STANDING COMMITTEE ON INTERNATIONAL TRADE
CANADA’S ENGAGEMENT IN A RULES-BASED
INTERNATIONAL TRADE AND INVESTMENT SYSTEMS
SPEAKING NOTES FOR BONNIE GEE
9 OCTOBER 2025
Madam Chair and honourable members of the Committee, thank you for the opportunity to present our perspective on rules-based international trade and investment systems.
The Chamber of Shipping is proud to represent international ship owners and operators that move more than $100 billion worth of goods through Canadian ports to and from over 150 overseas markets each year. From grain grown in the Prairies to minerals mined in the North, and tech products built in Ontario and BC, shipping connects Canadian producers to global markets.
Canada depends on a rules-based international framework to ensure that ship operators comply with international standards established through the United Nation’s International Maritime Organization (IMO), where Canada is viewed as a respected and influential maritime nation. The IMO negotiates conventions that set global standards for safety at sea, environmental protection, and maritime security. Flag states where ships are registered enforce IMO regulations through inspections of ships conducted by a global network of surveyors and Port State Control officers designated in countries where the ships are operating.
Canada is signatory to the Paris Memorandum of Understanding (MOU) on Port State Control which consists of 28 participating maritime administrations that covers the waters of European coastal states and the North Atlantic basin from North America to Europe. Canada is also a signatory to the Tokyo MOU which consist of 22 member authorities in the Asia-Pacific region. The intention behind these MOUs is to eliminate the operation of sub-standard ships through concentrated inspection campaigns and a harmonized system.
Canada’s implementation of international conventions and guidelines are generally consistent with global standards, but when legislation or regulations deviate from these standards, there is often an increased cost for shipping lines doing business in Canada which may impact the competitiveness of Canadian businesses. The international conventions and standards are meant to provide ship owners certainty in their investment in newbuilds and their contractual arrangements.
Commercial shipping transactions are executed under internationally recognized standard form agreements developed by the Baltic and International Maritime Council (BIMCO). These contracts are designed to streamline maritime operations, reduce legal risks, and ensure fairness and clarity to the parties involved.
In the absence of international frameworks for shipping, there would be a plethora of conflicting national regulations resulting in commercial distortion and administrative confusion for the industry, causing uncertainty, inconsistency, and inefficiency for global trade.
The Office of the US Trade Representative’s decision to impose new port-entry fees on Chinese built, owned or operated vessels under a Section 301 trade action will take effect on October 14th. This will have an impact on the vessels serving the North American trade and will likely result in increased freight rates and increased costs to US businesses and consumers. Two container lines that trade regularly into US and Canadian ports could face up to US$2.1 billion in additional costs in 2026. If Canada were to take a similar approach on Chinese-linked vessels, the harm to Canadian businesses could be greater.
Furthermore, the United States’ recent decision to not support the International Maritime Organization’s Net-Zero Framework, which is expected to be ratified in the coming weeks, carries significant implications. The Net-Zero Framework sets annual GHG intensity reduction targets for ships fuels through 2035, and penalties for exceeding GHG limits will apply. As Canada intends to ratify the Net-Zero Framework, the US threat to impose retaliatory tariffs on countries endorsing this framework is deeply concerning as it may disrupt international trade flows and create further uncertainty for carriers operating in US markets. This stance also risks undermining the competitiveness of Canadian business that rely on integrated supply chains and stable maritime governance.
The global shipping industry has exhibited a high degree of operational agility in response to recent trade policy shifts and geopolitical disruptions. In the face of new regulatory measures and security threats to strategic maritime corridors, shipping operators have rapidly adjusted routing strategies, reallocated fleet assets, and diversified port engagements to mitigate risk and maintain supply chain continuity. These adaptive responses are supported by advanced logistics technologies, integrated intermodal infrastructure, and robust contingency planning frameworks. The industry’s capacity to respond swiftly and effectively to external shocks underscores its strategic importance in global trade and its resilience in navigating increasingly complex and volatile international environments.
Canada’s prosperity has long depended on the stability, transparency, predictability, and openness afforded by the rules-based global trading system. However, this is a pivotal moment, and Canada should prioritize economic sectors that face the most severe shocks, while refining trade policies in a measured, decisive, and transparent manner to secure our own strategic economic interests and to ensure our sovereignty, prosperity, and resilience.
The shipping industry is highly adaptive and will continue to respond effectively to regulatory and market changes, driven by its inherently competitive and dynamic nature.
We are prepared to support Canada and its trade diversification strategy.
