International Trade Committee on June 6th, 2022

[Brian Masse, NDP, Windsor West, ON]

I'd like the analyst to do that, but the analyst might want to reach out to the department as well. It's whatever the analyst thinks is the best path forward without putting on too much burden.

[The Chair, Liberal, Judy Sgro]

Go ahead.

[Andrés León, Committee Researcher]

Madam Chair, we can certainly look into that and prepare something for Mr. Masse.

[Brian Masse, NDP, Windsor West, ON]

Thank you so much.

Thank you to the witnesses.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We will move on to Mr. Hoback.

[Randy Hoback, Conservative, Prince Albert, SK]

Thank you, gentlemen.

Thank you, Chair.

It's an interesting group of panellists that we have here today.

One of the first things I look at and want to know about when I see a new trade agreement is where there are synergies and whether it's Canadian companies working with companies in the countries you represent or are working in. I wonder if you've identified any of those opportunities and what you would do to see those opportunities come to fruition.

Whoever wants to start first can go ahead.

[The Chair, Liberal, Judy Sgro]

Mr. Liu, do you want to start?

[Shawn Steil]

I can jump in on that, Madam Chair.

[The Chair, Liberal, Judy Sgro]

Okay. We're getting someone to start.

Go ahead, Mr. Steil.

[Shawn Steil]

The trade agreements, from my perspective, work in a couple of ways. One is the typical reduction of tariffs, which is what most people conceive of when they look at a trade agreement. However, there's a component to the trade agreements that also generates interest in the negotiations themselves and drives parties to try to take a second look.

Where we've already had interest in Vietnam, for example, the CPTPP trade agreement, in particular, has really done its job. You had relationships already with exports of Canadian agri-food and seafood coming into Vietnam, but in a market that was extremely price-sensitive and extremely competitive, the extra tariffs that were on those products for Canadian producers were a limiting factor. As I mentioned in my opening comments, with the elimination of those tariffs in 2019, you started to see the flow of trade coming in and the demand rising fourfold for meat products.

We recently had a visit from the Canadian meat producers association looking to harness that growth. It was that growth that they were starting to see—and it's probably early days for that—which made them realize, “Whoa, wait a minute. Maybe we should be putting some more attention and more promotion into this market”.

When you have those partners who know a bit about the market, see the growth and are ready to jump at it, that means the trade agreement has done more than its job.

I'm seeing the same thing in education, for example. Folks are coming out to Vietnam and seeing that there are more opportunities here. There are no trade barriers that a free trade agreement deals with on education, but the momentum and seeing that trade flow and business starting to flow generates a bit more positivity and brings more into the market.

[Randy Hoback, Conservative, Prince Albert, SK]

Who wants to go next?

[The Chair, Liberal, Judy Sgro]

Mr. Liu, please go ahead.

[Henry Chi-Hung Liu]

Thank you, Madam Chair.

As I mentioned, the trade agreement between Taiwan and Canada will be a lower hanging fruit because, as I said, our agricultural products still have the remaining tariff of more than 10%. You have the best seafood and you have the best agricultural products that are very good for our consumption. I believe that Taiwan's membership in the CPTPP will give a very important boost to your exports.

On the other hand, we have a lot of synergy. For example, on green technology, I forgot to mention that your power company, MPI, is one of the most important offshore windmill suppliers in Taiwan. On that process, I think they have been working with our local technicians to make sure that Taiwan is the most successful demo site for MPI.

MPI has already further expanded to the markets in Korea and Japan. I believe that in the future, we can be your base in east Asia for Canadian companies to explore other markets.

Thank you.

[Peter MacArthur]

In the case of the Philippines, there's a free trade agreement negotiation just beginning. Our major interests are agriculture and agri-food. The country cannot feed itself. Our meat exports, particularly pork and beef, were way up during the pandemic because of African swine fever, but there is a tremendous need for potash fertilizer at the moment. There is a food crisis in the world. Animal feed and animal proteins are areas of interest. We're trying to diversify and it is, too. There are good possibilities in areas such as agri-food and fertilizer.

[Jean-Dominique Ieraci]

To answer your question very directly, yes, absolutely. It is part of our strategy to have a corporate call program, not only to see what the Singapore companies can purchase from us but also what type of arrangement we can have with them. In infrastructure, for example, Singapore companies are major investors in the region. We see them, and we currently have partnerships with several of them to integrate Canadian products and services.

