International Trade Committee on June 11th, 2026

[Véronique Dorval]

The steel and aluminum program was launched five weeks ago. It's still a relatively recent program. In that sector, we have had more than 120 conversations—for now—with specific entrepreneurs, where we are looking at assessing if they are eligible and how they would fit with the program or other programs we are offering.

For now, we have two loans that have been accepted by entrepreneurs after only five weeks. We have engaged not only with our direct clients and other clients in the sectors, but also with associations to make sure the program is known and that those associations can relay the information to their members.

[Sima Acan, Liberal, Oakville West, ON]

Mr. Winterhalt, EDC's 2026 “Global Export Forecast” highlights that the energy sector accounted for roughly 20% of Canadian exports in 2025, with a projected growth of 10% by 2026.

Nuclear is clearly part of that story. CANDU technology is Canadian-owned, supported by the domestic supply chain and fuelled by Canadian uranium, with active efforts under way to expand exports. How does EDC structure its financing and risk support for nuclear technology exports?

How does Canada's overall offering compare in competitiveness to financing packages provided by countries such as Korea, China, Russia and the United States?

[Todd Winterhalt]

Energy remains one of Canada's greatest strengths in terms of export potential. You're absolutely right. Nuclear plays an important part in that conversation in terms of both baseload nuclear supply through the CANDU program and, more and more in the future, through SMR—small modular reactor—technology, which Canada is leading in the G7.

EDC is open for support in both of those areas and has significant experience, in particular, on the CANDU side of the equation. In the past, it has supported transactions in Romania, for example, with the Cernavoda reactors. It is engaged in the refurbishment of those. It's supporting the Canadian nuclear industry and value chain, not just the OEM, in this space.

In addition, there are a number of other live conversations in multiple jurisdictions around the globe that EDC is participating in as we look at new opportunities for CANDU supply internationally. Many of these are done in partnership with other international lenders and partners, including, as you mentioned, the Koreans. That would be a very live example with respect to the Cernavoda refurbishment and new reactors Cernavoda 3 and 4 in Romania.

That will be the way of the future, I would add, given the size of these projects. They take, in some cases, multiple tens of billions of dollars to complete. We find that partnering with like-minded nations with complementary supply chains and value chains is the way we can deliver the greatest value for Canadians.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll go on to Mr. Simard for two and a half minutes, please.

[Mario Simard, Bloc, Jonquière, QC]

Thank you, Madam Chair.

I just want to go over something with you. There's a persistent misunderstanding in the aluminum industry: People don't distinguish between primary producers and aluminum processors. Even though there are very high tariffs right now for primary producers, they're doing pretty well because they can pass the costs associated with the tariffs and the Midwest premium on to the next link in the chain. The price of aluminum is very high. It's around $6,000 per tonne today. However, aluminum processors are struggling much more because they cannot pass the costs associated with tariffs and the premium on to the next link in the chain. They have to absorb those costs themselves.

Does your program distinguish between primary producers and aluminum processors?

[Véronique Dorval]

Basically, a company's eligibility for the program does not depend on its position in the value chain. It depends on whether or not the company is directly affected by the tariffs. So, if you're a processor that exports to the United States and you're heavily exposed to the tariffs, you're eligible for the program.

[Mario Simard, Bloc, Jonquière, QC]

I don't know what criteria you use to make those decisions. However, I hope you're aware of what tariffs mean for primary aluminum producers. I know this first-hand because there are some in my region. For them, it's a nuisance, but it's not threatening their business. It doesn't put them in danger.

I don't know if they can ask you for any kind of support, but I don't think it would make sense to offer financial support to primary producers under the current circumstances because they're not the ones who need it—the processors are.

In Saguenay—Lac-Saint-Jean, folks have spent 30 years struggling to create an ecosystem of aluminum processors. It's very complex. Moreover, the Midwest premium works against us. These people are losing everything because they're no longer competitive. I think the focus should be on them rather than on primary aluminum producers.

As you mentioned earlier, this has been in the works for five weeks. I don't know if that's something you've considered.

[Véronique Dorval]

We focus our efforts primarily on small and medium-sized enterprises. Most processors are small and medium-sized enterprises, compared to primary producers, which are not the types of companies we work with directly. We therefore focus on processors, as well as on manufacturers that use steel, aluminum or copper and on exporters.

