44th Parl. 1st Sess.
October 23, 2023 11:00AM
Mr. Speaker, I enjoyed the speech by my hon. colleague. How does the member feel a free trade agreement with Ukraine, particularly as it defends itself in the ongoing war with Russia, will affect the relationship between it and the conflict?
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Mr. Speaker, Ukraine is under an existential threat. If Ukraine does not defend itself and then does not exist, we will not have the basis for a free trade agreement because there would be no Ukraine. We have to do first things first and make sure it has what it needs to defend itself. We have to send good equipment and good ammunition, not junk to empty out our old garages. It is a good thing people are being strong here and getting that mission started.
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Mr. Speaker, can the member provide her thoughts on the less than 1% spending on defence by Stephen Harper? Was that a good thing or a bad thing?
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Mr. Speaker, during the leadership of Prime Minister Harper, more money was spent on defence than there had been since the decade of darkness. The country is stronger and envied by many because of what we have in our professional military and the women and men who make Canada look good on the world stage.
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Mr. Speaker, we continue to see duplications of events around the world. We have seen what is happening with Israel and Gaza right now.
As it pertains to foreign conflicts and the information out there, can the member talk about how this deal may help the redevelopment of Ukraine going forward?
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Mr. Speaker, if given the chance, trade with Ukraine will strengthen itself and perhaps prevent another invasion by Russia or another entity.
The real problem here is the Communists who run China. This Ukraine-Russia conflict is a wonderful and welcomed distraction for China. Our overarching concern is making sure that Canada is well defended and the world is well defended against greater aggressors yet to come.
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Mr. Speaker, I would like to begin by saying that I will be sharing my time with the member for Nepean.
I have the honour of rising today to support the bill to implement the free trade agreement between Canada and Ukraine. As we have already mentioned, modernizing this agreement not only enabled us to add new chapters, but it also gave us an opportunity to update the existing chapters so as to make them consistent with the highest standards and best practices in regard to agreements.
I would like to begin by talking about the very important, innovative, modern and comprehensive updates that were made to two chapters: the labour chapter, which I will talk about a little later, and the environment chapter. The modernized provisions of the agreement between Canada and Ukraine seek to meet the highest labour rights and environmental standards.
These updates would make the agreement a full and comprehensive modern trade agreement that levels the playing field and ensures that there is sufficient flexibility so that both countries can implement their policy objectives in these areas.
Allow me to quickly give an overview of the nine modernized chapters of the agreement.
With regard to rules of origin and procedures, Canada and Ukraine have agreed to activate and operationalize the principle of cumulation of origin, a principle that allows materials originating in any other country with which Canada and Ukraine have a free trade agreement to have originating status for goods exported under preferential tariffs. The result is that our producers will be entitled to greater flexibility in deciding whether to source raw materials from countries with which Canada and Ukraine have free trade agreements.
I would like to talk briefly about the chapter on digital trade, which is very important and updates the old chapter, which was called e-commerce at the time. Things have evolved quite a bit. This is a good update and provides regulatory certainty for companies looking to engage in the digital economy in both markets.
The chapter now contains ambitious commitments to facilitate the use of digital trade as a means of trade between Canada and Ukraine. The chapter includes commitments relating to cross-border data flows, which are very important, and also data localization, source code disclosure, open government data, and personal data protection.
The modernized agreement includes a chapter on competition policy with new, updated obligations intended to promote a competitive marketplace. This chapter helps achieve objectives for Canada and Ukraine that relate to an equitable, transparent, predictable and competitive trade environment. What does this mean in practical terms? In practical terms, it means obligations that are reinforced by competition authorities with respect to procedural fairness and transparency, and new obligations respecting the identification and protection of confidential information. These new obligations ensure that basic principles like the rights of defendants are upheld during investigations and proceedings.
By the way, I would like to draw special attention to the chapter on monopolies held by state-owned enterprises. This chapter was also enhanced to include important definitions concerning state-owned enterprises and designated monopolies, with updated commitments on transparency and technical co-operation.
In the modernized government procurement chapter, Canada and Ukraine have clarified that they are allowed to take into account environmental, socio-economic or labour-related considerations in their procurements. This means that it is now clear that the agreement does not prevent parties from adopting domestic policies and programs to support initiatives such as green and social procurements.
