Evidence of meeting #4 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 agreement.
A video is available from Parliament.
Conservative
Liberal
Dominic LeBlanc Liberal Beauséjour, NB
You can make up a whole bunch of stuff here in the committee and try to make it stick—
Conservative
Liberal
Dominic LeBlanc Liberal Beauséjour, NB
Would you be interested in the deputy perhaps giving you some precision on that?
Conservative
Conservative
Conservative
Adam Chambers Conservative Simcoe North, ON
I would appreciate it.
The last thing I'll leave you with is that we're open to helping you. We'd like to see you succeed. The Conservatives have said that we'd like to help you get a deal. If there's something that we can do to be helpful, please let us know.
Conservative
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
Thank you, Madam Chair.
Thank you, Minister Leblanc, Minister Sidhu and your officials, for joining us here at the international trade committee.
I'll start where MP Chambers finished, around us working together to ensure success for Canadians.
In my riding, we have so many entrepreneurs. I was at the board of trade, and many came to see me in Mississauga. What they asked was, “How can we diversify? Where can we sell our products and our services overseas? Where can we do more?”
Minister Sidhu, I know we've had conversations about your work globally, with some of the agreements that we have right now and can capitalize on. We've had a lot of success, but now is the time to double down and triple down with our businesses and entrepreneurs; they feel it and they want to do it.
I want to hear from you: Where can they tap into those tools, be it the trade commissioner service or others, to be able to diversify and increase their trade?
Liberal
Maninder Sidhu Liberal Brampton East, ON
I'd like to thank the member for his work on this committee. I know that in Mississauga the chamber of commerce values Mr. Fonseca's input in terms of how we can help diversify trade.
From my private sector experience, having spent over a decade working with businesses in international trade facilitation, I know that the conversation 10 years ago was very different. It was, “I'm comfortable dealing with the U.S. I understand the geography and I understand the language. I don't know the packaging requirements in this overseas country; it seems very hard and I don't want to do it.” Now the conversation has shifted to saying, “Help me do that.” When I've been out talking to chambers and boards of trade across the country, the focus is on how we are facilitating that conversation and using our existing 15 free trade agreements to make sure that our utilization rates are up.
I'll give you one example with CETA. Utilization rates are around 65%. How do we get them higher? You've seen the Prime Minister active in the region, as well, in Europe. I think he's been there two or three times. One of his first trips was to Europe to sign a strategic partnership agreement with the EU. Why is that? We see a lot of potential and opportunities in the EU around defence. We know that, as a country, if we're going to be investing $9 billion, we need to have those procurement opportunities as well, because we want to build up the industrial capacity. We want to bring those workers and those jobs here to Canada and build up that capacity while we can procure and get into some of the opportunities that are brought in.
There's a huge potential in the EU, but there's an even bigger potential in the Indo-Pacific, which is a fast-growing market with a growing middle class that wants Canadian products, and not just in the defence sector. It's agri-food; it's clean tech. In fact, there's a lot happening with ASEAN. Just last week, we signed a free trade agreement with Indonesia, the fourth-largest economy in the world, with 275 million potential consumers, and this is what we need to do more of. The energy is there, and the world wants to deal with Canada, because we're seen as a beacon of hope right now. There's a lot of uncertainty out there and a lot of instability. The global trade winds are shifting, but Canada is seen as a reliable and stable trading partner.
We have a unique opportunity here. In the calls that I'm getting and that we're all getting as cabinet ministers, the message is, “We want to do more with Canada. How can we make that happen?” The Prime Minister being out there shaking hands and making sure we're meeting people so that we're noticed is very important, because every other country is doing this. The U.S.'s policies and President Trump's policies have impacted trading relationships around the world, so every country is out there showcasing what their workers and their businesses produce, and Canada should be no different. We should actually be more engaged and more active on the international scene to make sure we get the best deal possible.
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
Minister Sidhu, you've sat on this committee. You've been here. You've been the parliamentary secretary. Can you tell us, as a committee, where we can assist with that work? Where would we be best able to help?
Liberal
Maninder Sidhu Liberal Brampton East, ON
Absolutely. Look, I value the work you're doing. I sat in that very chair. This committee does important work. I think, when you look at what the committee can do, it is to bring those ideas. The members here come from every part of Canada. You're talking to your chambers and the entrepreneurs on the ground. You're identifying opportunities.
It's also the work that you'll be doing, hopefully, if the chair and the committee agree to travel. I think there are unique opportunities to find where businesses can have the best impact, and which industries can have the best impact. Even as a delegation being out there on the road, it showcases team Canada, and I think we need more of that. We heard from Mr. Chambers about how we can work together as team Canada to effectively showcase what we have to offer. I think it will send a clear signal to the world that we're here, operating as team Canada, looking for the best opportunities for our workers.
