Evidence of meeting #37 for International Trade in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was pork.
A recording is available from Parliament.
Conservative
Jacob Mantle Conservative York—Durham, ON
Just to clarify your comment, it's about 85% nationally and 70% for B.C.
Where does Japan fit into that mix? Is it 5%, 10% or somewhere else?
Vice President and Chief Economist, BC Council of Forest Industries
On a national basis, it's around 5%, but for British Columbia, it would higher, up around 10% by value.
Conservative
Jacob Mantle Conservative York—Durham, ON
The U.S. is still, by far and away, the most important market for the industry. Is that right?
Vice President and Chief Economist, BC Council of Forest Industries
Absolutely.
Conservative
Jacob Mantle Conservative York—Durham, ON
Could you give us your review or update on what the current status is of our disputes with the United States? What is your understanding of the Canadian government's actions in that respect?
Vice President and Chief Economist, BC Council of Forest Industries
Currently, we're facing combined anti-dumping and countervailing duties of about 35%. On top of that, we have a section 232 tariff of 10%. Overall, we're at 45%. That really has had a significant impact on our exports. Our exports, year over year, have declined by about 20%.
We have been engaging with the federal government and saying that the forest sector needs to be a priority in its engagements with the U.S. as part of the negotiations and the CUSMA review.
Conservative
Jacob Mantle Conservative York—Durham, ON
Do you believe or do you feel that the government has made you a priority in that review?
Vice President and Chief Economist, BC Council of Forest Industries
We do now. There were concerns last year, when we felt like some of the other sectors were getting more attention, like steel and aluminum. We really spoke up about our concerns there, and we have seen a change in the federal government.
Conservative
Jacob Mantle Conservative York—Durham, ON
That's good to hear.
You're probably aware that the government recently referred a wood products safeguard inquiry to the Canadian International Trade Tribunal. When the steel and aluminum industry asked for protective measures, they received them by order in council almost immediately. When the lumber industry asked for protective measures, it received a referral to the CITT for a legal process.
Why do you think the government is treating lumber and lumber products differently from steel and aluminum?
Vice President and Chief Economist, BC Council of Forest Industries
I really don't have an answer for that. I'm not aware of the specifics around that issue, so I can't comment.
Conservative
Jacob Mantle Conservative York—Durham, ON
Do you think it's fair that lumber and lumber-consuming industries have to go through a legal process, whereas other industries essentially received exactly what they asked for in terms of protective measures?
Vice President and Chief Economist, BC Council of Forest Industries
Again, I can't comment specifically on that instance. Certainly, having a process is fine, but I can't comment on the specifics of that.
Conservative
Jacob Mantle Conservative York—Durham, ON
That's fair enough.
Where in the industry do you see the most vulnerability right now?
We've read about mill closures, especially in B.C. Where's the next domino that we should be worried about?
Vice President and Chief Economist, BC Council of Forest Industries
It's important to note that the forest industry is very integrated. When you see a sawmill go down, that means there are less by-product, like residual chips, so the pulp mills can also be affected. That's a real concern. You start to see those ripple effects throughout the supply chain. It could be pulp mills. I also mentioned that wood pellets are an emerging product we've been sending to Japan. Wood pellet producers could be affected. There are those ripple effects throughout the sector, because it's so integrated.
Conservative
Jacob Mantle Conservative York—Durham, ON
I know I have a few seconds, so just to understand your answer, you're concerned about pulp mills and wood pellet producers. Are those the ones we should be keeping an eye on?
Vice President and Chief Economist, BC Council of Forest Industries
Absolutely. I'm also concerned about sawmills. It's an integrated sector, so the pulp mills and wood pellet plants could be affected as well.
Liberal
The Chair Liberal Judy Sgro
Thank you very much.
Next, we have Madame Lapointe for five minutes, please.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Thank you very much, Madam Chair.
Welcome to the witnesses. It's always interesting to hear your perspectives, especially on what we're studying right now, namely trade relations between Canada and Japan.
Mr. Roy, I'd like to ask you some very specific questions about pork.
We export our pork fresh. I imagine that pork is vacuum-packed and transported by rail.
How much time elapses between slaughter, cutting and the pork's arrival at its destination?
What is the product's shelf life?
Chair, Canadian Pork Council
I'm having a memory lapse.
Mr. Heckbert, do you know the answer?
President and Chief Executive Director, Canadian Pork Council
I know the answer, yes.
We freeze pork at somewhere between 1°C and 1.5°C. The pork is almost completely frozen, but it's still fresh. From slaughter to market, you're looking at 40 to 45 days. Transport is obviously a fairly long process, given that it's usually done by ship, but this ensures that the pork is still fresh when it arrives in Japan.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Okay.
That means you have 40 days after slaughter. A temperature between 1°C and 1.5°C is fine. That's what's required for storing meat in coolers.
How long does it take to cross Canada? How long might it take to get to the Port of Vancouver?
President and Chief Executive Director, Canadian Pork Council
It takes about four days.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Okay.
Earlier, you mentioned that there could be strikes or issues with railways or port capacity.
Do you need to take out insurance to ensure that you meet the transit time?
President and Chief Executive Director, Canadian Pork Council
The last time we dealt deal with that type of problem, pork suppliers had to use a plane for transportation or find another solution.
We tried to find solutions with the Americans so that our pork suppliers could fulfill their Japanese orders. The strike ended fairly quickly, but every time this happens, our buyers ask us why it only happens in Canada and not in the United States.
In an emergency situation, the effort we have to put in trying to find another way to deliver our goods generates a lot of stress and additional costs. That type of strategy doesn't work in the long term for our industry.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Did you suffer significant losses at that time with respect to your exports?