Debates of June 10th, 2025

Main Estimates and Supplementary Estimates (A), 2025-26

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, it is good to hear that my colleague is looking at my Twitter account. I might even suggest that he follow me. The numbers I post on social media are accurate. We obviously want to keep Canadians informed. I am pleased to see that my colleague pays close attention to what we post on social media, because this is important information for Canadians and for the industry.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, I believe I am already following his account, but I do not think he is following mine. I would like to return the invitation.

Let us move on to another topic. We know that starting next January, the European Union will begin imposing tariffs on imports from countries that do not have carbon pricing. It has even stated that it will start with high-emission sectors, including steel and aluminum.

In Canada, the government has made changes to the carbon tax. Earlier today, we even heard the Prime Minister say that he was proud to have scrapped it. What guarantee do we have that this will not negatively impact our exports to the European Union?

[Maninder Sidhu, Liberal, Minister of International Trade]

Mr. Speaker, I enjoyed sitting on the trade committee with the hon. member. Speaking of CBAM, the carbon border adjustment mechanism, which came up a lot at committee, it is very important to note that Canada has very progressive environmental policies in place to make sure we are on a level playing field with other countries that believe in protecting the environment. It is important to note that we will continue trading with the EU and like-minded countries, but we do have a leg up in our progressive environmental policies.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, I will clarify once again what I would like to know. Did he get a guarantee from the European Union that the changes made to Canada's carbon pricing system would not have an impact on exports?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, we talked about the EU, and I believe that measure is coming into force in 2026. That is something we are working on with our colleagues, but it is important to note that, right now, we have progressive environmental policies in place to make sure we protect our industries and our environment at the same time.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, given that Quebec has kept its own carbon trading system intact, will products from Quebec be exempt from customs duties if the European Union decides to follow through on its threats?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, it is important to note that at this current time we are in a crisis, and we need to continue supporting our workers and our industries. CBAM is a very important part of that conversation, which came up at committee.

I remember when the Conservatives were against any type of progressive environmental policy. We knew that it would hurt our workers at the end of the day, and we want to make sure that we remain competitive—

[The Speaker, Francis Scarpaleggia]

The hon. member for Saint-Hyacinthe—Bagot—Acton.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, I would like to move on to another topic, namely the negotiations for a free trade agreement with the United Kingdom. Negotiations seem to have been stalled for quite some time. It turns out they have been officially suspended for a year and a half. Can we get an update on the discussions?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, it is important to note that the United Kingdom is an important trade partner for Canada. Currently, we have a system in place to give us access to 99% of its market. It is working really well.

I sat down with the trade minister when I was in Paris last week to open discussions on coming to a trade agreement. Right now, we have access to 99% of its market.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, has a date been set for negotiations to resume, or are we not there yet?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, what the trade minister and I talked about was a commitment to making sure we are able to restart talks on that. I am sure our officials will get to it as soon as possible. We look forward to having the Prime Minister of the United Kingdom come, this weekend, to Canada, so that we can welcome them, continue to discuss our relationship and grow it even further.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, did the main sticking points come up in the discussions that he confirmed took place? We know that for them, it is our supply management system. Hormone-treated beef was also a very difficult subject and was one of the reasons negotiations were suspended. Were these things discussed, or was there just a commitment to raise them again when the negotiations resume?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, speaking of our beef and meat industry, I did have a conversation earlier today and last week on access to new markets, including in the United Kingdom, for our sectors. This will be a conversation we will have, and I know officials will follow up as well.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, I will address one last subject.

My colleague and I studied the CARM system, the CBSA assessment and revenue management system, twice at the Standing Committee on International Trade. Fears were expressed. The system was criticized by some people, including importers and exporters.

Today, according to a survey of their members, things are not going well at all. Apparently, the situation is verging on chaos.

My colleague and I were initially in favour of postponing the system rollout. Last fall, we both voted to ask the Auditor General to conduct a performance audit.

Is my colleague having discussions with importers and exporters about the problems with the system?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, the issue around CARM is what we studied. It is a new way for Finance and the CBSA to collect revenues. The Auditor General has said it is the way forward to improve accuracy. Of course, there are always kinks to be worked out when a new system is put in place, but I believe this is under the scope of the Minister of Public Safety and the CBSA, and those are discussions I will continue to have with my colleagues.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, they are working on it, but I imagine that my colleague is in close contact with the Minister of International Trade, because this has a direct impact on importers and therefore a direct impact on trade.

In a situation like the current one, where trade is very difficult and challenging, we do not need to shoot ourselves in the foot with a system that is riddled with problems.

Does the minister have any assessments of the system's performance and his evaluation of it? I would like to know what is planned to improve the situation.

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, the CARM project was put in place way back when, during a Conservative government. This has been going on for over a decade, and we need to continue working together with all parties and my other ministerial colleagues to work through it. CARM is an important adjustment for collecting revenues accurately from importers that bring in goods, but that is a conversation I will actively have with our Minister of Public Safety.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, I think that everyone agrees that the old system needed to be replaced. That is not the issue. The concerns that were raised were about the system as it was going to be implemented, along with the lack of preparation.

Is the minister in discussions with importers and exporters about their concerns and the irritants and problems that this is causing?

Are there any assessments, with figures and data, of the system's performance and how it is seen by Quebec importers and exporters, as well as by the chambers of commerce and all the groups that were very concerned and are now dissatisfied?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, I have attended many trade shows and have come across many importers that have come across the CARM system, and yes, there are importers that are fully set up and using the system, but there are also other importers that are having some issues. This is what I brought up to our Minister of Public Safety. As I said, this impacts importers across Canada, and we want to make sure the system works accurately.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, we know that this initiative is a major source of dissatisfaction. I have the data right here: There are calculation errors in duties and taxes, trouble obtaining technical support, serious system performance issues, and 22 service interruptions.

Everything I just mentioned happened in the first month of the program's existence. Is that what the minister calls a system that was ready to be implemented?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, what I do know is that the CBSA is working very hard to resolve these issues. It is important to note the Minister of Public Safety, whose scope this falls under, is fully aware of them.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Mr. Speaker, we know that importers have recently been required to deposit a financial guarantee themselves in order to participate in the Release Prior to Payment Program, since they can no longer use the financial guarantee deposited by their customs brokers.

The transition period ended on May 20. It is a terrible situation.

What is being done about it?

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, it is important to note that we want to make sure trade is easy for businesses to do. Why did a previous government, the Conservative government, bring forward the CARM system? It is because it is about the collection of revenues and accuracy. We want to make sure that we are able to bring it into force, but of course, that falls under the scope of the Public Safety Minister and the CBSA, which I will be working—

[The Speaker, Francis Scarpaleggia]

The hon. member for Calgary Crowfoot.