On the financial side, Singapore is also very present. A lot of money flows through Singapore institutions and into the region. In agriculture, Singapore is host to many trading houses. Our ability to export to Singapore, through the CPTPP, means that it's currently used as a bit of a transition and processing point for products, such as pulses. That has led to Singapore companies investing in Canada to secure supplies of the products they need to re-export to the region, but all the way to India, as well.

[Randy Hoback, Conservative, Prince Albert, SK]

One of the concerns we've heard from ag producers was that they needed a rapid response team based out of Singapore to deal with phytosanitary issues that come up. Do you see something that needs to be brought to the ground, so we have our CFIA officials who can respond to an issue, like in Vietnam with wheat, seeds, grain, and stuff like that.

What's your response to that?

[Jean-Dominique Ieraci]

Our current agriculture representatives or trade commissioners are able to handle such questions with Singapore. I can only talk about Singapore, but with regard to the region, I cannot comment.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll now go to Mr. Miao, for five minutes, please.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you, Madam Chair, and thank you to all the witnesses for being here today.

I'd like to direct the first question to His Excellency, Mr. MacArthur.

The Philippines is a very important trading partner, and a vital economic player in the Indo-Pacific region. That's why we have been studying this motion. Just over a month ago, Minister Ng announced that she witnessed the signing of an MOU between Canada and the Philippines to establish a joint economic commission.

I'm wondering if Your Excellency can tell us what your expectations are for this joint economic commission. How do you think it will benefit small and medium-sized business?

[Peter MacArthur]

Indeed, the joint economic commission will put us on a more level playing field with other foreign countries active in the Philippine market. It will meet every two years intersessionally with the joint overall foreign policy consultations that we have every two years with the Philippines.

One reason we wanted to establish this was to add impetus to the free trade agreement negotiation, which is just beginning, and, importantly, to ensure that the voices of business—both the Canadian Chamber of Commerce in the Philippines and other chambers of commerce, business organizations, including the agri-food sector, for example—have a chance to integrate themselves with government officials in order that we can look at greater opportunities between the two governments in trade and, increasingly, in investment. Through investment, you can trade more.

We are looking forward to the first meeting of the joint economic commission this fall. That is something that the Department of Trade and Industry of the Philippines and Global Affairs Canada, on the trade side, are keen to pursue.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you very much.

The next question I'd like to direct to His Excellency, Mr. Steil. First, I want to congratulate you on your recent appointment as Canada's ambassador to Vietnam.

Can you please tell us a bit more about your key priorities as an ambassador, and what you have been working on since your appointment?

[Shawn Steil]

Madam Chair, thanks for the question.

Indeed, it's early days, so formulating priorities is part of what I'm doing. I can tell you that given my experience and my short time here already, there are probably four main areas of work I see pursuing as ambassador to Vietnam.

The first is with respect to rules-based international order and peace and security in the region. Vietnam plays a very important role in the region given its geographic positioning and its role in ASEAN and other organizations. Pursuing like-mindedness with Vietnam where we can based on common interests and using those common interests to pursue joint efforts to preserve rules-based international order is something that would be top of mind for us. That includes consultations on Ukraine, for example, where we are not entirely aligned.

The second would be on supporting Vietnam's efforts to build a more inclusive and open society. Vietnam remains a one-party system. There has been great progress in individual rights and freedoms and in building the institutions that are needed to protect them, but there's more to be done. Having a frank exchange and a collaborative working arrangement with the Vietnamese to support their moves through development assistance and through our own advocacy is going to be a key part of that.

The third, of course, is advancing our trade relationship. It's what we're talking about here today, but it's one that's based on the rules. Canada and Vietnam certainly have a strong foundation. Given the CPTPP and Vietnam's strong support for Canada's negotiations for an ASEAN FTA, we have a strong basis for advancing that rules-based trading relationship.

Finally, there's climate change, which pervades all the pillars of our work here, whether it's development assistance, political advocacy or commercial and technical expertise. Given that Vietnam is one of the world's most vulnerable to climate change, we're here to support and do whatever we can.

I'm out meeting as many people as I can to test those areas of work and to advance them further.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you.

My time is up.

[The Chair, Liberal, Judy Sgro]

Mr. Baldinelli, you have five minutes, please.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you, Madam Chair.

Thank you to the witnesses. My apologies for coming in a bit late and missing your opening comments. Thank you for joining us today.

I'd like to find out a little bit more to build on some of the questions that one of my colleagues asked on the specific role of your trade offices and the trade commissioners within the offices and embassies.

I'm trying to determine how big would a staff be within one of the embassies in Vietnam, for example. Do you find the allocation of funds for that type of service sufficient to meet the needs and the growing demands, especially as we increase our trade opportunities?