:
Good morning, Mr. Chair and members of the committee.
On behalf of the Canadian Labour Congress and its 3.3 million members, we thank you for affording us the opportunity to present our views here today. As you know, the CLC brings together national and international unions along with the provincial and territorial federations of labour and labour councils across the country working in every sector in our economy, and in all occupations in all parts of our country.
Today we appear to explain why we believe any free trade agreement between Canada and the Pacific Alliance—Peru, Colombia, Chile, and Mexico—should have people's well-being and workers' rights at its core. The old model of free trade agreements prioritized corporate rights over workers and the environment. We believe this contributed to global instability through inequalities of wealth and income, deregulation of financial services, and the removal of the levers once used by governments to support economic growth. In a new trade model, we should embrace the kinds of economic partnerships that have at their core a commitment to equality, public reinvestment, and economic renewal that is both sustainable and democratic.
Nearly 20 years ago, together with trade unions across the Americas, we articulated elements of such an alternative trade and investment agreement in Labour's Platform for the Americas. In the wake of the 2009 economic crisis, the international trade union movement made proposals that would put sustainable economic renewal and decent work at the centre of our recovery efforts. Now we have a government that is taking these suggestions seriously in their progressive trade agenda. Labour rights have never been treated equally to the many rights granted to investors but the ambitious labour chapter tabled in NAFTA marks a significant change. We hope the government continues to build on this effort in the Pacific Alliance talks. This would be especially meaningful since we know labour rights are precarious in Peru, Colombia, and Mexico, and that Canadian corporations have been bad actors on environmental issues and labour rights in many of these countries, but alternative trade models must go beyond stronger labour rights.
The ability of government to regulate in the public interest must be protected and the ability of government to take action on climate change must be a priority over investor rights. Canada must seek a much stronger exemption in all free trade agreements in a manner consistent with the Canadian government's obligations to indigenous peoples in Canada. All FTA texts should include a wide-ranging, comprehensive, and clear exemption of indigenous rights, freedoms, and interests, from the scope of the agreement.
The renegotiation of NAFTA set a new standard for consultation, collaboration, and inclusivity in trade talks, but that work has only just begun. We need to build on this. For example, making studies available that would show the likely economic and social impacts of this deal on a range of issues; as well as establishing a system of regular monitoring and assessment of specific outcomes of FTAs, both positive and negative.
For those who say progressive trade is a distraction, I ask why can we not have an agreement that has as its central goal the creation of decent jobs and sustainable development? The Canadian labour movement is determined to ensure that any new trade agreement deals are fair and are protective of workers' rights, public services, the government's right to regulate in the public interest, and our environment.
It is time to take a new approach to trade that puts the interests of working people and the environment first.
The last point I would make, and this is always something I try to clarify, is our members throughout this country work in sectors that highly depend on our ability to trade with other countries. We recognize the importance of trade, and more importantly, the need for us to expand it. At the same time we recognize we don't have to compromise the basic principle of workers' rights, the environment, and indigenous and women's rights in the context of how we trade going forward.
Thank you on behalf of the Canadian Labour Congress.
I look forward to any questions the committee may have.
:
Okay, I'll try to be as brief as possible.
As members of the committee are aware, Port Saint John, also known as the Saint John Port Authority, is located on the Bay of Fundy and the southern coast of New Brunswick. Port Saint John provides a gateway into North America for maritime commerce. It handles bulk, break bulk, and container cargoes. Petroleum products, potash, containers, and cruise provide the mainstay of port business, while other commodities make varying contributions.
In recognition that many of today's consumer and manufactured goods move in containers, we are now focused on significant opportunities being presented with the completion of the Panama Canal expansion and anticipated trade growth for east coast ports. The port is well situated to take advantage of the north-south trade routes, as well as emerging opportunities in Europe and Asia.
We're focused on growth at Port Saint John, growth that includes building capacity at our cargo terminals, strengthening our business, developing collaboration with shipping and rail partners, and working with economic development agencies, such as ACOA, on international trade and foreign direct investment opportunities. We've seen results from this focus. Since 2012, we have had MSC, the world's second-largest container line, calling at Port Saint John on a weekly basis with a service to Freeport, Bahamas, and Caucedo, in Dominican Republic. Both offer transshipment destinations to countries further afield. Last year, CMA CGM, the world's third-largest container line, also began to call on a weekly basis. These two lines offer our importers and exporters competitive options and connections to global markets, but particularly in the north-south corridor.