Once again, the eligibility criterion is not whether a company is a processor or a primary producer. It is really based on whether a company exports goods to the United States and is directly affected by the tariffs. As such, I believe processors are eligible, and we support them—or at least we're discussing it.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Groleau, you have five minutes, please.

[Jason Groleau, Conservative, Beauce, QC]

Good morning, Madam Chair.

Ms. Dorval, thank you for being here. I'm very pleased to have you here this morning. I know that you work closely with several companies in my region, Beauce, which is the most beautiful part of Canada. You said so earlier.

In your introduction, you spoke about the pressure companies are facing, especially in the steel and aluminum sectors, because of U.S. tariffs. You also mentioned that $1 billion had been committed to help them.

Last week, I went on an economic tour of Quebec, which included a stop in Saguenay—Lac-Saint-Jean, a region that is a major player in the aluminum sector.

Let's consider a company that's losing $500,000 a week. Do you think it wants loans, or would it prefer a settlement with the Americans?

[Véronique Dorval]

It's not my role to examine all the solutions available to an entrepreneur from various institutions.

What the BDC offers entrepreneurs are loans, advisory services—which are also very suitable for businesses in this sector—and equity financing.

We understand that the BDC's offerings do not meet entrepreneurs' every need. We have a specific role to play, and regardless of the economic climate, we will be there to support entrepreneurs using the tools that we specialize in.

[Jason Groleau, Conservative, Beauce, QC]

However, when you're in business and losing $500,000 a week, at some point, the bottom line isn't looking good, and the BDC won't be there to provide support anymore. Do you agree?

[Véronique Dorval]

Would you please repeat that? What won't be there?

[Jason Groleau, Conservative, Beauce, QC]

If a company loses $500,000 a week, you'll agree that, at some point, its net profit is going to take a hit. Will you still be there to support it?

[Véronique Dorval]

For the entrepreneurs we work with today, when they go through difficult times, we try to implement every measure we can offer to help them.

Is what we offer enough to help in cases like this? It's probably not enough.

[Jason Groleau, Conservative, Beauce, QC]

The answer is that, in the long run, you will no longer be able to lend money to these struggling entrepreneurs. You know that's how it works.

Mr. Winterhalt, President Trump announced yesterday that he doesn't necessarily intend to renew the Canada—United States—Mexico Agreement. What do you think the impact of this would be on Canadian businesses?

[Todd Winterhalt]

Perhaps you could repeat the question. We lost the interpretation for a moment.

[Jason Groleau, Conservative, Beauce, QC]

Yesterday, President Trump mentioned that he didn't necessarily want to renew the Canada—United States—Mexico Agreement. What would be the impact on businesses in Canada?

[Todd Winterhalt]

As stated earlier this morning, the impact would be significant. The U.S. remains our largest market by a considerable measure.

Efforts made at EDC and other organizations to help diversify away from the U.S. as our sole market help mitigate that risk, but it will remain our majority customer. As a result, a healthy trading relationship in North America is key.

[Jason Groleau, Conservative, Beauce, QC]

The government is seeking to develop new markets. We all agree on that. However, who benefits the most from these developments? Is it large corporations or SMEs?

[Todd Winterhalt]

Our experience at EDC has been that it is segment-agnostic. Businesses of all sizes benefit from a diversified approach to international trade.

In effect, we see the greatest opportunity for small and medium-sized exporters to mitigate their risk, in particular in a number of key sectors. One that we don't often talk about a lot is the services sector, where we are already fairly diversified—only 51% of Canadian service exports go to the United States. They tend to be smaller and medium-sized exporters. There's a huge opportunity there to have them start internationally in free trade agreement markets and other markets globally.

[Jason Groleau, Conservative, Beauce, QC]

You're telling me that SMEs in Saint-Georges, in the Beauce region, will benefit from the agreement with Mercosur, for example. That's what you're telling me this morning. That's what you think. You're confirming that to me.

[Todd Winterhalt]

Absolutely. It's much more around the sector that the company comes from and the opportunity that then ties to the international demand. Again, across the entire country, these opportunities are present.

[Jason Groleau, Conservative, Beauce, QC]

In Canada, 99% of businesses are SMEs, but we focus on large corporations. They're the ones making the profits. I can guarantee you that no SMEs in Beauce will be doing business under the Mercosur agreement.

Madam Chair, I still have about 30 seconds left, don't I?

[The Chair, Liberal, Judy Sgro]

You have 15 seconds, but I'll give you an extra 15.