A big important chapter is the upgraded labour chapter. This chapter is now robust, comprehensive and fully subjected to the dispute settlement mechanism in the agreement. This chapter is important because it aims at improved labour standards and working conditions in the two countries by building on international labour principles and rights.
I want to highlight two very important articles. The first is an import prohibition on goods made in whole or in part with forced labour. The second is a stand-alone article on violence against workers.
This chapter confirms that Canada and Ukraine are fully committed to the highest labour rights standards and agree to co-operate further in the field.
Another very important chapter that I feel strongly about is the one on the environment. It is the most comprehensive and ambitious of all Canadian free trade agreements. For the first time, this chapter includes provisions that recognize the importance of trade and climate policies. Both policies complement one another.
It also includes market-based approaches and climate measures linked to green growth targets. This updated chapter also introduces new sections that deal with worldwide environmental issues that are key to our green transition. It also includes sections on plastic pollution, waste, the promotion of trade in environmental goods and services and the circular economy.
Finally, I will briefly talk about the chapter on transparency, anti-corruption and responsible business conduct. This chapter sets a framework for the promotion of transparency and integrity among public servants and the private sector while increasing the enforceability of anti-corruption laws.
Thank you, Madam Speaker, for listening and for allowing me to list the important improvements made to this key agreement. This improved agreement will now be one of our most modern, comprehensive and innovative.
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Madam Speaker, I would like to greet my colleague from Pontiac, with whom I am pleased and honoured to sit on the Standing Committee on Environment and Sustainable Development. The hon. member rightly said that this free trade agreement deals with a number of issues, in particular the environment.
We are all aware of the effects of climate change that must be addressed, and since humans helped create climate change, humans must take steps to reduce pollution.
Based on what my colleague knows about what is happening in Ukraine, what should be the main focus of Canada's action to help Ukraine rebuild, from an environmental perspective?
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Madam Speaker, at this stage in the global economy, we are well aware that climate change is intrinsically linked to developing a greener, more resilient and more innovative economy.
This agreement, which is central to this environmental chapter, includes a number of obligations and considerations. I feel it is really going to foster technology sharing to develop this 21st-century economy, so that it is beneficial not only for the environment, but for trade as well.
I think this is one example of free trade agreements. All agreements that are modernized in this way are increasingly innovative in this area, where the economy is linked to climate resilience.
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Madam Speaker, as I said earlier in an exchange with another member, we think Bill C‑57 is a good bill and we plan to support it.
My colleague from Avignon—La Mitis—Matane—Matapédia and I have asked a few questions, but we have yet to get any clear answers. Although we agree with the bill, the process by which it is being passed raises some questions, as is the case with many other bills ratifying agreements that have been reached.
In the United States, Congress mandates the executive branch to negotiate agreements. In the European Union, member states play a central role in the negotiations, because they have to ratify them later. It is much the same in most industrialized countries. It is often parliaments that adopt treaties. Here in Canada, it is customary for the government to negotiate treaties and for Parliament to intervene only at the point of ratification, when the provisions are to be included in a bill.
My question is about whether—
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- Oct/23/23 5:43:54 p.m.
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The hon. member has taken a lot of time. Other members want to ask questions.
The hon. member for Pontiac.
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Madam Speaker, I thank my hon. colleague for the question. I think I understood it. If I understand correctly, he is wondering why international agreements are negotiated at the government level and parliamentarians only learn about the results of these negotiations.
I think it is important to pay attention to all the consultations that take place ahead of negotiations with a country. There are a lot of consultations and opportunities to provide information to the government when it is negotiating agreements. That is the time for providing information that is pertinent for the negotiations.
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Madam Speaker, for the first time in our history, we have seen a free trade agreement that takes into account reconciliation, particularly the rights of indigenous peoples, and reaffirms the parties' commitment to the UN Declaration on the Rights of Indigenous Peoples.
Would the member support, in the future, our country supporting similar provisions within future free trade agreements, namely with the United States?
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Madam Speaker, I think that it is always a good idea to take the best parts of an agreement and include them in new agreements.