To support these ambitious growth goals that we have, we needed strong terminal operations partners with a focus on international business development that is aligned with our own. In this regard, a major development took place last year when DP World became the new terminal operator of our WestSide facilities, and they're the fourth-largest operator in the world.
We have a long-standing connection with North America via CN's vast network, and we have recent success in partnership amongst short-line providers into the New England marketplace, expanding our target market and providing alternatives that were not previously cost-effective.
In our international marketing efforts, we have been working closely with ACOA on a north-south bilateral trade development, which includes Mexico, Brazil, and Chile. In fact, I will be travelling to those countries later this month, in conjunction with our cargo development manager, to engage in business meetings over a two-week period, designed to uncover opportunities for increased trade.
Our ongoing work with ACOA complements Canada's focus on trade growth with the Pacific Alliance countries of Chile, Mexico, Peru, and Colombia. Today our trade with these countries is valued at $31.7 billion for Canada, and $182 million of that is specifically Atlantic Canada. On the export side, our Canadian exports are $6 billion in goods to these four Pacific Alliance countries, and of this, nearly $118 million is exported from Atlantic Canada. Clearly, as a country, trade with Chile, Mexico, Peru, and Colombia is significant, and with trade agreements it's bound to grow.
Given our natural geographic advantages on the north-south trade route, our marine infrastructure capacity-building, and the trade and transportation partnerships we have established, we believe there are advantages for Port Saint John in the Pacific Alliance with Chile, Mexico, Peru, and Colombia.
For reasons I've outlined today, at Port Saint John we believe our regional and national economy will benefit from the introduction of reduced tariffs on importation of goods and materials from these countries.
Increasing imports at Port Saint John is a vital part in balancing trade in our container sector. Having more balance allows for increased cost-competitiveness for shippers and receivers at our port. Having greater import volumes at Port Saint John will also allow for better economies of scale for our existing exporters. Improving the balance of trade has been a major component of our north-south trade strategy.
In conclusion, we appreciate the attention of the committee and the invitation to provide comments today. For us, the opportunity for increased trade with the Pacific Alliance is about a brighter and more prosperous future for Port Saint John and our stakeholders through increased trade and competitiveness.
I hope I have been able to provide some information that the committee will find valuable as you carry out your important work. Now I'd be pleased to answer any questions you might have.
:
Thank you to our presenters today.
I would like to say that I believe we have the best workers here in Canada, and if we are on a level playing field with workers in other countries we can absolutely be competitive and excel. But I believe we have a responsibility to ensure that we don't turn a blind eye to the working and human rights conditions of workers in the countries that we have trading relationships with.
I want to point specifically to a Canadian Labour Congress response to a report that came out. It's dated Thursday, February 2, 2017. It's about the rights of Colombians to collectively bargain to have a union, and what the reality is for people who attempt to do so. There are quotes in here about the anti-union hostility, intimidation, and threats that exist for Colombians who are trying to form a union, to have some freedom of association to improve their working conditions. It notes here that there are long-standing complaints of violence and intimidation used to restrict workers' freedom of association and collective bargaining.
Could you speak to this response to the report that you put out and tell us about the conditions that exist for working people in Colombia today?
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On the percentage of goods that are shipped, there are three regions I would note. One would be down into the U.S. It could be Maine and New England. Another would be regional: New Brunswick, Nova Scotia, Prince Edward Island. The third would be central Canada.
Because we have other sectors that involve different regions, a lot of our container business is very strongly based on regional cargoes in Atlantic Canada that are exported. We're just uncovering the opportunities with the new lines that are calling for import, but to have that business model and to have those container lines calling...it's very important to have connections to Quebec, Ontario, and beyond.
Every week we have shipments that are exported from and imported to central Canada as well. You mentioned Maine. That's a developing business. We used to do a very big business with forest products exporting from Maine through Saint John, but we saw a lot of closures in Maine forest product-producing mills, paper and pulp. A lot less is going offshore, but we have good opportunities in central Maine, and just over the border in Woodland, Maine, for exports through the port as well. We're working on those currently, enjoying some business, but we see that's going to certainly grow.
