International Trade Committee on Feb. 13th, 2024

[Viviana Herrera]

In terms of what the Canadian embassy in Ecuador, in Quito, is saying about this, what we find is that, as before, there is still this promotion of mining, of Canadian mining in Ecuador. What we've seen in the last year or so is this tendency to emphasize that what Canada brings to the table is responsible mining—the language of “responsible and sustainable mining”, mining that is focused on women's rights and so on.

However, there's a huge gap between what the Canadian embassy and—I will also add—Canadian mining companies say in Ecuador and what actually happens on the ground. On the ground, communities affected by Canadian mining are seeing a very different story. What they're seeing is that even though there's this talk about human rights and respect towards indigenous peoples, in fact that's not happening.

For example, as I mentioned, in the Amazon, with the Shuar Arutam people, the Canadian mining company Solaris Resources was trying to advance the Warintza project in the Amazon, a vital area in the fight against climate change. The company is trying to advance a project without the consent of the indigenous communities. The company claims to have acquired the consent of the indigenous communities, but they've only talked to two out of 47 indigenous Shuar communities.

In all of this, we see the Canadian ambassador, for example, not denouncing the violence that communities face in Ecuador. Because of this, we see this diplomatic support towards mining companies over the safety and human rights of communities.

One thing that we fear, and that we're very concerned about, is that this situation is going to worsen if a free trade agreement is signed, because that will mean more mining investment in Ecuador and—

[The Chair, Liberal, Judy Sgro]

Thank you very much.

I'm sorry to interrupt you again.

Monsieur Martel, you have five minutes.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you, Madam Chair.

Mr. Walker, in 2022, Quebec's share of total Canadian exports to Ecuador was just 6.8%, as compared with Alberta's 44.6% and Saskatchewan's 26.3%.

Do you think Quebec has maxed out its exports when it comes to grains? Is there something else Quebec can develop to grow its exports?

[Mark Walker]

I would say that there is a distinction between western and eastern wheats. Eastern wheats that are exported from Ontario and Quebec do quite well in Latin America, just based on the dietary preferences and the different end-use products that are consumed there. We do see growth in Latin American countries for wheats and cereals both from Ontario and from Quebec.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Mr. Walker, what are the barriers that the government should focus on in negotiating this trade agreement, to ensure that the interests of Canada's agricultural exporters are protected?

[Mark Walker]

As I said, we see this agreement as a great opportunity to strengthen various processes within Canada's free trade agreements, and we would look to our negotiators as well as the government to build on that. Binding dispute resolution processes and recognition of the importance of science-based decision-making are areas where we would welcome engagement from our negotiators.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

My last question is for you, Mr. Walker.

How likely is a Canada-Ecuador trade agreement to increase market access and the value of Canadian wheat exports?

[Mark Walker]

As I mentioned, there is the 5% tariff on oats. There is a not large but persistent market demand in Ecuador for Canadian oats, so we would expect that it is an abiding and persistent one. We would expect to see that grow with the reduction of that tariff.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you.

That's all for me, Madam Chair.

[The Chair, Liberal, Judy Sgro]

Mr. Sidhu, you have five minutes, please.

[Maninder Sidhu, Liberal, Brampton East, ON]

Thank you, Madam Chair.

Thanks to our witnesses for being here today.

As we all know, South America is a very important, growing region in the world for Canada. Having travelled to the region over the last two years as parliamentary secretary at Global Affairs, I've heard first-hand from Canadian companies operating in the region, and I understand that there are tremendous growth opportunities. Two-way trade is over $20 billion and supports thousands of jobs here in Canada. We have multiple free trade agreements with countries in the region: Chile, Colombia, Costa Rica, Honduras, Panama and Peru, to name a few. Trade in the region creates opportunities for many Canadian sectors, as we heard today, including clean tech, energy, science, technology and innovation, life sciences, and agriculture and agri-food.

