44th Parl. 1st Sess.
October 24, 2023 10:00AM
Madam Speaker, I will ask more of a general question regarding trade. The member wants to talk a lot about the oil and gas industry. One option he may want to consider is to recommend to his House leadership team that the Conservatives have an opposition day to talk about that issue.
For me, trade equals good-quality middle-class jobs. No government in recent history has done more to advance the issue of trade than this government has. Over a million jobs were created pre-pandemic when we first came into office. It demonstrates clearly that it has an impact.
On this trade agreement, it is more than just the economic benefits for Canada and Ukraine. It also sends a very strong and powerful message with respect to the war going on in Ukraine. One of the ways we can send a strong message is to get behind this legislation and see if we can get it passed before Christmas.
What does he have to say about that?
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Madam Speaker, when I listen to the hon. member, he would have us think that Canadians have never had it so good. The reality is that after eight years of the Prime Minister, Canadians just cannot afford the cost. The carbon tax is killing the middle class. Housing prices are forcing middle-class Canadians out of their homes and into poverty. Everything in our country is broke. Crime, chaos and drugs are flooding our streets.
We need to return to normal. We need a government standing ready to bring it home for Canadians.
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Madam Speaker, I am flabbergasted and discouraged. Earlier, I went to eat, but I had lost my appetite. From the outset, I have been telling myself that, since we are talking about a bill that is consensual, everyone will agree, that we will say that it is good to have free trade agreements, to show solidarity with Ukraine and to strengthen our mutual economies.
However, for some time now, the Conservatives have been talking only about oil, and I am going crazy. I think they could have told us about western beef, British Columbia's tall trees, western grains or Pacific salmon, but all they are talking about is oil and gas. It is as if this free trade agreement with Ukraine is all about selling oil and gas to Ukraine. Anyone who would like to see infrastructure built to transport it there had better be up good and early, and they will find the Bloc Québécois in their way.
I would like my Conservative colleague or one of his colleagues who spoke before him to tell me whether the Conservatives are capable of talking about anything other than oil or the carbon tax. Are there any other topics they are able to address here?
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Madam Speaker, perhaps the member lives under a rock. There is a war going on in Ukraine right now. The opponent to Ukraine is Russia. The single largest competitor that Russia has is in the oil industry. We can displace dictator oil, Putin's oil. Russia's oil sales are funding the war in Ukraine. If we do not sell Canadian oil or LNG, we continue to fund that war.
Our other resources are forestry and farming. They are big parts of my riding and I am happy to support those as well.
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Madam Speaker, I will follow up on the question of my friend from the Bloc. We are talking about trade. What do the Conservatives want to talk about? The carbon tax.
The carbon tax, according to the Governor of the Bank of Canada, is contributing 0.15% of inflation, which was affirmed as well by the PBO last Thursday at the OGGO committee, which I am on. The Conservatives do not want to talk about corporate profits. The carbon tax was a two-cent increase last year. The 18¢ increase on every litre of gas was profits for oil and gas companies. Suncor makes massive record profits. What did it do? It laid off 1,500 employees.
When they go back to headquarters at Suncor, the Conservative headquarter, do they ever talk about something to protect jobs as part of the agreement they have with oil and gas?
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Madam Speaker, I want to thank the member for reminding me that the carbon tax is driving inflation. I did not even mention that in my speech. What I did mention is that the carbon tax is driving our competitiveness issues. Many of our competitor countries do not need to pay the carbon tax, so our companies are starting from behind.
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- Oct/24/23 1:08:01 p.m.
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Before we continue, I want to remind members to pay more attention to the signal I am give them. We are eating into the time of other speakers, so someone may end up not being able to speak.
Resuming debate, the hon. member for Calgary Shepard.
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Madam Speaker, I am glad I am joining the debate. I was worried that perhaps I would be one of those unfortunate members of Parliament to be cut-off before being able to speak on behalf on my constituents.
I am glad to join the debate on Bill C-57, the modernization of our free trade agreement with Ukraine. Off the top, I should first begin by mentioning that I absolutely continue, as many members on this side of the House do, to support Ukraine in its very difficult battle against the Russian Federation.
Many members know this, but I was born in Poland. My father was a hard anti-communist, and remains a hard anti-communist. He will not watch this, because he does not watch CPAC, ever. However, I come from a long line of family members who have always feared Moscow's intentions, the Kremlin's intentions in eastern Europe.