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We have said consistently since this program has been created that there's been consistent documentation about the abuse in the program. The government, of course, has taken some steps, but again we think we have to do more. The pathway to become a Canadian landed immigrant and to citizenship, I think, is one of the most positive developments. We think there are other aspects of the program that continue to be problematic.
As you know, the federal government authorized temporary foreign workers to enter the country, but of course when these workers get to Canada, they operate under the provincial jurisdiction. The provinces, then, are required to enforce their labour laws, employment standards laws, housing laws, and what have you. When there's no inspection of a workplace, we see consistent abuse. Most recently, it's been documented. When the story was exposed, workers who came to help build a temple were absolutely horrified with what was going on. Most recently, it was documented that some workers in a Burger King facility ended up living in the facility, not just working in the facility. There have been consistent patterns of abuse in the program.
I think the government has to be far more aggressive in what we have said. They should end the low-skill pilot program. There's never really been any demonstration as to why we need the low-skill pilot program. It was never originally part of the program. Where there are some challenges in terms of certain sectors.... We established a process as to how we can get workers to fill.... More importantly, if we're going to bring workers here to fill those jobs, we should also provide a pathway for them to remain and become Canadian landed immigrants and citizens going forward.
:
Thank you very much, Mr. Chair.
Thank you to our witnesses today.
Mr. Hoback and I, a number of years ago, through ParlAmericas, had a chance to go to Colombia. We happened to be there when the talks were taking place in Havana between FARC and the government. We were talking to the various groups that were going over for meetings, such as the trade unionists, families of those people who had been kidnapped and murdered and so on. The discussions were very fulsome. With that, and of our Canada-Colombia Free Trade Agreement, where a human rights component was associated with it, I think our standing in Colombia is very strong. They recognize that we have been a great partner for them and with them. Of course, the imports and exports that we've had with Colombia over the years have helped them, and of course have helped us as well.
One of the main imports that Canada has from Colombia is coal—which has a certain irony—and petroleum products. Petroleum products are coming in at world price. We continue to sell ours because the majority of our petroleum products are landlocked at a discount, which hurts every Canadian when you look at the relationship that exists there.
I suppose one of the things that I would like to first of all ask Mr. Dixon is, how many oil cars can you take per day from Saskatchewan and Alberta in order to run through your facilities?
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I can't speak to what the difference might be between safety on the east and west coast. I can't imagine that it would vary in any substantive way. Of course, we're part of the Association of Canadian Port Authorities and we operate with the same rules under the Canada Marine Act with 18 ports across Canada.
I would say that the safety rules are quite inconsistent. From a safety standpoint coming into Saint John, once again, I know that my colleague and the harbour master Captain Chris Hall would be able to speak to specifics, but we work very closely with Irving Oil and the crude oil tankers. We know what the activity is each day. The monobuoy, where a lot of the oil is discharged, is something that we monitor and the communication is very intense because of the potential for something to go wrong. Obviously, the impact could be very great.
If we get a small incidence of leakage in the system, it's detected right away. It's isolated, so everything is shut down and it's resolved. We have a very good safety regimen in the port and in the Bay of Fundy in total, with respect to oil cargoes. We've been doing it for a very long time.
This is the second portion of today's meeting. We're continuing our study of a potential agreement between Canada and the Pacific Alliance.
Welcome, witnesses. Thank you for coming.
If some of you are here for the first time, try to keep your briefs at least under five minutes so we can have lots of room for dialogue with the MPs. We have one hour altogether, so we're going to move along here.
We're going to start with the Canadian Chamber of Commerce and Madam Vega.
Thank you for coming, and you have the floor. Go ahead.
Thank you to the committee for conducting this study and for inviting the Canadian Chamber of Commerce to provide comments and our views on a potential agreement between Canada and the Pacific Alliance.
The Canadian Chamber of Commerce is supportive of preferential trade agreements as a means to expand Canadian exports and to reduce barriers to trade. As a trading nation, we know these are important tools to remain globally competitive and also to help our economy grow.
Specifically on the Pacific Alliance—and I'll try to keep my remarks fairly brief—the chamber is supportive of the government's interest in seeking associate membership for four main reasons, and I'll outline those for you.
