Evidence of meeting #62 for International Trade in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cptpp.
A video is available from Parliament.
Chair, International Cheese Council of Canada
We find that Bill C-282 will limit the availability of cheeses from around the world for Canadian consumers. It will make it much more difficult to import cheeses from around the world.
Vice-Chair, International Cheese Council of Canada
We submitted our position, generally stated, and appeared before a House committee a couple of weeks ago. We're not for the bill, unfortunately. We believe that it will also limit Canada's ability to negotiate trade deals outside if it's passed.
We do respect supply management, though. We understand that aspect, but we have a position on that bill. We don't want it to go through.
Conservative
Colin Carrie Conservative Oshawa, ON
I appreciate that. All parties support supply management. I guess it's kind of how we do that.
I want to talk to Mr. Laycraft and explore a little more. I didn't know what to say when you started talking about the progress with the bilateral discussions and Britain being let into the CPTPP.
My understanding is that you've been in conversations with the minister's office for probably at least four years. We've had the minister here, and she has said that she's constantly in communication and things like this, and that there's a plan and they're moving forward with things, but could you let me know how the communications have been with your industry about progress? Are you seeing any progress on the resolution of these issues, such as the beef carcass washing issue?
It sounds ridiculous to me. It sounds like our standard is higher than their standard, and it should be a no-brainer.
Executive Vice-President, Canadian Cattle Association
First of all, I want to clarify that we do get briefed regularly by our negotiators, and as a rule we have some of the best negotiators in the world. It does kind of come back to what Stewart talked about: giving as much strength as we can to those negotiators in a negotiation.
Earlier, we had cautioned them to not just do a transition agreement and bring over the CETA. That agreement was already full of problems. Unfortunately, that advice was not followed, and I think it was a political decision that did that. Likewise, we said, “Don't let the accession conversation get ahead of the bilateral.” We have to get the bilateral done. We shared that position, and that has not been the timing that has occurred, but we do get regular briefs and we do talk regularly with both the agriculture minister and the trade minister. Again, we realize that there is a bigger issue than just beef involved, but we'll continue to provide the advice to get those issues resolved while you have some leverage to get them resolved properly.
Liberal
The Chair Liberal Judy Sgro
Thank you very much.
We go to Ms. Dhillon for five minutes. Go ahead, please.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
Thank you, Madam Chair. I'll start with our witness Mr. Beck.
You have impressive experience in the Asia-Pacific region. I want to ask you specifically about non-tariff trade barriers in Canada's aerospace sector. Are there any big barriers that are stopping Canadian companies from exporting to the region? Is there potential for more growth?
As an Individual
Wow, that's getting pretty specific. In the context of my experience in the markets in Asia I've worked in and also through the Asia Pacific Foundation of Canada, we do fairly good business.
I'll give you an example. A lot of the aerospace products we sell into India are components that go on airplanes. The Indian aerospace industry is growing quite dramatically. I think it had a record week this week in terms of the number of air travellers.
The planes that are flying in India are typically flying with engines made from Pratt & Whitney. I would say that when you're talking about that sector in particular, we benefit from being a supplier into that network. It doesn't really have any NTBs associated with it because Pratt & Whitney does its negotiations with the big plane suppliers, such as Boeing and others.
From my own experience, I don't see aerospace being hampered that much, but I'm not an expert on that particular industry. You'd have to talk to somebody who has more experience in that area.
If you're talking about selling helicopters, for example, we do quite well. Those are from a company in Montreal, and it's one that has been quite successful in the markets I've worked in. That is for the full frame. Again, parts are sold into that market. It's also not impacted in the aftermarket either, in my experience. We do quite well in that particular space.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
I thank you so much for your time.
My next question will be for the Canadian Cattle Association. I want to ask you specifically about beef exports to Japan, Canada's second-largest market for beef. How has the CPTPP agreement in general helped in removing non-tariff trade barriers for the industry? Where have you seen the most growth?
