International Trade Committee on March 12th, 2026

[The Vice-Chair, Conservative, Adam Chambers]

Good morning. I'd like to call this meeting to order. Welcome to meeting number 27 of the Standing Committee on International Trade.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, February 12, 2026, the committee is resuming its study of recent developments in Canada's trade relations with China and with Qatar.

We have with us today, as an individual, Margaret McCuaig-Johnston, senior fellow, University of Ottawa. From the Canadian Cattle Association, we have Andrea Brocklebank, chief executive officer, and she will be joined by Tyler Fulton, president. From the Canadian Federation of Agriculture, we have Bill Prybylski, director, and Brodie Berrigan, senior director of government relations and farm policy, who is joining us online.

Welcome, all.

We will start with opening remarks and proceed to rounds of questions. I should let you know that I have an orange folder. When you're getting close to your five minutes, I'll raise it as a visual cue for you to start to wrap up your remarks. However, you have five minutes.

Ms. McCuaig-Johnston, I invite you to make an opening statement for up to five minutes, and thank you for sharing the statement in advance with the committee.

[Margaret McCuaig-Johnston, Senior Fellow, University of Ottawa, As an Individual]

Mr. Chair, thank you for the invitation to appear today.

I'd like to begin by saying that I am hugely supportive of the Prime Minister's simply remarkable efforts to diversify our trade across the world and to engage with our allies on increasingly important national security issues.

I'm going to be speaking about the importing and manufacturing of Chinese EVs, as well as the sad story of Canadian technology joint ventures in China.

I was surprised that the Prime Minister announced the import of 49,000 to 70,000 Chinese EVs per year, as 70,000 is more than half of all EVs sold in Canada last year. I'm sure the government will be under pressure from the Chinese embassy to raise the number higher. This is the third time Beijing has effectively used canola as leverage to change Canadian policy. It should be the government's top China-related priority to diversify our beleaguered canola companies away from China and towards other countries in the Indo-Pacific, helped immensely by our excellent Indo-Pacific strategy.

On EVs, Human Rights Watch published a report in 2024, documenting the Uyghur forced labour on vehicles and parts made in China. This concerns not just Chinese brands but also Teslas made in Shanghai, as well as VW, Toyota and GM vehicles made there.

The report has been referenced often, most recently in The Globe and Mail, on January 7, before the Prime Minister went to China. It's illegal to import into Canada products made in whole or in part from any kind of forced labour. This has not been rescinded, although a key document has disappeared from the government's website—our implementation of requirements under CUSMA. I'm sure the U.S. government will want assurances that we are actively enforcing our forced labour provisions.

Another problem with their EVs is that their Baidu software, managing the cameras, microphones and location of the cars, stores all their data in China, in both Chinese brands and western vehicles made in China. This would not be a problem for a normal country, but China has shown malign intent towards us.

Chinese companies are required to spy on behalf of Chinese intelligence services, if requested. The way to address this is to strip out the Baidu software when the cars arrive and to replace it with BlackBerry's QNX, which is used by cars made in North America. I don't know how you would strip out all the dozens of parts made with Chinese forced labour.

Manufacturing in Canada could also be a problem. It's not manufacturing as we know it. The Chinese company brings over kits, and it's a highly robotized assembly plant without the large number of unionized jobs we know in Ontario. Brazil's government successfully sued BYD for $10 million last year due to what they called the “slave-like conditions” of 200 Chinese workers, who were brought over and worked seven days a week under armed guards. The Brazilian workers have protested against their low wages and poor working conditions.

The government has announced that we'll also be having joint ventures with Chinese partners, especially in clean energy. I'm not surprised that the Chinese negotiating team wanted this. They've done very well with their Canadian technology joint ventures. I did a six-year study on them. They have key features that put the Canadian partner at a significant disadvantage, when it's always 100% Canadian technology being made.

The Chinese partner must always have the majority share of the joint venture and profits—often 70%, 80% or even 90%. The Chinese partner has operational control and appoints the CEO, the head of hiring and the head of legal, who control the chop, which means control of the company.

Over time, the Chinese partner has various tactics to take over control of the company and...an even bigger share, sometimes the entire joint venture. The partner can then become the Canadian company's international competition abroad due to cheaper Chinese wages. The saddest cases have been in clean energy and clean tech. We shouldn't be doing any more of these joint ventures in China.

