House of Commons Hansard #428 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was environmental.

Topics

Customs TariffGovernment Orders

12:45 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, the member for Hamilton Mountain and I are in full agreement on his definition of the Liberals' handling of this. He used the term “mess”. I agree wholeheartedly. We in the Conservative caucus want to stand up for the members of that union, and not just workers in and around Hamilton, but also others.

I am not sure if the member is on the trade committee, but he might know that a year ago Conservatives asked the minister about safeguards. We knew that it was critical to have this debate to find out how we could apply safeguards but mitigate against some of the real impacts on fabricators, on critical infrastructure projects and on western Canada in particular. The member would know, because the union members in his riding are akin to some of the pipeline workers and union members in western Canada, that those industries are suffering. We do not need to pile yet another economic challenge on top of that.

Our modest proposals to the government should be a way of constructively addressing some of the impacts of this big, quick trade action. As I have said, the government knows that it violates the WTO rules. It formed a little Ottawa group to modernize the WTO, and it has lost a lot of credibility on this issue.

Let us try to blunt some of the negative impacts of this legislation. Conservatives have been wanting to have the debate on safeguards for over a year. Let us get it right. I hope the NDP and the Conservatives can both push the Liberals to finally do the right thing.

Customs TariffGovernment Orders

12:45 p.m.

Conservative

Larry Maguire Conservative Brandon—Souris, MB

Mr. Speaker, I would ask my colleague to go back to the mitigation that he was speaking about. I have a situation in which small businesses in the recreation area have had to purchase inventory for the coming season because winter is over, but the steel tariffs have increased the cost of carrying an inventory of recreation vehicles, boats, campers and that sort of thing. In this one case that I am looking at, it may not be as much as the greater steel industry, but $35,000 to one small business is a lot of money. I would like the member to expand on what he thinks we could do.

In his speech and in answers to questions, he mentioned the $2 billion that the government has obtained from the tariffs that it imposed, but I want to follow up on it again with regard to mitigation and how we could best convince the government to make it part of an amendment and move it forward before we pass this legislation.

Customs TariffGovernment Orders

12:45 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I have had the fortune of being in the riding of the member for Brandon—Souris and know he has a great relationship with the chamber and a lot of businesses, and those are real concerns. The aluminum recreational boat industry has been hammered, and Conservatives have raised this issue in the House.

I have talked about the Junkin family in my riding at LakeView Marine in Port Perry. It now has stranded inventory. It has some inventory for which it had to absorb the cost of the tariffs, but consumers now know the tariffs are off, so how is it going to deal with this stranded inventory that it paid tariffs on? Some of that $2-billion fund that the government has collected could be put toward that. That is all Conservatives are asking on that front.

That would help in Brandon, that would help in Port Perry and that would also help fabricators like Mielke Industries in the Fraser Valley and in areas like Abbotsford and Chilliwack. There are a lot of fabricators in western Canada that have imported steel to fabricate into world-leading products. They are some of our best exporters, but they are now becoming uncompetitive because of the trade disruption that happened because we could not avoid the section 232 tariffs the way Australia and South Korea did.

The government has put them in a place where they are uncompetitive. Let us use the $2 billion the government has collected to provide some relief, to make sure they do not lose international contracts and to make sure small businesses—family-owned, in many cases—in Brandon and Durham do not have a loss this year and next.

The government promised that small and medium-sized enterprises would be helped by this relief, but we have seen none of it. Time is running out.

The government will see Conservatives co-operate if it addresses these geographic and small and medium-sized business issues. We have given it some ways to do that. It could also help provinces like Newfoundland and Labrador or Quebec with the Champlain Bridge. Our recommendations are not only effective but modest. We can make this bill better. Let us all get on the same page by addressing the shortcomings of this bill quickly so we can pass it and remain competitive.

Customs TariffGovernment Orders

June 6th, 2019 / 12:50 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, I am pleased to have the opportunity to speak today to Bill C-101, an act to amend the Customs Tariff and the Canadian International Trade Tribunal Act.

The bill looks to repeal subsections 55(5) and 55(6), thereby eliminating the two-year waiting period on the imposition of provisional safeguards. I am somewhat pleased to see the government finally taking this good first step to protecting Canadian steel producers and the hard-working people employed in the industry.

The NDP will support the bill as it will temporarily help the steel industry, but the government should never have let the deadline go by without imposing permanent safeguard measures, which the NDP has been calling on for years. When the finance minister allowed the safeguard deadline to pass in April, he placed workers and business at great risk. Now he is temporarily changing the timeline through legislation.

However, let me be very clear. The NDP is adamant that we see this measure as only a small step and it absolutely must be followed by the imposition of, at the very least, provisional safeguards over the five remaining unprotected product categories of the seven listed by the Canadian International Trade Tribunal, also known as the CITT.

