Mr. Speaker, I am pleased to rise today on behalf of the constituents of Fleetwood—Port Kells to take part in today's debate on Bill C-411. It gives me great pleasure to be responding on behalf of the Minister of International Trade and specifically to support the comments of my colleague regarding the proposed amendment to Canada's trade remedy legislation.
The bill, introduced by the hon. member for Terrebonne—Blainville, raises issues that are at the heart of any discussion of Canada's competitiveness in the ever changing global economy. The Government of Canada is well aware of the opportunities and the challenges that international development presents for Canadian trade and investment interests.
I welcome this opportunity to discuss the government's approach and plans in this regard. Let me start with a few words regarding the international framework that underpins Canada's international commercial relations in general and specifically Canada's anti-dumping regime.
The World Trade Organization provides the rules that govern trade relations among the organization's 150 members. The membership includes Canada, plus all of our most significant trading partners.
The WTO framework consists of a series of agreements that are specific to particular areas of international trade policy. The agreement pertinent to today's debate is the agreement governing anti-dumping measures. While the WTO aims at equal treatment and a smooth flow of trade among its members, it also permits certain exceptions. Anti-dumping measures are one of these exceptions.
For those who are watching this debate, dumping occurs when a company exports a product at a price that is lower than the price it normally charges in its home market. The WTO rules spell out the circumstances in which a member may take measures against dump imports from another WTO member and the procedure for applying such measures.
Canada has implemented our rights and obligations under this agreement by means of Canada's Special Import Measures Act. This act falls under the Minister of Finance and its implementation falls under the Canada Border Services Agency and the Canadian International Trade Tribunal.
I observe that Canada's anti-dumping framework involves a transparent, quasi-judicial process for the review of complaints by Canadian companies regarding dumping by foreign competitors. The process provides for a balanced and impartial review of the legitimate concerns of domestic industries in Canada and the evidence provided by foreign suppliers and their Canadian customers.
In announcing the introduction of this bill, the hon. member indicated that goods from China are a target of the proposal. Allow me to speak for a few moments about Canada's trade with China.
China is Canada's fourth largest export market and our second largest trading partner. Last year, our bilateral trade totalled over $40 billion. In Canada's case, this meant $7.7 billion in exports of goods alone. These indicators point to a strong and growing trade relationship with China, with tremendous benefits for both sides. One need only observe the accomplishments for Canadian firms in China, for example, in the engineering, financial, transportation and communication sectors, to see how strongly Canadian firms can compete in the dynamic Chinese market.
This is just part of the picture. There is another message that the statistics tell, the fact that imports from China are over four times our exports to China. Canadian consumers benefit from such imports in terms of price and choice.
We have also heard the concerns of certain Canadian producers regarding the growth in imports from China. Some of these complaints allege that these imports are being dumped in the Canadian market or that they benefit from subsidy programs in China.
Canada has 11 anti-dumping measures in place regarding imports from China. In three cases where the products were found to be subsidized, the goods are also subject to countervail measures. These actions demonstrate that Canada's trade remedy system is working.
Canadian firms have made use of the system by formally registering complaints regarding certain imports from China. Trade remedy measures have been applied to these imports where such measures were found by Canadian investigators to be warranted.
While it is useful to remind ourselves of Canada's current trade remedy actions against imports from China, the trade remedy system is not the mechanism we should be looking to in terms of addressing the broader issue of Canada's competitiveness in China and other key markets.
The government monitors our trading partners to ensure that they are living up to their WTO commitments. This includes China. In most cases China has implemented the commitments it took on when it joined the WTO in 2001.
There are exceptions however. Last year Canada filed a challenge against China at the WTO regarding China's tariff treatment of imported auto parts.
Canada has a strong interest in the auto parts sector. Last year Canadian manufacturers supplied over $370 million in auto parts to China's growing auto sector.
Furthermore, the government has recently decided to join other WTO members in formal WTO consultations with China. These are consultations that focus on China's enforcement of intellectual property rights and on certain Chinese subsidy programs.
The consultations will provide opportunities for Canada to relay the concerns of Canadian stakeholders to Chinese authorities and to assess China's latest steps in both areas to bring its regime into compliance with its WTO obligations.
Consultation are the first step in the WTO's dispute settlement mechanism. If consultations do not succeed in resolving the matter under discussion, Canada, like other WTO members, has the option of requesting a WTO panel to adjudicate the issue.
Canada's new government recognizes that many Canadian manufacturers are facing intensified competition and are adjusting to fast-changing global realities.
The government has recognized that Canada needs a more competitive business climate and is committed to government policies that encourage investment and job creation.
The Minister of Finance's economic statement last fall presented a road map of policy directions, “Advantage Canada”.
“Advantage Canada” includes a plan, the government's global commerce strategy, to more aggressively engage the world beyond our borders. For instance, the government is committed to reinvigorating our trade policy while we continue to work toward a meaningful result in the Doha round of multilateral negotiations.
We are also committed to stepping up the negotiation of bilateral trade agreements, ranging from free trade agreements to improved relations and investment accords.
In the case of China a foreign investment promotion and protection agreement is a priority. In today's global market, investment drives trade and investment is the essential catalyst for technology transfer and the development of supply chain links.
We therefore see significant benefits for Canada from an investment agreement with China. As well, our plan is about showing the world that Canada is moving up the value chain.
We are getting the message out that Canada is a leader in science and technology, and a great place to anchor North American commercial platforms, particularly where science, technology and innovation links are key. The government's strategy is also about stepping up our presence on the ground in key--