International Trade Committee on Feb. 7th, 2022

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

I imagine that you have also studied the provisions related to potential public contracts. Can we access internal studies on this issue?

[Arun Alexander]

On the legal analysis, we're not in a position to because it would weaken our position with the United States if a case was brought. We can't share legal analysis.

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

Okay. Thank you.

Have you also studied public contracting to determine whether it conflicts with trade rules?

[Arun Alexander]

We analyzed all aspects of the bill that may affect Canada so we will have looked at that, as well.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We move on to Mr. Masse for two and a half minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you.

I'm going to go back to the tariff rate quotas. Some would argue that we give away our dairy until the cows don't come home.

I don't understand how the United States continuing to recognize that we have supply management could be seen as a victory when we actually lost more market access.

Has there been any analysis done now to what that means to our other trade agreements, including the European trade agreement?

[Arun Alexander]

Maybe I'll ask my colleague, Doug Forsyth, to respond to this question.

[Doug Forsyth, Director General, Market Access, Department of Foreign Affairs, Trade and Development]

Arun, thank you. I'm happy to respond.

The dispute we have with the United States with respect to TRQ administration applies strictly to the CUSMA agreement, so, no, we have not done any analysis to determine whether or not others would be interested in what the impacts are.

[Brian Masse, NDP, Windsor West, ON]

Was the agreement done similarly, though, in terms of pattern bargaining—and I don't remember my notes from the European trade agreement—or is it different from what was outlined there?

[Doug Forsyth]

The CETA TRQ administration is different from the CUSMA one, for sure, yes.

[Brian Masse, NDP, Windsor West, ON]

Thank you. I appreciate that because that was one question I had and many people were interested.

With regard to the next stage, though, I know the minister couldn't give us.... Can you enlighten us with maybe more details on this? Maybe it's a little unfair to ask her if she had more details about that right now, but I do know that there is anxiety.

Are there any more details you can provide about what the next step is?

[Doug Forsyth]

Certainly the panel has, as you are no doubt aware, pronounced, provided and after that Canada has stated that we will bring ourselves into compliance with the panel report.

We have done some internal thinking on that. The minister also mentioned working in close co-operation with the sector, specifically the processing and the producer sector. Then we will continue those discussions with the United States to bring ourselves into compliance with the panel report. That's where we are.

We have had more than a couple of discussions with the United States about it already. We are awaiting their reaction to one of the proposals that we have floated and those discussions will continue until they reach a conclusion.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Forsyth.

We move on to Mr. Patzer for five minutes, please.

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

Thank you again, Madam Chair.

My first question will be for whoever wants to answer it. I'm looking for a quick update as far as where we are at with the P.E.I. potato issue.

[Arun Alexander]

I can try to provide a quick update on that.

The Canadian Food Inspection Agency and APHIS are in continual discussion on reopening the market for P.E.I. potatoes to the United States. We understand that Minister Bibeau and Minister MacAulay went down to the United States I think it was last week. They had a very positive discussion with Secretary Vilsack and he indicated that the United States will do an expedited risk assessment with respect to Puerto Rico, which is the first market that would reopen, and as well look at moving forward quickly with a risk assessment of the continental U.S. market. The discussions were very positive and we are optimistic that the issue will be resolved.

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

Thank you for that.

Was there any mention of any exact timelines? It's great to see they're trying to expedite it, which is good news, but is there any reference to a timeline, like by the end of March, beginning of March, anything like that?

[Arun Alexander]

I believe the timelines were weeks, not months, for Puerto Rico and sometime quickly thereafter for the United States. This is the conduct of the risk assessment, which we expect will be positive for Canada.

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

In regard to CUSMA, is there anything else Canadians need to be aware of when it comes to this deal? We have been able to find things like a reference to the three-year tariff-free window for sourcing 75% of lithium regionally. I asked a question about that earlier. There's always some playoff. There are lots of small things like that hidden in trade deals.

Is there anything else that the committee or Canadians in general should be aware of?

[Arun Alexander]

I think CUSMA has been overall very positive for Canada. There have been a number of improvements in CUSMA compared to NAFTA, including bringing the labour chapter and the environment chapter under the agreement, and the improved dispute settlement provisions.

Overall, implementation of CUSMA is going very well. We're standing up committees as we speak and we have been very supportive. Canada and the United States have labour reforms that are being undertaken in Mexico based on the CUSMA negotiation.

Overall, I think the agreement is being implemented very well.

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

I have one more specific question for our grain farmers. Do you or anyone else have anything to add in regard to them?

[Arun Alexander]

I'm sorry. I don't have anything, but perhaps Doug does.

Is there anything you would like to say, Doug?

[Doug Forsyth]

Do you mean with respect to CUSMA or just in general?

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

CUSMA would be great, but if there's anything generally speaking, that would be fine, too.

[Doug Forsyth]

Honestly, I can't think of anything off the top of my head.

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

That's fine. I just thought I would ask, because I know there were a few pieces to CUSMA in regard to that. I thought I would ask a general question.

Ms. Gregory, digging a little bit further into this issue with CUSMA and lithium.... I know that we were first alerted to this issue when I was a member of the industry committee.

Where is industry at with trying to develop a lithium market here in Canada? Do you have anything for us on that?