:
I call this meeting to order.
Apologies for the delays, but technology.... We shouldn't get mad at it, because without it we wouldn't be able to have a meeting at all. I'm sorry for the delay.
Welcome to meeting number three of the House of Commons Standing Committee on International Trade.
Today's meeting is taking place in a hybrid format, pursuant to the House order of September 23, 2020. The proceedings are available via the House of Commons website.
To ensure an orderly meeting, I have to outline a few rules.
Members and witnesses may speak in the official language of their choice. Interpretation services are available for this meeting. You have the choice, at the bottom of your screen, of floor, English or French.
For members participating in person, proceed as you usually would when the whole committee is meeting in person in a committee room, keeping in mind the directives from the Board of Internal Economy regarding masking and health protocols.
Before speaking, please wait until I recognize you by name. If you are on video conference, please click on the microphone icon to unmute yourself. If you are in the room, your microphone will be controlled as normal by the proceedings and verification officers. As a reminder, all comments by members and witnesses should be addressed through the chair. When you are not speaking, your microphone should be on mute.
We will proceed to the business of the day.
The committee will first proceed to hearing witnesses from the department, pursuant to the motion related to COVID-19 and Canada's trade, adopted by the committee on October 23, and we will reserve the last 15 minutes of the meeting for committee business.
I'll introduce our witnesses from Global Affairs Canada.
Sara Wilshaw is chief trade commissioner and assistant deputy minister, international business development, investment and innovation. With her are Christopher Thornley, director general of regional trade operations and intergovernmental relations; Duane McMullen, director general in the trade commissioner service, operations; and Kendal Hembroff, director general of trade policy and negotiations.
Ms. Wilshaw, I turn the floor over to you. Again, you have our apologies for the delay.
:
Thank you very much, Madam Chair.
Good afternoon. I am the chief trade commissioner—newly appointed a couple of weeks ago—and the assistant deputy minister responsible for our trade commissioner service at Global Affairs Canada. I'm delighted to be able to speak to you today about our efforts to support Canadian businesses in their exporting journey.
Many of you may already be familiar with the trade commissioner service, but for those who are not, I'll provide a brief introduction to our work.
The TCS is a network of international business professionals who help Canadian businesses grow through international sales, commercial partnerships and investment. We provide four key services to our Canadian clients, free of charge. These are key market insights and practical business advice, opening the door to new business opportunities globally, identifying qualified contacts, and resolving business problems in foreign markets.
We also offer programs and services aimed at helping Canadian innovators secure the international research and development partnerships that help them turn their innovations into globally successful products and services.
The TCS also plays a key role in attracting job-creating foreign direct investment to Canada, in collaboration with Invest in Canada, other government departments and provincial, territorial and municipal governments.
[Translation]
In 2019-2020, the Trade Commissioner Service, or TCS, served 12,000 Canadian clients from 160 locations around the world, including six regional hub offices across Canada. We provide over 50,000 services to our clients each year, and are proud of our 91% client satisfaction rate. Ninety-three per cent of our clients are small and medium-sized enterprises.
[English]
Our analysis shows that the TCS contributes to our clients' exporting 20% more in value, selling to 25% more foreign markets and exporting 11% more product varieties than non-TCS clients. Research shows also that every dollar spent by the trade commissioner service results in $26 in increased exports.
I am pleased to speak to you today about how the TCS has supported Canadians during the pandemic and what we are doing to help Canada's businesses return to growth.
[Translation]
Since day one of the crisis, the TCS has put its international network and expertise to work in support of Canada's overall pandemic response. Having a strong network of trade commissioners abroad enabled the Government of Canada to quickly identify and engage the right suppliers of PPE and other life-saving equipment in the first months of the pandemic.
[English]
Our trade commissioners have also been able to help Canadian companies get Canada's own COVID-related products and services more rapidly into international markets. Through the TCS's Canadian COVID-19 capabilities directory, we are highlighting products and services of over 154 export-ready Canadian companies to foreign buyers. This initiative is helping us expand our exporter base in innovative sectors, such as life sciences, while also contributing to the international fight against COVID-19.
In addition to helping Canadian businesses continue exporting during the pandemic, the TCS also shifted gears to help companies find new international sources of supply for vital inputs. Not surprisingly, our problem-solving service requests from clients increased by 49% between April and August, compared with the same period in 2019. While COVID-19 has been a shock, the TCS's long-standing commitment to innovation meant that we were actually well positioned to take on the pandemic's challenges.
[Translation]
For example, helping more businesses grow their international sales through e-commerce has been a TCS priority in recent years. The expertise and capabilities we've developed in this area have enabled us to respond to the surge in interest in e-commerce resulting from the pandemic.
