Report

DELEGATION MEMBERS AND STAFF

From 20–22 June 2016, Senator Janis Johnson and the Honourable Wayne Easter, P.C., M.P., Co-Chairs of the Canadian Section of the Canada–United States Inter-Parliamentary Group (IPG), led a delegation to the IPG’s annual meeting in Washington, D.C. The other members of the delegation were Senators Paul Massicotte and Wilfred Moore, Q.C., both of whom are Vice-Chairs, as well as John Brassard, M.P., Brian Masse, M.P., Vice-Chair, the Honourable John McKay, P.C., M.P., Marc Serré, M.P. and Brad Trost, M.P., Vice-Chair. The delegation was accompanied by Ms. Miriam Burke, the Canadian Section’s Executive Secretary, and Ms. June Dewetering, Senior Advisor to the Canadian Section.

THE EVENT AND DELEGATION OBJECTIVES

During the IPG’s 2016 annual meeting, the Canadian delegation met with members of the U.S. Senate and of the U.S. House of Representatives consecutively. The meeting with the U.S. Senate was chaired by Senator Mike Crapo and Senator Amy Klobuchar, Chairman and Vice Chairman, respectively, of the U.S. Section of the IPG. Representative Bill Huizenga, Chairman of the IPG’s U.S. Section, chaired the meeting with the U.S. House of Representatives. Prior to the annual meeting, the delegation received a briefing from Canada’s Ambassador to the United States, David MacNaughton, and his staff.

The objectives of both the IPG’s annual meeting and the Congressional meetings undertaken by the Canadian Section at least annually are 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 legislators on shared issues of concern.

Because the discussions with U.S. federal legislators are designed to be private, this report summarizes the general nature of the comments made by Canadian and U.S. legislators.

SOME OF THE ISSUES RAISED BY THE CANADIAN SECTION OF THE CANADA–UNITED STATES INTER-PARLIAMENTARY GROUP

North American Economic Issues

• Canada’s economy is very dependent on the United States, including in relation to trade.
• Canada is a trading nation, and is generally in favour of trade agreements.
• The Canada–U.S. border differs from the U.S.–Mexico border, and the United States should treat the two borders differently.
• Because of appropriations-related problems in the United States, Canada is funding the new bridge at Detroit, Michigan–Windsor, Ontario; however, both countries must ensure adequate funding for staffing.
• Canada and the United States have a number of integrated sectors and associated supply chains, including in relation to vehicles and automotive parts; border delays impair the ability of integrated sectors to compete globally.
• Canada’s economy is stable and infrastructure investments are being made; however, the federal debt is higher than it was expected to be and there are some skilled labour shortages, including for truck drivers.
• When softwood lumber issues begin to be litigated, “only the lawyers win”; there are arguments on both sides of the issue, and common ground must be found.
• In Canada’s view, softwood lumber is not being dumped into the U.S. market, and past decisions by the World Trade Organization have supported Canada’s position; if Canada and the United States cannot resolve the current softwood lumber dispute, Canada again is likely to pursue dispute settlement at the World Trade Organization.
• A Canada–U.S. dispute about softwood lumber affects Canadian communities, as well as American homebuilders and – thereby – consumers who want high-quality Canadian lumber.
• When trade agreements are being negotiated, areas of focus typically include labour, the environment and investor–state dispute settlement.
• In some countries, lax labour and environmental practices are “subsidizing” production.
• “Side agreements” to free trade agreements “do not work” because they are not enforceable.
• The North American countries must work together as a bloc in competing against the rest of the world.
• The future of the Trans-Pacific Partnership will be “decided” by the United States.

Security Issues

• The refugee crisis must be addressed in a comprehensive and long-term manner; otherwise, there will be geopolitical consequences, such as radicalization.
• Canada thoroughly screened the 25,000 refugees that entered the country recently, and the U.S. Department of Homeland Security was involved in the screening process.
• Religious organizations and private sponsorship are effective in assisting refugees, especially when the refugees who are selected are a “good fit” for their new communities.
• Security is a risk that will always need to be managed, including in relation to Canada–U.S. borders.
• It is probably time to “refresh” the North American Aerospace Defense Command.
• Canada is currently undertaking a review of its defence policy.
• Canada and the United States need similar rules regarding metadata and privacy.
• Guns are being transported into Canada from the United States, and they are sometimes used to commit crimes; as well, some terrorists enter Canada from the United States.
• Arctic sovereignty is an important issue for Canada.