For 60-plus years, many eastern European countries were occupied by the Soviet Union, and I specifically use that term. None of those countries were able to pick their governments. Their people were not allowed to pick who was responsible for making policy decisions or government decisions in those countries. I continue to support the people of Ukraine and the government of Ukraine. This is, in fact, a battle of survival
Modernizing agreements will give them some hope. It hopefully will lead to better people-to-people connections between Ukrainians and Canadians. We have those. I count six waves of migration of Ukrainians coming to Canada. Now, under the CUAET visa, I think over 200,000 Ukrainians have fled the war and found refuge in Canada. Canada is a land of refuge. Not too far away from this building, a monument is being built that represents Canada as a place where people from all around the world have found refuge and a home. I know many of those CUAET visa holders some day will become permanent residents of Canada and I hope will become citizens of Canada.
When the original agreement was passed back in August of 2017, the goal then was the elimination of about 86% of tariffs off Canada's merchandise exports to Ukraine. It has been a good deal. We all understood that at the time the agreement was signed and ratified, it would be to the benefit of Ukraine in the short term. It was Canada's way of providing some material support to a country that is still trying to build out of that original Soviet occupation.
Ukraine did have it much worse than a lot of other eastern European country, which, nominally at least, had some level of autonomy. There were local communists in charge, who were obviously supported by the Kremlin, but Ukrainians did suffer much more deeply for longer under Soviet tutelage. Its heavy industry base is mostly based in the eastern part of Ukraine, but much of its industry, such as agriculture, was collectivized and privatized after the fall of communism in eastern Europe.
Ukraine is still building out of it. It is a long process and is not something that can be done over a couple of decades. It sometimes takes half a century to build out of a hole someone else has made. Therefore, supporting Ukraine is important. Agreements like this would tend to do that as well.
In 2022, Canada's total merchandise trade with Ukraine was about $420 million, with $150 million in exports and $270 million in imports. When the ratification of the original CUFTA happened, non-coal exports to Ukraine grew 28.5% between 2016 and 2019.
I have been going through the details of the agreement, and I want to highlight a couple of points. I have not finished reading the whole agreement. I want to ensure I read all the different parts. This was signed in September. Now, in October, we are being asked to ratify it. This is a very detailed document, so it takes quite a bit of time for parliamentarians to go through it.
As I go through it, I note the sections that drew my attention and interest, such as sections on public consultations and transparency measures, which are a good thing. They are found under article 26.7. I was reading through exactly what the expectations were of both Canada and Ukraine when we are parties to this deal.
I want to raise a section on agriculture, “National Treatment and Market Access, which is in chapter 2, section D, article 2.13, subparagraph 4 (a) to (d). There are a lot of sections to the agreement. There is a subcommittee on agriculture that was created in 2017, and this agreement would continue that deal. We of course know a lot of exports from Ukraine will be agricultural goods.
Ukraine is often called one of the breadbaskets of the world. Much of its wheat exports, barley exports and other agricultural products are shipped through the Bosporus Strait, across the Republic of Turkey, to places in northern African, the Middle East and all around the world. It is why the export of grain, wheat, barley and other products has been one of the focal points of the Russian Federation's aggression against Ukraine. It is trying to blockade those very important agricultural shipments to try to starve Ukraine of funds and starve it of the ability to continue building support internationally. Many countries rely on Ukraine's agricultural exports, and if we can provide some measure of support in giving them a different market or the opportunity to use our market as a shuttling point to another market, we should provide that. I note that the subcommittee on agriculture will be committed to that work. I would like to see a way for our farmers and agricultural producers, but also our upgraders, processors and wholesalers, to have an opportunity to purchase Ukrainian agricultural products and then resell them on the world market.
I think we Canadians have shown ourselves to be entrepreneurial. Entrepreneurship is a highly valued set of principles. We always try to get our kids to start a business. I encourage my kids to do just that if they want to do that when they graduate, so I think it is something we hold very dear as Canadians. If there is an opportunity to help Ukrainian businesses and Ukrainian people, we should take it. I note this because it is in there and is important for people, especially in western Canada and the Prairies.
There is an entire section of the agreement that speaks specifically about country-of-origin labelling. This has been a sore spot for us with our American cousins to the south and the different agreements we negotiate with them, because they keep trying to change the terms of the agreements, or at least in how they interpret them. I was looking to find in this agreement, but have not found it yet, specific sections on how goods and services from Luhansk, Donetsk, Crimea, Zaporizhzhia and Kherson would be dealt with.
