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International Trade committee  Thank you for the opportunity to contribute to this study. It's an important time for the industry, and it's an important time for our operations in Canada. We appreciate the multi-party support and the multi-party aspect of this, in particular on trade remedy effectiveness. It w

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  Yes. The biggest challenge we have today is with unfair trade. There have been 600 trade cases around the world. Many of these are in steel and steel products. We have had challenges. We appreciate that the trade remedy is important to resolve these issues. With regard to each

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I can answer that. Most of Canada's steel industry is oriented around goods that are used in Canada, and I would say that Canada's steel industry is unlikely to benefit significantly from investments made overseas. Today there are almost no duties on products that come into Canad

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I would agree completely. There's an opportunity, though, for us to share the information so that customers know, when they make a decision to purchase something from China, that they're buying something that has produced three times the amount of GHG emissions and that if they c

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I can answer that question. In theory you can, but what you need to do is treat your domestic products the same as you treat imports. If we begin measuring what the GHG footprint is of the product we make in Canada, we can begin to ask at the border. Using the same methodology—a

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  In general, Canada's system works relatively efficiently from beginning to end. The formal process is nine months. We begin working maybe another three months in advance of that. We can provide you with a list of the roughly seven ways that we see circumvention happening. I'd l

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I'll say the same thing. When competition is won unfairly by a foreign competitor, we lose volume, so we employ fewer people to operate the plant. We lose price, therefore, we have less profit to reinvest in the facility. Ultimately, year after year, if you have less money to rei

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  In reality, you need to have the economics—the income statement, the costs, the detailed pricing, the competitive information—in order to file a successful case and to follow it through, so it's very difficult, I believe, for the unions to file a case. However, the actions commit

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I'll try to be quick with this. To give you an idea, we won a case against China. Within a couple of years, a trader from another country submitted a request to CBSA for a product, the same one that we won the case against in China. They moved to another country, Indonesia, added

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  This is actually, in our view, the most valuable of the tools. It enables the CBSA now to investigate and make a decision when calculating the dumping margin to make sure that they are considering what would be the costs and pricing from an exporter, based on a properly functioni

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I couldn't express what our colleague from ABB described as what manufacturing of the future will look like. It looks like that today in our facility. For example, we can be on a laptop anywhere in the world and watch the production go through our line. We can watch as an opera

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  Our view is that Canada is in a very strong position to negotiate a free trade agreement with China, although you would know the details more than I would. In terms of market economy status, however, Canada is a world leader in its policy, because each time we file a case against

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  In reality, then, we should not grant them anything, because we need to prove it. They should be informed as we're negotiating. You already have market economy status; the Canadian producers have to prove that you are not a market economy in status.

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I will answer his question a little bit by saying that the particular market situation in the medium term may be a tool that will enable us, if China continues to act the way they are doing, to use the new tools and to find successful cases against them.

March 23rd, 2017Committee meeting

David McHattie

International Trade committee  I think we could say that in theory a healthier, more competitive Canadian domestic industry will enable and facilitate a healthy and competitive shipbuilding industry.

March 23rd, 2017Committee meeting

David McHattie