The first one is that an FTA with the Pacific Alliance would upgrade, or modernize in a sense, the individual agreements that we have with each of the four Pacific Alliance members. While this might seem perhaps an unnecessary thing to do, it's quite relevant given the level of integration and coordination that the Pacific Alliance members are pursuing, particularly in areas like regulatory standards, for example, or trade facilitation. We know for a fact that the terms of the agreement under Pacific Alliance would be far superior for Canada than the current scenario. We see the existing bilaterals as a good foundational start for an eventual FTA.
The second reason is first-mover advantage. Canada has been an observer member of the Pacific Alliance for a number of years, since 2012, and that gives us an early start. But that window of opportunity is narrow. It's closing fairly quickly in the sense that last year Australia, New Zealand, and Singapore all joined Canada on the short list of countries seeking associate membership to the Pacific Alliance. We know that roughly 50 countries are currently observers in the Pacific Alliance. If we look at it another way, we see that Canada is at this moment in time the only G7 nation in that short list of countries seeking accession to the Pacific Alliance, and the only one in the hemisphere. That gives us a very early advantage and an opportunity, really, to play a significant role and even a leading role in the trade relationships in the Americas.
The third reason is strategic. Canada is right now in a privileged position, in that we have a CETA and we are still in the mix for CPTPP. What we're observing in trade rules globally is, in a way, a race to the highest gold standard for modern rules of trade. What's interesting is that the Pacific Alliance is in a way already there. It's very forward looking, and they have a high level of ambition when it comes to things like digital trade, for example, or new industries like fintech. It would be very valuable for Canada to be a part of that. We're seeing the competition or that race as accelerating. We see Japan moving very quickly on its deal with the EU, and the EU itself modernizing and closing a number of agreements, so it's important to keep those things in mind. Of course improved access and rules of trade are good for businesses already operating in that region. Beyond that, being a member of the Pacific Alliance or an associate member would give Canada a voice also in the accession of future members, which is, once again, a significant advantage.
The fourth reason—and perhaps this should be the most obvious one—is that the Pacific Alliance is an attractive region on its own. Put together, the four economies of the Pacific Alliance make up the equivalent of the ninth-largest economy in the world. It's growing fast, it has a large and young population, and it has taken significant steps toward economic reform. In fact, two of those countries are OECD members.
Really, if we look at it, we see there is no real reason we shouldn't pursue this agreement. It's just perhaps that there has been a lot on our plate, our attention has been perhaps elsewhere, and we've been preoccupied with other agreements, but it's quite an attractive region in its own right.
Arguably, with the exception of Mexico, some might say, “Well, they don't really represent a big chunk of our export markets; they don't really feature in the top five countries.” That doesn't mean they're not buying from elsewhere, and that's where an improved access would help. It would be an added tool in the bag, so that Canadian exporters could access or improve our share in that market.
Of course, trade negotiations are complex, so we have a lot on our plate. This one is still at a relatively early stage, and yet a lot of the work has already been done. We'll continue to observe how negotiations proceed. We often recommend to the government that we look for easy wins or aim for the low-hanging fruit, and this is exactly it. The Pacific Alliance is a modern agreement. It has solid foundations. It opens new markets with relatively low costs in an attractive region, and it supports our ambition to diversify our trade.
Overall, just to close, the chamber is supportive of this initiative.
Hello everyone.
I would like to thank you for the opportunity to appear before the standing committee and provide the perspectives of Canada's pork producers on the matter of a potential trade agreement between Canada and the Pacific Alliance.
I am a producer from Saint-Jules, Quebec, and am here today as a member of the board of directors and second vice chairman for the Canadian Pork Council, the national voice for over 700 hog producers in Canada.
The meat industry is, by far, the largest component of this country's food processing sector. Our producers raise animals from coast to coast, with the largest pork production and processing facilities clustered in Quebec, Ontario and Manitoba. Direct farm gate sales of Canadian pork in 2016 totalled $4.1 billion dollars and created over 31,000 farm jobs in rural Canada. The pork industry is a major contributor to Canada's GDP.
Additionally, food processing creates more jobs than any other segment of the Canadian manufacturing sector. Providing employment for 65,000 workers, meat packing and processing plants are often either the primary or a major employer in towns and cities located across Canada.
The members of this committee are no doubt aware that export markets are absolutely critical to the current and future prosperity of the Canadian livestock and meat sector. Meat processors and exporters must identify foreign markets for more than 70% of Canadian pork.