[English]
We've also long recognized the potential for digital modernization to enable us to deliver higher-value services, expand our client base and increase efficiency. Major overhauls to our online presence, digital tools, and service in the last year have positioned us to meet today's demand for more digital services and for more service and program delivery via virtual platforms. Indeed, services and programs across the trade commissioner service are adapting to meet the needs of Canadian businesses in today's context, while still advancing long-standing diversification and inclusive trade priorities.
The TCS has successfully transitioned from supporting traditional in-person business meetings to facilitating more virtual events, webinars and trade missions. For example, the trade commissioner service is continuing to promote Canada's women exporters by coordinating a virtual trade mission to South Korea. This mission will support first-time and experienced Canadian exporters and women entrepreneurs in their expansion to the South Korean market.
[Translation]
In response to restrictions on travel and in-person meetings, we have adjusted our popular CanExport-SME program to help SMEs cover the costs of attending virtual trade shows, engaging in e-commerce, and pursuing other activities needed to enter new markets in an increasingly “contactless” business world.
[English]
Despite COVID-19, we have also continued to expand the Canadian technology accelerator program, or CTA, with new programs established in Mexico City and Berlin. CTAs have quickly adapted to the realities of COVID-19. They continue serving high-potential Canadian tech firms through virtual programming, and will do so in the months ahead.
Canada is a trading nation. Goods and services exports are equivalent to 32% of Canada's GDP, and imports to 33%. One in six jobs is related to exports. Canada's recovery and long-term prosperity will depend on renewing our international trade, with an emphasis on continuing to diversify where we export, who exports and what we export. It will also depend on ensuring that Canada continues to attract job-creating FDI.
The TCS will remain focused on helping Canadian businesses increase their resiliency and maximize their recovery by diversifying into new overseas markets, particularly those made more accessible by agreements like CETA and the CPTPP.
[Translation]
Building on over 20 years of experience with the Business Women in International Trade (BWIT) initiative, the TCS will also continue helping exporters of all sizes and ownerships—including women, indigenous, visible minority, LGBTQ2 and youth exporters—expand into global markets. We will also continue positioning the TCS to better help the trade-driven scale-up of our firms in new and emerging sectors, such as digital and clean-tech.
[English]
Supporting scale-up for firms in these sectors will also mean continuing to help them find the right international partnerships to drive innovation, R and D, and commercialization. In partnership with Invest in Canada and others, we will also continue to position Canada as an attractive destination for the FDI that we'll need to reach our job creation and growth objectives.
The TCS has continued to learn, adapt, and apply new approaches and technology to serve clients through our 125-year history, and we plan on doing the same for the next 125 years.
Thank you again for the opportunity to join you today. I look forward to your questions.
:
Thank you, Madam Chair.
Thank you again, Ms. Wilshaw, and congratulations on your appointment.
I also want to congratulate Ailish Campbell, who is moving on to be the ambassador to the EU. I think that's a great move. I enjoyed working with her, and I look forward to working with you also.
I'm a big fan of trade commissioners. Whenever I travel, I always try to make sure I stop in and visit with them wherever I go. I've had some great briefings and some great discussions with your trade commissioners.
As I look at COVID-19 and I look at the new travel arrangements or the lack of travel that businesses are going to be able to do, and as I look at the structural changes now created by COVID-19, I wonder about our trade commissioner services and whether they're prepared for this type of new reality. Have you looked at what they should have for resources going forward, whether it's an increase in funding or maybe reallocation of resources from one area to another?
I think you are going to be the face of a lot of businesses in a lot of countries now because these businesses can't travel. I'm curious as to how you are going to handle that.
:
All right. I will do my best.
Canada has led on a number of international statements, whether at APEC, the G20 or the WTO, with a view to encouraging other countries to keep their supply chains open and not impose trade restrictions. Our department has been tracking, since the beginning of the pandemic, the number of trade restrictions that countries have imposed, ranging from outright export bans to other types of trade restrictions. Well over 200 trade restrictions have been imposed by different countries around the world since the beginning of March. The vast majority of those have not been notified to the WTO, so there has been a lack of transparency, which obviously impacts Canadian business to a very significant extent.
We have really tried to make the case internationally that any measures countries may need to undertake in response to the pandemic be targeted, proportionate, transparent and consistent with WTO rules. More recently, in the context of the Ottawa Group on WTO reform, which Canada leads, we've been working very closely with like-minded WTO members to try to see what we can do in terms of encouraging the further openness of supply chains.
That includes, for example, the work we're doing right now on trade and health to look at whether there are ways in which we can promote more open trade on a variety of medical and health-related products.
:
Thank you. I would be very pleased to speak a bit more about what we have done to go contact-free. Of course, we ourselves are also offering virtually our programs and services normally delivered in person, but I think you are asking more about how we are helping our clients to move in that direction.
