International Trade Committee on March 27th, 2023

[Colin Carrie, Conservative, Oshawa, ON]

Thank you very much, Madam Chair, and I thank the minister for being here.

Minister, you mentioned in your opening statement that we cannot take rules-based trade for granted, and your work is focused on this. We support our extractive resource companies. A lot of discussion about the environment has occurred, but they've neglected to note the world-leading status of our Canadian firms around the world. It made me think of a few companies in our domestic resource sector, specifically, as you mentioned, our trade with the U.S. and our softwood lumber. Wood is basically the only 100% renewable building material.

I have in front of me a CBC article from March 12, 2016, where Minister Freeland said quite clearly, “We have the U.S. president announcing in the Rose Garden that he believes a deal [in softwood lumber] can and must be done.” The article continues, “Trudeau and Obama instructed Freeland and her American counterpart...to explore all options for solving the trade dispute and report back within 100 days.”

Minister, that was 100 days back in 2016. It's been 2,555 days since then, and given we just had the President here, could you please explain to Canadians why it is not a priority for you to fulfill a softwood lumber agreement?

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

Let me start there. That is not true. Of course it's a priority. Of course it's a priority for me to stand up for the forestry sector and for its workers. Of course I want to negotiate a deal with the United States. I've said that at every opportunity, and I said that directly to the President of the United States when he was here on Friday when we had our meeting.

The unjustified duties against Canadian lumber and softwood are unjustified, and we are working with the industry. I continue to work with the industry. The argument I have made is that American consumers, those who are building homes and depend on our softwood lumber, also deserve to have more affordability in the way those homes are built there.

As I said earlier, with a relationship as large as the one of Canada and the U.S., we, of course, are making a tremendous amount of progress in many areas. This is an area around softwood lumber that we have to keep working on, and I am committed to doing that.

[Colin Carrie, Conservative, Oshawa, ON]

Madam Minister, I hate to contradict you, but basically the Prime Minister refused to raise the matter with President Biden. We know you explicitly told lumber CEOs, because the United States didn't want to speak to the issue of softwood, it would be left off the bilateral agenda during the recent visit.

I was told that the same CEOs gave you a suggestion, on your request, for a special lumber envoy to the United States going back to 2021-22.

Madam Minister, there is literally eight billion dollars' worth of duty deposits from Canadian companies with the United States. We see that Canadian companies, to get around this, are actually buying up American companies.

You're saying that this is a priority. One hundred days to 2,555 days, Madam Minister.... I have these letters from the softwood lumber companies. Can you please explain why the Prime Minister didn't raise it specifically with the President when he was here, if it was such a great priority?

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

Since I was in that meeting, I can tell you that the Prime Minister did raise it, and I followed that up.

[Colin Carrie, Conservative, Oshawa, ON]

Well, he didn't say anything.

The lumber industry has basically talked to you within the last month. I know you rushed a couple of meetings with them. I have a letter in front of me from March 10, and they actually asked you to come up with some solutions. What they have done is come up with a name. As far as solutions, you asked them for a name for a special emissary. Now the name, I understand, is David MacNaughton, who, as we know, is a former ambassador to the United States.

Have you contacted Mr. MacNaughton yet to move forward and to see if he can help? Obviously, this government hasn't had any results for 2,555 days.

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

I don't do rushed meetings. These are meetings that I have on a regular basis with the industry.

I am very pleased to have a good working relationship with the industry. On the heels of what was the presidential visit, just as the Prime Minister, the Deputy Prime Minister and I met with the council of the terrific Canadians who, as part of team Canada, helped us renegotiate NAFTA, I also met with the Canadian forestry sector. It is an honour to do so because I believe that, in doing this work, I do it together with industry. To ensure that I hear directly from them is what I have done and continue to do. Make no mistake—it is a priority for this government. It is a priority that I continue to stand up for Canadian softwood lumber—the industry as well as its workers. It's a priority that we push the United States to come to the negotiating table.

We are ready, and of course, we will always—

[Colin Carrie, Conservative, Oshawa, ON]

Minister, they gave you a name and you failed to act.

[The Chair, Liberal, Judy Sgro]

I'm sorry, Mr. Carrie.

I'm sorry to both of you. The time is up.

Mr. Miao, you have five minutes, please.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you, Madam Chair.

Thank you to the minister and the officials joining us today.

Minister, during the first meeting of the mining study, we heard testimony from the PDAC officials. Earlier this month, you also attended the annual PDAC convention. PDAC is known as one of the leading voices of the mineral exploration and development industry, with thousands of members in Canada and around the world.

Why is it important for you to participate, and what were the outcomes of these meetings?

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

I want to thank the honourable member for that really important question.

PDAC, of course, is Canada's pre-eminent conference for prospectors and developers— essentially the mining industry. It brings together the world. I understand this year's PDAC conference was among the largest it's ever had, with somewhere, I think, around 48,000 participants. This really means the expertise that Canada has developed here in this sector, which is leading in the world, is why the world is coming to Canada, and Toronto in particular, for the PDAC convention.

I had a really good opportunity to meet with many of Canada's mining companies of all sizes. It really reaffirmed, of course, and highlighted their leadership in the way they pursue mining around the world in a sustainable way. I also had an opportunity to meet with a number of smaller companies that really are providing those solutions along that value chain, whether it is batteries and clean energy on mining sites, whether it is water treatment to use less water or whether it is treatment that ensures less dust in the air and noise. There was a range of Canadian innovations and entrepreneurs and smaller-sized companies that go into those value chains.