Therefore, it should not be surprising that pork producers have been ardent and steadfast supporters of all initiatives that contribute to opening new export markets and expanding access to existing markets. The Canadian Pork Council and producers welcomed the news out of Japan that an agreement was reached on the Comprehensive and Progressive Transpacific Partnership (CPTPP).
And we would like to thank Justin Trudeau, François Champagne, Lawrence MacAulay, Chrystia Freeland, the negotiating team and all other Canadian representatives that supported the request that this trade deal be concluded as soon as possible and contributed to making it happen.
Producers are confident Canadian pork will soon have competitive access to key markets in Japan, and to developing markets such as Singapore, Vietnam and Malaysia. The signing of this agreement in March, and its ratification shortly thereafter, will only signal further investment in the sector. Because of improved access to key markets, Canadian pork producers can keep doing what they do best knowing that their livelihood and that of thousands of other Canadians in rural and urban communities who work in the pork industry are supported by this latest agreement.
Canadian producers also welcome the Canadian government's efforts to expand economic ties with the Pacific Alliance through a free trade agreement. A key reason for the growth of Canadian pork exports has been the establishment of free trade agreements with strategic partners. As you know, at present, Canada benefits from bilateral trade agreements with each of the members of the Pacific Alliance. The FTA with Mexico as part of the North American Free Trade Agreement was brought into force on January 1, 1994. The FTA with Chile was implemented July 5, 1997, and the FTAs with Peru and Colombia were brought into force on August 1, 2009, and August 15, 2011, respectively.
We see the potential agreement between Canada and the Pacific Alliance as an opportunity to improve exports in several areas. However, recognizing the importance of certain questions, I would like to highlight just a few key points and leave it to my colleague Mr. Lavoie to expand further.
:
Thank you very much for having me here this morning.
On behalf of our members, I'd like to thank you for the opportunity to talk about the free trade agreement eventuality with Canada and the Pacific Alliance.
Canada Pork International was established in 1991. We are a joint venture of the Canadian Pork Council and the Canadian Meat Council, and we represent Canadian packers and trading companies. Our focus is on having market access and promoting Canadian pork in foreign markets. We're involved in trade and supporting companies doing business in over 100 markets.
The Canadian pork industry exports over $4 billion annually. We're exporting the equivalent of 50,000 sea containers every year. We're a huge driver for jobs, and all those containers are getting on trucks and trains before they're getting shipped, so we are a big mover in the agribusiness sector.
Pork is the largest meat industry in Canada. We're 70% dependent on export, and our success is directly linked to the government's ability to provide more competitive market access conditions than our competitors—mainly the U.S. and the EU.
As Mr. Roy was saying, this is why the announcement of CPTPP is such great news for the Canadian pork industry. Not only does it give us an opportunity to have better access to the market for chilled pork in Japan, where we're competing head-to-head with the U.S.—sharing 50% of the market with them—it also prevents us from falling behind on frozen products from the EU, which is now putting in place a free trade agreement. While we're still feeling the impact of falling behind on the United States-Korea Free Trade Agreement, and we've seen our business negatively affected there, we're really positive about this news. It's going to have a tremendous impact on our industry.
I'll get into more specific details. I'm going to go to the four partners of the Pacific Alliance. Mexico is our fourth-largest market, with $200 million of trade, but we're already covered through NAFTA and CPTPP. It's a very important market, but there's not a whole lot extra we can gain. It's the same thing with Chile, where the FTA has come to maturity. Over the years, there were TRQs and tariffs, but now we have free trade just like the U.S. We're on a level playing field with them.
I think where we have the most gains to make is in Colombia. With their FTA, Colombia recognized the U.S. as having pork free of trichina, so they are able to ship fresh, chilled pork and have access to the retail market in Colombia. That gives them access to higher-value markets.
Also, the conditions right now are so different. It's a free market for the U.S., so there are no TRQs or tariffs. Right now, after 6,000 tonnes a year, there's a 41% tariff kicking in for Canada, so our trade pretty much stops at that point. There's a great benefit to be had by catching the U.S. Just to give you an example, we're shipping around $30 million every year to Colombia, compared with $200 million from the U.S. I don't think the market would grow, because they already have access to the U.S. market. I think we would be able to get a much better share of that very good market. It's not a primary market, but it's an excellent secondary market for a lot of pork products.
