International Trade Committee on Sept. 23rd, 2022

[Brian Innes]

In the world of soybeans, soybeans are the number one agri-food export from the United States into Canada—soybeans and their products—so while we're a major exporter to the globe, we're actually also a major importer of things like soybean meal from the United States, just based on the significant back-and-forth trade that happens—

[An hon. member]

Like our cars.

[Brian Innes]

Like our cars, yes, and like processing facilities in Windsor and across the border in Michigan. Farmers like Brendan can often have the opportunity to sell to the United States as well.

If we look at the trade between the North American partners, we don't export a lot of soybeans to the U.S., if at all. It really depends on market conditions, and Mexico is not an important market for us. It's served significantly by the Americans. They have a much larger soybean production, and it would be a bit like selling ice to the Eskimos, so to speak.

I thank you for the question. We're very much part of an integrated economy.

[Brian Masse, NDP, Windsor West, ON]

Following that, I'm wondering if there's a list of certain trading partners and those that are getting favourable treatment in India, compared to us. If we're looking at how we get involved in more reciprocal trade fairness, I'm curious as to whether we've identified which nations we are doing a lot of trade with that perhaps have that access. I wonder how they might have changed theirs.

For example, if the United States has better access, I wonder what they did to get it.

[Brian Innes]

With respect to India, part of our challenge is that we only have the access that's granted to WTO countries, and we don't have preferential access through a trade agreement, for example, like Australia has just achieved through their early harvest agreement with India. While Australia is not a major soybean exporter and wasn't the origin that I referenced, that challenge is something that we see.

With India, what's happened is they have achieved some agreements that we have not yet. Also, other origins face different treatment because of a lesser-developed status under the WTO than Canada faces.

[Brian Masse, NDP, Windsor West, ON]

That's interesting.

I'll ask Mr. Byrne a question really quickly. How much support do you get for exporting into different markets? Do you do that through your trade association, or do you do that individually? Give us a little glimpse into the challenges you face trying to find new markets.

[Brendan Byrne]

I think, in general, the challenges we face are that we need at times the backing of government to help us with some of these. This is a perfect example of it. We see a market opportunity, but we can't find that alone as individual farmers. Sometimes, even as an association, it's hard. With the backing of government and having, say, Brian from Soy Canada with us, the farmers on the ground here in Ontario, we can collaboratively work together to find some of those pieces.

Otherwise, it's pretty tough on our own to go about that. However, we have a market development group at the Grain Farmers of Ontario that tries to explore some of those and sees where those partnerships make sense.

[Brian Innes]

If I could, I'll add to that briefly. Working with our members, like Grain Farmers of Ontario, we look to leverage our industry investment and our voluntary investment from growers like Brendan and the association into work that we can do collaboratively and internationally. We have support from Agriculture and Agri-Food Canada, but the challenge we face is that our support is much less than what the Americans get, for example. We do the best with what we can, but it works out to be roughly one-twentieth of what the Americans get per tonne of exports to promote their products internationally.

[Brian Masse, NDP, Windsor West, ON]

Really quickly, to follow up, do you work with the different trade offices? Some trade offices closed. Some were stronger in the past. I'm curious about your relationship with the trade offices.

[Brian Innes]

The trade commissioner service and the trade offices are very helpful. I was in touch just yesterday, for example, with those in Malaysia, Indonesia and Vietnam. Those offices are very helpful for what service they're able to provide.

They certainly help, but we could use more investment.

[Brian Masse, NDP, Windsor West, ON]

Thank you.

Thank you, Madam Chair.

[The Chair, Liberal, Judy Sgro]

We will move on to Mr. Baldinelli for five minutes.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you, Madam Chair.

Thank you to the witnesses for being here today.

I'd like to build on the line of questioning that was just concluded by Mr. Masse to Mr. Innes, and perhaps Mr. Byrne, on the role of the trade commissioner and trade commission offices. Several other organizations have come forward to advance the notion of the creation of a Canadian Indo-Pacific diversification office as part of the government's Indo-Pacific trade strategy.

Mr. Innes, I'd be pleased to hear your thoughts on that. What is Soy Canada's position?

[Brian Innes]

When we highlight the opportunity and the need to be more proactive and to have more collaboration between industry and government in market, what that means in practice could be exactly what you're describing as an Indo-Pacific diversification office. From our experience, trade commissioners are helpful. They're also scattered and there is often not as much coordination as there is between industry and government and across government, including regulators.

Trade commissioners are often policy officers or commerce officers without scientific expertise. To solve SPS issues, it is really helpful to have a regulator-to-regulator conversation between scientific experts. At the same time, it's also very helpful to have on-the-ground intelligence from industry as part of those discussions.

I think what you're describing as the Indo-Pacific diversification office, if it embodies those things, could be quite helpful.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you.

Mr. Byrne, do you have any comments on that, or did Mr. Innes touch upon it all there?

[Brendan Byrne]

I think Mr. Innes touched on it perfectly there.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

That's great.

Just to build on that, in June the Minister for Global Affairs, the Honourable Mélanie Joly, established an advisory committee for Indo-Pacific. It's to have representatives from the government, the private sector and civil society organizations. It's “tasked with providing independent perspectives and recommendations on Canada's Indo-Pacific strategy” moving forward.

We're able here in our international trade committee to receive presentations from several organizations. Have they yet to reach out to organizations to get presentations such as this, feedback from grain growers of Ontario or feedback from Soy Canada? Have they yet to have those conversations?

[Brian Innes]

We would welcome that invitation.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Mr. Byrne.

[Brendan Byrne]

I would say the same. For anybody who is looking to speak with us, we're easy to get hold of and would gladly have those conversations about what we can collaboratively do together.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

The hope is that the government will then be reaching out as part of coming forward with this strategy. Again, building on what's been taking place here, in your recommendations what are some of your priority issues that you feel the government should put forward, as part of this new strategy moving forward?

[Brian Innes]

Maybe I'll start.

We certainly see that increased attention to the region, increased investment in the region and increased regulator-to-regulator conversations would be quite helpful.

There are a number of things that come into a strategy. When it comes to boots on the ground, it's not just about identifying people but also about the type of people and the types of interactions, coming back to your question around an office and how we create something that's greater than the sum of its parts. There are elements of that strategy that could be in a trade agreement. There are elements that could be in increased investment and attention. Certainly thinking about boots on the ground, making that sum greater than the parts would be our wish.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Quickly, Mr. Innes, especially when you talk about the great opportunities in terms of ASEAN nations and the growth there—it was said that merchandise trade was $31.5 billion, and most of it was in terms of imports rather than exports—do you find that with respect to some of the concerns you're expressing, maybe that diversification office could provide more assistance with the non-tariff barriers that you're finding, those regulatory hurdles and barriers that get thrown in your way?

[Brian Innes]

Absolutely. The essence of having greater investment is being able to work through more complex issues.

Sometimes these things take time. They take effort and sometimes face-to-face conversation. Having the attention to invest in that can really help yield results, but if we're only half committed, we're not really getting results.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Sheehan, go ahead for five minutes, please.