These measures must also protect and stabilize the Canadian steel industry over the long term. Having worked in the steel industry for 35 years and representing a community in which the steel industry plays a large part in the economy, I have a very personal interest in this issue along with other workers.

For the past three and a half years, we have tried to deal with this and many other issues facing the steel industry through the ineffective and Liberal-dominated all-parliamentary steel caucus. The commitment of the government to the work of that committee has been disappointing and half-hearted at best.

The measures in the bill also seem half hearted. While these provisional safeguards are satisfactory, we in the NDP have been calling on the government and the Minister of Finance to put permanent safeguard measures in place for well over a year. This would, of course, provide more stability to this already shaken and targeted industry.

Like so many things the government does, this bill, it reaction to the tariffs imposed by the Americans on the Canadian steel and aluminum industry and the issue of the dumping of foreign steel into the Canadian market, has half measures at best.

Speaking of half measures, by taking away the two-year waiting period, the bill would only allow the government to put into place temporary and somewhat superficial protections for unprotected steel product categories listed by the CITT. We will be watching and fighting to ensure the government follows the legislation up with real action. Our steel industry and workers deserve real solutions to the predatory pricing efforts of steel importers worldwide.

For years, the NDP has urged the government to address the very real problem of cheap steel imports directly and/or indirectly entering the North American market, including the provision of increased resources to the CBSA to allow them to investigate and respond to the increased dumping of steel products. In our view, Canada cannot be a dumping ground for foreign steel or be a back door to the American market.

It must also be recognized that, while the U.S. has dropped section 232 tariffs on Canadian steel, tariffs remain on other steel producing countries. That leaves Canada vulnerable to surges of foreign steel heading through Canada to the U.S. market. This is a dangerous position that must not be tolerated.

However, please allow me to take a step back and provide some context for why this is such an important issue.

Canadian steel producers generate over $14 billion in annual sales, while supporting over 22,000 direct jobs and over 100,000 indirect jobs. All of this is done through 19 facilities across five different provinces. The production of steel acts as an anchor for a much larger supply chain of secondary manufacturing companies in fabrication, construction, automotive and many other sectors throughout the Canadian economy.

I know that in the greater Hamilton area, the steel industry provides over 10,000 direct jobs and supports an estimated 30,000 secondary jobs.

In Sault Ste. Marie, the steel industry is anchored by Algoma Steel and Tenaris Algoma Tubes. These two companies alone directly account for over 41% of the community's gross domestic product. About 30% of their workforce are directly and secondarily employed in the steel sector. That is over 9,000 jobs.

In the Windsor-Essex region, Atlas Tube, which is located in Harrow, Ontario, employs 220 workers and exports over $250 million of product each year. It is interesting to point out that Atlas Tube is the most efficient producer of structural steel in the world.

EVRAZ is another steel company and it employs over 1,800 people in western Canada, including in the pipe mill in Regina.

It is also interesting to note that the Canadian steel industry is a world leader in labour and environment standards, something of which we should all be proud.

Dumping is a form of predatory pricing when a country exports its product below the market price, driving out competition and creating a global monopoly. Many of these foreign companies are able to offer lower prices precisely because of their lack of environmental or labour regulations.

We have been after the government for years to provide protection against the dumping of foreign steel. The Canadian Steel Producers Association has repeatedly asked the government to be proactive in finding solutions to the dumping steel issue, which has hurt the steel industry across the board. The government only took action, and temporary action at that, in reaction to the tariffs imposed by Donald Trump on the Canadian steel and aluminum industries.

We were given a heads-up almost the first year of this session. The government kept saying it knew what it was doing. However, it all comes down this. What the government did unilaterally became a real mess. It kept having to fix its mistakes, as more and more were made. Now we are debating the bill today.

That is clearly not good enough. The Liberals should have put permanent safeguards in place as soon as they came into power. They knew then that the illegal dumping of dirty steel into Canada was a major concern for our steel industry.

In April, the government decided to allow the safeguards in place to expire on imports of five types of steel products. Because of current legislation, those safeguards cannot be restored for two years, regardless of potential threats to Canada's steel sector. The legislation we are considering today would allow the government to waive the two-year waiting period and impose the safeguards again. That is a good thing, but it is not nearly enough.

It is always interesting to gauge the response to government legislation through those who will be affected.

Ken Neumann, national director of the United Steelworkers, had this to say:

We hope the legislation announced today will be passed swiftly in Parliament, before the summer recess. In the meantime, Canadian workers and producers need an unequivocal commitment from the federal government that it will implement safeguards or other strong measures to defend our industry....The government must signal that it is prepared to retroactively apply safeguards or other measures to protect Canada's steel sector from potential surges in imports....These safeguards or other measures must be reintroduced to stabilize Canada's steel sector and defend Canadian workers and producers from surges in foreign imports.

