International Trade Committee on May 28th, 2026

[Kyle Larkin]

It's difficult to tell. Every facility obviously has a different employment structure and different job categories. Thankfully, agri-food products remain USMCA-compliant and therefore tariff-free. That has allowed the pork processors and the beef processors to continue employing the suite of employees they have had since before this turmoil. However, as we look towards the future, if the uncertainty continues and especially if we see any tariffs on agri-food products, including meat products, we're probably going to see some job cuts.

[Jason Groleau, Conservative, Beauce, QC]

We will soon be reviewing CUSMA. We just returned from a trip to Brazil and Argentina regarding another agreement, this one with Mercosur. Frankly, Brazil and Argentina want more market share for beef and poultry.

If we open that door, could that work against us in renegotiating CUSMA? Could it be risky to open a door with Mercosur on this issue? Could it have a direct impact on CUSMA renegotiations?

[Kyle Larkin]

That's a great question.

Yes, absolutely, would be my quick answer to your question. Just two weeks ago, Bloomberg reported that President Trump was going to open the doors and allow all meat to come into the U.S. tariff-free. He heard from his colleagues in the Republican Party on Capitol Hill, and a day later, Bloomberg reported that they were rolling back that program and weren't going to be doing that.

There's a lot of sensitivity in the U.S. regarding food affordability and meat affordability, just like there's sensitivity in Canada, but that doesn't mean we need to carve out and really impact our beef sector. We have a choice here in Canada: We either bring in cheap imports or have a strong, growing beef sector, and that includes our ranchers, our farmers and our processors.

In 2025, we imported about 36,000 tonnes of beef from Mercosur countries. About 20,000 of those tonnes came in at a tariff of 26.5%. That shows you how competitive beef from places like Brazil and Argentina can be.

We're working fairly closely with our chief trade negotiator to ensure that if an agreement is signed with Mercosur, we don't sacrifice beef for other sectors, and instead we create very specific tariff rate quotas specifically for lean trim, as we have a demand for lean trim here in Canada to produce extra lean and lean ground beef. Canadians have an insatiable appetite for lean ground beef, but we cannot allow more primals to come into Canada, meaning tenderloins, strip loins, etc. We have a hard red line on that and we'll continue to have that.

[Jason Groleau, Conservative, Beauce, QC]

Thank you for your answer.

While renegotiating CUSMA, could we find ways to better harmonize trade with the United States and Mexico? Do you have any suggestions for us to help you grow?

[Kyle Larkin]

That's a good question.

There are two answers to your question: yes and no.

First of all, I would say that if CUSMA is simply renewed in its current form, we would be more than content to have that, especially if it's a 16-year renewal, which is what our industry and the American agri-food industries are pushing for.

Are there areas that could be improved? Absolutely, there are. One I would highlight is the RCC, the Regulatory Cooperation Council. We need to get that back online. We need to get that work recommencing. There's a lot of regulatory harmonization that we can have between Canada and the U.S.

As I look towards Mexico, there is a role for the CFIA and the Government of Canada to play to ensure that our inspection systems have equivalency and that there is inspection consistency, because sometimes when we send beef products or pork products down there, we see that one inspector decides one way and another Mexican inspector decides a different way. That has a real impact when our companies are spending dollars to export product down to Mexico, only for it to be sent back to Canada. We had a case about two months ago of beef from Manitoba that was sent down to Mexico, reached the border and then had to be sent back because of inspection inconsistencies.

[Jason Groleau, Conservative, Beauce, QC]

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Go ahead, Madame Lapointe.

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

Thank you very much, Madam Chair.

I'd like to welcome the witnesses. This is a very interesting conversation.

Mr. Trottier, I believe you are in the riding of Beauport—Limoilou, represented by our colleague Steeve Lavoie, who could not be here today due to a committee scheduling conflict. He also serves on the Standing Committee on Finance. He asked me to formally convey his apologies to you.

From what I understand from our discussion, the Quebec government has stopped offering certain programs in which you participated, leaving you in a difficult financial situation. How could the federal government, in collaboration with the provincial government, help you address this situation?

[Guy Trottier]

Steps have already been taken with the federal government. We're talking about the strategic response fund, among other things. Our company has therefore met with federal government officials, and productive discussions are already under way.

Certainly the provincial government, as you know, has been restructuring since Mr. Legault stepped down. So things are on hold for a few months at the provincial level.

That rate rebate program was truly beneficial, as it funded up to 40% of projects through electricity rebates. A company like ours consumes over $50 million worth of electricity per year. So it's very helpful when a program like that can assist us with a project.

As I mentioned earlier, the global industry is modernizing, of course, and becoming increasingly competitive. We simply cannot stop modernizing our infrastructure—both for the products we manufacture and for our domestic competitiveness. It is essential that we continue to improve because, if we don't, others will easily surpass us. That is what we are seeing in the world right now.

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

I see. Thank you.

So the goal is to strengthen your company's competitiveness, but also that of companies like yours across Canada.

[Guy Trottier]

Absolutely.

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

Such strengthening would be provided through the strategic response fund you mentioned earlier—is that so?

[Guy Trottier]

Among others.

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

Okay. Perfect.

I have a question for the Canadian Coalition of Aluminum Extruders.

Mr. Neil, you mentioned earlier that you are involved in the aerospace, automotive and architectural sectors. Are you familiar with the Raufoss Technology company?

[Jamie Neil]

We do not supply to them, but we may have colleagues who do.

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

Very well.

In my riding, that company manufactures aluminum rims. I get the impression that the automotive and aerospace sectors are doing well.

Earlier, you mentioned the dumping of parts coming in from Thailand, Vietnam, Malaysia and Turkey. In which sectors are these dumping countries predominantly active? Could it be in architecture, which you mentioned earlier?

[Jamie Neil]

Automotive is tougher to dump into because there are stricter regulations. There are higher barriers to entry, and the tier ones that sit in Canada today all require specific certifications to supply into the automotive industry. It will be one of the last industries where we'll see dumping. It's more the standard shapes, the racking systems, the architectural materials and the building supplies. It is easier to dump into those spaces. Think of the transition between your hardwood flooring and your tile flooring, or the finishing piece that goes beside the backsplash in your kitchen.

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

You mentioned earlier that there were layoffs, but I can tell you that Raufoss, a company that makes aluminum rims for cars, is still expanding. It's quite complicated to implement a plan; it's very costly. We're talking more about companies that manufacture intake parts, which are easier to produce.

You mentioned aluminum earlier. Where do companies engaged in dumping get their raw aluminum?

[Jamie Neil]

Primary production around the world is centred in four places. China is the biggest primary producer. The Middle East, including the U.A.E., is a primary producer. Turkey is a primary producer, and so is Quebec. The metal comes from those places because they have the lowest-cost access to energy. It's very energy-intensive to take alumina and melt it down into logs that are then shipped around the world. That's where the raw materials exist.

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

Thank you, Mr. Neil.

Mr. Larkin, you mentioned veal earlier. Where is the veal processing slaughterhouse located?

[Kyle Larkin]

It's in Laval.

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

I see. I thought it was in Terrebonne.

[Kyle Larkin]

No, I think it's just north of Montreal. I'll be visiting it in July.

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

I just have a question about ground beef—

[The Chair, Liberal, Judy Sgro]

I'm sorry. Be really quick.