Thank you, Madam Chair, and thank you, committee members.

I'm joined on the screen by Lak Shoan, our director of policy responsible for the files I'm talking about.

First off, I'd like to thank the committee for bringing it to our attention, and to the attention of the business sector and labour, that you are preparing for the CUSMA reviews well in advance of them. I congratulate you, and we look forward to the opportunity.

Very briefly, the Canadian Trucking Alliance is in fact that—an alliance of the seven provincial trucking associations across Canada. Together we have 5,000 members, representing about 250,000 employees.

With regard to NAFTA and CUSMA, they've benefited all three countries and, by extension, all three of the trucking sectors. The trucking sector in Canada and the United States moves Canada-U.S. trade primarily.

With regard to CUSMA itself, our main message is this: Let's not forget about the trucks that move the trade. A lot of focus, as it needs to be, is on the trade of goods between our countries and how they can flourish. However, they can't flourish if they can't get to market. One thing the pandemic showed everyone across society is what a supply chain is and who moves it. When the trucks have a problem, the supply chain has a problem.

What we want to do in the 2026 review is ensure that CUSMA looks at every opportunity there is to improve the efficiency of the Canadian trucking industry in moving U.S. exports into Canada and, obviously, our imports into the United States.

There are two main issues that we will be, and are, working on with the Government of Canada that may be an opportunity under the CUSMA review. One is the repositioning of foreign empty trailers. Currently, it is illegal for a Canadian trucking company to reposition an empty trailer in the United States, and vice versa. It is not illegal if you wait for that trailer to be unloaded and then move the same one. Folks, basically we have a trailer debate. The modern economy doesn't move like that in the supply chain. The most efficient way to move goods in the supply chain is to move a trailer in that's full, drop it and move an empty one. That's all we're asking on both sides of the border.

Minister Alghabra, a previous transport minister, has already indicated to the United States—in very different language, but I'll be more direct—that we're ready when they are. What we'd like to do under CUSMA is see how we can move the Americans towards this system. It's great for their exports and it's great for our imports, etc.

The other issue we would like to see addressed during the CUSMA review, if not before, is in-transit movements. Basically, this allows trucks in Canada to move domestically through the United States. Currently, we allow the Americans to do the same thing. If goods want to move between Michigan and New York State, they can move through Ontario. We allow it. The Americans do not allow us to move goods between Ontario and Vancouver. You can pick an example. It doesn't really matter. I used that example because as the floods happened, we were able to get temporary relief and 4,500 loads moved that way. There is a demand for it. If not before CUSMA, we are hoping that CUSMA addresses that.

There are other items that we will be working on with the Government of Canada. I'll just be very quick here. Under the U.S.-Canada tax treaty there are examples. There are U.S. legal system threats to trade. What we mean by that one specifically, really quickly, is that there are many “nuclear verdicts”. A nuclear verdict is defined as anything over $10 million. That is causing great concern for Canadian trucking companies moving goods into the United States. There are some domestic moves in the United States limiting these nuclear verdicts on trucking.

Can CUSMA deal with nuclear verdicts through the NAFTA-CUSMA agreement? That's a question that the Canadian industry has. Can international cargo and fraud theft be dealt with under CUSMA? Can joint border inspections and efficiencies at the border be dealt with under CUSMA?

Obviously, we have one question for which we do not have answers. For the other ones, we have some answers—or we think we do.

Currently for the emerging market of Mexico, most of that trade moves by rail, but will there come a time when there will be North American movement of trucks from Mexico all the way into Canada? If so, what needs to be done to examine that? We are asking the question during the CUSMA review to see what those opportunities are.

Those are my initial comments, Madam Chair. I look forward to taking questions, and again I just want to thank the committee for this opportunity and to mention how important it is that we be prepared, in our sector and in others, for this opportunity, because nothing has greater economic importance with respect to trade between the United States and Canada.

Thank you, Madam Chair.