With respect to surges, one thing was very concerning for many producers across Canada. Although they wanted the tariffs lifted, they did not want them traded off for a quota system that would stop the growth of the steel industry in Canada. The government said that it listened to this and said it did not have quotas. However, it has what are called “surges”, to offset concerns. The government believed that since it did not use the word quota, it could fool producers by saying it had surges. However, I think surges is just another name for quotas. We are not sure what surges actually means.

Recently, the United Steelworkers asked the government to use sections 53 and 55 of the Customs Tariff, which gives the federal cabinet the authority to respond to tariffs as well as act against countries participating in dumping. For example, the government can apply a surtax to any goods that are being imported under such conditions as to cause or threaten serious injury to domestic producers. The Liberal government declined.

Interestingly, the United Steelworkers also recently sent a letter to the government, detailing its concerns about the new North American free trade deal. In that letter, it addresses concerns about the steel industry. It says,“The USMCA should never have been signed absent the removal of steel and aluminum tariffs. While we are happy that the tariffs have finally been removed, we are concerned with some of the details in the agreement to remove the tariffs: The ability of the U.S. to legally apply new tariffs if there is a surge of imports about the historical average.” Is that quotas or is that all of a sudden a bigger supply? “The lack of measures to protect and stabilize the Canadian steel market leaves us vulnerable to import surges. This threatens not only the domestic Canadian industry, but also leaves us vulnerable to the reimposition of tariffs; Our ability to respond to tariffs if they are imposed. Canada will be limited in its response and only able to impose counter tariffs on the same products; this limits our ability to impose counter tariffs that are proportional but based on products that are actually produced in the U.S.” It says, “We believe that the USMCA should not be ratified until the details of the tariff agreement are finalized. We must ensure that we do not agree to provisions that allow for the re-impositions of tariffs or that are, in effect, a quota.”

Catherine Cobden, president of the Canadian Steel Producers Association, also commented on the legislation, saying:

Today’s announcement by [the finance minister] represents an important step to ensuring Canada can respond swiftly to changes in global steel markets caused by overcapacity and trade actions taken by other jurisdictions. Safeguard measures are an important trade tool for preventing diversion of foreign imports into Canada’s domestic steel market. The Canadian steel producers believe these trade measures continue to be necessary in today’s global context.

Roger Paiva, general manager of Gerdau steel in Whitby, had this to say,"We seek your support to extend the Government of Canada's provisional steel safeguards. The safeguards have stabilized the Canadian rebar market. They are securing middle-class jobs in your riding and beyond. They are growing the economy while protecting the environment. Please show your support for good steel jobs, and please encourage [the finance minister] to extend the safeguards."

Finally, Francis Miner from lvaco near Hawksbury, says

The European Union and a number of other jurisdictions have recently implemented safeguards on steel products following restrictions to the US market caused by the section 232 tariffs. Without safeguards Canada will stand alone, and the domestic steel industry will be heavily exposed to large volumes of low-priced imports being diverted into the country. This places Canadian producers at a significant competitive disadvantage and thousands of jobs at risk....Without the extension of a safeguard measure on wire rod, market conditions for producers in Canada will deteriorate further.

I totally agree with him on the wire rod. That was my business for 35 years. We took wire rods and made wire anywhere from as thin as a hair to an inch and a half. It would used for ball joints or car parts, such as steering wheel rods. They made it into fencing. They made it into all kinds of different thing. We were a big market, but with the tariffs and the safeguards, there was nothing. It really hurt our competitive edge in Hamilton.

It is clear that Canada's steel sector still faces daunting challenges. Canada cannot continue as one of the few countries in the world that allows foreign steel to flood into its markets. The federal government must protect our producers and our workers.

I have spoken with many workers from the steel industry, from across the country and many in my own community. They are all feeling some sense of insecurity. While they are all happy the tariffs on Canadian steel and aluminum were finally dropped, many of them do not trust the government on this issue.

When the Prime Minister visited Stelco to make the announcement the tariffs were being dropped, one of the workers asked him what he had to give up to get the tariffs lifted. He did not answer the question. As we have heard in recent reports, this could have been more than what the government first let on.

I am told that the mood among the workers at Stelco is that while they are happy the tariffs have been lifted, they still have a healthy dose of skepticism. Like many workers across the country, they are concerned the government is not tough enough to stand up for them and the steel industry against the U.S. and other countries.

As the president of USW Local 8782 in Nanticoke pointed out recently, one would think the government in Ottawa would have the interest and common sense to protect Canadian interests and the industry, but that is apparently not the case.