What's important in the pork business—I just came back to Canada Pork International, and I've been in the trading business for the last six years—is having access to the best return market for every single cut. This is where it's important. If they like some specific bones in Colombia and they're paying more than others for that type of product, this is where we're adding value to all the businesses in Canada. It's not about just looking at the market as a whole. You have to look at the opportunities for specific products, and this is where we're creating value.
We have an FTA with Chile, but right now it's 500 tonnes a year of TRQ, and after that there's a 25% duty. I told you about the 50,000 containers earlier. This is 20 containers, so it's pretty limited. It's not a huge market, but we can definitely grow our business in that market.
As I mentioned, the three main potential gains are the following: in Colombia, getting access to chilled products and having a level playing field with the U.S. on tariffs, and also increasing the TRQ allocation or having free trade with Peru.
In conclusion, we're supporting the FTA with a Pacific trade alliance because we trust that the Canadian government has the resources to deal with all the trade deals in place and on all fronts at the same time. CPTPP, NAFTA, China, ASEAN, and the Pacific trade alliance are all priorities for us. Where we can measure the value of this deal for the Canadian pork industry is how quickly we can achieve an agreement. We're going to get to free trade with Colombia in 2023 and Peru in 2025. If we're in a position where this is going to take four or five years, that decreases the value for us. The conditions are there. We have FTAs with all of those countries. This is something that could be achieved quickly. To me, this is a very important factor in the success of the pork industry.
Thank you.
:
Thank you very much, Mr. Chair, and thank you to the witnesses for being here.
We're living in a very interesting time, given the uncertainty around NAFTA.
I really liked the comments about how we have to look at these for the chamber, modernizing these individual agreements—first-mover advantage, strategic advantages—and I was wondering if you could comment. The United States, for example, is a big market for us, but they're also becoming one of our big competitors. We look at the obvious—the resource sector, oil and gas—but of course in our agricultural community it's huge as well. The United States just went through and modified their entire tax structure. I was wondering if you could comment on the importance of us keeping in sync with the United States as far as the competitiveness side of things, and the importance of these agreements getting done fairly quickly so we can have that competitive advantage if we're losing on other ends. How important is it to get these done now, taking into account the American changes to their taxes?
Mr. Lavoie, is that going to be causing your producers challenges right now?
:
That's an interesting question. I will try to keep it short.
As you know, we're the largest business association in the country. It's not an easy or simple process. We have various ways through which we inform our policy positions. We have an annual general meeting where our different chambers of commerce across the country come together. They make recommendations on policy positions, and that's a very democratic process in a way. It goes through many different iterations and commentary. At the end of that process they are voted on. That becomes our position on a topic for the next three years.
One of those positions that's in our books right now is to diversify trade. This would fall under that bucket, but obviously things don't happen under our timelines. We have a number of committees within the membership that look at different aspects of policy issues.
I staff, for example, our committee on international affairs, which specifically looks at trade agreements and bilateral economic relationships with various countries, for instance, Canada-China, Canada-Japan, negotiations with the EU. This kind of consultation on the Pacific Alliance will fall under that bucket. We know this is a big committee, so we'll tend to go to those members whom we think have an interest or would have more relevant information. We ask them. We try to raise our positions to a high enough level that it brings together all the different views. Sometimes we can have quite divergent views. Our position is to have policy recommendations that are as rich as possible.
In a way, we're trail-blazing. It hasn't been done before. No one is yet an associate member of the Pacific Alliance, so even there you have a strategic advantage in that you can actually partake in how these things are done. The full members, they know they have engaged, as you mentioned, in very progressive conditions for their agreement. I would point you to programs that we have already in Canada, like the NEXUS, for example, or the Trusted Traveler between the U.S. and Mexico.
I think that sometimes it can be misunderstood that it just means they're going to open the floodgates. There are mechanisms. We have a fairly thorough immigration policy here in Canada. I think it's a matter of looking at how these conversations evolve and what the conditions are. It's definitely, I would say, in the modern economy where you're looking at industries like fintech or digital trade. You cannot look at trade anymore without thinking, “How am I going to move data or how am going to move people?” I think it's worth having that conversation.
:
Absolutely. Canada has great negotiators out there. Also, Canada brings a lot to the table when we enter into negotiations. We were successful in completing the TPP and CPTPP now.
