CIIT Committee Report

NDP Supplementary Report:

The Standing Committee on International Trade Study of Canada’s Trade Commission Service

The NDP thanks the Committee and witnesses for devoting their time to studying the work of our Trade Commission Service (TCS).  The NDP supports Canada’s Trade Commissions and views their contributions to promoting trade interests around the globe as valuable.  As Canada is a leading trading nation the Government of Canada has an important role in promoting and sustaining economic growth by facilitating international trade opportunities for Canadian businesses. 

The Committee’s study of the TCS was generally thorough and balanced and the NDP supports much of its content.  The NDP disagrees with one important majority recommendation and has additional elements to contribute. In particular, there are important aspects of witness testimony heard by the Committee that are not reflected in the report that should be included. 

The Committee heard direct testimony that the TCS is a successful advocate for Canadian firms on matters of public policy.  Specific reference was made with respect to its interventions on behalf of Canadian firms unable to access the US market due to the Buy American Act.  The NDP recognizes these efforts and sees an invaluable role for the TCS in helping to maintain market access for Canadian firms in a context of rapidly shifting policy environments in our trading partners.  This critical role can be expanded to address trade and non-tariff trade barriers such as the rules of origin provisions that limit market access for manufactured goods produced in Canada.

The Committee also heard testimony specifically outlining that Canadian Small and Medium Sized Enterprises are underserviced by the TCS but potentially stand to gain substantially from the services it is capable of providing.  The TCS should take specific measures to focus on addressing this issue.

Additionally, the Committee heard testimony outlining that one of the problems associated with the effective deployment of services from the TCS to staffing turnover in field offices abroad.  Although the issue was discussed in the context of deficiencies within the TCS and an uneven level of service offered by individual offices, the Committee failed to clearly determine the cause of the inability of certain offices to retain employees, despite a March 15, 2012 NDP motion specifically seeking to address this question: ‘That, as part of its study on the Trade Commissioner Service, the Committee invite officials from the Department of Foreign Affairs and International Trade who are responsible for hiring trade commissioners in order to discuss general trends in staff turnover and the challenges involved in staff retention at the Trade Commissioner Service.’

There is one recommendation that the NDP disagrees with. In particular, we do not believe that the Trade Commissioner Service should prioritize nations with which we have free trade agreements. Implementation of this recommendation would compromise Canada’s capacity to facilitate trade with important partners with whom we maintain a robust trade relationship despite the absence of a free trade agreement.  Rather, the NDP believes that the Trade Commissioner Service should prioritize regions with the greatest level or potential level of trade. In many cases this will include nations with which we have free trade agreements, but not in all cases.

Finally, the NDP believes that Canada should be a leader in corporate social responsibility and that Canadian companies should abide by international human rights law and environmental standards when operating overseas. The government should ensure it supports responsible corporate behaviour in its work with Canadian companies, including through the important work of the TCS.

To conclude, the NDP supports much of the Committee’s report, but is submitting this supplemental report to clarify the ways in which the TCS can better promote Canadian values and business in an increasingly complex and dynamic global marketplace.

NDP Recommendations for Trade Commissioner Service Report

After a thorough review of the services offered by the Trade Commissioner Service (TCS) by the Standing Committee on International Trade, the New Democratic Party of Canada recommends the following improvements:

1.    Given the fact that the Trade Commissioner Service is the primary gateway for Canadian companies into the international market and that small and medium enterprises (SMEs) account for most businesses in Canada, the Government of Canada should provide improved support for SMEs, increasing the visibility, consistency and effectiveness of the services offered to them by the Trade Commissioner Service.

2.    The Trade Commissioner Service should work to clarify the realities of the Canadian marketplace for potential and current trade partners particularly with respect to the North American integration of value added sectors with an emphasis on manufacturing.

3.    In keeping with Canada’s interest to support the growth of responsible Canadian business internationally, the Trade Commissioner Service should develop systems to support and monitor how companies and their partners in global markets abide by international human rights law and environmental standards when operating overseas. In the event of a serious failure and when steps to bring the company into compliance have also failed, government support for the company should be withdrawn.