I have some suggestions for ways we could better protect our companies if we were to do joint ventures in Canada. We could cover these in the questions.

[The Vice-Chair, Conservative, Adam Chambers]

Thank you very much. You're exactly on time.

I would like to move to Mr. Fulton and Mrs. Brocklebank. I invite you to make an opening statement for up to five minutes.

[Tyler Fulton, President, Canadian Cattle Association]

Good afternoon, Mr. Vice-Chair.

Thank you to the members of the committee for the opportunity to speak today.

My name is Tyler Fulton. I am the president of the Canadian Cattle Association. Through our provincial members, CCA represents approximately 60,000 beef producers across Canada, supporting jobs, economic activity and food security in rural communities across the country.

It’s nice to see committee members again today. We appreciate the opportunity to speak—so quickly after our last time—on today’s study: the trade with China and Qatar. In the world of trade and our geopolitical environment, trade diversification has never been more relevant. From the Canadian beef industry’s perspective, every export market matters.

In the Canadian beef sector, trade contributes an average of $1,587 per animal to the supply chain, representing approximately 43% of fed value. Access to multiple markets isn’t just about increasing Canadian export volumes. It's about increasing the demand for individual cuts and products. Importing countries result in increased demand for cuts that may be underutilized in the North American marketplace. This improves the overall value per animal and can encourage herd growth, which ultimately reduces retail prices for high-demand cuts in Canada while still maintaining overall carcass value.

On behalf of CCA, we are grateful for Prime Minister Mark Carney, Minister Sidhu and Minister MacDonald’s engagement on trade diversification in the Indo-Pacific region, China and the gulf region.

First, we have some comments on China. China is one of the largest beef importers in the world and the second-largest economy globally. Prior to the unjustified closure in beef trade in 2021, we saw continued growth in the Chinese market. Beef exports reached nearly $200 million in 2021. China was Canada’s third-largest beef export market at the time. Canadian beef farmers and ranchers welcomed renewed access into China this January. This was both a diplomatic and a commercial win.

The outcome was the result of a team Canada approach. We were glad to work alongside government, both political and officials, as well as our red meat advocacy office in China. With regained access to China, our trade value is expected to increase by an additional $100 to $120 per animal. Trade diversification adds value, gives beef producers options and helps us hedge against trade uncertainty.

The first shipment of beef arrived in recent weeks. Canadian beef is now available in all seven Costco locations in China. There are important long-term opportunities for beef exports in China, with demand for high-value cuts that add value to each animal. China is also one of the largest consumers of offal. This is a relatively underutilized product in Canada but highly sought after in other markets. Although offal is not currently eligible for export, we look forward to working with government to secure access.

An emerging market for Canadian beef is the gulf region. There is opportunity to grow our exports to gulf countries like the U.A.E. and Qatar. The six gulf states that constitute the Gulf Cooperation Council have the highest standards of living in the Middle East. The region is forecasted to be one of the fastest-growing markets for halal meat consumption due to its population growth, rising incomes, tourism, urbanization and limited local agricultural production.

The gulf region is also one of the most import-dependent regions in the world for its food supply, with increasing demand for beef and beef products. Canadian beef exports to the Middle East are growing, especially into Saudi Arabia, the U.A.E., Bahrain, Qatar and Kuwait. Qatar is one of the markets in which Canadian beef has gained the most value.

The gulf region is a competitive market. For Canada to gain a competitive advantage, it is important to increase funding for halal accreditation and recognition of certifications, maintain a strong presence in the region through trade missions and in market supports and champion the beef industry at home to facilitate long-term growth.

Thank you for your time. I look forward to your questions.

[The Vice-Chair, Conservative, Adam Chambers]

Thank you very much.

Finally, we'll move to Mr. Prybylski and Mr. Berrigan.

[Bill Prybylski, Director, Canadian Federation of Agriculture]

Good morning, and thank you for the opportunity to speak to you today.

As mentioned, my name is Bill Prybylski. I am a farmer from east central Saskatchewan and a member of the board of directors of the Canadian Federation of Agriculture. The CFA is Canada's largest farm organization, representing more than 190,000 farmers and farm families across the country.

A stable, predictable global trading environment is essential for the prosperity of Canadian farm families and rural communities.

