Thank you and good afternoon, Mr. Chair, members of the committee and my fellow panellists, one of whom I will disagree with vehemently on his statement on Bill C-58, but that's not why we're here today.

As you know, I'm Lana Payne, and I'm the national president of Unifor, Canada's largest union in the private sector, representing over 320,000 working people across this country. I'm joined by our director of research, Angelo DiCaro, who is also our in-house expert on trade.

I want to thank you for this invitation to participate on behalf of our members, many of whom—thousands and tens of thousands of them—work in industries affected and impacted by trade.

Let me start by saying that Canada's trade policy is a key aspect of our country's broader industrial strategy. Sadly, since the NAFTA, Canada has suffered from a lack of ambition regarding industrial development. This lack of vision has had governments sleepwalk into a series of unhelpful free trade arrangements and agreements with the voices and concerns of workers largely ignored and dismissed.

All of this changed when the NAFTA was renegotiated. The government deserves credit, not for salvaging a deal that caused immeasurable harm to workers but for presenting a bold, progressive economic vision for this country that underpinned its negotiating strategy with workers' voices at the forefront. This was a welcome break from the past.

The study you've undertaken ahead of the scheduled six-year review of the CUSMA is necessary and timely, and we thank you for it. U.S. officials aren't mincing words right now when they tell us not to get too comfortable ahead of these talks. Long-standing U.S. complaints, whether on Canada's supply-managed dairy or on digital trade, are on the radar. The USTR has already held consultations on the CUSMA auto trade. Canada cannot approach this review on its back foot.

We must remind Americans how interdependent our industrial economies have become, but we can't shy away from communicating our own concerns. There are obvious gaps in the CUSMA and our trinational trading relations that this review can and should address. I'll share some of the ones that are top of mind for Unifor.

With regard to forestry, the softwood lumber dispute has dragged on for eight years, impacting Canadian firms with unjustified tariffs. This sector is currently facing economic and serious headwinds, including mill closures and job losses, and these trade penalties are adding pressure to an already struggling industry. They must be removed.

With regard to aluminum, the monitoring of imports that circumvent and undermine the benefits of our decarbonization efforts must be strengthened. Aluminum is a strategic metal and should benefit from the same processing requirements that apply to steel under the auto rules of origin—you've just heard about those.

With regard to labour rights, much is being done to clean up Mexico's labour system. The CUSMA's rapid response mechanism is helping remediate and deter labour rights violations and also renew Mexico's democratic trade unions. This mechanism works, and it must be extended, including to workplaces in the U.S. and Canada, and I'll tell you why.

A recent union vote at a Mercedes plant in Alabama, in the United States, was strained by threats and intimidation towards workers, not unlike we've seen at Mexican car factories. Canada should demand a full investigation into this trade-distorting behaviour, especially since Canada has a deal to supply Mercedes with lithium, cobalt and other critical minerals. Canada should also clearly signal to the U.S. its intent to revisit a proposal to deem right-to-work laws a violation of the CUSMA labour chapter.

In the auto sector, there is an opportunity to link our trade and industrial strategies. Labour value content rules were set at $16 U.S. per hour in 2020, but they have not increased since. These labour rates must be updated along with the CUSMA's current list of core auto parts to reflect new EV technologies, like e-motors.

Canada must discuss with the U.S. the raising of its WTO tariff on light-duty vehicles, which currently sits at 2.5%, hardly enough to ensure compliance with the CUSMA's complex rules of origin. Canada must also take seriously the threat of Chinese EV imports, which are subsidized through forced labour, excessive subsidies, tech theft and other means. Canada must be vigilant in guarding against transshipments and prepare itself to take action in conjunction with the United States.

Unifor will obviously continue to monitor this review that you're conducting and will remain available for further discussions. We look forward to answering any questions you may have for us today.

Thanks very much.