In closing, I would like to say that I listened to the comments from the member for Durham and I agree with the suggestion that we should all work together on this. All parties should work together. We have found that the government cannot do this unilaterally. It has made too many mistakes. We have to make sure we get this right, to protect not only the Canadian industry but our Canadian workers. We can only do that by working together. Therefore, I encourage all members to join the same team and work as hard as we can.

Customs TariffGovernment Orders

1:05 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, I agree with the member's very last comment with respect to a team. There has been a team effort by this government from day one in trying to address the very important issue of steel and aluminum tariffs. It is something that has had a profound impact on workers in different regions of our country. That is one of the reasons we have members of Parliament from within our caucus, led by our Prime Minister and ministers, working with the many different stakeholders, going out and visiting some of these plants first-hand and talking to the workers to look at the industry and continue to have the dialogue, which was absolutely critical.

Canada is not alone with respect to what has been taking place with these tariffs. I am pleased we have been able to take it to the point we have, where we now have this legislation. I hope that over the next period of time we will see the legislation pass, because it will provide some additional certainty. We owe it to the workers to do what we can.

Does the member across the way not agree that one of the ways we can jointly support our thousands of workers in Canada, who are so dependent on providing those quality steel and aluminum products, is by recognizing it and ensuring that this legislation passes before we rise in the next week or so?

Customs TariffGovernment Orders

1:05 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, that is a very important question, because I believe we should all work together. I can only tell the member that I am not on the trade committee; I am on the all-party committee for the steel caucus. However, I know of some of the problems that came up on the trade committee with listening to people's amendments and trying to get stuff going. It seems the government took the unilateral approach of listening but not doing anything. It took it its own way, and that is why we are where we are today.

I truly believe that if we all work together, listen to each other, accept those proposals and adopt them, because they are good amendments, we can all come up with a great agreement that would be far better than anyone could do alone.

Customs TariffGovernment Orders

1:05 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Mr. Speaker, I want to thank my colleague from Hamilton Mountain, the place where I was born. I have to say that I still have that steel guy inside me. In my community of Oshawa, steel is so important for the auto sector. He mentioned a friend of mine, Roger Paiva, from Gerdau Ameristeel Corporation, and how important the steel and aluminum sector is to my community.

Earlier on, the member mentioned the uncertainty and the mess the current government has created, and I am extremely concerned. I know both our communities are very happy this bill is being debated in the final days of the current government. It is a very important issue.

My colleague from Durham spoke about how this is something the bigger companies want to see moved forward as quickly as possible, but for regional suppliers, fabricators and different communities there needs to be something else done. We talked about this $2 billion the Liberals are sitting on and holding. That could be spread to the companies that are going to be so negatively affected, especially if we go forward and implement this bill as is.

In order to decrease the uncertainty out there, I was wondering if the NDP would be supporting our amendment, which my colleague from Durham read into the record. He said he agreed with my colleague from Durham. Because there is such a short period of time, we do not have the time to debate this as well as we could. Therefore, could he give us some certainty and let Canadians know if the NDP will be supporting our amendment, which would make this better by working together?

Customs TariffGovernment Orders

1:10 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, the amendment was just put on, and it is going so fast that I have not seen it on paper. I think there would be some great points in there, and I would like to have our party investigate that to make sure we are all on the same page, dotting the i's and crossing the t's, before we take a position on whether or not we are going to support it.

We need more time to look at it and study it.

Customs TariffGovernment Orders

1:10 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I would like to thank my colleague from Hamilton Mountain for his speech and his tireless efforts to defend the steel sector and steel workers. I also want to mention the work done by our colleague from Essex on this file. This sector and the quality jobs involved are very important to the NDP.

After waiting for far too long, the government is taking a step in the right direction, but is taking only half measures and temporary measures. The federal government should follow the European Union's lead and establish permanent safeguards for, among others, seven steel products threatened by dumping, which could harm the stability of Canada's steel sector.

If Europe can do it, why can't we?

Customs TariffGovernment Orders

1:10 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, we too are trying to find out why we did not take that position.

I can only say that the all-party steel caucus was meeting at the beginning of this four-year term, and we have not met in over a year. No information was going back and forth. Many requests were made to meet and discuss certain issues, to see if we could come up with something and to see where we could make recommendations. However, those requests failed. The Liberals wanted to keep waiting and see what was going to happen.

The answer is that I do not know.

Customs TariffGovernment Orders

1:10 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, I want to thank the hon. member for his intervention today and for bringing up the importance of steel to Sault Ste. Marie. We have Algoma, Tenaris and all the other ones. It is 41% of our GDP. It is absolutely massive and critical.

