The committee was studying Canada’s trade diversification strategy and the forthcoming review of the Canada-United States-Mexico Agreement (CUSMA). Appearing were Sara Wilshaw and Aaron Fowler from Global Affairs Canada, Marie-Julie Desrochers and Hélène Messier from the Coalition for the Diversity of Cultural Expressions, Bettina Hamelin from Innovative Medicines Canada, and Kamal El-Batal from MRC de Thérèse-De Blainville.
Sara Wilshaw outlined the government’s goal to double non-U.S. exports over the next decade, emphasizing the need to help businesses diversify through trade missions, the Trade Commissioner Service, and new investments in infrastructure. She noted that past success relied on agreements like CETA and CPTPP, and that future efforts will focus on high-growth sectors such as agri-food, critical minerals, and clean tech, while also attracting foreign direct investment.
Aaron Fowler confirmed that no active negotiations are ongoing with the United States, as talks were paused by the U.S. administration, but that Canada is preparing for the CUSMA review through consultations with industry. He disagreed with former negotiator Steve Verheul’s claim that Canada is ill-prepared, stating that preparations are well advanced, and rejected the idea that agriculture has been sacrificed in past trade deals.
Marie-Julie Desrochers and Hélène Messier stressed that the cultural exemption in CUSMA must be maintained, as it allows Canada to support its cultural industries, which contribute $65 billion to the economy and 1.1 million jobs. They warned that digital trade and AI clauses could undermine the exemption, and urged vigilance to ensure Canada retains the ability to protect intellectual property and fund cultural production, noting that the retaliation clause has never been invoked but remains a concern.
Bettina Hamelin argued that Canada must act to ensure timely patient access to innovative medicines, as delays of three and a half years compared to the U.S. put Canadians at risk. She recommended five priorities for CUSMA negotiations, including protecting medicine supply, increasing financing for pharmaceutical innovation, accelerating public access, addressing regulatory issues, and strengthening intellectual property standards, and noted that President Trump’s focus on U.S. contributions to innovation makes this a key negotiating point.
Kamal El-Batal proposed three levers for economic resilience: creating a sectoral trade dependency index to identify at-risk sectors, better mobilizing embassies and consulates to support SMEs, and promoting interprovincial trade by reducing internal barriers. He emphasized that many SMEs are unaware of trade commissioner services and called for a pan-Canadian initiative involving municipalities and chambers of commerce to strengthen domestic trade and reduce reliance on the U.S. market.
The committee briefly debated two motions: one expressing disappointment that the Minister of Industry had not appeared, and another condemning U.S. tariffs on steel and aluminum. Debate was deferred to the next meeting to allow time for amendments.
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