The committee studied the rules-based international trade and investment system, hearing from Stuart Trew of the Canadian Centre for Policy Alternatives, Kyle Larkin of the Grain Growers of Canada, Bonnie Gee of the Chamber of Shipping, David Collins, a professor of international economic law, Tyler Fulton of the Canadian Cattle Association, and François Desmarais of the Canadian Steel Producers Association.
Stuart Trew argued that the WTO-based trading order was contested from the start and built to fail, stunting industrial development and enshrining corporate rights over jobs, environmental standards and human rights. He recommended that Canada reform its trade remedies, deploy the Foreign Extraterritorial Measures Act to penalize companies moving capital to the U.S., adopt systematic Buy Canadian procurement policies, expand the CUSMA rapid response labour mechanism to cover Canadian and U.S. workplaces, and strengthen co-operation with Mexico on human rights. He disagreed with witnesses who defended the existing rules as adequate.
Kyle Larkin stressed that rules-based trade is critical for grain farmers, with over $45 billion in annual exports, but said trade uncertainty with the U.S. and China is devastating. He called for championing the rules-based order at home, investing in trade-enabling infrastructure—especially the port of Vancouver and the Second Narrows rail bridge—and resetting key trading relationships, including increased engagement with China and the Indo-Pacific. He noted that CUSMA has operated well for grain but urged defending the dispute mechanism and aligning sanitary and phytosanitary regulations with the U.S. and Mexico.
Bonnie Gee emphasized that shipping depends on international standards set by the IMO, and that Canada's implementation is generally consistent, but deviations increase costs. She warned that U.S. port entry fees on Chinese-linked vessels and the U.S. decision not to support the IMO's net-zero framework could disrupt trade and harm Canadian competitiveness. She recommended reviewing the Canada Marine Act to allow ports to collaborate, investing in digital infrastructure and maritime domain awareness, and improving data baselines for managing increased traffic.
David Collins stated that much of the recent protectionism, especially U.S. section 232 tariffs, likely violates GATT rules, but the national security exception is self-judging and hard to challenge. He advised Canada to continue engaging at the WTO and CPTPP, but cautioned against including non-trade issues like climate and inclusivity in trade agreements, arguing this makes deals harder and alienates partners. He predicted a cleavage into U.S.-led and China-led trading blocs, with Canada in the U.S. camp, and said the auto sector is a particular concern.
Tyler Fulton said rules-based trade has allowed Canadian beef producers to add 40% value per animal, but noted that Canadian beef has been shut out of China since 2021 and that the U.K. has not granted access despite the CPTPP. He strongly opposed any Canada-Mercosur deal that includes beef access, warning it would displace Canadian beef domestically and risk trade with the U.S. due to backdoor access and disease surveillance concerns. He urged focusing on diversification with countries that share science-based standards, such as in the Indo-Pacific.
François Desmarais described the Canadian steel industry as a "canary in the coal mine," facing crippling U.S. tariffs and unfair Chinese dumping that has shut down access to the U.S. market. He called for modernizing anti-circumvention legislation, better aligning trade remedies with the U.S., and extending surtaxes to derivative products containing Chinese steel. He welcomed the Buy Canadian policy but said more measures are needed, and noted that the EU has adopted Canada's traceability model for Chinese steel.
The committee also heard exchanges on specific topics: Larkin detailed the integrated nature of Canada-U.S. grain supply chains and the need for regulatory alignment; Gee noted that the U.S. port fee on Chinese vessels could cost two container lines $2.1 billion in 2026; Collins said the U.S. tariffs are probably illegal under U.S. law and that Canada's leverage includes natural resources and the integrated auto sector; and Desmarais confirmed that Chinese steel imports have nearly halved since Canada imposed a surtax but that derivative products remain a concern. No procedural debate, motions or votes were recorded.
AI-generated summary — may contain errors; verify against the official evidence.