International Trade Committee on June 9th, 2026

[Brian Kingston]

Absolutely. We are part of the solution to what the U.S. is trying to achieve through these tariffs and the renewal of USMCA. We are not the problem, so this should be discussed, and there is a clear agreement to be negotiated.

[Adam Chambers, Conservative, Simcoe North, ON]

Finally, there was sobering testimony about the Trojan horse of China. I'll use that term, “Trojan horse”, regarding the long-term implications. Also, there is no real business case for sending vehicles from Canada efficiently throughout the rest of the world. Does that sound right to you?

[Brian Kingston]

There's no business case whatsoever. Just look at some of the trade barriers that manufacturers in North America face in Japan, Europe, Korea and China. We do not have free access to those markets for automotive. Why would we give it up for nothing here in Canada?

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Ms. Acan, go ahead for three minutes, please.

[Sima Acan, Liberal, Oakville West, ON]

Thank you very much, Madam Chair.

Mr. Kingston, thanks for joining us today.

The Alliance for Automotive Innovation is the leading trade association representing vehicle manufacturers in the United States, including Ford, General Motors and Stellantis, and those three companies are your clients too.

How closely is your organization coordinating with AAI heading into the CUSMA review, and where do the Canadian and American industries' interests converge?

[Brian Kingston]

I'm happy to say that we collaborate very closely. There are weekly calls between the North American automotive industry associations on priorities with respect to the trade environment, and where we all see eye to eye is on the fact that the tariffs are costly and damaging, and that USMCA is fundamental to the success of the auto industry.

[Sima Acan, Liberal, Oakville West, ON]

You are pretty much saying that they feel the same way about the issues as we are feeling. Do you see their interests aligning with ours completely?

[Brian Kingston]

Yes, I see very close alignment between what the American associations are asking for and what we are saying.

[Sima Acan, Liberal, Oakville West, ON]

Thank you so much.

The government has been advancing a domestic automotive strategy alongside the CUSMA file, and you and I were at the announcement back in February. Your official statement that day welcomed the government's automotive strategy, which was announced that day.

What elements of that strategy are most meaningful to your members in terms of long-term competitiveness?

[Brian Kingston]

First and foremost is repealing EVAS. The EV mandate had been a long-standing irritant, so the fact that the strategy confirmed that it would be repealed was very important, as was reintroducing consumer-facing supports for electrification. The previous EV incentive had been dropped almost overnight in 2024, and that resulted in a significant decline. If we want higher EV adoption, we have to incentivize it, and we're already seeing that in the data.

[Sima Acan, Liberal, Oakville West, ON]

Thank you so much.

This is my last question.

At a CUSMA round table held in my riding, Ford raised its nickel processing investment in Indonesia, where the Indonesian government conditioned access to its resources on processing remaining in the country. Canada has world-class nickel reserves and an abundance of resources, including cobalt and lithium, but has not applied the same type of approach to the industrial policy lever.

Do you think Canada could pursue a similar approach, and what would that unlock for automotive investments here at home?

[The Chair, Liberal, Judy Sgro]

I have to ask for a brief answer.

[Brian Kingston]

First and foremost, we just have to approve mining projects. We have the ability to be a powerhouse in terms of global mineral production, but we need to approve projects and build the infrastructure to get them to market, and then I think we'll be well positioned.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Thank you to our witnesses for your patience with us today and for your valuable information. I'll suspend until the vote is finished.

[The Chair, Liberal, Judy Sgro]

Welcome back.

We have three witnesses with us today to continue the study of Canada's trade with Japan.

From the Business Council of Canada, we have Trevor Kennedy, vice-president, Asia-Pacific, by video conference.

We're glad you were able to make it to the committee this time, Mr. Kennedy.

From the Canadian Canola Growers Association, we have Rick White, president and chief executive officer.

From the Pacific Manufacturing Association of Canada, we welcome Brendan Sweeney, president and chief executive officer, also by video conference.

I need to remind witnesses that committee members may ask questions in either French or English. If you need interpretation, please take a moment to familiarize yourself with the earpiece and select the listening channel in order to take full advantage of your allotted time.

I have suggested to the committee that we will go until 1:15 p.m., given the interruption of the votes. If that's all right with everybody, we will proceed.

Mr. Kennedy, I give you the floor for up to five minutes, please.

[Trevor Kennedy, Vice President, Asia-Pacific, Business Council of Canada]

Madam Chair and committee members, thank you for the invitation to take part in your meeting on Canada's trade with Japan.

The Business Council of Canada is composed of 175 chief executives and entrepreneurs of Canada's leading enterprises.

[The Chair, Liberal, Judy Sgro]

Mr. Kennedy, give us one second, please.

I need to confirm that we have unanimous consent from the committee to start.

[Some hon. members]

Agreed.

[The Chair, Liberal, Judy Sgro]

We do. Thank you very much.

I apologize, Mr. Kennedy. Please continue.

[Trevor Kennedy]

No problem. Thank you.