At the end of the day, it's one of those things where there are always spinoffs. As Adriana mentioned earlier, the modernization of regulations on how trade functions is extremely important. Tariffs and non-tariff barriers are part of it, but encompassing in writing the rule of law regarding trade, which is really what trade agreements are, helps set the standards globally. Canada is a trading nation. We look at the opportunities that trade agreements do provide individually, but we also look at the bigger picture, as you're outlining. Absolutely, with the growth that we see within the Asian regions and whatnot—developing economies, the population—they will be needing, from our point of view, agricultural products that we're more than pleased to provide.
:
I think those free trade agreements are so important for the stability they bring to trade. This is the most important thing, to have stable trade, in any given market. This leads to better presence, having an office in the country, having some investments. We have companies investing in plants in Mexico. This is the kind of environment that that kind of FTA is creating.
Russia was one of our largest markets a few years ago, and it disappeared overnight. I was trading at that time, and I had to deal with all the messy situations that this created. Obviously, there's not a lot of Canadian investment in our industry there because the environment is still unstable. If we can bring this to markets, if we can use it as a platform, then we will have better access to key markets that are not covered under the TPP, like the Philippines, China, and all Asian markets that are growing.
We're doing our strategic plan right now. Really, where we have to look at the growth for our product is Asia. This is really where the growth is happening. If this can be used as a platform for better access to other Asian countries, I think this is a great gain.
Stability is key. I know that the science in food trade, sometimes, is really political. This is a very easy way around it. We're dealing with that on a regular basis.
:
It depends on how these negotiations unfold.
As I said, being part of the trailblazers is a good thing, because you get to have a voice on how the rules are made. Also, we don't exactly know what the process is going to look like. I would say, as my colleagues have already mentioned, timing will be important. It's not just in terms of beating the competitors to it but also in the sense that, as you mentioned, the conditions are right and accessibility is right at this time. It's very difficult to actually put a hard deadline on these types of negotiations. You're seeing it with NAFTA, for example. We set a deadline for December and now there's a new one for March. These things are very complex. It depends on how deep you want to go in the negotiations, the political willingness, and what other dynamics are in the mix. I think it's very difficult to predict. Ideally, it's something that can be done fairly quickly considering much of the legwork has been done with these countries individually. I can foresee this as a fairly short negotiation, hopefully.
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I don't know if Earl had a few questions, but I'll go through mine first and see if there's time.
I was shocked: 50,000 containers a year. That's 140 containers a day. We could say you are bringing home the bacon by doing that, couldn't we?
I'm just thinking about the economic activity that you've generated by getting that market access. I was in Tokyo a few weeks ago and I sat down with three of our trade commissioners. They complimented pork and how well you've done in gaining market access and gaining brand loyalty for Canadian pork. I think the beef sector and a few other agrifood sectors could look at your example and learn from what you've done there with the trading houses and do the same thing in their sectors.
The other thing that I thought was really interesting was that they talked about these trading houses that are 100, 200, 300, or 400 years old and they're excited because they're going to get Canadian pork and Canadian beef at preferential access and they can put that as ingredients in the stuff that they manufacture in Japan and ship to other Asian countries also. We have such a great springboard.
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Yes, we have. This is very easy. You look at what free-market conditions are doing. In terms of Guatemala, U.S. exports there are 20 times ours.
It's very easy to see. On a daily basis, you know the customers; you know the opportunities. We're really hands down on those opportunities. Central America is an area where I think the U.S., for many reasons, is doing better than we are. If one direction is to look closely at that region, we'd definitely be supportive of that.
Thank you very much for your comments on Japan. We're working really hard and it's based on the commitment of our members. We've changed the strategy.
I just want to explain something. Some of the programs that were supported by the government at the farm level we've branded as “Verified Canadian Pork”, which is now the brand we're promoting in Japan. We're making an application for growing forward 3. This is a big part. We have growth in access, but we're going to need growth in promotion. We're going to need funds to promote in Japan.
Thank you, Mr. Hoback, and thank you to the witnesses for coming today. It's amazing how well we're doing as a country with some of the industries. We're big players on the world scene. Keep up the good work. We'll have a report in the upcoming months, and you'll be able to get a copy of it.
That wraps it up this morning. We're on time here, and there's another committee that wants to come in.
The next meeting is Tuesday, the same time. We're going to be very busy Tuesday. We'll have two panels, so MPs, try to be on time, and I'll get it going.
Everybody have a good weekend. Thank you.