International Trade Committee on March 27th, 2023

[Kyle Seeback, Conservative, Dufferin—Caledon, ON]

Did you discuss the appointment of a special envoy with the United States, as requested by the softwood lumber industry in Canada—yes or no? It's not a trick question.

[The Chair, Liberal, Judy Sgro]

I believe you have asked that question several times already, Mr. Seeback.

I suggest you move on to another question.

[Kyle Seeback, Conservative, Dufferin—Caledon, ON]

Did you or did you not discuss appointing a special envoy or a lead negotiator, with your U.S. counterparts, over the last 15 months, as requested by the Canadian softwood industry?

[The Chair, Liberal, Judy Sgro]

Thank you, Mr. Seeback. Your time is up.

We will move on to Mr. Virani, please, for five minutes.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Thank you very much, Madam Chair.

Minister, I'd like to take you to the auto industry. We know that—and you've referenced this a little earlier, perhaps in the previous hour—there have been historic investments in the auto industry in the last approximately two years, to the tune of about $17 billion in entities like Stellantis and Toyota. Volkswagen has now initiated its first-ever plant outside Germany, in North America, in Ontario, for electric vehicles. There's even one in Oshawa, which is Mr. Carrie's own local riding. The GM plant is seeing a $2-billion investment.

Can you talk about the critical minerals strategy and the communiqué statement made by the Prime Minister and President Biden on Friday, which connects to the attractiveness of the Canadian auto sector as a place for electric vehicle investments?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Thank you very much.

Canada and U.S. have been making automobiles together for 100 years, 50 years of that through a very deliberate integration of our supply chains. A vehicle moves across our borders something like, I think, seven times before it's finally assembled.

Today, we are at a point in time where the vehicle of the future is going to be different. For certain, many vehicles of the future are going to be powered by batteries. The investments that we are seeing today demonstrate and reaffirm this important trading relationship for this very important sector that employs hundreds of thousands of Canadians, certainly here in Ontario, which both you and I represent, but indeed the echo effect of that is across the country.

If you look at critical minerals today, you see that those minerals that will be mined sustainably will come from our far north. It's going to come from our rural communities. We are investing to make sure they have processing capability here in Canada. We are investing so that the downstream manufacturing can also be here in Canada. We're doing this with the United States, because, complementary to that, are things like chips and semiconductors that go into vehicles. It's something that we're working with the United States on.

As I said earlier, we see $250 million, in the first instance, invested by the United States in U.S. dollars for Canadian and American companies through the Defense Production Act, and now another $50 million U.S. for that investment. It is both countries. Of course, in Canada here, with $250 million through the strategic innovation fund....

This is both countries investing and creating the environment for the innovation to occur and for the manufacturing investments to come in for investments in the battery ecosystem and for organizations, like Volkswagen, which for the first time is locating here in North America, in Canada.

This is really important work. Acknowledgement and leadership on how we tackle climate change are at the very core of this. We are able to invest today. The United States is investing in this. We're investing in this together, precisely because we're able to do that.

[Arif Virani, Liberal, Parkdale—High Park, ON]

Thank you, Minister.

In terms of other regions of the country, I know that another aspect of the joint communiqué talks about co-operation on civil nuclear and nuclear fuel. That dovetails with exactly what you were talking about, things such as uranium and low enriched uranium, which is sourced in Saskatchewan. It's one of the principal locations on the planet.

Can you talk a bit about how an agreement such as this, on the responsible use of small modular reactors and accessing low enriched uranium, including in Saskatchewan, helps you fulfill the part of your mandate letter that talks about ensuring that we have a clean energy grid, not just for Canada but for North America, and also that we are helping build jobs in the sustainable clean-tech sector?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Absolutely. Again, it goes to the heart of my mandate and my job, which is to grow out Canadian innovations and enterprises into the international marketplace through our trading partners, in this case the United States, which is so important. It's also why we created the...why we are going to capitalize this clean energy and to create good jobs by having a task force that will accelerate this co-operation on critical clean energy opportunities and on supply chains.