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Madam Speaker, we have stood with Ukraine since the start of Russia's illegal invasion and will stand strong when Ukraine is once again free. The introduction of Bill C-57, an act to implement the 2023 free trade agreement between Canada and Ukraine, is an important milestone in the implementation of the modernized Canada-Ukraine free trade agreement. As the first trade agreement Ukraine has signed since the onset of Russia's illegal war, this modernization would result in a comprehensive and progressive agreement ensuring that everyone feels the benefit of trade. Canada is a trading nation and trade accounts for about 65% of the GDP.
Canada is currently the only G7 country to have free trade agreements in force with all other G7 countries. Canada currently has 15 free trade agreements with 51 different countries and covers 61% of the world's GDP. Together, these agreements cover 1.5 billion consumers worldwide.
I have to give a shout-out to our farmers. Though small in number, our farmers in the agri-food sector are the most aggressive in leveraging every free trade agreement we have signed so far. Canada is the fifth-largest exporter of agri-food and seafood in the world and exports to nearly 200 countries. In 2022, Canada exported nearly $92.8 billion in agriculture and food products, including raw materials, agricultural materials, fish and seafood, and processed foods. I wish other sectors in Canada where we have resource advantage would follow our agriculture sector in exporting all across the world. For example, the steel and aluminum sector could look beyond the North American market and export to Europe and to the Indo-Pacific region.
Despite challenges, Canadian trade reached record highs again in 2022. Canada's goods and and services exports increased by 31.2% to reach $940.4 billion in 2022 and the imports advanced 20.5% to reach $936.2 billion.
Even with Russia's illegal and unjustified invasion of Ukraine last year, which caused a horrific humanitarian crisis and sent shock waves around the world, global trade has remained resilient. Global economic growth advanced by 3.5% in 2022, following the 6.3% rebound witnessed in 2021. Canada continues to uphold and promote rules-based trade, providing confidence and predictability for our businesses.
Free trade agreements represent about 80% of Canada's imports and 90% of Canada's exports in 2018. Free trade agreements are essential for several reasons. They promote economic growth by expanding markets and increasing access to a wider consumer base. These agreements reduce tariffs and trade barriers, encouraging the flow of goods and services across borders. This fosters competition and innovation, driving down costs for consumers and enhancing product quality. Moreover, free trade agreements create a framework for resolving trade disputes, ensuring stability and predictability in international trade relations. They also strengthen diplomatic ties between nations, promoting co-operation and peace. In a globalized world, free trade agreements are crucial for spurring economic development, job creation and overall prosperity. Free trade agreements are effective at lowering trade barriers and overall cost of trade.
The original Canada-Ukraine Free Trade Agreement entered into force in August 2017. Upon entry into force, Canada eliminated duties on 99.9% of the imports from Ukraine. Similarly, Ukraine immediately eliminated tariffs on approximately 86% of imports from Canada with the balance of tariff concessions to be implemented over seven years. This will align with the proposed date for the modernized CUFTA's entry into force.
While comprehensive from a trade-in-goods perspective, the 2017 CUFTA did not include services, investment and many other areas. It instead included a clause committing the parties to review and explore expanding the agreement within two years of its entry into force.
On September 22, 2023, we signed the modernized Canada-Ukraine free trade agreement. This would support long-term security, stability and economic development in Ukraine while also ensuring high-quality market access for Canadian businesses participating in Ukraine’s economic recovery. This would create good, middle-class jobs in both of our countries.
The modernized CUFTA would maintain the preferential market access gained in the original FTA for all current Canadian merchandise exports to Ukraine. It would mark a new era in Canada and Ukraine’s economic relationship and be fundamental to the participation of Canadian businesses in Ukraine’s economic reconstruction and recovery from Russia’s illegal and unjustified invasion. The modernized agreement also includes dedicated new chapters on trade in services, investment, temporary entry, telecommunication, financial services, and inclusive trade, and updated chapters on labour, environment, transparency and anti-corruption, among other areas.
The agreement would facilitate enhanced co-operation, improve the ability of parties to resolve trade irritants, promote openness and inclusivity, increase transparency in regulatory matters and help reduce transaction costs for businesses. CUFTA would commit Canada and Ukraine to respecting and promoting internationally recognized labour rights and principles and to effectively enforcing their labour and environment laws.
