April 25, 1974


Motion agreed to, bill read the first time and ordered to be printed.


REPORTED DEFICIT WITH UNITED STATES IN MARCH- POSSIBILITY OF U.S. IMPORT LEVY ON CANADIAN TRUCK PARTS-POSITION OF GOVERNMENT

?

Mr. Terry@

Mr. Speaker, I have a question and supplementaries for the Minister of Industry, Trade and Commerce. In view of the fact Canada's trade with the United States suffered a deficit in March of $89 million compared with a deficit in February of this year of $42 million, has the minister determined whether this trend is shortlived or, if it is a continuing one, can it be anticipated over what period of time it will continue and, if it is anticipated that it will continue, what does the government intend to do about it?

Topic:   ORAL QUESTION PERIOD
Subtopic:   REPORTED DEFICIT WITH UNITED STATES IN MARCH- POSSIBILITY OF U.S. IMPORT LEVY ON CANADIAN TRUCK PARTS-POSITION OF GOVERNMENT
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LIB

Alastair William Gillespie (Minister of Industry, Trade and Commerce)

Liberal

Hon. Alastair Gillespie (Minister of Industry, Trade and Commerce):

Mr. Speaker, I think if the hon. gentleman were to look at the figures he would see that for the first quarter we had a surplus.

Topic:   ORAL QUESTION PERIOD
Subtopic:   REPORTED DEFICIT WITH UNITED STATES IN MARCH- POSSIBILITY OF U.S. IMPORT LEVY ON CANADIAN TRUCK PARTS-POSITION OF GOVERNMENT
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PC

Terrance Patrick (Terry) O'Connor

Progressive Conservative

Mr. O'Connor:

Mr. Speaker, I am quoting Statistics Canada which is the government's own agency and certainly it indicates a deficit of $89 million and not a surplus. May I refer specifically to the auto pact between Canada and the United States. In view of reports yesterday that the United States has proposed an import levy on Canadian-made truck parts, an action clearly in violation of the auto pact and taken despite Canada's significant auto pact trade deficit last year of over $350 million, what is the government's response to the United States proposal?

Topic:   ORAL QUESTION PERIOD
Subtopic:   REPORTED DEFICIT WITH UNITED STATES IN MARCH- POSSIBILITY OF U.S. IMPORT LEVY ON CANADIAN TRUCK PARTS-POSITION OF GOVERNMENT
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LIB

Alastair William Gillespie (Minister of Industry, Trade and Commerce)

Liberal

Mr. Gillespie:

Mr. Speaker, reverting to the first question, by way of clarification I should like to make it quite clear to the hon. member that there are fluctuations from month to month, and on an over-all basis Canada had a surplus on merchandise trade for the first quarter of this year. On the second point, with respect to the alleged duties that might be applied to truck parts, I believe that story is quite inaccurate.

Topic:   ORAL QUESTION PERIOD
Subtopic:   REPORTED DEFICIT WITH UNITED STATES IN MARCH- POSSIBILITY OF U.S. IMPORT LEVY ON CANADIAN TRUCK PARTS-POSITION OF GOVERNMENT
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ACTION TO ASSURE ADHERENCE TO AUTO PACT BY UNITED STATES

?

Mr. Terry@

Mr. Speaker, in view of the reports, which I believe are accurate in that I have checked them personally, that Ford of Canada intends to produce only large cars at Oakville starting with model year 1975 and now that General Motors similarly intends to phase out small car production at Ste. Therese, both of which moves will severely affect Canadian parts manufacturers, if not automobiles, when will the government make a determined effort to assure adherence to the Canada-U.S. auto pact by the United States?

Topic:   ORAL QUESTION PERIOD
Subtopic:   ACTION TO ASSURE ADHERENCE TO AUTO PACT BY UNITED STATES
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LIB

Alastair William Gillespie (Minister of Industry, Trade and Commerce)

Liberal

Hon. Alastair Gillespie (Minister of Industry, Trade and Commerce):

Mr. Speaker, the question was a very general one. I think the hon. member inadvertently tried to create the impression that in some way Ste. Therese was not going to proceed with small car production. That,

April 25, 1974

Oral Questions

of course, is quite inaccurate as I have already told the House on a previous occasion. On the second question, with respect to living up to the agreement, I think both countries and the companies in both countries have, through their joint co-operative efforts, made the auto pact a very beneficial one from both points of view.