While it would have been an honour to speak to the committee in person today, it's also fitting to participate from the Business Council of Canada's first regional office for the Asia-Pacific region, based in Tokyo. Canada and Japan share a long and prosperous economic relationship, with significant two-way trade volumes and with Japan serving as one of the largest investors in Canada. While the economic relationship has been strong for decades, in recent years Canada and Japan have become strategic partners, and with this change we have seen several new areas of opportunity emerge for the business community.

Japan is a major market for Canadian wood and lumber, canola, fertilizers, minerals, pork, seafood and other products. These continue to be lucrative for Canadian exporters, but there are new opportunities to grow as well. Following decades of stable energy demand, under the 2025 strategic energy plan the Japanese government revised demand forecasts upward due to growing needs from data centres and due to re-industrialization.

Japan is prioritizing diverse and stable suppliers, and Canada is well positioned to benefit. Canada has already demonstrated it can be a major exporter in the form of liquefied petroleum gas, or LPG. AltaGas is now responsible for 25% of Japan's total LPG imports. Following the completion of LNG Canada last year, Canada started exporting gas to Japan, one of the largest buyers in the world, and Japan is also rapidly reintroducing nuclear power to its mix. The resumption of activity in this sector could provide Canada with opportunities for uranium exports, engineering and the adoption of new technologies.

Service providers are an important part of the relationship as well. There were over 688,000 arrivals from Canada last year, a significant flow of travellers enabled by the growing number of flight options provided by Air Canada and WestJet. Other leading service providers with a large presence in the market include Manulife and OpenText, and many large Canadian banks have a presence or are expanding in Tokyo.

While this meeting is focused on trade, it's important to acknowledge the significant role that investment plays in the relationship. Japan is a leading investor in Canada, with a long history of creating well-paying jobs in the manufacturing, energy and mining and technology sectors. This should continue as corporate Japan prioritizes overseas investment and strengthening regional supply chains.

At the same time, Japan has become a more attractive and lucrative destination for Canadian institutional investors. There's been a noticeable uptick in activity on the ground among pension funds and other investors.

The clear priority for the Japanese government and the business community is economic security. In recent years, Japan has become vulnerable to supply chain shocks caused by natural disasters, pandemics and geopolitics. Japan sees Canada as a potential solution to many of its problems. However, in repeated cases, while there was an interest, the risk and uncertainty presented by Canada have forced Japan to look to other global opportunities.

For instance, following Russia's illegal invasion of Ukraine in 2022, Japan asked Canada to help reduce its reliance on Russian oil and gas, and it's true that since that time, Canada has completed the Trans Mountain pipeline expansion and LNG Canada, but these projects were already under construction, and no meaningful measures were taken at the time to expedite developments that would have led to additional exports.

Moving to the present, disruptions caused by the conflict in the Middle East could be an even greater challenge for Japan. It's determined to solve this problem and has so far focused efforts on working more closely with the United States, Brazil and Mexico, among others. Canada should be part of the solution as well. Similarly, Japan hopes to develop a secure supply chain for critical minerals, with Canada being an ideal partner if we can move at the pace that's needed.

Japan's working to diversify its defence partnerships and reduce its reliance on a handful of equipment providers. It's also increasing its defence spending and opening this sector to export and partnership. Japan could be a partner for Canada as it works to strengthen its defence industrial base, and Canada has solutions it could provide to enhance Japanese security, including in cybersecurity.

It may seem unusual to discuss CUSMA in a session focused on trade with Japan. However, Japanese businesses with a presence in Canada are present in part because of its proximity and connectivity to the North American economy. As Japan's Ambassador Yamanouchi recently explained to Canadians, uncertainty around the future of our agreement is a growing concern for Japanese businesses. It's critical that Canada secures this framework and that it continues to provide Canada with competitive access to the United States and Mexico.

While there's room for improvement, it's clear that our relationship has never been stronger, and this extends to the business community as well. After decades of collaboration, the Business Council of Canada and Keidanren, Japan's leading business association, formed a strategic partnership late last year. We look forward to building on this partnership later this month during the upcoming team Canada trade mission.

Thank you for this opportunity. I look forward to answering your questions.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. White, go ahead for up to five minutes, please.

[Rick White, President and Chief Executive Officer, Canadian Canola Growers Association]

Thank you very much for the invitation to appear before this committee.

My name is Rick White, and I'm the president and CEO of the Canadian Canola Growers Association, based in Winnipeg. CCGA is a national association for Canada's 40,000 canola farmers, representing them on issues, policies and programs that impact their farms' success.

Developed in Canada, canola is a staple of Canadian agriculture and our commitment to science and innovation. Canola is a strong economic contributor to family farms and to our rural communities. In 2025, canola continued to be the number one source of crop revenue for farmers, earning $12.1 billion and accounting for 24% of the total crop receipts.

Canadian canola exports were valued at $12.6 billion in 2025, with over 80% of the crop being exported as seed, oil and meal. Annually, the canola sector contributes $43.7 billion to the Canadian economy through direct, indirect and induced economic activity, and it provides for 200,000 jobs in Canada.

