QUESTION PERIOD — Foreign Affairs and International Trade
Canada-United States-Mexico Agreement
May 30, 2019
Honourable senators, my question is for the Leader of the Government in the Senate. It concerns the joint statement from Canada and the United States released on May 17 regarding the steel and aluminum tariffs.
That joint statement includes a section which states that the tariffs may be reimposed:
In the event that imports of aluminum or steel products surge meaningfully beyond historic volumes of trade over a period of time . . .
That joint statement does not define what constitutes a meaningful surge. The Minister of Foreign Affairs was recently asked to explain what it meant. Minister Freeland admitted she could not do so at the time.
Senator Harder, this vague wording is a point of concern for both steel producers and workers. Could you please tell us what “surge” means? Are we still vulnerable to the U.S. putting these tariffs back into place?
I thank the honourable senator for his question.
He will know that today is an important day in the progress that Canada and the United States and Mexico are making with respect to the free-trade agreement with the visit today of the Vice President of the United States and the tabling yesterday of the implementing legislation here in Canada.
It was important to Canada that the steel and aluminum tariffs be dealt with before Canada proceeded with the ratification process. The Government of Canada is, of course, delighted that has happened.
With respect to the specific question being asked, the honourable senator will know that there are discussions under way as to what precision one should apply to a surge, although Canada has committed to ensuring that there is no inappropriate use of Canada as a platform for third-country exports to the United States and that these discussions are ongoing. Canada is hopeful and committed to ensuring that the steel and aluminum tariffs remain out of the scope of the United States government in terms of actions that they have taken.
We should all be hopeful, as we continue to recommit to our common economic space in North America, that we get back to both the relationships and the economic performance that one would hope could be achieved through the ratification process which will be before this Parliament very soon.
Could the Leader of the Government in the Senate maybe give us, as quickly as possible, a one-line definition of “surge?” I think the question is: Is it a rise in volume or product between two places? It would be helpful if we just had a simplistic definition. I would thank you for that very much.
In addition to the threat of the so-called snap-back tariffs being reinstated on our steel and aluminum exports, we are still dealing with the softwood lumber duties imposed by the United States.
In March 2016, the Prime Minister promised a softwood lumber deal with the United States within 100 days. We still don’t have a deal. This ongoing dispute has impacted communities across our country, including in Quebec where the forestry sector is a key part of my home province’s economy.
Senator Harder, what real progress, if any, is being made to resolve the softwood lumber dispute with the U.S.?
I thank the honourable senator for his question.
He will know that the priority in terms of the economic relationship has been the negotiation and now the ratification of the renewal of the NAFTA. Canada has given priority to the resolution of the aluminum and steel sector dispute. There are ongoing discussions. Indeed, the issue of lumber exports was and remains on the agenda, including today, for ongoing discussion and resolution.
The important thing for Canada’s interest is that we are engaging with our American partners, and our Mexican partners for that matter, with an assurance that the common economic space of North America is not threatened by unilateral action by any one partner.
