44th Parl. 1st Sess.
October 23, 2023 11:00AM
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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Madam Speaker, as this is my first chance to comment on Bill C-57, I would put this question to my friend from Nepean.
It is heartening to see some reference to climate in trade agreements, but we know that for over more than a decade, since the creation of the World Trade Organization, the WTO has wrongly put itself above international climate agreements with respect to its authorities. I think this is a welcome opportunity, as President Zelenskyy is a champion of the call for climate action.
Would the hon. member for Nepean support a call to the hon. Minister of Trade to review the relationship between the WTO and international climate agreements in order to get the WTO to back off on interfering in climate action?
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Madam Speaker, the collaborative efforts to develop green technologies and renewable sources will contribute to a sustainable and environmentally responsible future. That is what we have said with this agreement. I am sure the trade minister in future negotiations with the WTO will certainly bring up the climate-related issues that can also be part of future WTO agreements.
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Madam Speaker, today I rise to speak to Bill C-57. I will be splitting my time with the hon. member for Selkirk—Interlake—Eastman.
With more than a million Canadians who have Ukrainian heritage, I think it is important not only that we have shown our support for Ukraine in the past, but also, certainly, with what is going on with Russia's illegal invasion of Ukraine, that we show it now and into the future. Ukrainian immigrants, more than 100 years ago, literally broke ground and planted the roots for Canada's thriving and vibrant agriculture industry in western Canada, so the connections are deep.
However, when it comes to this agreement in particular, I want to emphasize the importance of due diligence and details. The Liberals have tabled a 600-page trade document that is now being rushed through the House of Commons with little opportunity for stakeholders or parliamentarians to review its intricacies. What chapters have been added? What new implements have been suggested? What are the consequences of those new chapters and new policies? When it comes to the Liberal government and its history with trade agreements, the devil is in the details.
To back up a bit, the Canada-Ukraine Free Trade Agreement began under the Harper Conservative government. It came into force in August 2017. It eliminated tariffs on 86% of Canadian products and exports to Ukraine. However, the modernization of this agreement is important, and I want to emphasize the fact that we want to see the details and take time to review the wording of the new update. The reason I want to be so adamant about that is just simply that, as I said, unfortunately the Liberal government has a history of failures when it comes negotiating or renegotiating trade agreements. We can go back to the very early days of the Liberal government when we renegotiated NAFTA or the Canada-U.S.-Mexico Trade Agreement, CUSMA. It was clear that the Liberals' goal was to simply get a deal done, tick a box and have a photo-op.
The Prime Minister and the Deputy Prime Minister sacrificed a number of critical Canadian industries with trade discrepancies that Canadian industries are still dealing with. Perhaps nowhere were those implications more profound than within Canadian agriculture. The CUSMA agreement impacted a number of agriculture industries, including dairy, where Canada relinquished its ability to export a number of important dairy products, like protein concentrate and skim milk powder. We also added additional access for American products into Canada.
The most glaring error, though perhaps it was not an error but was done on purpose, is the fact that the Liberal government relinquished Canada's trade sovereignty in signing the new CUSMA agreement. That is right. If Canada wants to sign a new trade agreement with any non-market country, we have to get permission or approval from the United States. No G7 country had relinquished that kind of authority to a trading partner. That had never happened, but it is exactly what happened with the Liberals' agreement with CUSMA. Our manufacturers and industry are still dealing with the implications of this agreement, with higher tariffs on aluminum and softwood lumber, which still have not been resolved years later.
There are clearly some important reasons Canadian manufacturers and Canadian industry do not trust the Liberal government when it comes to trade agreements and that it will base those agreements and negotiations on sound economics and the importance of fair trade. It seems, historically, that the Liberals have been basing their trade negotiations on Liberal ideology and virtue signalling. That is not the way trade negotiations should be going.
As recently as last year, the Liberals implemented a Ukraine goods remission order so Ukrainian products, like chicken for example, would be getting quota-free and tariff-free access into Canada. They signed this remission agreement with zero consultation with the stakeholders that would be impacted: Chicken Farmers of Canada, Egg Farmers of Canada and Canadian Poultry and Egg Processors Council. None of them knew this remission order was being signed. The Liberals signed this at a time when avian flu outbreaks around the world, and certainly here in Canada, were devastating the industry. We had these groups at the agriculture committee letting Finance Canada and Global Affairs know about the impacts of the agreement and saying to please not renew the remission order when it came due last spring.
The Liberal government ignored all that stakeholder consultation at committee and renewed that remission order anyway last spring. This has put our biosecurity and our food security at risk as, again, outbreaks of avian influenza were happening around the world and certainly around Ukraine as well.
Last year, we looked at the Liberal-NDP government's decision to impose a 35% tariff on fertilizer coming from Russia and Belarus. Again, there was zero consultation with Canadian producers, especially those farmers in Ontario and eastern Canada who rely almost totally on that fertilizer.
Now, I understand what the government was trying to do: It was trying to punish Putin for his illegal invasion of Ukraine, but Putin was not paying those tariffs. Canadian farmers paid more than $34 million in tariffs just to get the fertilizer into Canada to plant their crops this spring. No other G7 country put such a tariff on fertilizer. None of our allies, including the United States, did this. They understood the importance of their farmers being competitive and the impact the tariff would have on commodity prices, not only here at home but also around the world.
Again, despite every stakeholder telling the government to lift that tariff to ensure that we are competitive and that we have access to affordable fertilizer, the Liberals have ignored them. In fact, when we asked the government on many occasions why it implemented this tariff when none of our G7 allies did, the answer was, “I didn't even know we bought fertilizer from Russia and Belarus”. This just shows why there is such frustration from our stakeholders and our industry. When it comes to the Liberals negotiating trade agreements, they are not consulting. They are plowing ahead with these agreements without doing their due diligence. As much as we support a free trade agreement with Ukraine, we want to make sure that we have the time to review the details within this agreement.
Most recently, the Liberal-NDP government has fast-tracked the United Kingdom to join the trans-Pacific partnership, the CPTPP, again without consulting with Canadian ranchers and pork producers. They desperately wanted some major gaps within the trade agreement with CETA and Canada to be addressed for the U.K. to have accession to the CPTPP.
The numbers are stark. Last year, the United Kingdom imported about 4,000 tonnes of beef, worth $33 million, into Canada. Do members know how much beef Canada exported into the United Kingdom? It was zero; it was not so much as a burger or a steak. Canada's pork industry is facing a very similar trajectory, as the United Kingdom has put in non-tariff trade barriers to block Canadian imports. Not once has the Liberal government stood up to defend Canadian producers.
Free trade must be fair trade, and we are asking the Liberal government to do a side letter, a bilateral, with the U.K. to address this trade discrepancy. It has yet to do that. This is a massive gap, and Canadian producers are the ones paying the price for the Liberal government getting photo ops and ticking a box when it comes to its agenda, without thinking about the consequences for Canadian industries, manufacturers and producers. One thing is very clear after eight years under the Prime Minister: He is failing Canadian agriculture and our industries on the global stage, and our valuable industries are paying the price.
The Conservative Party supports free trade, and we are very proud of the 40 free trade agreements we signed under Prime Minister Harper. However, those agreements benefited Canadian industry and Canadian workers; they did not come at the expense of our hard-working producers.
We want to clearly and carefully review this trade deal and consult Canadian stakeholders to ensure that we reach a free trade agreement with Ukraine. It should be a free and fair trade agreement, not just ticking a box, that will preserve and enhance Canadian industries, including Canadian agriculture, and not follow the same failed policies and failed direction that the Prime Minister has become very famous for.
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