Energy and Environmental Issues

• One challenge for Canada is ensuring that energy is able to move to markets; for example, the proposed Keystone XL and Energy East pipeline proposals are important.
• Despite their integration, there are some structural differences between the Canadian and U.S. oil sectors.
• Canada’s oil and gas sector is very capital intensive, and the cost of capital is very important in that context.
• Regarding a repository for nuclear waste, multiple sites should be considered and each location should be scientifically evaluated.
• Canada is concerned about the Great Lakes, including in relation to ballast water and Asian carp.

SELECTED COMMENTS MADE BY MEMBERS OF THE U.S. CONGRESS

North American Economic Issues

• Canada is the primary foreign export market for a significant number of U.S. states, and many Americans view Canada as the United States’ 51^st state.
• Regarding the new bridge at Detroit, Michigan–Windsor, Ontario, Canada “has done more than its fair share.”
• Borders between countries should be secure, yet sufficiently “porous” to enable trade.
• With some changes, the Canadian immigration system would be beneficial for the United States.
• The United States needs immigrants who would be “economic multipliers.”
• Like its immigration system, the United States’ tax code is “broken” and needs to be fixed on a priority basis; unfunded liabilities are also a significant concern.
• The United States’ federal debt is very high.
• Many Americans feel that the North American Free Trade Agreement has resulted in the relocation of jobs to Mexico.
• A framework for resolving the dispute between the United States and Canada regarding trade in softwood lumber should be established.
• The border tax that Canada is currently proposing in relation to softwood lumber is insufficient, and the country is underpricing timber; litigation is likely to happen if Canada does not improve its offers.
• Steel is being dumped into the U.S. market, which is leading to job losses and – potentially – the loss of the United States’ steel sector if the dumping continues; in these types of situations, the United States and Canada should work together to address unfair practices by other countries.
• Some countries are engaging in currency manipulation.
• World-class infrastructure is required for prosperity.
• The investor–state dispute-settlement provisions that are being considered for inclusion in the Trans-Pacific Partnership agreement are an “open invitation” for companies to sue.
• Some in the United States believe that the Trans-Pacific Partnership agreement would not establish “the new standard” for trade agreements.
• Trade, security and energy are linked.

Security Issues

• Increasingly, the world is a “dangerous place”; threats are pervasive, and the new generation of terrorists is much different than earlier generations.
• The Internet is being used to radicalize people, and terrorists are skilled at encryption.
• Some Americans are concerned about terrorists travelling to the United States from Europe through Canada.
• The United States and Canada have a “spectacular” military relationship.
• The United States and Canada need to understand each other better as the two countries work together in promoting shares values – including respect for human rights – in the international community.
• The United States appreciates Canada’s leadership on refugee issues.
• If the conflict in some parts of the world could be ended today, problems would continue to exist because of the devastation in the country; economic assistance, including jobs, is needed to help rebuild lives and communities.
• The people in refugee camps should be prioritized when refugee status is being granted.
• In relation to refugees, the United States’ concern is security; for example, while screening is critically important, fingerprinting is problematic because there is no registry against which to check the fingerprints for legal issues, for example.
• The United States is bringing 10,000 Syrians into the country, and the vetting process is important; in some cases, inadequate information about people is available.
• While a small percentage of refugees would be a threat to the United States, even a handful of people could be dangerous.
• While humanitarian priorities are important, it is also prudent to worry about the threat to the homeland.
• Some individuals who emigrate to the United States are active in their efforts to ensure that their children do not become radicalized.
• Metadata are important for purposes of tracking.
• In some cases, the United States is “shipping” threats to Canada.
• Both the United States and Canada spend significant resources on protecting their citizens; working together, the two countries could “do better.”

Energy and Environmental Issues

• Some U.S. states are concerned about the containment of nuclear waste, and about locating this waste too close to bodies of water; a long-term repository solution is needed.
• The International Joint Commission should have greater resources and more specific tasks.
• Increased mining activity in the Arctic is having impacts on fisheries; in particular, there are concerns about the impacts of toxic materials.
• It is important to monitor water quality.

Respectfully submitted,