Would the member join us in calling on the Conservatives to move forward with what we are proposing today? After all, the leader of the opposition said on May 29 that he would put safeguards in place.

Would he agree that the question is, “What is the holdup?” Will he call on the opposition to join us in moving forward expeditiously?

Customs TariffGovernment Orders

1:10 p.m.

Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I want to remind the hon. members to place their questions through the Chair, not directly to the other side.

Customs TariffGovernment Orders

1:10 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, I know the hon. member is one of the co-chairs of the all-party steel caucus.

As I said previously, they made some good points. What they are offering is to work together and get into a room, even if we have to do it tonight, to understand what they are talking about and to see how we could work together to move forward, working as fast as we can to have this implemented.

There is a concern for all the parties in this House that the Canadian steel sector and its jobs are very important. It is too bad it has taken this long to figure this part out. I think progress is being made on what the government is proposing. I also think that maybe there is some additional stuff that could be put in there to make this even better.

My answer is working together, but I would still want to investigate what the actual amendments are before I take a position on that.

Customs TariffGovernment Orders

1:15 p.m.

Independent

Erin Weir Independent Regina—Lewvan, SK

Mr. Speaker, I have the honour of serving on the all-party steel caucus with the member for Hamilton Mountain. I would just invite him to speak to the role of the all-party steel caucus in advocating for appropriate safeguards for our steel industry.

Customs TariffGovernment Orders

1:15 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, we have a very interesting committee. We listen to all the different views from all regions and share with other members what we know about the steel industry. I want to thank the member, because he has provided some valuable information to help us out.

It is very important that we sit and listen to each other. I thought we were doing very good work until the last year and a half, when we did not have any type of meeting at all, even though there were many requests. It was as if we were not an all-party caucus but just a government caucus.

Customs TariffGovernment Orders

1:15 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, before I begin, I would like to join my colleagues in saying how honoured and privileged I am to stand here, particularly on D-Day, when those who went before us paid the ultimate sacrifice to protect our democracy so that we could have this important discussion today. There are a few vets left. One is tail gunner Dick Brown, from Sault Ste. Marie, whom I had the privilege and honour of speaking with on Friday, before he left on Sunday, to hear about his remarkable service. I want to thank him and all veterans, those who are living and those who paid the ultimate sacrifice for what they did.

Today I stand to talk about the important proposed legislative changes that would amend the Customs Tariff and the Canadian International Trade Tribunal Act. The goal of this legislation is simple. It would temporarily remove the two-year moratorium on the imposition of safeguard measures for products that were recently subject to safeguards.

Before I go on, I would like to indicate that I will be sharing my time with my esteemed colleague from Hamilton East—Stoney Creek.

The legislation would give the government the flexibility it needs to respond quickly and appropriately to situations where a substantial surge of imports could do harm to Canadian producers and workers. Together, these measures would give the government the tools it needs to stabilize Canada's steel market and, if needed, to further protect Canadian steelworkers and producers from global instability and surges in imports that could be harmful to Canada's economy.

Canada's steel and aluminum sector is an important part of our economy. It provides thousands of good middle-class jobs to people and communities across the country, including those in Sault Ste. Marie. Members have heard about its importance. It accounts for over 41% of Sault Ste. Marie's GDP. That is why, for those workers and those communities, our government has always taken strong action to stand up for these industries.

I remind people that in budget 2016, in black and white, we made changes to strengthen Canada's trade responses to dumped steel. Further, we consulted, and in 2017, we made more changes on market distortion, scoping, duty circumvention and union participation.

In 2018, we put more dollars into fighting dumped steel, and it is working. We put more money into our borders. We have specialized agents who work for the Canada Border Services Agency. They are forensic people who can fight and stop the dumping. We made changes that created one of the greatest strengthened trade regimes in the world.

During one of our meetings, either at the trade committee, the industry committee or the all-party steel caucus, I asked one of the people from the Canadian Steel Producers Association what would have happened if we had not put those in place, with what was happening with the section 232 tariffs. His remark was that, quite simply, the steel industry would have been devastated.

I am glad that from day one, just a couple of months after we were elected, we had the steelworkers' backs. Further strengthening happened when we stood firm and did not back down. I am proud to say that on May 17, when Canada and the U.S. announced that they would eliminate their tariffs and countermeasures within two days, it was the culmination of a lot of work we had undertaken over those years, in particular in the year before, when we announced dollar for dollar trade retaliation, not only on steel and aluminum but on a number of items.

I was in Washington recently with the trade committee. We took a team Canada approach. We had Conservatives, New Democrats and Liberals with us. We met with many people, and we could see in their body language how it was affecting them. Although we had a NAFTA in principle, we were not going to sign it until those tariffs were lifted. It worked quite well. Part of what we did to protect the steel market at the time, when the Americans announced their tariffs, was announce that we were imposing provisional steel safeguards for a period of 200 days to help stabilize the market and protect against surges of foreign steel into Canada.

