REPORT

A. DELEGATION MEMBERS AND STAFF

From 23–26 May 2022, the Honourable Senator Michael MacDonald and the Honourable John McKay, P.C., M.P., co-chairs of the Canadian Section of the Canada–United States Inter-Parliamentary Group (IPG), led a delegation to Washington, D.C., for meetings with U.S. Senators on Capitol Hill. The other members of the delegation were the Honourable Senator Rosa Galvez, Mr. Vance Badawey, M.P., Ms. Lianne Rood, M.P., and Mr. Simon-Pierre Savard-Tremblay, M.P. The delegation was accompanied by Mr. David Chandonnet, the IPG’s Executive Secretary, Mr. Brett Capwell and Ms. Marie Dumont, advisors to the IPG.

The visit to Washington, D.C., included several activities and events. The primary purpose was to establish and rekindle relationships with U.S. Senators during meetings on Capitol Hill, focusing on important bilateral and global issues. In addition to these meetings, the IPG did the following:

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. met with Canada’s Ambassador to the United States, Kirsten Hillman, and received a comprehensive briefing with Embassy staff on pertinent issues relating to the Canada–United States relationship;

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. hosted Canadian and U.S. media correspondents for an informal discussion about the upcoming U.S. midterm elections, the relevance of Canadian bilateral issues to American legislators and global issues affecting both countries;

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. participated in a roundtable discussion jointly hosted by the Canadian American Business Council (CABC) and the Canadian Embassy; and

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. attended a reception at the Canadian Embassy in honour of the IPG, co-hosted by Ambassador Kirsten Hillman and Senators Mike Crapo and Amy Klobuchar, co-chairs of the United States section of the IPG. Five U.S. Senators, as well as members of the CABC attended the reception, which celebrated the longstanding relationship between Canada and the United States.

C. THE OBJECTIVES OF THE CANADA–UNITED STATES INTER-PARLIAMENTARY GROUP

The Canada–U.S. IPG has four key objectives: to find points of convergence in respective national policies; to initiate dialogue on points of divergence; to encourage the exchange of information; and to promote better understanding among Canadian and American legislators on shared issues of concern.

Members of the IPG’s Canadian Section pursue their goals primarily through meeting with their Congressional counterparts in Washington, D.C., Ottawa, Ontario, or occasionally in other locations throughout Canada and the United States. During the COVID-19 pandemic, previous meetings have occurred virtually. In addition, members liaise with U.S. governors and state legislators at national and regional conferences.

D. TOPICS RAISED BY U.S. SENATORS

Border Issues

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. Certain travel irritants, such as issues with remote area border crossings should be addressed.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. The COVID-19 travel requirements to enter Canada should be evaluated and simplified.

Energy and the Environment

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. The dispute surrounding Enbridge’s Line 5 may settle itself politically as gas prices continue to rise and there is an increasing need for reliable hydrocarbons.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. It appears that citizens in Maine voted against the New England Clean Energy Connect Transmission project due to animosity towards the Maine power company attached to the project, as opposed to any reluctance towards Canadian hydroelectricity.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. Coastal states and provinces, which are vulnerable to the effects of climate change, should examine greater use of offshore wind farms.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. There is a need for stronger U.S. environmental policy that focuses on both the source of the energy and the resulting emissions. Technologies to reduce emissions in the fossil fuel sector has improved. 

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. The effects of climate change are being felt in the United States, particularly by those of lower socio-economic status. Addressing these effects requires federal action, including improving infrastructure and strengthening building codes, to limit or mitigate these effects.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. The increase in forest fires should encourage legislators to think about smart forest management practices.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. Any discussion about the environmental impacts on coasts should include a focus on both freshwater coasts and saltwater coasts.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. The Great Lakes are bi-national treasures that should be priorities for both countries.

• The COVID-19 travel requirements to enter Canada should be evaluated and simplified. There is a greater need for intelligent energy policy considering Russia’s aggression in Ukraine.

Defence and Security

• Canada’s decision to ban Huawei and ZTE from its fifth-generation wireless network development is welcome news.

• The renewed focus on military alliances is a positive step, particularly the application of Sweden and FindlayNorway to join the North Atlantic Treaty Organization (NATO) alliance.

• Canada is not meeting NATO’s guideline to spend 2% of gross domestic product on defence spending.

• Certain NATO members, such as Poland, Turkey and Hungary, are challenging the shared values of the alliance.

• To assist Ukraine in its efforts to repel the Russian aggression, the United States and Canada continue to provide aid to the country.

• Russia’s aggression in Ukraine has demonstrated the need for increased focus on, and development of, the North American Aerospace Defense Command (NORAD).