Topic:   ORAL QUESTION PERIOD
Subtopic:   ACTION TO ASSURE ADHERENCE TO AUTO PACT BY UNITED STATES
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PC

Terrance Patrick (Terry) O'Connor

Progressive Conservative

Mr. O'Connor:

On a point of order, Mr. Speaker, I thought I had emphasized that I was not referring to any problem that might arise with respect to the automotive manufacturers themselves but to the parts industry which supplies the manufacturers. If there is a change quickly from small car production to large car production, those automotive parts suppliers will suffer.

Topic:   ORAL QUESTION PERIOD
Subtopic:   ACTION TO ASSURE ADHERENCE TO AUTO PACT BY UNITED STATES
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NONE

Lucien Lamoureux (Speaker of the House of Commons)

No affiliation

Mr. Speaker:

Order, please. That is debate between the minister and the hon. member. The Chair recognizes the hon. member for Oshawa-Whitby.

Topic:   ORAL QUESTION PERIOD
Subtopic:   ACTION TO ASSURE ADHERENCE TO AUTO PACT BY UNITED STATES
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DEFICIT IN AUTOMOTIVE TRADE WITH UNITED STATES- ACTION TO ENSURE CANADA GETS GREATER SHARE OF INDUSTRY INVESTMENT

NDP

John Edward Broadbent

New Democratic Party

Mr. Edward Broadbent (Oshawa-Whitby):

Mr. Speaker, my question is for the Minister of Industry, Trade and Commerce. As the major explanation for the deficit Canada has experienced in the automotive trade in the first three months of this year and all last year is to be found in the investment patterns in this industry in the United States, where investment exceeds investment in Canada by a ratio of nine or ten to one, what is the government doing to ensure that we get in Canada our share of the investment in this industry?

Topic:   ORAL QUESTION PERIOD
Subtopic:   DEFICIT IN AUTOMOTIVE TRADE WITH UNITED STATES- ACTION TO ENSURE CANADA GETS GREATER SHARE OF INDUSTRY INVESTMENT
Permalink
LIB

Alastair William Gillespie (Minister of Industry, Trade and Commerce)

Liberal

Hon. Alastair Gillespie (Minister of Industry, Trade and Commerce):

Mr. Speaker, I reject the basic premise of the question. The reason for the significant change in terms of the balance is that the Canadian market has been the strong one and the American market a very weak one.

Topic:   ORAL QUESTION PERIOD
Subtopic:   DEFICIT IN AUTOMOTIVE TRADE WITH UNITED STATES- ACTION TO ENSURE CANADA GETS GREATER SHARE OF INDUSTRY INVESTMENT
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USE OF DISC PROGRAM BY UNITED STATES AUTO INDUSTRY- CANADIAN PROTESTS

NDP

John Edward Broadbent

New Democratic Party

Mr. Edward Broadbent (Oshawa-Whitby):

Mr. Speaker, without accepting by way of premise the conclusion of the minister, may I ask him if the government has yet protested, either through some international body or directly to the United States, against the DISC program which is being used by the automotive industry in the United States in flat contradiction of the agreement signed between the two countries concerning automotive trade?

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF DISC PROGRAM BY UNITED STATES AUTO INDUSTRY- CANADIAN PROTESTS
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LIB

Alastair William Gillespie (Minister of Industry, Trade and Commerce)

Liberal

Hon. Alastair Gillespie (Minister of Industry, Trade and Commerce):

Mr. Speaker, on other occasions it has been made very clear that the Canadian government does not favour the DISC program and the government has so made these views known.

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF DISC PROGRAM BY UNITED STATES AUTO INDUSTRY- CANADIAN PROTESTS
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NDP

John Edward Broadbent

New Democratic Party

Mr. Broadbent:

Considering that the government has said it has made these protests, including the protest by the preceding minister, for the past 15 to 18 months without results, can the minister inform the House what the

government intends to do inasmuch as the United States is ignoring these protests?

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF DISC PROGRAM BY UNITED STATES AUTO INDUSTRY- CANADIAN PROTESTS
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LIB

Alastair William Gillespie (Minister of Industry, Trade and Commerce)

Liberal

Mr. Gillespie:

Mr. Speaker, I would have thought that by now the hon. gentleman would have realized that one of the major reasons for the corporate tax cuts was to put the Canadian manufacturing industry on a competitive basis with the United States manufacturing industry.

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF DISC PROGRAM BY UNITED STATES AUTO INDUSTRY- CANADIAN PROTESTS
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CORPORATE AFFAIRS

April 25, 1974