We do have a number of offerings for them, including virtual trade missions. We have changed the Canadian technology accelerators and made them virtual. In fact, that has resulted in opening up and lowering the barrier to entry for a number of Canadian companies. If we think about a virtual trade mission, we see that companies that normally might not have had the resources or the time to travel to South Korea are able to join a virtual trade mission much more easily.
We think of a young woman entrepreneur who perhaps has children and is unable to get away for a week or 10 days to travel with the . Although we lose some of those corridor conversations and face-to-face interactions, of course, at the same time these kinds of services are open to a much broader audience, and we're very proud of that.
Two nights ago, on Wednesday, the launched the virtual trade mission to Korea, with 157 participants, I think. I can get the exact number. I can't think of an example at any time in the past when that number of companies might have been able to participate.
I have just been informed that it was 170. I can't think of a time in the past when we would have taken 170 companies on a trade mission. Certainly, that is a very good example.
I might also just talk in terms of specific supports to our companies and the money that we actually have available to help them. That is through the CanExport program, which normally provides over $33 million a year to Canadian SMEs, innovators and others. Since the start of the pandemic, the CanExport program has provided over $20 million to more than 500 Canadian companies looking to diversify their export market. They allow these folks to access all kinds of new services, including hiring folks to help them with their online and digital programs and to access e-commerce platforms, IP assistance, cybersecurity assistance and a number of other things.
The gentleman who manages that program for us is here with us today, and that is Christopher Thornley. If I may, I'll pass it to him to just talk about the specifics of that program and some examples.
:
Yes, I understand. I will try to do better.
[English]
I apologize if my voice isn't loud enough for the interpreters, but I'll certainly do my best.
We've had many companies take advantage of the program, even though they are not allowed to travel, whether it be through e-commerce platforms, through expert advice or through learning how to do international business development in a virtual manner.
I'd like to give an example. met recently with a company that is in Labrador, in the province of Newfoundland and Labrador, and has pivoted very effectively to a virtual platform and used some of the assets that we are able to provide for that.
I'd also like to mention quickly, if I may, that our trade commissioners in Canada—over 130 of them across the country—are working virtually with Canadian companies to support them in their efforts to work internationally. We continue to do virtual outcalls with them while we're restricted from meeting in person, and, as was mentioned, to support them not only in virtual trade missions but also by introducing them virtually to our trade offices around the world.
Thank you very much.
We're also looking at other measures that will allow these companies to be even more effective in an online manner.
:
Thank you very much, Madam Chair.
Thank you to the presenters for the presentation. Thanks for your hard work. I know that you've been working extremely hard, like many of our great civil servants who have really stepped up to the plate during COVID-19. I want to recognize that. The roles that you're connecting everyone into in acting as that facilitator of trade during these times have really been critical in connecting the government to small and medium-sized enterprises, to the large auto sector, etc.
I represent Sault Ste. Marie. As many people on this trade committee know, I represent the second-largest steel-producing area in Canada, which plays a very important role in a lot of supply chains: the oil and gas industry, the auto industry and just manufacturing in general. I would like to zero in on the auto sector in particular, because we've seen it close because of COVID and we've seen it open up.
From your perspective, where are we now and where are the areas that we might want to concentrate on to continue to support the auto sector as it relates to trade and those important supply chains? The steel that's made in Sault Ste. Marie is made with coal and iron ore from the United States. It's getting put on those trucks, ships and rail lines, coming up here and being made into steel, and then being put back on trucks. Sixty per cent of Algoma Steel's exports go to the United States. They head back across that border.
Can I get your comments on that, please, particularly on the trucking industry and on going across the border as well? Thank you.
It's so critical to keep that open. Here there was a lot of nervousness, obviously, when we weren't too sure which way the American administration was going. It looked like they were, at one point, going to do a full shutdown. I was pleased to see that the and the were able to smooth things over, because that would have just devastated towns like Sault Ste. Marie. Thank you.
With COVID-19, we're seeing more and more people do things via the Internet. Obviously, we're doing this meeting virtually. In Ontario, we had an announcement for small and medium-sized businesses back in June through FedDev and FedNor, which I'm the parliamentary secretary for, of about $500 million for SMEs in three levels, which are sort of beginners, medium and then advanced. Could you make comments on businesses, not only in Ontario but in particular small and medium-sized enterprises, and how they're adapting to COVID-19 in using commerce-enabled websites or just websites to promote trade? Do you have any recommendations?
:
I'm pleased to talk a little bit about this and how we're supporting our clients and Canadian companies in going virtual. In fact, this is the subject of a big part of the program that Mr. Thornley manages through our regional offices. Certainly that's there. We have enhanced services for digital industries, trade, intellectual property and e-commerce that were part of our trade diversification strategy that was launched some time ago.