These are all the provinces of Ukraine occupied by the Russian Federation. I had expected this to be dealt with in the agreement. I am still looking for the specific sections on how goods and services would be dealt with and how they would be treated, because they are not from the territory of the Russian Federation. The four referendums held in the oblasts were illegal, unjustified and not recognized by the international community, because they were essentially just rammed through. People do not get a free vote when it is done at the pointy end of a firearm or with armoured vehicles from the Russian Federation overseeing how they vote.
I would like to know how the products and goods and services these territories produce would be dealt with. Would we have a certain measure and way to distinguish them from Russian goods? When, not if, Ukraine is able to restore its control over those provinces, I am hoping we will be able to deal with those goods and services and set them aside, perhaps giving them special treatment within our tariff system and within our country-of-origin labelling system.
There is a Yiddish proverb that I often like to use. This is not a proverb that I think is recognized, but it should be if it is not because I think it applies to the House: The late minyan has the least number of people arriving on time. At any shul, basically nothing starts on time, but we need 10 persons present at a synagogue to begin service.
I hope for that during the debate on a free trade deal. I am a free trader, I believe in free trade and our party believes in free trade, but not every agreement is exactly the same. I have noted some of the things I am looking for. I have noted that I have not been provided a briefing on the contents of the agreement itself, so all I really have to go on is what is in Bill C-57, which makes a lot of references to the agreement and the previous agreement as well.
I hope more members will be allowed to participate, to be part of that minyan and be here to rise on behalf of their constituents to raise specific points that are of concern to them. I come from Calgary. It is a big oil and gas town but also a big agricultural town. We have a lot of major agricultural shippers, manufacturers, producers and processors that are very much interested in the eastern European market and especially the fate of Ukraine and making sure we support it.
Alberta, Saskatchewan and Manitoba are home to a huge Ukrainian diaspora, and many of them are watching this agreement and watching what the future of Ukraine will be like. An agreement like this gives them hope, but we need to look at more of the details before we pass judgment on it.
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Madam Speaker, I listened intently to my colleague, as I try to do most of the time when he is speaking on the floor. I am quite surprised. Given what is going on in Ukraine and the desire of everyone to get this agreement through properly, faster and effectively, I am surprised. Maybe I misunderstood my hon. colleague, but I was hoping that we were going to complete these discussions on Bill C-57 fairly quickly and move it to committee, where we look forward to having a very detailed conversation with other members. Did I misunderstand the comments from the member?
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No, Madam Speaker, the member did not misunderstand. The committee is the right place for going into the details of the agreement. It is an opportunity for stakeholder groups to come before the committee, those that have gone into the weeds of it to see what it would mean for the customs code and what the implications are of expanding certain sections.
What I was referencing is that I would like to hear from more members on the floor of the House as to what their views are. I am sure our House leaders are talking right now, and we will see what they decide to do about when we see this bill at committee and how much time would be devoted to reviewing the specific contents of it. As I mentioned, I am looking at the sections on how goods and services will be treated in the territories occupied by the Russian Federation, which are rightfully Ukrainian territories.
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Madam Speaker, I too am concerned about many of the panels, committees, subcommittees, working groups, expert groups and other bodies, because here in Canada we have a bureaucracy of highly technical issues that sometimes can be an irritant for another country, such as Ukraine. We also know that the government has been terrible in its record on the Canada-Europe free trade agreement, the CETA, for not getting working groups together. We find all sorts of regulatory trade barriers that stop the legitimate trade between Canada and the European Union.
Is the member concerned that, given the record of the government, there could be similar issues if the government continues on its current path on trade?
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Madam Speaker, the member is absolutely right. I am concerned because with the Canada-Europe free trade deal that was signed, I do not think Canadian companies have been able to take full advantage of what is in the agreement.
When it comes to agricultural goods, we know that is a sore point with the United Kingdom. I remember that when I was in the United Kingdom travelling for a study by the parliamentary association, it was very difficult to find any Canadian meat products. Markets were very good at selling and showing off British products and products made in Wales or Scotland, but getting our agricultural goods into European continental and non-continental markets should be of great focus. The department should be facilitating this and encouraging our companies to provide goods and services there.
Part of that is about making sure that when we negotiate these agreements, all of the stakeholders in Canada are part of them. In this particular situation, as I mentioned, we are still going through the agreement and trying to find how these different groups work.
