Thank you, honourable Madam Chair, for the opportunity to participate in this important work undertaken by the Standing Committee on International Trade: its study of non-tariff barriers in existing and potential trade agreements.
My name is Rushi Ghadawala, and I'm in the business development group at Magellan Aerospace.
Magellan is a global aerospace company that provides complex assembly and system solutions for aircraft and engine manufacturers and for defence and space agencies worldwide. Magellan designs and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, and advanced proprietary products for military and space markets. It provides engine and component repair and overhaul services worldwide. Magellan is a public company whose shares trade on the Toronto Stock Exchange, with operating units throughout North America, Europe and India.
The aerospace and defence sector that Magellan works within is highly regulated with ever-increasing layers of regulatory and security-related requirements. These requirements add to the complexities of the global trade environment. It is important to recognize and address potential barriers in order to progress Canada's aerospace and defence industry globally.
Magellan has a long-standing history of innovation, technological expertise and international collaboration. Our successes, in many cases, have been through the partnership that exists between government and industry. While working on various opportunities, Magellan has recognized a number of aspects that impede the progress of these opportunities and restrict the ease of doing business with major international partners, particularly in the defence and space sectors. Endorsing Canadian-developed solutions by purchasing them domestically has been a tremendous benefit to the Canadian industrial base in the past. This practice needs to be built on, going forward.
The clause in the Canada-European Union Comprehensive Economic and Trade Agreement—or CETA—that permitted European companies access to procurement opportunities within Canada did not provide equal opportunity between Canada and Europe. The removal of this access—since we last sat in September 2022—is a positive step towards levelling the playing field through market access. The European market can be accessed through direct mission collaboration with European counterparts.
Similarly, the bilateral trade agreement between Canada and the USA, the Defence Production Sharing Agreement, has not been as effective in recent years as it was in the past. The agreement exists to allow Canadian companies to participate in the production requirements related to defence in U.S. government opportunities. The Canadian space and defence industrial base has the capability and capacity to support strategic bilateral programs at a time when there are significant geopolitical requirements.
Government procurement practices represent another area of opportunity. Government contracting can play a significant role in advancing the sector's technology and providing opportunities to showcase our capabilities. By developing policy that ensures Canada's participation in multinational programs, such as the joint strike fighter program, or in bilateral programs, such as continental defence and NORAD modernization, the Canadian industrial base can be engaged in progressive solutions as part of a collaborative approach with the United States' industrial base.
As a Canadian aerospace industry, Magellan works on various controlled goods programs. What we have observed as a barrier is the registration of new subcontractors. The time frame associated with the approval process is extensive. This can lead to missed opportunities and even potential loss of revenues.
My conclusion, Madam Chair, is this: Addressing non-tariff barriers is vital for the continued success and growth of our company in a global environment. By addressing these concerns, we can improve the potential of our operations internationally. We look forward to supporting the Canadian government in growing a global trading environment that fosters collaboration, innovation and a prosperous future for the Canadian aerospace industry.
Thank you very much.