International Trade Committee on June 6th, 2022

[Brian Masse, NDP, Windsor West, ON]

Thank you, Madam Chair.

I'm going to go back to Mr. Liu with my earlier questioning regarding cargo. I guess it's the transportation and logistics side that I come from. If you expand things, we don't have the capacity.

What is your assessment of customs and so forth in the jurisdictions you're overseeing? We have had challenges on the Canadian side with deficiencies in clearing vessels and so forth. Even if we lower the cargo ship costs, solve container issues and so forth, we can have them parked at sea for weeks on end, and that takes away from what we've worked toward.

Can you give me a snapshot of how the infrastructure is set up in other jurisdictions?

[Henry Chi-Hung Liu]

I have to apologize because I'm not a transportation expert here.

As far as I know, from experience during the discussions at APEC, Taiwan and Canada both have a very advanced single window service. Basically, there is no bureaucracy there. So far, from what I hear from our Vancouver office, the bottleneck is coming from domestic transportation in Canada, and I hope the problem can be solved.

If I find out any other information, I will let you know.

[Brian Masse, NDP, Windsor West, ON]

Don't apologize. It's more of a transportation issue.

Those are my questions, Madam Chair. We set the table, and then we can't deliver due to lack of capacity.

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll move on to Mr. Martel for five minutes.

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

Thank you.

My question is for Mr. Ieraci.

Mr. Ieraci, Singapore imports over 90% of the food its residents consume. We know this. This month, an article reported that Australia was gaining some of Canada’s wheat export market share in Indonesia and China. The Canadian industry is focusing more on the U.S. and Japan. In your opinion, if markets are open with countries in the Association of Southeast Asian Nations, is Canada competitive enough to export these commodities to Singapore?

[Jean-Dominique Ieraci]

That question that would require further study, Madam Chair.

At first glance, most of Canada’s exports to Singapore remain competitive, but not all. Keep in mind that the time difference between Canada and Singapore is exactly 12 hours. I am right on the other side of the world. What comes into play is shipping costs. That’s where some countries closer to the region tend to make gains.

When we talk about food markets, a lot of factors come into play, including our production capacity. There may have been droughts, for example. Climate conditions often have a direct impact on our market share.

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

I have one last question, intended for Mr. Steil.

I would like to know what the Canadian government can do to protect our manufacturing sector.

[Shawn Steil]

Madam Chair, the protection of the domestic manufacturing sector is a bit beyond my brief.

Certainly, manufacturing in countries like Vietnam is an important part of their sector. You can see that by our trade stats. Manufactured products, textiles and furniture occupy the majority of Vietnamese exports to Canada. On the other hand, Canadians are increasingly providing the technology and the expertise for that manufacturing process in Vietnam. That's one thing that I think that we haven't quite fully tapped but can certainly facilitate.

When those supply chains are carved out and when you have channels of trade going back and forth, what might start out as an import into Canada may turn out to be an opportunity to improve that manufacturing process and build partnerships. That's something that we're focused on as well.

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

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Martel.

Mr. Morrissey, you have five minutes, please.

[Bobby Morrissey, Liberal, Egmont, PE]

Thank you, Chair.

I'm subbing in, but I have an interest in the subject.

Commissioner Ieraci, I would like to ask you for a comment on this. The aerospace industry in Singapore is more focused on repair and overhaul and heavy maintenance. At one time Hong Kong was a significant competitor. Given the state of affairs in Hong Kong, how has that impacted the industry in Singapore?

[Jean-Dominique Ieraci]

I think it's a bit too early to say. We do know of companies transferring operations here. The COVID situation in Hong Kong means that travelling to and from Hong Kong has been a challenge.

That said, in the aerospace sector we're talking about very large investments. I cannot say that I've seen anything saying that operations have been moving in a major way or that the centre of gravity is changing. This is something that we might miss over time.

[Bobby Morrissey, Liberal, Egmont, PE]

Given Singapore's competitive position, and in light of changes as they impact Hong Kong, where would you see the best opportunities for growing aerospace trade with Singapore?

I'm familiar with Singapore. I've travelled there on numerous occasions and have met with their aerospace industry. Pratt & Whitney is heavily involved with their industry. Given those changes that will ultimately occur in Hong Kong, where would you see those opportunities within Singapore for Canadian-based companies?

[Jean-Dominique Ieraci]

Madam Chair, it's difficult for me to look into the future. When we look at the present opportunities, they tend to be, as was mentioned, in the maintenance repair and overhaul business. Whether or not those opportunities will grow because of what's happening in the region, not only in Hong Kong but in the region generally speaking, is difficult for me to say.

[Bobby Morrissey, Liberal, Egmont, PE]

How much time do I have left, Chair?

[The Chair, Liberal, Judy Sgro]

You have two minutes and 20 seconds.

[Bobby Morrissey, Liberal, Egmont, PE]

Thank you.

How is Singapore's competitive position? Is it staying consistent in that particular market, or has it been changing?

[Jean-Dominique Ieraci]

Madam Chair, to my knowledge, Singapore is remaining competitive.

Now, one element that worries Singapore and Singaporeans is that generally the cost of doing business has increased here. Obviously, if we talk about aerospace, the initial investment is very expensive and very capital intensive. Once that is done, generally it remains quite competitive locally.

Singaporeans never take for granted a leadership position in anything. When the Government of Singapore sees that they might be worried about the competitive position, they invest—whether it's on training their own population, retraining or support for various industries.

[Bobby Morrissey, Liberal, Egmont, PE]

What's the single biggest factor driving the cost increases in Singapore? What's it attributed to? Is it labour or infrastructure?

[Jean-Dominique Ieraci]

It's a good question.

I'm not sure there's a single one driving the increase in cost. The fact that Singapore is a pretty small island certainly means that space is at a premium. We've seen real estate prices go up and, of course, the cost of living—as we've seen everywhere around the world—has increased. Singapore is very dependent on imports of energy and food, in particular.

[Bobby Morrissey, Liberal, Egmont, PE]

Madam Chair, I have one final question for the ambassador to the Philippines who mentioned potatoes. Being a Prince Edward Island MP, we did have a few issues with it.

Have the issues between Canada and the Philippines been resolved as to the importation of Canadian potatoes, primarily from Prince Edward Island?

[Peter MacArthur]

Indeed, Madam Chair, I'm happy to report a success story.

Over the past two years, the Government of Canada, working with the Government of P.E.I., agriculture Canada and a major company, the Universal Robina Corporation, has been able to test some seed potatoes in a poorer part of the country. In one year, it increased the yield of the potatoes by 27%. It improved the quality, the taste and the look, and there were multiple colours of potatoes. The Minister of Agriculture here was so impressed that he ordered an initial 10,000 metric tonnes of seed potatoes from P.E.I. to come into the country.

Yes, we are helping to improve impoverished parts of the country by helping farmers locally, thanks to Canadian plant genetics from P.E.I. on top of potato exports.

[Bobby Morrissey, Liberal, Egmont, PE]

Is that my time?

[The Chair, Liberal, Judy Sgro]

That's it.

Does anyone have one really important question that they would like to ask some of our distinguished guests?

Mr. Martel.

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

Mr. Ieraci, I will direct the last question to you.

What do you think the government of Canada could do to support our food exporters without undermining the local Canadian market?