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Madam Speaker, to pick up on my colleague's question, given the war taking place in Europe today, I wonder if the member could provide his thoughts on the messaging that could be sent by the House of Commons in having the bill pass before Christmas, having gone through the system. Would he see that as a positive thing, not only economically but with all the other messaging that could be tied to it?
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Madam Speaker, that is a worthy goal to have on the government benches, obviously. The House leaders, I am sure, are negotiating some type of agreement. If they are amenable to it, I am sure the Conservative House leader will obviously listen, but at the end of the day, I think we can both agree that this chamber, this House, has been clear in our support for Ukraine, the people of Ukraine and the Government of Ukraine as it continues to fight its defensive war against the Russian Federation.
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Madam Speaker, I am pleased to be here today to speak to something that I think is very important to all of us here in the chamber, the legislation for the modernized Canada-Ukraine free trade agreement. It is my honour to rise in the House today in support of legislation to implement, as quickly as possible, the modernized Canada-Ukraine free trade agreement, or CUFTA, as it is often referred to.
Recently, the Canada-Ukraine bilateral relationship has been marked by Canada's steadfast support for Ukrainian independence, sovereignty and territorial integrity in the face of protracted Russian aggression. Canada has stood beside our Ukrainian allies to support them as they fight for their independence, democracy and freedom. I know they are waiting for this free trade agreement to be done, with much expectation that Canada will finalize it as soon as possible so that we can open the door for further trade with Ukraine to help it in the terrible war it is dealing with. Since the beginning of this illegal full-scale invasion by Russia in February 2022, Canada has committed close to $9 billion in multi-faceted support for Ukrainians, because we know how desperately they need it, and they are eager to see this free trade agreement as well.
Today, we have yet another opportunity to demonstrate our continued support for Ukraine through other means. Bill C-57 would not only offer benefits in the near term but would extend well beyond the strengthening of the foundation on which Canadian and Ukrainian businesses can work together in the economic reconstruction of Ukraine, underpinning the long-term economic relationship between our two countries.
This is not a new deal. This is an expansion of the free trade agreement. We have been dealing with free trade with Ukraine for a very long time, so this is not new, something that has just popped up that we have not seen. We knew it was coming, and it has been worked on explicitly to make sure it is the very best that it can be.
I am referring to the modernized CUFTA, of course. The modernized CUFTA is a comprehensive high-standard agreement that, once implemented, will not only support Canadian and Ukrainian businesses but will also deepen commercial linkages, enhance co-operation, provide for increased transparency in regulatory matters, support inclusive trade and help reduce costs for businesses. That is very much what this free trade agreement is about, and it is very important that we understand it all.
One of the key outcomes of the original 2017 agreement was the market access that it gained for Canadian and Ukrainian produced and manufactured goods. If ever a Ukrainian needed help with a free trade agreement, it certainly is today.
As of January 2024, all tariff elimination schedules will be complete and over 99% of Canada's exports to Ukraine will be eligible to enter Ukraine duty-free. That is a very important aspect of this free trade agreement. This will make Canadian goods more competitive in the Ukrainian market, and vice versa, which we very much want. It will be especially valuable as we move toward reconstruction, economic renewal and longer-term prosperity for Ukraine.
Thanks to the CUFTA, Ukrainians will be able to enjoy more high-quality Canadian goods, such as frozen meats and fish, fruits and vegetables, other consumer goods, and essential services. Meanwhile, Canadians will be able to enjoy the Ukrainian goods and services that we all enjoy, to help with the cravings and needs of the many Ukrainians living in Canada.
There are a multitude of brands from Ukraine that have proved themselves to be good additions to the Canadian market over the last many years. The CUFTA helps us broaden our horizons and support the Ukrainian economy, especially in these challenging times. I know they are very excited and looking forward to this bill's passing.
Throughout negotiations, both sides demonstrated an eagerness to reach an ambitious and high-standard agreement with the aim of facilitating increased trade between our two nations, not just to meet the more immediate needs of reconstruction, which are great opportunities for Canadian companies to go to Ukraine and help in the rebuilding process, but long into the future. This eagerness is reflected in how comprehensive the modernized CUFTA is with respect not only to trade in goods but also to investment services and inclusive trade. The CUFTA helps make the reconstruction process transparent and sustainable. Also, this agreement is the first FTA addressing anti-corruption provisions.
