International Trade Committee on Feb. 7th, 2022

[Mary Gregory]

Some of the work with respect to minerals would be led by my colleagues at the natural resources department.

I would say we're very open to further investments in what we call the “mines to mobility” space. The government has an agenda to ensure that we're encouraging investments that will take those resources and make them part of the future battery supply chain, but I don't have anything specific. I apologize.

We can certainly follow up and check with Natural Resources.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Thank you.

[The Chair, Liberal, Judy Sgro]

Mr. Miao, you have five minutes.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you, Madam Chair.

I would like to go back to the topic of softwood lumber. I think Mr. Cannon was partially replying to this with regard to the diversification of the forestry market.

Can you give us a bit more information on this approach?

[Arun Alexander]

Madam Chair, perhaps I can begin, and then Mr. Cannon can jump in and add more.

I speak because I was the senior trade commissioner in Japan and was very much involved in diversifying the Canadian forestry sector. We worked very hard on two aspects: increasing the amount of softwood lumber coming into the country, and technology value-added products that could be sold, so we have diversification of the markets as well as diversification of the products.

Specifically, we would promote things like tall high-rises made of wood. There was a great example of a residence at the University of British Columbia. I think it was the tallest wood structure in the world at the time, though perhaps may not be anymore.

We promoted both the diversification of products and of markets, and worked very hard within the Asian trade commissioner service group to do so. The numbers that the minister cited show that it was a very successful effort.

Michael, is there anything you would like to add?

[Michael Cannon]

Thank you, Arun. I will share a few points.

Some of the [Technical difficulty—Editor] government flowed from federal budget 2019, where $251 million in support was provided over three years to encourage innovation and growth in the forestry sector. It included a forest innovation program, an investments in forest industry transformation program, and an expanding market opportunities program, where officials from Global Affairs Canada and Natural Resources Canada worked together on some of those trade diversification opportunities that Arun mentioned. Finally, there is an indigenous forestry initiative.

Many of these programs are [Technical difficulty—Editor] Natural Resources Canada or other departments, so officials from those departments would be more knowledgeable on the specific details.

[Wilson Miao, Liberal, Richmond Centre, BC]

I'd like to follow up with one more question. If Canada and the United States do pursue a negotiated solution to the current bilateral softwood lumber trade dispute, would any provincial government be involved in these negotiations?

[Arun Alexander]

We consult very closely with all of the provinces on the softwood lumber dispute. We're in very close contact, starting with the minister, who met just recently with stakeholders—I think it was on January 13—as he did last summer. We also have a federal-provincial working group that meets regularly. Michael Cannon participates in that very regularly. We are in close contact with the provinces and we would coordinate any sort of negotiation very closely with the provinces, stakeholders and industry.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you very much. Those are all the questions I have.

[The Chair, Liberal, Judy Sgro]

Mr. Lewis.

[Chris Lewis, Conservative, Essex, ON]

Thank you, Madam Chair.

I have just a couple of quick questions. I'm going to go back to the border. I know that in the last round I just made a statement; I didn't ask any questions on that.

In the riding of Essex we have a lot of greenhouses. About 90% of the fresh produce is exported to the United States. When we talk about supply chains, it's tough enough to get temporary foreign workers here into Canada, but it's equally tough to get our produce back to the United States and to Mexico.

Have there been any conversations with the Biden administration and with the other bureaucrats from across the creek, so to speak, with regard to opening up our borders fully so that there's no more discussion about who can go back and forth?

I bring that up—and perhaps it will be a two-pronged approach here—specifically in terms of the supply chain not just with regard to truckers but also with regard to our advanced manufacturing. Windsor-Essex is literally a global leader with regard to auto parts but equally with those auto parts come people, and they have to move back and forth across the border as well. Has that discussion happened with our U.S. counterparts on either front?

That question is for anyone, Madam Chair.

[Michael Grant]

Madam Chair, I'll attempt a bit of a response and then a colleague could join.