On April 26, 2019, after the Canadian International Trade Tribunal found that final safeguards were warranted for heavy plate and stainless steel wire, the government announced its intent to enact safeguards on these products.

While we have been working hard, and continue to, to make our steel and aluminum industries even more successful, because they create good, well-paying middle-class jobs, we have also been focused on making sure that Canada has a solid system in place for addressing unfair trade. Therefore, we have effected a very important trade remedy system that provides recourse for Canadian producers harmed by unfair trade imports. Under this system, Canadian producers can request that duties be applied on dumped or subsidized goods sold in the Canadian marketplace.

I reiterate that since 2016, our government has taken several steps to modernize and strengthen Canada's trade remedy system to ensure that Canadian companies can compete on a level playing field with foreign exporters. This was informed by public consultation. Our government implemented a package of measures, which I have referred to, to strengthen the trade remedy system. It has been extremely effective.

Our government made legislative and regulatory changes to improve the trade remedy measures addressing the circumvention of duties, to better account for market and price distortions and to provide unions with the ability to participate in trade remedy proceedings. In fact, the president of Tenaris was here with Evraz steelworkers to provide testimony in a case. It was so effective that we won, and I thank the United Steelworkers for participating in that particular case.

We have been speaking today about the importance of the steel and aluminum industries. We have a very integrated market between the United States and Canada. It is perfect. We create steel and aluminum on both sides of the border that are put into the supply chain downstream for the auto, manufacturing and energy sectors. That is why we continue to look at how to diversify to new markets.

Last year, our government launched the export diversification strategy, which has the ambitious goal of growing Canada's overseas exports by 50% by 2025. We are investing more than $1 billion over the next six years to make this happen.

The strategy will focus on three components: investing in infrastructure to support trade; providing Canadian businesses with resources to execute their export plans; and enhancing trade services for Canadian exporters.

Let me very quickly touch on one component of the export diversification strategy: how we are helping Canadian businesses export and grow. While Canada has had success in gaining preferential access to key markets via trade deals, more needs to be done to ensure that Canadian firms take full advantage of international growth opportunities.

Last year, to put more resources directly in the hands of Canadian businesses seeking to develop export plans, build global partnerships or gain skills and training for global trade, the government announced investments of $198 million over six years. This includes $50 million over five years to support businesses, including in the steel, aluminum and manufacturing industries, in diversifying their exports, including with new export readiness grants. This funding is going to support CanExport and related funding programs. These are tools that are absolutely critical as we penetrate the new European and Asian markets. Our new agreements have created this opportunity.

In conclusion, the measures I have been speaking about clearly show that our government has been listening closely to the industries and unions most affected by trade disputes and global market distortions. It is clear that we need the flexibility to take necessary actions to protect Canadian industries and workers. Today's amendments would help do just that. Canadian workers and industries deserve a level playing field, and we have an opportunity before us today to make sure it gets done.

We will continue to stand up for our workers and our industries and do what is needed to preserve the fair and open trading environment they depend on. I urge all members to support this important legislation expeditiously. The steelworkers are counting on us.

Customs TariffGovernment Orders

1:25 p.m.

Independent

Erin Weir Independent Regina—Lewvan, SK

Mr. Speaker, I have had the honour of serving with the member for Sault Ste. Marie on the all-party steel caucus.

As I think we all understand in this House, the legislation we are debating today would remove the moratorium, which would allow the government to bring in safeguard measures. I am wondering if he could provide some reassurance that the government's intention is to actually bring in those safeguards to protect Canada's steel industry and steelworkers from unfair competition from offshore steel, often produced in violation of internationally recognized labour and environmental standards.

Customs TariffGovernment Orders

1:25 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, I appreciate the member's contributions to the all-party steel caucus. We have had a number of face-to-face meetings and teleconferences over the last year as we have been updating various actions this government has been taking in relation to protecting steelworkers.

Part of what the member was talking about was the environment. We know that Canadian steel is better for the environment. This is something the member made a point of in the all-party steel caucus. When Canadian steel is used in our infrastructure, there is less of a carbon footprint. It is better in fighting against climate change when we use Canadian steel in our own infrastructure programs.

Quite frankly, we were quick to act in putting safeguards on seven products last year. The CITT came out with a ruling supporting two of them. There are five left. If there were surges that the CITT did not indicate were there, this legislation would allow the government to move expeditiously to stop any surge that may occur. That is why it is critical. It is a tool in the toolbox we have to have just in case.