Liberal
Peter Fonseca Liberal Mississauga East—Cooksville, ON
Thank you, Minister.
Minister LeBlanc, we are team Canada here. We had Representative Huizenga and Representative Kaptur here last week, and we had an opportunity to ask them many questions. On that, do you see an opportunity for this committee to go to Washington, D.C., to meet with representatives, senators and stakeholders and make our case before the review of CUSMA?
Liberal
Dominic LeBlanc Liberal Beauséjour, NB
The short answer is, absolutely. I don't purport to, obviously, have a view on what work the committee decides to do. However, any time members of Parliament and of the other place—senators—have an opportunity to interact with American counterparts, with legislators, it's important.
I was in Washington this summer for meetings. There was a group of Conservative MPs who had also travelled to Washington. The ambassador was telling me about her meetings with them. They were seeing senior people on Capitol Hill, including members of the Republican leadership. That's all positive for Canada, any and all forms of parliamentary diplomacy where colleague legislators can talk about the advantage of, as Mr. Chambers said, resolving the sectoral tariffs, which are certainly having a detrimental effect on our country but aren't benefiting American consumers or industries either, in many cases. The more people who say that to people in the administration, the better position, I hope, the country will be in.
I would encourage any and all of that work, and, obviously, I would be happy to ensure that our embassy and others in Washington work with the chair and your committee to provide any support we can.
Liberal
The Chair Liberal Judy Sgro
Thank you very much.
Monsieur Savard-Tremblay, go ahead, please, for six minutes.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
Thank you, Madam Chair.
Ministers, thank you for being here. I would also like to thank the people accompanying you. I understand that we will be talking with them more during the second hour.
Ministers, supply management, as we know, is an extremely important issue for Quebec in the first place, and also for the rest of Canada in many respects.
I would like to refer to an article in the Globe and Mail. I heard the word “Mercosur” earlier, during Minister Sidhu's testimony, which concerns me in terms of poultry production, given Brazil's presence.
That said, I will begin, Mr. LeBlanc, with the other extremely important issue, that of dairy production. Yesterday, you said that supply management would not be called into question. However, I will not immediately address the intentions and strategies that may apply in light of the American desire to chip away at the system. As a matter of principle, I will first ask you whether you recognize that changing the rules and import quotas amounts to a new breach, a new concession, and that it is doing through the back door what can no longer be done through the front door.
Liberal
Dominic LeBlanc Liberal Beauséjour, NB
Through you, Madam Chair, I would like to thank our colleague Mr. Savard‑Tremblay for this question, which is essential to Quebec, as he says. I have cousins who operate a fairly large dairy farm in New Brunswick. It is therefore essential throughout Canada, in the rural areas I represent, and it is essential for consumers in large, more urban centres. It is a crucial issue.
There is significant consensus in Parliament. We welcome the legislative initiative of our friends in the Bloc Québécois to ensure that, as Mr. Savard‑Tremblay said, this does not become a bargaining chip in trade negotiations. We are committed to this. The Prime Minister has said it, and I repeat this commitment to my American counterparts when Mr. Trump publicly raises customs tariffs that are beyond what was, indeed, negotiated in other agreements.
I often talk to dairy producers and other producers in the supply management sector. Yesterday, I read The Globe and Mail and saw the reports in French, which often referred to a “breach” in supply management. There will be no breach in supply management and no increase in quotas. We do not want to negotiate any changes in this regard. I am quite comfortable repeating this.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
I understand that. You are telling us that there will be no breach. In any case, once laws are passed by Congress, American negotiators often say that their hands are tied. Generally, that's the end of the matter and it's not discussed any further.
Isn't playing with import rules, once again, a way of creating another loophole by means other than bilateral or trilateral negotiations, even if it is not formally called that?
Liberal
Dominic LeBlanc Liberal Beauséjour, NB
I understand the substance of the issue, and I am not at all opposed to it. We will not dig anything up directly or indirectly, and we will not allow any breach or opening in this issue.
I understand this concern. I tell the dairy producers I talk to, as I do others in the supply management sector, that we have been very clear. We are clear with the Americans, both privately and publicly.
For the moment, the conversations are focused on strategic sectors such as steel, aluminum and automobiles. I am much more concerned about the lumber sector.
I think it is in our best interest not to continually discuss all kinds of potential scenarios. We don't want to give other countries ideas to bring the issue back to the table. For us, as for Parliament, the matter is closed, as you said.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
You said there would be no breach, that there would be no negotiation on this, and you are ready to tell us today that there will be no more American milk on the Canadian and Quebec markets.
Liberal
Dominic LeBlanc Liberal Beauséjour, NB
The quota negotiated six or seven years ago will not be increased. We are very firm on this point. Absolutely.