We heard Mr. Walker, in his opening remarks, mention that our trade agreement supports over 370,000 jobs directly and indirectly in the sector he highlighted through trade and local as well.

In the growing clean tech and renewables sector, we have jobs that are growing exponentially here in Canada, and our government is focused on building on that growth and momentum to unlock even more markets around the world.

Mr. Walker, you mentioned in your opening remarks that Ecuador presents potential for Canadian trade and industry. Can you speak to the impacts that our ambitious free trade agreements have had that have helped your industry achieve growth and trade diversity through markets around the world?

[Mark Walker]

As I noted in my remarks, we are supportive of the government's trade agenda. I would note that the Canadian cereals industry supports $68.8 billion in economic activity, as well as 370,000 Canadian jobs.

With regard to the potential for growth within this agreement, I mentioned oats previously. I noted also that we are seeing trade increasing, given the tariff-free access that currently exists for wheat. We do see this as a potentially defensive exercise with this agreement, given the slide within the region with existing trade agreement partners Mexico and Peru constructing non-tariff barriers.

Making sure that we get those processes and this agreement right to make sure that we can maintain that market as a top-10 export market for Canadian cereals is very important for us.

[Maninder Sidhu, Liberal, Brampton East, ON]

You mentioned that your organization has travelled to Ecuador almost yearly. What are you seeing on the ground there in terms of your conversations with industry stakeholders?

[Mark Walker]

They love Canadian wheat. Canadian farmers do fantastic work year after year. We're very proud to be able to represent them, along with our industry partners. They have nothing but the best things to say about our products.

[Maninder Sidhu, Liberal, Brampton East, ON]

Do you support the agri-food industry, other than wheat, as well? In the city I represent, Brampton, we have a huge agri-food industry. What are you seeing there? Is there potential there, as well?

[Mark Walker]

Cereals Canada represents farmers, crop development companies, exporters and grain handlers. We see growth in Ecuador for value-added products, so we will work with millers, as well as bakers, in that country to help demonstrate the various uses for Canadian products so that they can make the best use of the products when they receive them. We do support agri-food abroad, as well.

[Maninder Sidhu, Liberal, Brampton East, ON]

Thank you for that.

Madam Chair, how much time do I have left?

[The Chair, Liberal, Judy Sgro]

You have half a minute.

[Maninder Sidhu, Liberal, Brampton East, ON]

Okay.

My next question is for Ms. Price.

Ms. Price, you mentioned the importance of including indigenous peoples in trade agreements to ensure that those groups also benefit from economic prosperity. In our Canada-Ukraine Free Trade Agreement, we do have a chapter on indigenous peoples. How would you feel about that if it was to be included in something to do with the Ecuadorean government?

[Kathy Price]

I'm not qualified to assess the clause you're referring to.

What I said is what is necessary to include in a free trade agreement to ensure that Canada upholds its obligations to human rights and is careful to ensure that trade and investment objectives do not undermine human rights. That's why I've made the recommendations I have.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Baldinelli, you have five minutes, please.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Thank you, Madam Chair.

Thank you to the witnesses for being here today.

It's quite an interesting study in regard to Ecuador being our 51st largest merchandise trade partner, with Canadian exports there at about $600 million, $300 million of which is wheat alone, and then refined oil at about $164 million. Exports from Ecuador to Canada are at about $679 million, with crude oil being number one, at $178 million, and then precious metals at $150 million.

Mr. Walker, you talked about how Cereals Canada is in favour of free trade discussions and looking to see if we could prevent non-tariff barriers in any future negotiations and address issues such as the 5% tariff on oats. In your opening remarks, you talked about Canada being, I think, the largest supplier of wheat to Ecuador in one category. What is that again?

[Mark Walker]

Within Ecuador, Canada has a 60% market share for wheat.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Excellent.

I can understand why you said they love Canadian wheat. In terms of the population and the resources that Ecuador needs for its population, those wheat exports are vitally important, would you not agree?

[Mark Walker]

I would absolutely agree.