I often talk about my role as minister for both international trade and small business. It is this nexus that is so important. Mining, in particular, enables Canadian businesses to grow in that value chain, because of the work they are doing and the innovations they are pursuing, and to get into those mining chains of Canadian mining companies around the world. Certainly, this is with our partners as well. I would say it was a productive meeting. Again, the Mining Association of Canada is doing really terrific work in their leadership towards sustainable mining.

[Wilson Miao, Liberal, Richmond Centre, BC]

Thank you.

As you know, critical minerals are extremely important in Canada. Knowing this, our government has a world-class critical minerals strategy.

Can you expand on Canada's global leadership in relation to critical minerals and how this links to global economic performance?

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

Indeed, we are working with our allies and our partners so that Canada and those who respect the rule of law are able to develop these important critical minerals, and so that we can depend on each other as we are able to provide them and supply them throughout the trade supply chain. We have a critical minerals arrangement, of course, with the United States. We have one with the European Union. We have one with Japan. We just recently signed on with the United Kingdom.

This is about working in partnership with those trading partners who respect the rule of law and whom we can count on as we are developing this really important industry, so that we are supplying them with values that are important to Canada and so that we are investing together and we are developing together in a sustainable and responsible way.

My final point is that, given that critical minerals are so much in Canada's north, it's essential that we work side by side with indigenous peoples of this country so that we are doing this together—not only mining sustainably but doing so in a way that has indigenous peoples right at the very heart of it.

My colleague, Minister Wilkinson, is of course doing this in his regional tables with the sector. These are important commodities, and it's also why we invested $4 billion for our first critical minerals strategy. This will create thousands and thousands of good middle-class jobs across the country, particularly in our rural communities and in our north.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

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

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

Thank you, Madam Chair.

Minister, allegations of Chinese interference have been in the news in recent weeks. What do you think their impact will be on international trade between Canadian and Chinese companies? Do you expect them to have an impact on markets, confidence or investment?

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

Let me respond to that in two ways.

Number one, we're looking forward to the work Mr. Johnston, as a special rapporteur, will do. He will do his work as given to him through the terms of reference, to ensure there is confidence in Canada's democratic institutions. That's number one.

Number two, our Indo-Pacific strategy lays out coherency in terms of how we will work with China, particularly around trade. There will be opportunities where we will collaborate with China, such as in the area of fighting climate change. In Montreal, in December, we had a climate biodiversity conference. That had a Chinese presidency, but it was done here in Montreal. Coming out of that, it demonstrates that we have to work as a global community—everyone—to fight climate change.

However, we're going to stand up for our values. We're going to stand up for issues, whether they be human rights or the rules-based trading system. We're going to do that. We've consistently done that, and that won't change. We believe that.

Just like we're seeing in the battery ecosystem—where Canada is now number two, next to China, and we used to be number five—we can compete.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We have Mr. Cannings for two and a half minutes.

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

Thank you.

Minister, I would like to go to one of the other things that NGOs and other people working in the human rights sphere in Canada and around the world have been asking for.

In terms of Canadian companies working abroad, there's some due diligence legislation that would ask these companies to carry out due diligence exercises in order to ensure their operations, or operations their subsidiaries in other countries carry out, are not violating human rights. We could be sure Canadian companies abroad are working the same way they would in Canada and not damaging Canada's reputation abroad. Peter Julian has Bill C-262, which lays this out in very clear terms. It's a very simple bill.

Can you comment on whether you have considered this?

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

Thank you very much for this.

You heard me say this, earlier, and I'll repeat it: It is very important that Canadian companies operate to the responsible business conduct standards we require of them here at home, and that they operate around the world as if they are operating at home. Of course, there are many things we ought to be looking at to make sure those obligations are strengthened, to ensure companies are able to perform to their fullest capability, sustainably and respecting human rights, and that the ESG standards in their organization are considered in their various work, including due diligence. We are taking a very close look at the work before parliamentarians.

What I can say to you is that this is work we could be doing as a country. We are looking at the range of issues making their way through, whether in committees or in civil society, so that we meet that macro commitment of Canada operating in the world as a global leader, in a sustainable, transparent and good governance way.

[The Chair, Liberal, Judy Sgro]

Thank you, Minister.

We'll move on to Mr. Baldinelli for five minutes.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you, Madam Chair.

Thank you to the minister and officials for being with us today.

I'm going to build on some questions posed by one colleague earlier based on your comments, Minister, about building and safeguarding an open trading system.

On October 28, while speaking to this committee, you said you wanted our trade to have high environmental and ethical standards. Your mandate letter of December 2021 contains 21 objectives. Points 13 and 14 speak to this. Point 13 talks of working with the Minister of Labour to introduce legislation to eradicate forced labour. Point 14 speaks of ensuring Canadian companies and Crown corporations uphold the highest environmental and social standards.

Minister, where does that legislation stand, and why do we hold foreign companies and governments such as China to a lesser environmental and ethical standard than our own? Why is that okay?

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

I'm very pleased to be working with the Minister of Labour on our own legislation that will eradicate forced labour from our supply chains. That work is ongoing and progressing. We are certainly supportive of some complementary work that is before the House at the moment in a private member's bill.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

It has been 18 months, Minister.

How about the actions of foreign governments and their actions?

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

In the work with respect to Canadian Crown corporations as well as the Canadian government, to ensure we are upholding the highest standards for companies, you are seeing that—

[Tony Baldinelli, Conservative, Niagara Falls, ON]

How about the actions of foreign governments and their actions?

[The Chair, Liberal, Judy Sgro]

Mr. Baldinelli, please allow the minister to finish her answer.