As I mentioned in my opening remarks, we began to orient ourselves towards these kinds of platforms even before the pandemic. We created 21 new positions in key markets like Tokyo, Mexico, Delhi, Bangalore, Brussels, Washington, D.C., our mission to ASEAN, Shanghai, Beijing and other places around the world in order to support our Canadian companies in accessing these virtual platforms, understanding the risks associated with them, protecting their IT and their financial transactions appropriately, and so on.
In fact, I hear from my chief economist that the number of Canadian SMEs exporting went from 19,600 in February to 15,600 in April, and is now back up to 18,400. That's 6% lower than February but a significant improvement. A lot of that is due to the fact that they have been able to access online platforms and e-commerce ways of connecting with their clients.
I should just mention very quickly that the trade commissioner service is not the only service helping Canadian companies do this. There are programs through ISED and other government departments, as well as the provinces and territories themselves, that are working closely with Canadian companies to help them access these opportunities online and to get themselves onto e-commerce platforms.
I'll defer to you, Madam Chair, on whether there's time for Mr. Thornley to add anything here.
Thank you very much, Ms. Wilshaw and associates, for the good work you're doing in very difficult times. You appear to have a great group of associates working with you, Ms. Wilshaw, and I wish you much success.
We are going to deal with committee business.
Witnesses, you can do whatever it is you do to leave the meeting so that we can continue with our committee business. I'll just give everybody a minute to find their way.
We're going to deal with Mr. Dhaliwal's motion. I asked the clerk to send out another copy of the motion, plus a revised version. I need to read into the record certain things in order to explain my position on that motion.
Standing Order 67(1) and Standing Order 67(2) consider a motion to go in public or in camera to be non-debatable. This is also outlined in Bosc and Gagnon on page 1089:
Any member may move a motion to go from sitting in public to sitting in camera (and vice versa). The motion is decided immediately without debate or amendment.
As members know, committees may adopt procedural rules to govern their proceedings, but only to the extent that they respect the higher sources of authorities, which the Standing Orders are. In the previous Parliament, the procedure and House affairs committee and the human resources committee adopted similar motions. For reference, the procedure outlined in this type of motion tended to be used more as a guide for the chair and the committee on a way to proceed rather than as a strict rule. Generally speaking, a committee may decide to adopt this as a general way of proceeding and there may be agreement to continue to do so. However, it is important that members of the committee know that, at some point, there could be a risk of this motion coming into conflict with what is laid out in the Standing Orders mentioned above.
Given the discussion that we had on Mr. Dhaliwal's motion, my sense from the committee members who spoke to it was that they clearly wanted to have that motion in place, so I am not going to rule it inadmissible. What I have suggested is a couple of amendments that would make it much easier for us to function as a committee. You should all have the amendments with you, and I can read this out if necessary.
First, this version of the motion could be interpreted by some as taking away the chair’s discretion to start a meeting in camera. For greater clarity, a line could be included regarding the chair’s discretionary authority to call a meeting in camera. For example, in the motion adopted by PROC during the 42nd Parliament, this line was included: “That the Chair may schedule all or portions of a meeting to be in camera for the reasons listed above”.
Second, committee business is not included, which means that, for example, to call a meeting to discuss the committee’s working calendar, as it stands now, I would not be in a position to make this decision. Therefore, I would suggest that committee business be added to the list of purposes to go in camera in Mr. Dhaliwal's motion.
Finally, as the motion reads now, there are no limits to the debate about going in camera or in public, which could go on for quite a while, eating all the time that the committee would have at its disposal. Here again, a suggestion is that, as PROC did in the 42nd Parliament, we move:
That any motion to sit in camera shall be subject to a debate where the mover, and one member from each of the other recognized parties, be given up to three minutes each to speak to the motion; and that the mover shall then be given up to one minute to respond.
With those suggested amendments to Mr. Dhaliwal's motion, things should continue to flow as they have previously, and I think with the support of the committee.
Is there any discussion? Is someone prepared to move those suggested amendments to Mr. Dhaliwal's motion?
Mr. Sheehan, go ahead.
I just wanted to say that I'm sure it was sent, but I've been having a little bit of trouble with the distribution list. I didn't see a recirculated copy of the original motion, and I haven't seen the wording of the amendment. I don't know if it's possible for the clerk to send that around now, at least to me. Maybe it's just as convenient to send it to the whole committee, for those of us who have our email open, and then we can just see quickly in writing what we're being asked to vote on. I think that would be helpful.
I'm going by memory, because I don't have it in front of me, but I'd say the original motion does provide for disclosing what substantive motions were voted on in camera and the results of the votes. As long as I'm right about that, I have a higher level of comfort with allowing for meetings to start in camera, and if the chair really wants to have a session in camera at the beginning of the meeting, I do think we could probably deal with that quickly just by having a quick motion at the beginning of the meeting.
I'm not interested in dying on the hill of whether you can start a meeting in camera or not. I'm just kind of digesting these things on the fly, which is too bad.