International Trade

The committee studied the role of Canada's free trade agreements and rules-based trade. Appearing were Aaron Fowler, Associate Assistant Deputy Minister and Chief Trade Negotiator at Global Affairs Canada; Lawrence Herman, a trade lawyer appearing as an individual; Meredith Lilly, a professor at Carleton University; and Michael Harvey, Executive Director of the Canadian Agri-Food Trade Alliance.

Aaron Fowler outlined Canada's extensive network of 15 trade agreements covering 51 countries, emphasizing that trade supports nearly four million jobs. He acknowledged that the global trading system faces challenges, including inadequate multilateral rules and market-distorting practices, and said Canada is prioritizing diversification through new agreements with Indonesia, Ecuador, and the UAE, as well as ongoing negotiations with ASEAN and Mercosur. He noted that non-tariff barriers, such as those affecting pork exports to the EU, are addressed through regular committee discussions and dispute settlement mechanisms, but that resolving such issues takes time.

Lawrence Herman argued that the rules-based system is largely dysfunctional, especially with the United States using tariffs as policy, and that Canada must adapt. He recommended updating trade remedy laws to help manufacturers combat dumped or subsidized goods flooding global markets, and strengthening government powers to respond to unfair trade. He disagreed with any suggestion that the old WTO-based order remains reliable, and called for administrative simplifications to make trade remedy processes less costly for businesses.

Meredith Lilly stressed that Canada must create new rules to protect its interests, as major players like the U.S. and China are breaking old ones. She warned that "buy Canadian" procurement policies could violate trade agreements with allies and undermine diversification goals, and that poorly designed measures risk inviting protectionist retaliation. She also cautioned against pursuing a free trade agreement with China, which she said would jeopardize relations with the U.S., and emphasized the need for sustained trade diversification and energy exports, including LNG.

Michael Harvey said the agri-food sector, which exports about $100 billion annually, needs a clear strategic framework that prioritizes agriculture in trade diplomacy and rejects protectionism. He urged Canada to defend key CUSMA provisions for agri-food, such as tariff-free trade and science-based sanitary measures, and to invest in regulatory cooperation to overcome non-tariff barriers. He expressed frustration with the EU's implementation of CETA in the agri-food sector, and noted that emerging Asian markets like the Philippines and Vietnam offer growth opportunities.

The committee heard questions on a range of topics, including the pace of ASEAN negotiations, forced labour in supply chains, and the need for greater transparency in U.S. talks. No procedural motions or votes were recorded.