International Trade Committee on May 26th, 2026

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

The members of your association have never talked to you about dumping, a scheme that would make it possible to circumvent North American standards.

Is that correct?

[Brendan Sweeney]

Our members are not focused on aluminum. It sounds like you've heard from the Aluminum Association. They are much better equipped than I am to speak about that issue.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

I'm surprised to see that the members of your association aren't interested in that sector.

How much time do I have left, Madam Chair?

[The Chair, Liberal, Judy Sgro]

You have one minute.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Okay.

Mr. Lee, recent data shows a considerable increase in imports, including a 47% increase for wood floors and a 36% increase for cabinets.

According to some industry representatives, this pressure is largely due to the U.S. tariff measures. That has helped redirect significant volumes of foreign products originally destined for the U.S. toward the Canadian market. This has included products from China.

Have you made the same observation?

[Kevin Lee]

We are seeing a bit of a switchover in supply chains and distribution, as Canadian companies look to find cheaper alternatives and something that's more secure. We are seeing some of this. Where we can do it at a reasonable price that's not impacting affordability and still have the good quality, it does provide a little bit more security. That diversification could be something that serves us well over the longer term.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Go ahead, Mr. Chambers, for five minutes, please.

[Adam Chambers, Conservative, Simcoe North, ON]

Mr. Sweeney, welcome to committee. Congratulations on your appointment to your role.

I think it's a good idea to have a coordinated voice in these discussions. You've made valuable contributions to the discussion today.

Did I hear you correctly? In your opening statement, I believe you said that access to the U.S. is essential to the viability of the auto sector in Canada. Is that correct?

[Brendan Sweeney]

At the scale at which it's operating today, yes, it's essential.

[Adam Chambers, Conservative, Simcoe North, ON]

Is the reverse true?

Without access to the U.S. market, the sustainability and viability of the automobile manufacturing sector in Canada, as it currently stands, is at risk.

[Brendan Sweeney]

For our members, it would change the competitive calculus considerably, and probably not in the right direction.

[Adam Chambers, Conservative, Simcoe North, ON]

You've suggested that, currently, 85% of your members' production goes to the U.S., and the vast majority of the remaining—a high 90%—stays in Canada. Your members do not produce vehicles today that are sent around the world outside of Canada, other than to the United States.

[Brendan Sweeney]

A small number of vehicles are exported to Africa, Mexico and that, but let's just say 99% of what is made by Honda and Toyota in Canada today goes to the United States or Canada.

[Adam Chambers, Conservative, Simcoe North, ON]

Let's take Honda as an example. How many vehicles does it produce in a year? Is it hundreds of thousands of vehicles at that—

[Brendan Sweeney]

It's more than 400,000. In any given year, it's between 400,000 and 430,000.

[Adam Chambers, Conservative, Simcoe North, ON]

About 85% of those go to the U.S., and the rest basically stay here. To the extent that any vehicles are going to other markets outside of Canada, other than to the U.S., we're talking about hundreds or maybe a couple of thousand at most.

I just wanted to make sure that was clear. We have yet to hear any evidence or suggestion from any automaker that other global markets are a realistic option for them, despite the fact that the government seems to believe that this is an option for the sector.

[Brendan Sweeney]

This is straight from the federal government's own numbers. Last year, of the 48 billion-odd dollars' worth of vehicle exports, $45 billion of those exports went to the United States. What is not captured in that number are the vehicles that are produced in Canada that stay in Canada.

[Adam Chambers, Conservative, Simcoe North, ON]

That's right.

[Brendan Sweeney]

Of the $3 billion remaining, you have about $500 million going to Mexico and $500 million going to China, and then the rest is just kind of dribs and drabs here and there. In those export numbers, I suspect there are also some used vehicles.

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much for that clarification.

I welcome being proven wrong on this, but I just don't think the business case exists. Thank you.

Quickly, I have two final questions.

I understand that the government announced a new kind of trade credit system a few months ago. You're still waiting for that to be released or to become operational. Is that correct?

[Brendan Sweeney]

That's correct.

[Adam Chambers, Conservative, Simcoe North, ON]

Okay. I made a mistake yesterday. I think I conflated a couple of things yesterday at the industry committee.

The government made an announcement and the industry has been asking for it, but you're still waiting for it to be implemented.

[Brendan Sweeney]

That's correct.

[Adam Chambers, Conservative, Simcoe North, ON]

It would be helpful to your industry to have that implemented sooner rather than later.

[Brendan Sweeney]

The concept that was advanced is, in my opinion, a very good idea. We've made a submission to a consultation based on that with our opinions on it and some technical elements. It would be great to hear more about it soon.