International Trade

This House of Commons International Trade committee meeting studied the CUSMA review and Canada-Japan trade. Appearing were Brian Kingston (Canadian Vehicle Manufacturers' Association), Cathy Jo Noble (National Cattle Feeders' Association), Trevor Kennedy (Business Council of Canada), Rick White (Canadian Canola Growers Association), and Brendan Sweeney (Pacific Manufacturing Association of Canada).

Brian Kingston stated that 90% of Canadian auto production goes to the U.S. and diversification is not viable, warning that U.S. section 232 tariffs and Canada’s retaliatory measures have made North America the least competitive region to build vehicles. He recommended eliminating the Canada-China strategic partnership allowing 49,000 Chinese EVs into Canada, calling it a national security threat, and urged immediate repeal of the federal EV sales mandate, cautioning that new tailpipe regulations could become a backdoor mandate. He emphasized that Canada is the only country with which the U.S. runs an auto trade surplus, making a deal achievable if bilateral talks open quickly.

Cathy Jo Noble stressed that the Canada-U.S. beef and cattle markets are deeply integrated, with 75% of exports going to the U.S., and that a highly functioning border is essential. She called for CUSMA renewal as quickly as possible and for as long as possible, warning that parallel deals like Mercosur would send a wrong message to the U.S. by depressing North American prices and raising disease concerns. She disagreed with any delay to CUSMA renewal over regulatory issues, preferring to address those through existing cooperation mechanisms.

Trevor Kennedy highlighted growing opportunities in energy exports, particularly LPG and LNG, and in defence and cybersecurity partnerships, but noted that Canada’s slow project approvals have caused Japan to look elsewhere for supply chain security. He stressed that Japanese businesses in Canada are concerned about uncertainty around CUSMA’s future, and that securing that framework is critical to maintaining their presence and investment.

Rick White described the 50-year Canada-Japan canola partnership, with Japan importing $1.3 billion in canola seed in 2025, facilitated by the CPTPP and biannual consultations. He noted that market share has declined due to weak Canadian crops and Japan’s aging population, and that while the CPTPP levelled the playing field with Australia, there is limited opportunity to expand the market further.

Brendan Sweeney reported that Honda and Toyota assemble 77% of Canadian-made vehicles and have never laid off assembly plant workers, but that 75% to 85% of production goes to the U.S. He agreed that eliminating section 232 tariffs and renewing CUSMA with reasonable regional value content are the top priorities, and that sourcing certain electronic components from Japan via the CPTPP is vital since they are not available in North America. He called for better alignment of Canada’s environmental policy with its manufacturing strategy.

The committee adopted a motion, as amended by Yasir Naqvi and accepted by Adam Chambers, to report its findings to the House and request a comprehensive government response under Standing Order 109.