In terms of your specific question about people, I would defer to colleagues from Canada Border Services Agency and perhaps IRCC on the management of the people flow. What I can say is that with the United States—and I believe I mentioned this a little bit earlier—we now have a supply chain working group, which was established following the summit between Prime Minister Trudeau and President Biden. That working group is broken down into a number of subsectors. I won't go through them all, but one of them is transportation and logistics. That working group is, right now, through its subgroups, working on each item, and an initial report is to be filed in March.

There's a strong commitment from both governments to work collaboratively—and this working group is a great example of it—in order to improve and increase the resilience of our supply chains across the board. I know that doesn't go to the specific question you asked but I think it's pertinent.

I don't know if another colleague wants to add anything.

[Chris Lewis, Conservative, Essex, ON]

Thank you, Mr. Grant, for that response.

I would imagine this committee would love to see that report once it's tabled, so that would be fantastic. We'll look forward to seeing that in March.

The second question is very vague but I'm very curious. Are there any specific challenges with CUSMA that are unresolved? That, again, is for anyone. I am just very curious as to whether there is anything else that this committee is missing that we should perhaps be discussing here.

[Arun Alexander]

Madam Chair, I have to say that honestly I can't think of anything at this time that is missing from CUSMA. As I said, the implementation of the agreement is going very well. Committees are standing up and discussions are happening on the various chapters. There's a very strong co-operative relationship between Canada, the United States and Mexico at all the committees and in all aspects of the agreement.

While there are irritants—and that's bound to happen when there's a relationship as large as the one Canada has with the United States—there is a very effective and efficient process for dealing with those, and that is going very well as well.

Thank you.

[Chris Lewis, Conservative, Essex, ON]

Thank you, Mr. Alexander.

Madam Chair, those are all the questions I have for now. Thanks so much.

[The Chair, Liberal, Judy Sgro]

Mr. Sheehan, we have two minutes left in the meeting, if you have any outstanding questions.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

I would like to pose a question to the officials.

A few years ago, there was a campaign launched that highlighted and underlined the fact that the duty placed on Canadian softwood was actually a tax on the American middle class, because the demand was high. I would like a comment on whether now, in 2022, the demand is still high. Are Americans still buying it with these duties on it? Back then, I think it added another $10,000 to the purchase of a new home.

That's through you, Madam Chair, to one of our presenters.

[Arun Alexander]

If I may, Madam Chair, perhaps I can answer that question.

I think the honourable member is very correct. The duties on Canadian softwood lumber are a tax on the American middle class, and perhaps even the lower class. The National Association of Home Builders, with whom we stay in very close contact, has highlighted several times that the cost of single-family homes and low-cost housing has increased substantially. I can't remember the exact number, but it's in the tens of thousands of dollars, and perhaps higher than what the honourable member mentioned from several years ago. There is a significant impact.

A number of U.S. senators and congresspeople I believe wrote to the administration highlighting this fact and the harm that the duties are doing to middle- and lower-class purchases in the United States. I think it's a very important issue. It's something that we highlight as part of our advocacy efforts at all times.

Thank you very much.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Sault Ste. Marie has the MNR; the Ministry of Natural Resources is provincially headquartered in the Soo. There are great efforts undertaken by the province in Sault Ste. Marie to work on this issue. British Columbia has provincial folks on this as well, as does Quebec and out in eastern Canada.

Could you make some comments about what kind of efforts you guys undertake with the different provincial authorities in continuing to fight these unfair duties and tariffs?

[Arun Alexander]

We maintain a very close relationship with our provincial counterparts on the softwood lumber issue. We meet regularly with them to discuss strategy, to discuss developments and to discuss ways to move forward. We have a very strong working relationship at the officials level, and I know that the minister takes this issue very seriously and meets with her counterparts. She has done at least two round tables with stakeholders in industry in the last few months, just to gather their input and views on these very important issues.

As the minister said, there's very much a team Canada approach to addressing the softwood lumber issue. We will continue to maintain these good relationships and work together to solve this dispute.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Thank you very much.

[The Chair, Liberal, Judy Sgro]

Thank you to the department officials for very valuable information.

Before closing, members, I want to remind you that any witnesses for the Canada-Ukraine study should be in by six o'clock tonight. That's just a reminder to make sure this is done, for anyone who might have forgotten.

I'd like to thank you all very much.

The meeting is adjourned.