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Visit of the Bureau of the Delegation for Relations with Canada Toronto, Winnipeg and Churchill 17 - 21 July 2011

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Visit of the Bureau of the Delegation for Relations with Canada Toronto, Winnipeg and Churchill 17 - 21 July 2011 Transatlantic Relations Unit Visit of the Bureau of the Delegation for Relations with Canada Toronto, Winnipeg and Churchill 17 - 21 July 2011 REPORT FDR888767 PE 442.542 EUROPEAN PARLIAMENT Delegation for the Relations with Canada Bureau Mission to Toronto, Winnipeg and Churchill 17 - 21 July 2011 Introduction This visit to Canada continued to work towards the objective of the Delegation Chairman, Mr Philip Bradbourn, to prioritise visits to provinces not yet visited by European Parliament delegations; to meet with members of provincial legislatures, local businesses and civil society, in order, through discussions, to become more aware of issues important to these provinces, to Canada and to the EU. The July 2011 visit came at an interesting moment in Canadian politics. The federal election of May 2011 had seen the vote for the mainstream Liberal party collapse, and the Liberals lose their position as "official" opposition. The Conservative party was able to form a majority government for the first time in ten years; the National Democratic Party saw a surge in their vote, particularly in Quebec province, to become the main opposition party. The Bloc Quebecois lost their status as an official party and the Green Party returned a member to Parliament for the first time ever. Five provincial elections take place in October 2011 and during the visit in July, the provincial legislatures in both Ontario and Manitoba were unsure if they would keep their majority (respectively Liberal and NDP). Whilst the visit in July took place at a time the Federal Parliament was not actually in session in Ottawa, during the visit MEPs had the opportunity to meet and discuss with Federal MPs representing Ontario and Manitoba, as well as the MLAs (Members of the Legislative Assemblies) from both of these provinces, and local business representatives and government agencies. The primary aim of the visit was to discuss trade, both the Comprehensive Economic Trade Agreement negotiations with the EU, the opening up of inter-province trade routes within Canada itself and other trans-national trade routes. The discussions in Toronto focussed on business and finance, whereas in Manitoba - Winnipeg and Churchill - the focus was principally centred on agriculture and issues relating to the sustainable development of remote, rural regions. The EP delegation received a very warm welcome at all levels, the discussions were open and frank and mutually beneficial. The visit was extremely useful and informative, both for the Canadians and for the MEPs. FDR888767 2 PE 442.542 Sunday, 17 July, Toronto, Ontario Lewiston-Queenston-Bridge - US-Canada border crossing At peak periods (Tuesdays-Thursdays) around 1,000-1,400 commercial vehicles daily cross the border between the US and Canada and there is a continuous flow of passenger traffic. The MEPs were given a tour of the Canadian border inspection facilities including the state-of- art veterinary inspection area (one of three in Canada), the commercial vehicle inspection and the tourist screening area. During the discussions with Canadian and US border guards - who came over from Buffalo especially for the meeting - MEPs were informed that the number of US border agents - 15 - who patrol the whole of the northern border of the US, has increased since 9/11; the main threat (for the US) is from their Southern borders, with significantly larger numbers of patrol agents. Along the US-Canadian border, the only three rail crossing points are in the provinces of: - Quebec, - British Columbia and - Ontario. These three crossing points are equipped with x-rays for 100% cargo scanning. There is very close US-Canadian collaboration and joint inspection teams comprised of representatives of the Royal Canadian Mounted Police (RCMP) and the American border agency carry out regular checks. The Lewiston-Queenston border crossing is not considered a main access point into Canada for refugees, who tend to arrive directly in Canada by air, rather than transiting through the US. For the detection and prevention of fraudulent activities concerning commercial vehicles, customs officers stressed the importance of the experience of their officers in risk assessment and in the prior scrutiny for anomalies in cargo manifests. Advance intelligence is shared between the two authorities and sniffer dogs are used for drug and human smuggling. US and Canada are further cooperating by testing the use of RFID (radio-frequency identity data) tags on containers. Random checks are carried out on passenger vehicles; it is left to the discretion of the duty customs officer to decide who should be