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1:25 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, if what the government is proposing were implemented, would there be a time when those safeguards would expire? Would there be an automatic expiry date, or could we leave them on for as long as we wanted?

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1:25 p.m.

Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, I want to thank the member for his earlier intervention pointing out the importance of the steel industry to not only Hamilton but to Sault Ste. Marie and Canada, with 123,000 direct and indirect jobs that support not only the workers but the pensioners who rely on the viability of the steel industry.

The proposed legislative amendments would create a timeframe in which if the surge happened, we would be able to utilize it over the next couple of years. One of the things I have found in my role representing the good people of Sault Ste. Marie is that we have to be nimble, we have to be quick and we have to be constantly looking at the industry.

One of the people presenting at the all-party steel caucus said that these are not our grandparents' steel mills. They are new and modern. There are a lot of changes. What is happening in the world, with so many market changes and shifts, is that we have to keep our ability to be nimble and to constantly review.

I am proud of this government, because it continues to consult and consult broadly. It is not done here in Ottawa. The government reaches out from coast to coast to coast to the steelworkers, the aluminum workers and the industries in B.C., Ontario, out east and in Quebec.

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1:30 p.m.

Liberal

Bob Bratina Liberal Hamilton East—Stoney Creek, ON

Mr. Speaker, I am pleased to rise today in the House.

As has been mentioned, we are commemorating D-Day events today. Many of us regret that we are not able to be in our communities. There were events held last night in Hamilton, and today as well, but the second-best place to be is here in Parliament, where it has been said that the men and women who made those sacrifices so many years ago have allowed us to be here to debate and discuss the issues of the day.

I would point out that in 1944, the honorary flagship of the Canadian Navy, HMCS Haida, which is now in Hamilton, was part of the 10th Destroyer Flotilla, which had the job of clearing the English Channel of German ships ahead of D-Day. The Haida also participated in testing radar-jamming technology to confuse the Germans when D-Day was unfolding.

On the topic of steel, there was no armour plate made in Canada until 1941, when Dofasco, which is now ArcelorMittal Dofasco, created the armour plate division. That armour plate division made 100% of all the armour plate used by the Canadian military in preparing its vehicles and vessels for wartime, so the steel industry has a proud history of supporting the military. Also, many of those steelworkers actually enlisted, and there are many monuments in our Hamilton steel mills, such as Stelco, National Steel Car, Dofasco and so on, for those former employees who gave their lives in the service of their country.

I am pleased to now move on to the topic of the day, which is the legislation before us.

Our government has a proven record, I would say, of broadening and deepening Canada's global trading relationships. The new connections that we are forging with the world are helping Canadian business to succeed and grow and create more well-paying jobs, delivering the strong economic growth that benefits all Canadians. It is an important part of our plan to strengthen and grow the middle class, and I can say with confidence that this plan is working.

With the successful conclusion of the Canada-United States-Mexico agreement as well as the Canada-European Union Comprehensive Economic and Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Canada is now the only G7 country to have free trade agreements with all other G7 nations. Canada now has comprehensive free trade agreements with countries representing two-thirds of the world's total GDP, and that is over one billion potential new customers.

Our government's commitment to free trade with economies around the world, including those in emerging markets, will help to further strengthen and grow the middle class and deliver long-term economic growth that benefits all Canadians. Canadian businesses are ideally positioned to benefit from the advantages that we have secured through trade, being located next to the world's largest economy to the south, as well as having close historic and economic ties to Europe to the east and deepening connections to the fast-growing Asia-Pacific nations in the west.

To make the most of these opportunities, our government is working tirelessly to support open, fair and rules-based trade arrangements with the world, but that does not mean that we can turn a blind eye to the reality that there are very real challenges to fair and open trade that are playing out around the world, including here at home. Canadian workers, communities and industries have seen the negative effects that come about when there are significant disruptions in global trade, including those that affect our steel and aluminum industries.

As the son of a steelworker and the grandson of steelworker, and as a former full-time steelworker myself, I can attest to the impact of steel on the lives of Canadians. In my city, steel helped build our universities, hospitals, art galleries and concert halls. It paid tuition fees for thousands of students, and it continues to pay retirees' pensions. Steel pays our city millions of dollars in taxes and more millions in charitable donations.

For Canada, steel provides thousands of good, well-paying jobs and serves as an important source of products used by other major industries, including energy, advanced manufacturing, construction and auto manufacturing, so when steel markets are disrupted and steel is diverted into the Canadian market, the damage ripples right through our economy. It hurts businesses and it hurts people.

In the face of this threat, it is critical for the government to have the tools and resources it needs to protect Canadians while continuing to encourage foreign investment, trade and economic growth. The legislation we are discussing today would provide this protection. By removing the two-year moratorium on the imposition of safeguard measures on steel, these proposed amendments would provide additional flexibility for the government to respond quickly and appropriately to a substantiated surge of imports harming, or potentially harming, Canadian producers and workers.