Food Security

· The issue of consolidation of the meat packing industry and the effect it had on the COVID-19 pandemic was highlighted.

• The increasingly high prices of fertilizer and agricultural inputs was identified as a growing concern.

• The Canadian supply management system for dairy is viewed as a subsidy.

• The labour shortage in the agricultural industry will require better cooperation between North American countries.

Trade and Investment

• While some voiced their views that expanding the “Buy America” policy is a populist strategy that could harm the United States overall, others believed that the policy benefitted Americans.

• The United States should not focus solely on “on-shoring” its manufacturing, but extend this thinking to “near-shoring” and “friend-shoring” to benefit U.S. alliances.  

E. TOPICS RAISED BY THE CANADIAN SECTION OF THE CANADA–UNITED STATES INTER-PARLIAMENTARY GROUP

Defence and Security

• Russia’s aggression in Ukraine has benefitted China as it has unilateral access to the Russian market due to trade sanctions on Russia imposed by other nations.

• Canada has demonstrated its support for Ukraine and supports Sweden and Finland joining NATO.

Energy and the Environment

• In achieving our respective energy transition goals, Canada is a clean and reliable supplier of hydrocarbons.

• In developing its plan for critical minerals, Canada can meet the North American demand for key minerals, including many required for battery production.

• To compete effectively with countries such as China, North America must focus its efforts on developing integrated infrastructure, environmental and energy policies.

• Canada’s renewed focus on the Great Lakes is apparent in its 2022 federal budget, and looks forward to increased collaboration in these areas.

• The energy provided by Enbridge’s Line 5 is a benefit to the United States.

Trade and Investment

· Modern trade agreements are as important as security agreements, as countries naturally protect their economic interests.

• ‘Buy America’ should be re-branded as ‘Buy North America’ to increase the awareness of our mutually beneficial relationship. 

• Canadian political parties have demonstrated that in general, they are in favour of free trade policies.

• The United States should consider exemptions for green initiatives in its Build Back Better legislation, so that electric vehicles can include Canadian inputs. This would help to promote green initiatives in both countries.

• A resolution to the ongoing softwood lumber dispute should be sought by all parties. Such a resolution would benefit housing construction costs amid housing affordability problems nationwide in the United States.

• With respect to Canada’s underused housing tax, the Canadian government has committed to a carve-out for recreational properties so that U.S. cottage owners will not be affected by this tax.

F. TOPICS DISCUSSED AT THE ROUNDTABLE WITH MEMBERS OF THE CANADIAN AMERICAN BUSINESS COUNCIL

• North American businesses are concerned with protectionism.

• The United States and Canada should take a shared approach to strengthen cyber security and build our policies together by taking a risk-based approach.

• Canada’s rejection of Huawei and ZTE in its 5G networks was a welcomed decision.

•The Russian invasion of Ukraine reinforces the need for North America to control its own supply of energy and critical minerals.

• Energy is central to the bi-national relationship, and a jumping off point for a renewed relationship. North America can reduce its energy reliance from countries that do not adhere to stringent environmental, social or governance standards.

• Business and policy makers must grow the Canada-U.S. partnership in critical minerals, aluminum, copper and other inputs. Canada is a willing partner, and the United States needs this supply.

• The Ambassador bridge blockade was a shock to the supply chain system.

• While increasing North American manufacturing is a goal, the shortage of labour in the United States is a significant impediment in achieving this objective.

• Battery recycling policy will be very important in the coming years and while many provinces are working on their own policies, the private sector should have a voice in deciding this policy.

• Much of the Canada-U.S. relationship, including the extent to which we are integrated, is taken for granted. This is something that legislators and businesses need to address.

• Enbridge’s Line 5 is as much a benefit to Michigan as it is to Canada. Clearer communication of this would help to resolve the current dispute.

• North American supply chains are not as resilient as they need to be. In the past few years, there have been many lessons for improvement.

• It is important to not limit the discussion of supply chains to physical infrastructure, as the digital – or cyber security – component is critical and under threat.

• Canada’s Bill S-211: An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff, aims to end supply chain slavery. While many cross-border businesses have made great strides in reducing or eliminating slavery from their business supply chain already, an estimated 1,200 companies in Canada are linked to some element of slavery.

• The Canada-United States-Mexico Agreement’s automatic review provision will be triggered in four years. Mexico may wish to renegotiate the agreement because it was negotiated by the previous president. Canada and the United States should be prepared for this possibility.

• Canada and the United States need to look to address energy security and clean energy transition at the same time.

• As always, regulatory certainty in cross border business would be greatly beneficial to the private sector.

• Consulting with the private sector is paramount to getting policies right. Notably, many business leaders have previously worked in government and understand the demands that come with that role.

Respectfully submitted,