Canada has always been there for Ukraine since its independence in 1991, and this new agreement is yet another opportunity for Canada to make itself visible in Ukraine and to lead by example. As a result, the modernized CUFTA would not only maintain the preferential market access gained in the original FTA for merchandise exports and imports, but would also support new opportunities for expanded commercial ties between Canada and Ukraine in the context of reconstruction efforts and well beyond. These benefits have led to strong support for this agreement by key stakeholders, including the Canada-Ukraine Chamber of Commerce, representatives of which were recently on the Hill and expressed their desire to see this FTA continue.
Sectors of strategic importance to Ukraine's recovery include infrastructure, renewable energy, financial services and oil and gas, which are all areas where Canada has strengths. Furthermore, Canadian companies have indicated an interest in pursuing opportunities in Ukraine in the areas of defence and security, energy, ICT and agriculture, and are positioned to engage when and where the circumstances permit.
According to the latest estimate by the Ukrainian side, since February 2022, more than 37% of the total damage in Ukraine falls on residential buildings, another 24% on infrastructure and 8% on assets of enterprises and industry. According to Ukrainian and international analysts, Ukraine will turn into the largest construction site in the world after this war ends. The modernized CUFTA would support Canadian businesses as they position themselves to respond to these interests, taking into account the scope of the market that Ukraine has. It is time to use that window of opportunities.
Prior to the negotiations, the government conducted public consultations with Canadian stakeholders on what they would like to see in a modernized FTA with Ukraine. The initiative received strong support from stakeholders, indicating that modernization of the CUFTA would enhance the competitiveness of Canadian firms in the Ukrainian market, among other benefits.
Stakeholders specifically identified pursuing stronger trade rules, increased transparency obligations, expansion of the agreement to cover services and investment, and inclusive trade as priorities. I am pleased to confirm that the modernized agreement before us reflects these aims and more.
If I may, I will now say a few words about the modernized agreement, highlighting some of the benefits and opportunities it presents for Canadians and Ukrainians with an overview of the new chapters that have been added.
First, the agreement includes a dedicated new chapter on cross-border trade in services. This includes provisions on the recognition of professional qualifications that will facilitate trade in professional services, which is strategically important for both parties in a knowledge-based and digital economy.
Ukraine is a land of world-class talents who are ready to contribute their knowledge and expertise to the common good. The new CUFTA would allow these professionals to focus on their work and what they can do best, not on the bureaucratic ping-pong that can drain the needed energy and enthusiasm from all parties involved.
The agreement also includes a new chapter on investment that would replace the Canada-Ukraine Foreign Investment Promotion and Protection Agreement. Featuring updated provisions on investment protection, the new chapter also ensures that investment obligations operate as required.
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Madam Speaker, I am glad to see that some government members are defending Bill C‑57. When one has negotiated something, it is important to stand behind it.
This brings me to my question. In Quebec yesterday, the Parti Québécois unveiled its year one budget, projecting that Quebec has the financial capacity to be an independent country. I wonder how my colleague, as a member of the governing party, would feel about negotiating a free trade agreement with Quebec once it becomes independent, so that our two nations can engage in mutually beneficial economic exchanges.
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Madam Speaker, I believe we will continue to negotiate on behalf of Canada. My Canada includes Quebec, now and forever.
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Madam Speaker, I am a supporter of all trade agreements and of increasing Canada's trade.
However, one of the things that has happened with previous trade agreements is that we have not harmonized the specifications that Canada has. For example, with CETA, they can ship to us, but a lot of times we cannot ship to them. The same thing happened with the CPTPP.
Could the member comment on how we are going to make sure that the same thing does not happen with this particular agreement?
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Madam Speaker, we all want these agreements to be successful. We want to make sure that everything has been put in place.
There have been extensive discussions and negotiations for a long time on this agreement, as with other agreements. I am quite confident, given the importance of this agreement, that the right steps will be in the legislation and that it will move forward as quickly as it possibly can.
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Madam Speaker, any time we talk about Ukraine, I want to send my thoughts and love to the people of Ukraine.
I want to thank the Comox Valley Ukrainian Cultural Society in my riding that is doing a lot of advocacy for Ukrainians who are here in Canada and helping those who are in war-torn Ukraine now.
All treaties limit a nation's freedom to legislate. This free trade agreement includes provisions to ensure Canadians can still pass laws to protect the environment, promote gender equality and protect labour and indigenous rights.
Could my colleague speak about how important these provisions are in all free trade agreements? We saw the Conservatives sign free trade agreements that did not allow those provisions and actually overrode indigenous rights and constitutionally protected rights here in Canada.
Could my colleague speak about how important those provisions are to ensure that Canadians are protected?
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