With today's legislation, the government is proposing that the amendments only be in effect for two years. They are intended to be temporary, as we hope the current global environment of trade distortions will be. Moreover, the conditions for the application of safeguards under the Canadian International Trade Tribunal Act and the Customs Tariff would remain unchanged and would still need to be met in order for any new safeguard measures to be put in place.

Today's legislation would build on the actions our government has already taken to defend the competitiveness of Canadian business and the strength of our economy, pushing back against market-distorting practices that originate beyond our borders.

We recently announced an intensive 30-day consultation period with industry and workers to determine further protections that may be required. These include actions in a number of key areas, such as conducting timely and targeted reviews of dumping cases to boost protections through higher duties to ensure Canadian companies are not at an unfair disadvantage with foreign competitors.

We are looking to introduce a more robust steel import regime with a view to strengthening import data, including product quantity, type and origin information. This will improve our ability to monitor import surges, assess evidence of transshipment and be more responsive to sudden changes in trading patterns.

We are looking to introduce greater flexibility for the Canada Border Services Agency to address price and cost distortions in foreign markets when determining whether dumping has occurred. Our government is also ensuring flexible and responsive support for domestic producers through Innovation, Science and Economic Development Canada and its agencies. These actions are all part of a broad and sustained effort to help our steel and aluminum producers in light of global challenges. This includes $2 billion to defend and protect the interests of Canadian steel, aluminum and manufacturing industries and their workers, with up to $250 million in new funding through the strategic innovation fund.

The challenges that these industries face are real and significant. They must be met with strong and decisive action on the part of our government, and that is exactly what we have done and continue to do with the legislation before us today.

Our government's plan to strengthen and grow the middle class is working. The result of our investments in people speak for themselves. Hard-working Canadians have created over one million new jobs, most of them full time. That is the equivalent of almost nine million jobs for an economy the size of the United States or 14 million for an economy the size of the European Union.

We know that there is more to be done so that people can feel secure and confident about their future. We need to make sure the economy works for everyone by finding new markets for Canadian products, making sure our businesses are competitive in the global economy and helping more people to find and keep good jobs. We also need to ensure that these gains are not undermined by surges in imports. The measures contained in today's legislation would give us an effective tool to safeguard Canadians against these challenges.

I will conclude by encouraging and urging all hon. members to support the bill's timely passage through the House accordingly.

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1:40 p.m.

Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, unfortunately the cause of this legislation has to be placed right at the feet of the Liberal government. It appears that the American government, for over a year, has been pleading with the Canadian government to implement protections to ensure that foreign steel and aluminum is not dumped into Canada, that surges are addressed and that if foreign steel and aluminum enter Canada, they are not transshipped to the United States, undermining the competitiveness of their industry and ours in Canada. It has taken over a year for this legislation to come forward to address the concerns of our American cousins.

Is the member not concerned about that delay? As well, why did that delay happen? This legislation should have happened well over a year ago. Why did it not?

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1:40 p.m.

Liberal

Bob Bratina Liberal Hamilton East—Stoney Creek, ON

Mr. Speaker, what we were faced with was the sudden, illegal imposition of section 232 tariffs against the greatest ally the United States has. Here we are, celebrating D-Day and all those soldiers working together, and to this day companies in Canada are building parts for American Abrams tanks, so we were confronted with a situation that was unprecedented. We immediately began working to try to change the attitude among the American Congress decision-makers with regard to section 232.

Dumping has been going on for many years, and the question might be thrown back as to why there were no considerations given to the plight of Canadian steel by the previous government.

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1:40 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, I have known the member for Hamilton East—Stoney Creek for years, and we have worked together in a previous government at city hall.

One of the things that concerns me with this piece of legislation, even though we believe it is a good step forward, is that it is a temporary solution. Is the government ready for a more permanent solution for our future? Is it willing to listen to steelworkers, to sit down and talk to them about finding a way of doing it permanently without throwing them out of the office?

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1:40 p.m.

Liberal

Bob Bratina Liberal Hamilton East—Stoney Creek, ON

Mr. Speaker, I can assure the member that when anybody comes to my office, the meetings are held in good faith, but if it comes to a point where I am being described in derogatory terms by those people, the meeting is ended. What I said at that meeting, after being called names, was “This meeting is over”.

To the more important point that my friend is making from across the way, I believe that what we have gone through with the Trump administration with the steel tariff issues and all that really demands that we pay stronger attention to the larger needs of Canadian heavy industry. I would agree that we should have a more robust framework to work together to ensure that the needs of our Canadian workers are met. I would commit to doing that.