Japan is consistently a top-five importer of canola seed and a market that was valued at $1.3 billion in 2025—an increase from $720 million in 2024. While it is primarily a seed market, small volumes of canola oil also go to Japan. Canadian canola products trade tariff-free with Japan through the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP, representing 10% of canola export value in 2025.

I've had the privilege of witnessing, first-hand, the tremendous value of the 50-year partnership with the Japanese canola processing industry that Canadian farmers, seed exporters and our respective governments have created. Since 1976, Canada and Japan have come together twice annually for what we call the Canada-Japan canola consultations and preconsultations to share information on the canola crop, supply and demand, canola quality, sustainability, transportation and other topics. Areas of concern can be tabled and discussed on both sides, so issues can find resolution instead of creating tension. This dynamic of open communication is a special one and unique among canola trading partners, making it our longest-running ongoing bilateral canola trading relationship.

To underscore just how important the Japan market is to our farmers, I also serve as the Canadian co-chair to the Japan-Canada Chambers Council, or JCCC. It's a business forum that strengthens trade and economic ties between Canada and Japan. In this role, I help to advance discussions on trade, supply chains and food security while representing the interests of Canadian agriculture.

Our farmers' ability to continue to increase yield over this long history has made it possible to expand our markets for the crop while continuing to supply Japan with its needs. In this current market dynamic, where trading relationships and free trade agreements can be swiftly put in jeopardy, it's very apparent to me that Canadian farmers see the value in the relationship that's been built and in the importance of consistent, reliable trading partners.

The Japan market is a relatively stable and consistent market for Canadian canola, and it's one that farmers do not take for granted. Canadian canola has experienced unprecedented trade disruptions in the past two years. The importance of a strong trade agreement through the CPTPP and an annual dialogue with Japan have helped to shape the strong trading relationship we see with them today.

I'd like to thank this committee for taking the time to discuss and hear about this important trading relationship. We look forward to a prosperous trading future for canola between Japan and Canada.

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. White.

We will go on to Mr. Sweeney, please, for five minutes.

[Brendan Sweeney, President and Chief Executive Officer, Pacific Manufacturing Association of Canada]

Good afternoon. Thank you for inviting me to contribute to this important meeting on Canada-Japan trade.

My name is Brendan Sweeney, and I'm the president and CEO of the Pacific Manufacturing Association of Canada, or PMAC. PMAC's members include Honda and Toyota, two Japan-based companies that have assembled vehicles in Canada for four decades.

Honda and Toyota have made significant investments in Canada over those four decades and, as a result, make significant contributions to Canada's economy and its manufacturing sector. In 2025, Honda and Toyota assembled 77% of all vehicles made in Canada across five manufacturing facilities. They employed 60% of all active vehicle assembly plant workers. Neither company has laid off assembly plant employees in more than four decades.

PMAC members operate alongside a Canadian network of more than 40 tier one automotive parts manufacturers owned by Japan-based companies. These suppliers employ more than 20,000 people in Canada, or about 30% of Canada's active automotive parts manufacturing workforce.

A large majority of the vehicles made by PMAC members are exported to the United States. That number ranges from 75% to 85%, depending on the vehicle model. Virtually all of the remainder are sold in Canada. At the moment, there are no realistically viable export markets outside the United States for the vehicles made at PMAC members' Canadian assembly plants.

When it comes to the matter of exporting vehicles made in Canada by PMAC members, eliminating section 232 tariffs and the renewal of CUSMA, with reasonable regional value content requirements, are and should be the federal government's first priority. The vehicles that PMAC members make in Canada are composed primarily of parts and components manufactured in Canada and in the United States and, to a lesser degree, in Mexico. These vehicles are CUSMA-compliant, which means that 75% of their content originates in North America.

The vehicles manufactured by PMAC members in Canada also include certain components sourced from Japan. These are primarily electrical and electronic components that are not manufactured in North America. The ability to source those components from Japan reliably and efficiently is facilitated by the CPTPP. The total value of those components sourced from Japan—again, these are components that are not readily available in North America—is considerably less when compared to the total value of components sourced from Canada or the United States, but they're important. We can't get these parts in North America at the moment.

Free trade agreements such as CUSMA and the CPTPP support the competitiveness of PMAC members in Canada. This has led to a situation in which PMAC members assemble nearly three times as many vehicles in Canada as they sell in Canada. That is a substantial three-to-one production-to-sales ratio that has not been matched at any other time, even during the industry peak in the late 1990s. Free trade with Japan, free trade with the United States and free trade with Mexico are all vital to the competitiveness of PMAC members in Canada. Maintaining free trade and good relationships with Japan is not complicated. It's status quo.

If we want to improve those relations and maintain or even improve the competitiveness of the automotive industry in Canada, we should focus on maintaining them but also eliminating section 232 tariffs, renewing CUSMA for the long term and better aligning Canada's environmental policy with its manufacturing strategy.

Thank you.