China remains one of Canada's most significant agriculture markets, accounting for billions of dollars in annual exports across commodities such as oilseeds, cereals, pulses, pork, processed foods and specialty crops. For many sectors, China is either the largest export destination or among the top three. Any disruption to this market has immediate and far-reaching impacts across the agricultural value chain.

Over the past year, Canadian farmers have faced substantial uncertainty following China's response to Canada's tariffs on electric vehicles, which affected a broad range of products, including canola, canola oil, canola meal, lobsters, peas, crabs and pork. These tariffs have had a direct impact on producers' bottom line, costing around $800 million in the past 12 months.

While Canadian exporters have worked to diversify markets around the globe, none offer the scale or purchasing power of China. As a result, the CFA welcomed the January 16 announcement that Canada and China had reached an agreement providing tariff relief on key agriculture products, including canola seed, canola meal and peas. This is an important step toward restoring stability in a critical market.

We certainly appreciate the efforts of the Prime Minister, the cabinet, the Minister of Agriculture, Canadian officials and provincial leaders who helped advocate for this outcome. Under this agreement, tariffs on Canadian canola seed are expected to fall to 15%, with full relief on tariffs applied to canola meal and peas. This is meaningful progress for producers.

However, key barriers remain. For example, tariffs on canola oil continue to sit at 100%, and pork products continue to face a 25% tariff. These measures limit market access and constrain the full value of Canadian exports.

Beyond tariffs, producers continue to face challenges from non-tariff barriers. Farmers need a trading environment in which rules are clear, consistent and durable, providing conditions that support long-term planning and risk management.

Timing is critical. Many producers across multiple commodities still hold inventory from the 2025 crop year, and the 2026 planting season is rapidly approaching. Predictability in major markets is essential for decisions on rotations, inputs, financing and marketing, but Canada must also strengthen its resilience by reducing our dependence on one or two major export destinations and ensure that farmers have multiple reliable paths to market. By expanding our reach into high-growth markets such as Southeast Asia, India and the Middle East, Canada can diversify trade risk and mitigate the impact of trade disruptions.

Diversification also requires deepening our engagement in markets in which Canada already has a strong presence, such as Japan and South Korea, and fully leveraging agreements such as CUSMA, CETA and the CPTPP. A more diverse portfolio of export destinations strengthens price stability for producers, opens new demand for a wide range of commodities and ensures that Canada remains competitive in a rapidly shifting global landscape.

In addition, Canada's diversification strategy should also include expanding value-added processing at home. Investing in areas such as biofuels and food processing can build new demand for grains, oilseeds, livestock and specialty crops while reducing reliance on external markets. The CFA remains concerned that proposed amendments to the clean fuel regulations do not yet provide the clarity, durability and competitive conditions needed to attract investment and expand domestic feedstock demand, especially in light of rising imports of used cooking oil.

In conclusion, as Canada works to stabilize and expand its trade relationship with China, we urge policy-makers to continue recognizing the essential role agriculture plays in Canada's economy and global competitiveness.

Canadian farmers need predictable, rules-based market access, not only for canola but for all agriculture commodities that depend on China and other international markets.

Thank you for the opportunity to speak to you today. I look forward to your questions.

[The Vice-Chair, Conservative, Adam Chambers]

Thank you very much, sir.

We'll now open the floor to questions. It was a very efficient opening round, and we saved a little bit of time, so we'll have more time for questions.

We will go to Mr. Mantle for six minutes.

[Jacob Mantle, Conservative, York—Durham, ON]

Thank you, Mr. Chair. Thank you to our witnesses for their valuable testimony this morning.

Ms. McCuaig-Johnston, my questions will be directed to you.

As you mentioned in your opening remarks, you have written extensively about concerns with Chinese electric vehicles and their ability to spy on Canadians. I understand some of our allies have taken actions against Chinese electric vehicles. From your research, could you tell us about some examples of actions that allies have taken to protect against this?

[Margaret McCuaig-Johnston]

The U.S. has forbidden their being brought into the U.S. Mexico has sales of Chinese EVs, but a company wanted to build a plant there, and the Mexican government said it wasn't possible.

