International Trade committee  It's Black Bush, from Bushmills, in Ireland. They're sitting there saying that they want to invest in their business, that they want to invest in plants and in upgrades, and in better technology. They want to innovate and they want new products. They're asking, “Where can we put that dollar that's going to give us the greatest return for our shareholders?”

International Trade committee  Thank you, Mr. Chairman. I'm Jan Westcott, and I'm the president and CEO of Spirits Canada. We're the only national trade association that represents the Canadian distilled spirits manufacturers. I'm joined today by my colleague, C.J. Helie. We're pleased to appear before you today in support of a comprehensive economic and partnership agreement between Canada and India.

Finance committee  Could you refresh me again on the question?

Finance committee  The barrier is mostly margin. We don't have enough margin to reinvest to keep the business vibrant in Canada. If you are going to go and develop or expand new export markets, you have to have the dollars in your jeans to do that. It is interesting that we are all talking about tax reductions.

Finance committee  Very well. We're strong supporters of enhanced international trade. Some 75% of what we make in spirits in Canada is exported. We are significantly an export business. It's a pretty simple business. We convert Canadian agriculture produce into higher-value products that we sell around the world.

Finance committee  Absolutely.

Finance committee  No, frankly. We're not competitive. It's very difficult to attract investment to Canada. If you are in the whiskey business globally, the returns available in the scotch whiskey business, the bourbon business, and the Irish business are far greater than they are in Canada. So it's a struggle to get investment in to maintain the industry.

Finance committee  Thank you, Mr. Chairman. I am Jan Westcott, the president and CEO of Spirits Canada. We are the only national trade association representing the interests of Canadian spirits manufacturers. I am particularly pleased to be able to appear before you today here in Windsor, home of the largest distilled spirits plant in North America.

International Trade committee  We do very well. Our motto in our business is that we believe in competition. Competition brings out the best in products, the best in services. We are primary manufacturers. We take raw materials, exclusively grain in Canada--rye, corn, and some wheat--and we produce finished products that we ship around the world, to close to 200 countries.

International Trade committee  No. The more whisky, the more vodka we can sell, the more grain we're going to buy. It helps farmers, people on the production side, and all of the ancillary industries that supply goods to us, whether they are people who make bottles, cartons, labels--you name it. All of those people succeed when we can grow our export business.

International Trade committee  We both face the same structural impediments; the market is designed to favour local producers. We all produce to essentially a world standard, and we don't adjust our products depending on where we're going. They're largely in the same position. We do compete directly with the United States, particularly the U.S. bourbon business.

International Trade committee  Absolutely.

International Trade committee  We have structural impediments today that prevent us from being successful in Colombia. If this agreement is passed, those structural impediments will be eliminated and we will have security for investment in developing that market in Colombia. So it's black and white.

International Trade committee  We buy grain pretty much right across Canada. With respect, sir, we buy grain right up to the boundary of the city of London. If you grew grain inside the city of London, we might buy it. So it's a municipal boundary issue. We buy grain in western Canada. We are the largest purchaser of rye grain in Canada for our products, predominately from Alberta and Saskatchewan.

International Trade committee  I think one of the key things that's taking place is that for a long time Canadian business wasn't looking at those opportunities. I think a lot of things have changed. I think the economy, particularly, is causing Canadian business to look much more aggressively at those. I think you'll see a different performance as we go forward.