International Trade

The House of Commons International Trade Committee met to study Canada's engagement in a rules-based international trade and investment system. Appearing as witnesses were Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers' Association; René Roy, Chair of the Canadian Pork Council, joined by Executive Director Stephen Heckbert; and Claude Vaillancourt, President of Attac Québec.

Brian Kingston stated that the Canadian auto industry is deeply integrated with the U.S. market, with 90% of production exported, and that rules-based trade has been foundational to its success. He strongly supported maintaining the 100% surtax on Chinese EV imports, arguing that China's state-directed industrial subsidies and weak labour standards create an unfair advantage, and warned that without the surtax, Chinese EVs would rapidly gain market share as they have in Mexico. He recommended that the federal government eliminate the electric vehicle sales mandate, calling it a misguided policy that forces Canadian manufacturers to purchase credits from Tesla—an estimated $1 billion already committed—and that it should be scrapped before the CUSMA review. He noted that U.S. tariffs have already cost the sector $12 billion U.S. and that without a deal, the industry would shrink to serve only the Canadian market, leading to job losses and higher vehicle prices.

René Roy and Stephen Heckbert emphasized that the Canadian pork industry exports 70% of its production to nearly 80 countries and relies on science- and evidence-based trade rules. They identified technical barriers to trade as a major obstacle, citing the European Union's requirement for parasite testing on pork—despite the parasite being absent in Canadian livestock—which they estimate costs the sector $400 million annually in lost market access under CETA, and similar non-science-based rules imposed by the United Kingdom. They called on the government to be vigilant in protecting science-based principles and to help expand processing capacity in Canada, including through foreign direct investment that builds linkages to specific markets like the Philippines. They also noted that interprovincial trade barriers remain unresolved, and proposed harmonizing provincial inspection standards to boost domestic competitiveness.

Claude Vaillancourt argued that the rules-based trade system established since the 1990s has primarily benefited large transnational corporations, leading to weak economic growth, increased inequality, environmental degradation, and job losses, which in turn has fuelled support for far-right parties. He urged Canada not to give in to U.S. intimidation by making concessions in advance, such as abandoning the digital services tax, and instead to uphold fundamental values by protecting supply management, culture, and health and safety rules, and by rejecting harmful mechanisms like investor-state dispute settlement and regulatory co-operation. He also called for greater transparency in trade negotiations, including more consultation with civil society and provincial governments, and criticized the OECD minimum corporate tax agreement as inadequate.

The committee also heard from members of Parliament who questioned witnesses on specific issues, but no procedural debate, motions, or votes occurred during this meeting.