Foreign Trade Chair, Canadian Cattle Association
Thanks for your question.
Japan falls right in behind the United States. It's our second-largest export market.
Recently Japan dropped all the restrictions I talked about earlier in regard to BSE. In a perfect world, if all markets could be similar to Japan's, that would be what we would ask for.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
I'd like to ask you, just in general, how the CPTPP has benefited beef exports.
Foreign Trade Chair, Canadian Cattle Association
Oh, definitely that agreement has favoured the beef industry tremendously.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
That's perfect. I thank you so much.
I like your tie, as well, with the little cows on it. It's very cute.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
My next question is for CAFTA. In 2021 our government agreed to undertake a free trade agreement with the Association of Southeast Asian Nations. Could you tell me what non-tariff trade barriers you would prioritize removing in a potential FTA, and why?
Executive Director, Canadian Agri-Food Trade Alliance
I'll just say there are huge opportunities throughout ASEAN for CAFTA and all of our members. We think that should be Canada's top trade priority right now. The opportunities there are great.
Everything from minimum residue limits to some of the low-level presence non-tariff barriers is key for us. A lot of the biotechnology and some of the emerging issues related to biotech and the coordination around those types of issues will be huge for us. We think removing some of the issues related to beef and meat in general will be enormously beneficial for Canadian agri-food producers.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
That's perfect.
Would you like to add anything else?
Treasurer, Canadian Agri-Food Trade Alliance
I would just add that wheat seeds as well are an issue in that area of the world. We're very thankful for the Indo-Pacific strategy and the Indo-Pacific agriculture office. A lot of those discussions are very technical. We have some of the best negotiators and trade commissioners, but we need more technical expertise. A lot of these non-tariff trade barriers are very technical in nature. We need technocrats, Canadian technocrats, to resolve them.
CPTPP has benefited agriculture hugely. CAFTA represents 90% of all food exported from Canada. That's one reason we want to maintain as high a level as possible.
Liberal
Anju Dhillon Liberal Dorval—Lachine—LaSalle, QC
Wonderful. Thank you so much.
I'll go back to Mr. Beck—
Liberal
The Chair Liberal Judy Sgro
I'm sorry, but your time is up. Thank you very much.
We will move on to Mr. Savard-Tremblay for two and a half minutes, please.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
I believe it was the Canadian Agri-Food Trade Alliance representatives who spoke about the sanitary and phytosanitary rules, or SPS. So I will address them.
When you emphasize the need for science-based decisions, does that mean that the U.K.'s are not up to par or are too strict? How would you make the comparison? Earlier we heard from beef producers, ranchers and exporters. From your side, what is it primarily about?
Executive Director, Canadian Agri-Food Trade Alliance
I'll say quickly that everybody believes in decisions being science-based and that science should be at the heart of any technical barriers to trade and be the basis for food safety. All of those things matter to everybody. They matter to us too.
With respect to the U.K., I think it's a recognition of our system, ultimately, that we say we have the highest-quality and most robust systems in the world, and they should be recognized as such. I think that's one of the core disagreements related to the U.K. discussions right now.
Dave, I don't know if you have anything to add.
Treasurer, Canadian Agri-Food Trade Alliance
The issue around carcass washing, which my colleague spoke to, is just a recognition that we have not addressed the issues that existed with CETA. They have now been replicated through the CPTPP, and we're hoping they get resolved through the bilateral agreement. SPSs are often intentionally used for protectionism, but we do have concerns with the U.K.'s ability to meet Canada's standards, to be honest. It's not the other way around.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC
Are you also requesting that this issue be addressed prior to the adoption of the partnership?
Treasurer, Canadian Agri-Food Trade Alliance
Absolutely. It is CAFTA's position. CAFTA has a long-standing position of growing the CPTPP, but we cannot erode it at all. We have said no to other countries because they can't meet the standards. We need to get our bilateral house in order with the U.K. and then have a discussion about accession talks.