respond to provide their response in writing for the committee's future consideration.

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you.

Thank you very much to all of our witnesses today, again, for very valuable—

[Randy Hoback, Conservative, Prince Albert, SK]

I have a point of order, Chair.

I wonder if we could give Mr. Martel a minute to ask his question, now that there are no technical difficulties with the witnesses he was trying to address.

[The Chair, Liberal, Judy Sgro]

Yes. He can have just one minute, though.

Go ahead, Mr. Martel.

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

Thank you, Madam Chair.

Ms. Walia, I liked your comments about Canadian energy. I would like you to talk more about it.

How could Canadian liquefied natural gas play a key economic and geopolitical role in Europe while meeting greenhouse gas emission reduction targets?

[Riva Walia]

I think we all would agree that we have no choice but to save the planet. The only way we can do it is by making sure we make the energy transition. As I said earlier, Canada has a very strong role to play globally, given that ours is the biggest and most stable energy economy in the world.

I see the opportunity to partner with the European partners, in particular.

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

However, Ms. Walia, just to...