International Trade

The committee met to study Canada’s trade relationship with the United States, focusing on the upcoming CUSMA review and the impact of U.S. tariffs. Appearing were Harry Ho-jen Tseng, Representative of the Taipei Economic and Cultural Office in Canada; Kevin Lee, Chief Executive Officer of the Canadian Home Builders’ Association; and Brendan Sweeney, President and Chief Executive Officer of the Pacific Manufacturing Association of Canada.

Harry Ho-jen Tseng described Canada-Taiwan bilateral trade as below 1% of each economy’s global total, attributing this to long-standing geo-economic structures rather than neglect. He argued there is immense room for growth as supply chains shift to security-driven friendshoring, and noted that a trade co-operation framework arrangement (TCFA) has been negotiated and legally reviewed but remains unsigned. He called on Canada to sign the TCFA, support Taiwan’s accession to the CPTPP, and send trade missions and high-level visits to Taiwan, adding that Taiwanese airlines have high occupancy rates and that Air Canada resuming flights would be welcome. On security, he said Chinese military exercises around Taiwan are becoming more like rehearsals for war, but that the Trump-Xi summit did not significantly affect Taiwan.

Kevin Lee said Canada’s housing supply and affordability crisis is worsened by high taxes, restrictive mortgage rules, labour shortages, and material costs that have risen $110,000 per typical home since 2020. He urged the government to avoid retaliatory tariffs on construction materials during the CUSMA review, and where countertariffs are necessary, to target products with ample alternative supply. He noted that integrated north-south supply chains mean tariffs on softwood lumber and other inputs hurt U.S. housing markets as well, and that long-term certainty in trade rules is critical for multi-unit projects. He disagreed with the idea that modular construction is a quick fix, citing financing challenges and the boom-bust nature of the market, and stressed that all three levels of government must act to speed approvals and reduce development charges.

Brendan Sweeney said that 85% of vehicles assembled in Canada by Honda and Toyota are exported to the United States, with no viable alternative markets, and that tariff-free access under CUSMA is essential to their competitiveness. He warned that section 232 tariffs have eroded competitive advantages and, if not eliminated, could jeopardize the long-term viability of Canadian assembly plants, though near-term operations remain at capacity with no layoffs. He recommended a laser focus on eliminating section 232 tariffs and renewing CUSMA with favourable terms, and said that a freely negotiated agreement would restore trust. He added that his members welcome competition on a level playing field, and that the government’s proposed trade credit system is a good idea but has not yet been implemented.

The committee agreed not to produce an interim report and instead to invite additional witnesses for further meetings.