International Trade Committee on Sept. 18th, 2025

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

I'll get into this discussion, but I have to start by telling my colleagues, Mr. Groleau and Mr. Lavoie, that the most beautiful region is the Lower Laurentians.

We used to have the General Motors factory in Boisbriand, formerly Sainte‑Thérèse‑Ouest. I'm sure you remember it.

We also have Paccar and Raufoss, which produces aluminum components, such as rims. I'd like to know if this might have an impact on the market. What I've heard is that, so far, these companies are still exporting their products, but I believe they also do business with companies in southern Ontario.

You said a lot earlier about Chinese EVs.

What steps do you think we should take to fight the Chinese EV market?

[Brian Kingston]

First, we have to maintain the surtax on Chinese EVs. That is critical. That is what will allow this sector to.... We're still in the early stages of the transition to electrification. We have to keep those vehicles out of the Canadian market.

Second, we have to align ourselves with the United States on the approach to China. Right now, the battery supply chain is controlled by China. This is all part of the “Made in China 2025” industrial policy. We have an opportunity to be the supplier of choice in the western hemisphere for next-generation battery materials, but we cannot do that if we allow ourselves to have our industry wiped out by a flood of dumped Chinese products.

Those would be the steps that should be taken.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

If I understand correctly, you think we should keep investing in the battery supply chain to prevent the Chinese supply chain from establishing itself in Canada.

[Brian Kingston]

Yes, absolutely. This is one of the areas where we have a huge natural advantage. Canada is the only country in the western hemisphere with every mineral that goes into a next-generation battery.

Now, we haven't done a great job of getting those minerals out of the ground, but we know we have them. If we can accelerate efforts to mine and process here as other countries try to reduce dependence on China and the Chinese supply chain, we are perfectly positioned.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We have Mr. McKenzie, please, for five minutes.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Thank you very much, Madam Chair.

I'll reflect the thanks that other members of this committee have expressed to the witnesses for their time, both here in Ottawa and online.

Mr. Kingston, to start with, I'm very curious about the position of Canada's partners. The close integration of our industry with the U.S. industry is not one of “us and them”, but all of us together. What are the reactions you're hearing from Canada's partners across the border in the industry?

[Brian Kingston]

Well, yes, there is deep concern with the tariff policy that's being pursued, because it's putting cost on the automotive sector, and the sector has been historically integrated with Canada and Mexico. There are efforts to try to find a way for an off-ramp here, an agreement, so that manufacturers can continue to build on a North American basis. We cannot compete globally if we're fighting amongst ourselves. Unfortunately, that's what's happening right now. I remain optimistic that we'll find a solution, but it's challenging.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Is it fair to say that our U.S. industry partners are suffering as much as the Canadian industry?

[Brian Kingston]

Absolutely. In terms of the costs that are being borne, yes, it's painful here in Canada, and it's painful for Mexican manufacturing, but the U.S. industry is bearing these costs. I think that originally the thinking was that this is all part of a strategy by the U.S. to put up tariffs and then negotiate deals—not permanent.

A lot of companies were basically eating the costs of these tariffs and not passing them through the supply chain. Now, it's looking more like these are going to be medium- to long-term tariffs, so companies will have no choice but to raise costs. Ultimately, that means you'll see less demand and lower production. Yes, this is causing damage everywhere.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

It is also causing higher costs for vehicles on both sides of the border in the North American marketplace.

[Brian Kingston]

There's no other outcome. Costs have to go up if companies are to remain viable and deal with these tariff costs. We've seen estimates of $4,000 to $12,000 U.S. in price increases for new vehicles if these policies stay in place.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

I have to believe those price increases are not very far away.

[Brian Kingston]

No. The hope had been that this would have been dealt with, but here we are in month eight now and the tariffs are still in place, so there will be no other option but to pass the costs on at some point.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Indeed.

Sir, I represent a riding in western Canada, Calgary Signal Hill. Can you tell me about the participation of western Canadian companies in our auto industry? We have a great deal of manufacturing capacity and capability in that part of the world, but I certainly understand our auto industry is fundamentally headquartered here in Ontario and in Quebec.

[Brian Kingston]

The manufacturing base is largely historically in Ontario and somewhat in Quebec. Alberta has, first of all, a huge dealership network and, because of all the resource development, a big market for work vehicles and pickup trucks. On top of that, Alberta has a number of the resources I was talking about, such as huge mineral wealth, particularly in rare earths. There are huge opportunities to expand Alberta's participation in the automotive supply chain.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

That is excellent. Thank you very much.

Monsieur Roy, I believe I understood you to suggest that the encouragement of foreign direct investment in the processing industry would be helpful for your industry and your members. Could you expand on that and give us examples of what kind of encouragement the federal government might offer?

[René Roy]

There is a challenge to putting in place additional capital, especially in this kind of business, where there are partnerships with other companies around the world. Some are of a significant size and could help producers have a healthier market where there are more players, but also, through a good partnership, we would be able to supply additional markets in the world.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Okay.

Go ahead, Mr. Heckbert.

[Stephen Heckbert, Executive Director, Canadian Pork Council]

In recent weeks, my chair and I were in Southeast Asia on a trade mission with the Minister of Agriculture, and these markets are tying food security to food availability in a much more direct way. If you look at a market like Indonesia or Singapore or the Philippines, their production capacity isn't sufficient to produce enough food to meet their own market demand, so they require access, frankly, to Canadian pork, among other commodities.

When we talk about foreign direct investment, it's not that the foreign direct investment is required from a capital perspective in Canada. It is about building that linkage to a market like the Philippines, where there may well be a company interested in ensuring access to that product. The Filipino company's investment may well be tied to having access to the Canadian product and therefore having a preferential treatment for the Philippines market. That's really what we're talking about in terms of that kind of foreign direct investment.

We're not really seeking companies overall to come invest in Canada, but it is about targeting specific markets around the world where they would want more of our product in any case. Let's help them find ways of including that as a defence and food security question.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Thank you. I appreciate that. That, indeed, was a point for clarification. I was anticipating that you were talking about capital being invested in Canada and processing facilities and so on.

[The Chair, Liberal, Judy Sgro]

Thank you very much. You're 50 seconds over, but I thought the answer was really important for us to hear.

Madame Lapointe, go ahead.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you, Madam Chair.

Hello, Mr. Roy.

You said earlier that 70% of your production is exported. You said you export to 80 countries and Japan is your biggest buyer. What are the other countries?

You talked about Europe and CETA, as well as southeast Asia, which we have the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with.

Do you run into the same technical regulation issues there as you do with Europe?

[René Roy]

That's an excellent question.

The answer is no, because the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP, is based on rules and science, so we don't have those issues, which makes our trade relationship much more efficient.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Okay.

You mentioned Japan. What percentage of your exports goes to Japan?