For the first time in either country's history, the FTA also includes a new dedicated chapter on trade and indigenous peoples, in addition to new chapters on trade and small and medium-sized enterprises and trade and gender. These elements are designed to increase opportunities for traditionally marginalized groups in trade to participate in and benefit from the agreement. When in force, the modernized CUFTA would not only continue to provide preferential market access for merchandise trade but would also establish ambitious new market access terms for services, trade and investment.
Amid the ongoing conflict in Ukraine and the economic devastation it is enduring, a free trade agreement is of paramount importance. Such an agreement can provide a lifeline to Ukraine's economy by opening up new markets, reducing trade barriers and fostering economic growth. It would enable Ukrainian businesses to diversify and expand their exports, reducing reliance on domestic markets that may be severely impacted by the war. Moreover, the free trade agreement would bring in financial aid and investments that are crucial for rebuilding infrastructure and industries. In these challenging times, agreements like this can play a pivotal role in Ukraine's recovery and long-term stability.
I want to emphasize the significance for Canada and other western democracies of nurturing and strengthening relations with Ukraine. Ukraine, with its rich history and resilience, has been a pivotal player in recent geopolitical events. It is crucial for us to maintain economic relations and strategically prepare for post-war co-operation and the economic rebuilding of Ukraine. Our relationship with Ukraine holds immense importance due to shared democratic values and principles. Ukraine has made remarkable progress in its democratic journey since gaining independence in 1991.
By fostering economic ties, Canada can provide critical support for Ukraine's democratic institutions, helping them to thrive and promote stability in the region. Economic relations are the backbone of any thriving nation, and in this context, free trade agreements are indispensable. These agreements can pave the way for increased economic opportunity and prosperity for both Ukraine and its trading partners. They stimulate job growth, foster innovation and boost the economic well-being of both parties involved.
Post-war co-operation is equally vital. Ukraine has endured considerable challenges, particularly in the aftermath of the conflict in the eastern regions. We must plan ahead for the reconstruction and revitalization—
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- Oct/23/23 5:56:12 p.m.
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I have been trying to signal to the member. I am sure he will be able to add during questions and comments.
The hon. member for Edmonton West.
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Madam Speaker, I know my colleague was cut off early, so I would like to give him a couple more minutes in questions and comments to finish up.
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Madam Speaker, we must plan ahead for the reconstruction and revitalization of the Ukrainian economy. This includes rebuilding infrastructure, fostering entrepreneurship and strengthening the country's agricultural and industrial sectors. By formalizing our commitment to the process, we can ensure a smoother and more efficient implementation.
In order to unfold the economic rebuilding of Ukraine, we must prioritize investment in key sectors, such as energy, technology and agriculture. Collaborative efforts to develop green technologies and renewable sources will contribute to a sustainable and environmentally responsible future.
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Madam Speaker, one of the things that I think is going to be interesting about this potential is the work we can do together with Ukraine on cybersecurity. I would like to ask the member a question with respect to that.
We have a number of cybersecurity advantages. I look at Coding for Veterans, for example, which is a Canadian company. Through Jeff Musson, who has been working on a Canadian system for cybersecurity using veterans, it is now employing them across the spectrum, in banks and other institutions. Mr. Musson has been able to help some veterans with new employment and make sure that we are improving our cybersecurity.
Does the member think that these types of ventures would be good partnerships for Canada? I know that Coding for Veterans is now opening a new chapter in the United States. In fact, it is going to have a float in the Rose Parade for that, which is quite significant.
I would like my colleague's thoughts on how we can use those types of programs, services and benefits to employ Canadians, employ Ukrainians and make our mark in the world very solidly.
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Madam Speaker, I agree with my colleague on the potential for co-operation on cybersecurity. Cybersecurity, as we all know, is becoming as big a threat as the physical security of borders. Canada has some expertise in cybersecurity and Ukraine also has good expertise in cyber-related knowledge. In fact, we have heard reports of Ukrainians domestically developing technologies and using them to develop drones to counter attacks from Russia. I am sure that expertise that is available in both these countries can join hands to develop new levels of cybersecurity protocols.
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