The committee studied the Canada-United States-Mexico Agreement (CUSMA) and its impact on Canadian trade and investment. Witnesses were Kyle Larkin (Canadian Meat Council), Jamie Neil (Dajcor Aluminum, Canadian Coalition of Aluminum Extruders), Guy Trottier (White Birch Paper), Laurel Broten (Invest in Canada), and Robert Kwon (Canadian Commercial Corporation).
Kyle Larkin said CUSMA is essential for the highly integrated red meat sector, with $5.7 billion in annual exports to the U.S. and growing markets in Mexico. He called for a full 16-year renewal of the agreement as it stands, regulatory harmonization with the U.S. on enhanced feed bans and defatted beef regulations to save $25 million a year and lower ground beef prices by over 5%, and stronger inspection consistency with Mexico. He warned that a Mercosur deal granting full beef access could harm Canadian producers and create friction with U.S. counterparts, and he urged making the Indo-Pacific agriculture office permanent.
Jamie Neil said the aluminum extrusion industry has lost 500 of 4,000 direct jobs due to U.S. Section 232 tariffs applied to the full value of products, a 15% drop in domestic demand, and a surge of low-cost imports from Vietnam, Turkey, and other countries, with Russian aluminum potentially transshipped through Turkey. He warned that without action, another 500 to 1,000 jobs will be lost and businesses will close or move to the U.S. within two to three years. He recommended tariff rate quotas similar to those for steel, stronger import monitoring and enforcement, and restoring fair access to the U.S. market.
Guy Trottier said his mill diversified from newsprint to recycled kraft paper after losing Indian export markets, but the project was nearly derailed by early 2025 tariff threats and the end of Quebec’s electricity rebate program. He noted that U.S. softwood lumber tariffs have reduced wood chip availability and raised costs in Quebec, and that global competition from large Chinese mills is intensifying. He said discussions with the federal government on support through the strategic response fund are under way.
Laurel Broten said Invest in Canada attracts foreign direct investment (FDI) through a concierge service, with Canada ranking second globally in FDI confidence. She cited examples such as a European investment in a Quebec critical minerals company and a Japanese EV battery facility creating 1,000 jobs. She acknowledged that regulatory streamlining is a key investor concern and that the Major Projects Office is a positive step. She disagreed with the suggestion that Canada’s FDI performance is weak, noting that FDI inflows per capita are the highest in the G7.
Robert Kwon said the Canadian Commercial Corporation (CCC) uses government-to-government contracting to support exporters, signing $4 billion in contracts last year and managing a $10-billion portfolio. He highlighted a contract with six EU countries for 22 Canadian-built firefighting aircraft, a $1-billion deal with the German navy for a combat management system, and ongoing potash exports to Bangladesh. He said CCC is less active in Africa and not involved in China, but is pursuing opportunities in Morocco and Ivory Coast where they align with Canadian capabilities.
Procedural debate was limited; the committee heard all witnesses and proceeded with questions without motions or votes.
AI-generated summary — may contain errors; verify against the official evidence.