pulled aside for a thorough check. Whereas routine scanning is carried out for goods and animals, there is less recourse to scanning of people. Frequent travellers who regularly cross between the US and Canada, use the NEXUS (eye identification) system for quick transit through the border controls and there is a similar programme in place for commercial traffic - "free and secure trade" (FAST). FDR888767 3 PE 442.542 Monday, 18 July 2011 - Toronto EABC - Canadian business associations The discussions centred on the CETA negotiations and the concerns of Canadian companies with regard to intellectual property rights (IPR) and patent protection, especially for pharmaceutical companies. The pharmaceutical industry would like their drug patents to be protected from copying by generic drug companies for a longer period of time, and for stricter enforcement of this protection. The development cost of bringing a drug to market is costly and lengthy. Generics do not have any investment costs and make huge profits. Generics are marketed at only 89% of the initial drug cost. Doctors and pharmacists in Canada are obliged to prescribe and supply the cheapest drug; therefore drug companies find themselves obliged, in turn, to cut the selling price of their original drug. Meeting with Ms Sandra Pupatello, Minister of Economic Development and Trade and Deputy Minister, Ms Wendy Tilford Meeting with Mr Chisanga Puta-Chekwe, Deputy Minister of Citizenship and Immigration Meeting with Mr Peter Wallace, Deputy Minister of Finance The meetings with the provincial ministers helped give the MEPs an insight and better understanding as to the relationship between federal and provincial government and inter- province and also made them more aware of the autonomous nature of the provinces. On trade, Ontario province is very keen, as indeed are all provinces, in possibilities to find alternative trade markets to the US. The protectionist "Buy America" scheme has been implemented by 37 US states and has affected trade with Canada. CETA seems to have more support within Canada than the NAFTA agreement had, as NAFTA had brought with it the fear factor of firms relocating to take advantage of lower-paid workers, which will not be the case with CETA. On immigration, Ontario has been very successful in attracting immigrants, especially well- educated middle-class citizens, usually with work experience. Canada is renowned for its multi- culturalism, tolerance and democracy, citizenship is granted after three years of continuous residence and the immigrants can keep their nationality and residence of origin. Great effort is made to assist integration of immigrants. On finance, Mr Wallace explained the equalisation procedure whereby fiscal disparities between provinces are addressed by a transfer procedure at Federal level to provinces with lesser financial capacities, in order to bring about greater equality between provinces in terms of their levels of taxation and ability to provide comparable social programmes. The goal is to ensure citizens in all provinces have access to roughly the same level of social services – such as education and social assistance – without having to pay exorbitant levels of taxation. FDR888767 4 PE 442.542 Equalisation has been enshrined in the Constitution since 1982. Critics say that the equalisation programme creates financial and economic dependency, especially in the Atlantic Provinces, who have no incentive to develop potential new sources of revenue. For equalisation calculations, a province’s fiscal capacity is measured against a national standard comprising the average taxing capacity of a number of given provinces. In 2007 the 33 different items of provincial revenues used to calculate a province’s fiscal capacity was reduced to only five types: personal income tax, business income tax, consumption tax, property tax and natural resources. Until very recently Ontario province did not receive any equalisation payments, but in 2011 received a small contribution. ($2.200 billion or $166 per capita) Presentation on Immigration settlement programmes by CIC (Citizenship Immigration Canada) Ontario Region The CIC representatives gave a presentation on immigration policy and the settlement of newcomers in Ontario province The Federal government regulates immigration to Canada and selects immigrants through the skilled workers entry programme. However, most provinces in Canada have an agreement with the Government of Canada that allows them to nominate immigrants who wish to settle in that province. Once the provincial nomination process, in the province where the applicant wishes to settle, has been completed, the applicant then submits an application through the CIC federal procedure, with the supporting provincial documentation. In Ontario in 2010, 84,000 immigrants were granted Canadian citizenship. Over 40% of all immigrants to Canada arrive in Ontario,
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