CIIT Committee Report

LIBERAL PARTY DISSENTING OPINION

TRADE COMMISSIONER SERVICE

The study by the committee on the Canadian trade commissioner service has acknowledged and given support to the work and achievements of the service in the work performed in support of Canadian exporters.

What the committee report has failed to provide is a clear and unequivocal recommendation that the federal government maintain the existing operations of the service specifically in the United States, and in all international markets.

It has become evident that the Conservative government has demonstrated a priority with respect to the international trade file that has seen a diminution of focus on our largest trading partner, the United States. Canadians have witnessed a failure to resolve the outstanding Country of Origin (COOL) dispute with the United States, in fact the U.S. administration has announced its intention to appeal rather than abide by a recent finding that found COOL represented an unfair trade barrier; that the Canadian government failed to both initially and more recently detect and respond in a timely fashion to the Buy American and later the Made in America initiative by the U.S. administration which could see a serious negative impact on Canadian exporters.

What remains in place however, is the fact that the federal government itself has affirmed in its most recent publication Canada’s State of Trade, trade and investment update — 2011, that it projects that by 2040 75.5% of our merchandise exports will be to the U.S., which are currently standing at 74.9%. Any diminution of our positive presence in the U.S. marketplace will have only a negative impact for our exports and our economy.

At the same time the Canada — European Trade Agreement, CETA has not as yet been concluded. This, in spite of the fact that during the course of the committee’s hearings our chief trade negotiator gave a very clear indication that the conclusion of the agreement was anticipated no later than the first couple of months of 2012. Now the Minister of International trade is speculating that it is his hope the CETA could be concluded by the end of 2012.

At the same time we have a government that while it is promoting so called new free trade agreements it has as yet to conclude any arrangement with the substantial economies it has targeted, the EU, India, Japan or Korea. As indicated above our major existing trading relationship is allowed to languish under this government.

One indicator of this has been the concern raised in news reports speculating on the possible decision by the federal government to close six consulate offices in the United States. The speculation regarding the possible closure of the Canadian consulates in Anchorage, Philadelphia, Houston, Raleigh, Phoenix and San Diego would eliminate the Trade Commissioner Service offices housed in each of those consulates.

During the course of the hearings of this committee, this issue was raised on more than one occasion.

When the prospect of the closure of consulate services which would impact upon the presence in the U.S. of our front line trade commissioner service representation was raised before the committee on March 6, 2012, the witnesses with whom the matter was raised reinforced the message conveyed throughout the meetings on the issue that they supported the service and indicted that it has been a significant asset to our export sector.

The Minister of International Trade appeared before the committee on March 13, 2012 at which he praised the service pointing out that a “recent study showed that exporters receiving assistance from the Trade Commissioner Service enjoy an average export value 18% higher than that of comparable exporters who didn’t use the service.”(Committee Evidence, March 13, 2012, p. 2)

What should be noted is that during the Minister’s testimony he did not refute the media story which indicated that six consulates were being considered for closure. What the Minister did state reflects the government’s focus on trading relationships beyond the U.S. “The Trade Commissioner Service is also constantly adjusting to an ever-changing environment. Since 2006 we've opened 15 new trade offices in key markets, such as Brazil, India, and China, in recognition of the growing importance of emerging markets and also to ensure that Canadian companies can take advantage of these exciting business opportunities. (Committee Evidence, March 13, 2012, p. 2)

Again, the emphasis is on as yet potential markets rather than the enhancement of established markets such as in this case the United States.

Regardless as to whether the specific media story concerning the possible closures of a number of consulates in the United States has veracity or not, it remains important that this committee in its report should have taken note of the issue and signaled its opposition to such an initiative.

Recommendation:

a)    That the Standing Committee on International Trade strongly supports the maintenance of the current level of consular and Trade Commissioner Service representation in the United States and elsewhere.

b)   That the federal government provide to the committee a comprehensive plan with respect to the future of the Trade Commissioner Service in terms of staffing, operations and mandate.

On a final point the Trade Commissioner Service must remain equally distributed and accessible to Canadian businesses regardless of whether the country in question has a free trade agreement with Canada or not.

Recommendation:

That the Department of International Trade ensures that the services of the Trade Commissioner Service are provided and accessible on an equal basis regardless of any free trade agreement having been signed between any individual country and Canada.