This is really working across the country and certainly with the U.S. so that we can capitalize this and make sure that our market here, between Canada, the U.S. and North America, is the most competitive in the world.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister.

We'll move on to Mr. Savard-Tremblay for two and a half minutes, please.

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

I also want to talk about softwood lumber, minister.

We know that the punitive tariffs are taking a huge toll on the industry. There's even a deal in the works to buy the Quebec company Resolute Forest Products, whose harvesting area covers between one-quarter and one-third of Quebec's forest.

Have you had any discussions with your colleague, the Minister of Innovation, Science and Industry, about this possible transaction, which is a direct result of the trade war with the United States?

[Mary Ng, Liberal, Markham—Thornhill, ON]

I have not had discussions specifically around the sale. However, of course, Resolute is an important company in Quebec. It's an important company that employs many workers in the softwood lumber industry.

I have spoken to their CEO on numerous occasions about how unfair the tariffs are for the sector and for that company. My commitment to working with not only that company but companies in the sector across the country remains so that we can try to find a resolution to this. That's what I continue to work to do.

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

This is a transaction that could happen in what I think is a key sector, yet you say you haven't discussed it with your colleague.

When the auto industry was at risk due to the U.S. Build Back Better plan, you organized a mission to Washington. The government even sent letters threatening the U.S. with countermeasures, but nothing of the kind was done for softwood lumber.

Your mandate letter, which was published a month after the new wave of tariffs, makes no mention at all of the words “softwood lumber”. However, it does include the words “critical minerals” and even the word “coal”, if only to condemn its use. Why the double standard?

[Mary Ng, Liberal, Markham—Thornhill, ON]

I wouldn't characterize it that way. This sector, the softwood lumber sector, the forestry sector, is incredibly important to Canada's economy and to the workers they employ. I want to assure you, my honourable colleague, that the sector can continue to count on the work that we must do to bring the U.S. to the table. We continue to fight against the unjustified tariffs on softwood lumber.

[The Chair, Liberal, Judy Sgro]

Thank you, Minister.

Mr. Cannings, you have two and half minutes, please.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Thank you.

I just want to turn back to the small business part of your portfolio, Minister.

A lot of the small businesses in my riding, particularly those in the tourism industry—which is one of the main economic drivers in my part of the country—took out CEBA loans and other loans during the pandemic because they were shut down. They were among the hardest hit.

The rebound for that has not really happened as fast as people predicted, so they're struggling to repay these loans. They've been asking for an extension on the loan repayment so that they can stay viable and keep the $10,000 of the loan that was guaranteed to them if they repaid on time.

These companies are about to go under if they don't get continued help. As things rebound, they will survive but they need that additional help. I'm just wondering what you have to say to them.

[Mary Ng, Liberal, Markham—Thornhill, ON]

Thank you so much for this question.

It's so important because, during the pandemic, it really was and continues to be the top priority to make sure that our small and medium-sized businesses get support through what was just an unprecedented time.

You mentioned CEBA. Just under a million businesses got that support. We have been hearing from businesses. Some businesses—not all businesses—are well on their way to recovery. That's precisely why we extended the loan deadline to December of 2023.

My colleague, the minister responsible for tourism, and I continue to listen to businesses on this. My commitment is that we'll continue to do that. I hope that what Canadian businesses, and small businesses in particular, have seen from the government is out-and-out support to make sure that they weather the toughest time and get through it. That commitment doesn't change.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister. We all hope that you're feeling better soon.

Thank you to our officials as well for being here.

I now have to deal with the main estimates.

CANADIAN COMMERCIAL CORPORATION

Vote 1—Payments to the Corporation..........$13,000,000

(Vote 1 agreed to on division)

INVEST IN CANADA HUB

Vote 1—Program Expenditures..........$33,986,146

(Vote 1 agreed to on division)

Shall I report the main estimates 2023-24, less the amount voted in interim supply, to the House?

[Some hon. members]

Agreed.

[The Chair, Liberal, Judy Sgro]

Thank you, Minister, again. I hope that you're much better soon and we'll have an opportunity to see you back at committee in person.

Thank you to the officials.

We are adjourned.