China has a plant in Brazil as its foothold in South America, but the plant has severe problems with its labour policies and practices. The Brazilians who work there have gone out to protest against the working conditions and low salaries. China wants Canada as its foothold in North America, with the other foothold in Brazil. There's also a plant in Spain. That's in conjunction with a Spanish company that had gone out of business, and it's being brought back into business through a partnership.

Most other countries have forbidden them. Norway and other countries do not see this as a model they want to follow. It's really only in countries that are autocratic or that have failing democracies.

[Jacob Mantle, Conservative, York—Durham, ON]

I understand, for example, that the U.K. military and the Israel Defense Forces have prevented electric vehicles from being used there. Is that right?

[Margaret McCuaig-Johnston]

Yes, that's right.

[Jacob Mantle, Conservative, York—Durham, ON]

Do you believe electric vehicles present a national security threat to Canada?

[Margaret McCuaig-Johnston]

I do. It's not just the vehicle itself. I mentioned that with the Baidu technology, the software gathers the camera, microphone and GPS data, reads it and sends it all back to China, where it can be reviewed. It also downloads all the contents of your phone, even when the car is turned off. That's a real problem. A lot of people might say they don't care if somebody in China is looking at their things, but it's a problem for people like me, who are critics of China. I certainly wouldn't get into an Uber that was a Chinese car.

It's also a problem for the electricity grid, so it's a problem for Hydro-Québec and Ontario's hydro, because the Department of Energy in the U.S. has identified a risk of downloading surges from the vehicles when they're plugged into the grid, causing brownouts and blackouts in cities.

There are a lot of different dimensions to this, and that's why I think the software should be replaced with BlackBerry software.

[Jacob Mantle, Conservative, York—Durham, ON]

Given the concerns you've identified, should Canada take similar actions, such as removing the software, if this is possible? If it's not possible, should Canada take similar actions and ban Chinese electric vehicles from military bases, critical infrastructure, nuclear facilities and research facilities? Do you think this would be a prudent course of action?

[Margaret McCuaig-Johnston]

It would be. We'd have to do it, in fact, because of the risk. We have already forbidden TikTok on government phones for the same reason, so the government has already identified this as a risk. I'm not sure it has identified that it could easily substitute the software and we'd be fine, but the forced labour problem should still be raised.

[Jacob Mantle, Conservative, York—Durham, ON]

This is scary stuff that you've been describing to the committee.

In your view, do Chinese electric vehicles present a Trojan Horse, if I can put it that way?

[Margaret McCuaig-Johnston]

“Trojan Horse” is the term used by the U.S. House committee on China, and that's a bi-party committee. It's raised a lot of concerns, and this is the term used.

Yes, I see the Trojan Horse model as descriptive.

[Jacob Mantle, Conservative, York—Durham, ON]

Thank you.

[The Vice-Chair, Conservative, Adam Chambers]

Thank you very much.

Go ahead, Monsieur Lavoie.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Thank you, Mr. Chair.

I have a quick question for Ms. McCuaig‑Johnston.

You said earlier that, in Norway, for example, there were no Chinese electric vehicles because they were banned. Did I understand that correctly? I may have misunderstood the interpretation.

[Margaret McCuaig-Johnston]

No.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Earlier, when you were talking with my colleague, you mentioned Norway and electric vehicles. Did you say that Chinese electric vehicles weren't being sold because they were banned? Is that what you said? I may have misunderstood the interpretation.

[Margaret McCuaig-Johnston]

No. They have buses, but they've recently taken them off the road because they found that the buses could be stopped from China by the manufacturer, just as the light rail vehicles can be managed. The doors can be opened and closed from Nanjing.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Okay.

The reason I ask is that almost 13% of cars sold in Norway in 2025 were Chinese electric vehicles. In 2024, that percentage was 10%.

I was in Norway last week, and I noticed that there were a lot of Chinese electric cars. I put the question to people in the government, and they told me that the Chinese cars were there, but that it was left to the public to decide whether they wanted to buy them. I was told that people weren't buying many Chinese vehicles, by choice, but that they weren't banned. Chinese cars are present in the Norwegian market. That's why I began to wonder when you said that these vehicles were banned in Norway. I may have misunderstood the interpretation.

[Margaret McCuaig-Johnston]

My understanding is that they're in fleets as opposed to private ownership, but it's very interesting if they are in private ownership. I'll have to go back and look at that. Thank you.