Bill C-2 (Historical)

Canada-EFTA Free Trade Agreement Implementation Act

An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation

This enactment implements the Free Trade Agreement and the bilateral agreements between Canada and the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation signed at Davos on January 26, 2008.
The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Free Trade Agreement or the bilateral agreements themselves, without the consent of the Attorney General for Canada.
Part 1 of the enactment approves the Free Trade Agreement and the bilateral agreements and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Free Trade Agreement and the power of the Governor in Council to make orders for carrying out the provisions of the enactment.
Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement and the bilateral agreements.
Part 3 of the enactment provides for its coming into force.

Canada-EFTA Free Trade Agreement Implementation Act

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Mr. Speaker, again I rise in the continuation of the debate on Bill C-2.

What my colleague from New Westminster has asked for, and he has asked for it very eloquently and quite intelligently, is exactly what the United States has done.

We are about to sign on to an EFTA deal and it may have serious ramifications for a major industry in our country, namely shipbuilding.

Over the past few weeks, we have received hundreds and hundreds of letters from shipyard workers who are very concerned about their future and the future of their families in the five major yards as well as in the other smaller yards across the country. They are asking the government, quite clearly, why it would sign a trade deal that may affect this very important and vital industry.

The NDP has absolutely nothing against trade deals as long as they are fair and equitable on both sides. We saw what happened with NAFTA and the free trade concerns. We saw our wages and other things go down. We were promised that Mexican considerations would go up. It simply has not worked.

We saw what happened with the softwood lumber deal. We left a billion dollars of our companies' money in the United States. Many mills across the country have shut down and thousands of people have been laid off in the forestry industry.

We are all concerned about the shipbuilding aspects. Lately the government has spent literally hundreds of thousands of dollars in meetings with experts across the country on what is the best way to stimulate the economy and get the machines going and people working again so as to give them a sense of optimism and confidence once again.

We have said to the present government, and to the previous government as well, that one industry it can look at in a very positive and fiscally responsible manner is the shipbuilding industry. We said before that we had $22 billion worth of work on the books right now. Spread over a 20 years period, that can keep the five major yards singing for a long time and employ thousands of people at very decent salaries so they in turn can pay their taxes, look after their families and live in these communities. We have major yards in Victoria, Welland, Lévis, Halifax and Marystown, plus smaller yards across the country.

We honestly believe this industry has a bright future and those Canadian workers and Canadian companies deserve that opportunity.

I have said this before and I will say it once again. I know this sounds very much like a social democratic ideal, but imagine using Canadian taxpayer money to hire Canadian workers to build Canadian ships with Canadian companies in Canadian yards? Call me a rabid communist, and I really do not care, but what a novel idea to use taxpayer dollars to hire our neighbours to build Canadian vessels that our Coast Guard, ferry fleets, laker fleets and our military desperately require.

We could not help but notice that the recent budget the government announced $175 million for hovercrafts and small boats, but the request was for $22 billion, not $175 million, spread over 20 years.

It is also quite ironic that the government brags about an investment of $300 million in the aerospace industry and look what happened; a $1.5 billion contract out of Quebec to build airplanes. That is a good investment. We want the exact came attitude applied to the shipbuilding industry. The 2001 report, “Breaking Through”, done by labour and business, has five serious recommendations that would move this industry forward.

If we go ahead and sign this EFTA deal, it may have serious ramifications for our shipbuilding industry. It is not only EFTA about which my colleagues in the NDP are very worried. What happens when the next trade deal with Korea comes up? Korea has already said that it wants auto and shipbuilding in those deals.

If our largest trading partner, the United States, with which we have 80% of our trade, in every single FTA that it has ever signed since 1924 excludes shipbuilding and marine services from the table, then why does Canada not do the same?

Why can we not protect this very vital industry, just like China, Korea, the United States, Norway, Italy, Britain, Holland and all other major countries in the world have done for their industries? Why is it that every time we go to the table, we give up these industries for other concerns? That has to stop and it has to stop now.

My colleague from Burnaby—New Westminster has done an absolutely fabulous job in pointing out the errors of the softwood lumber deal. He was absolutely correct. Now he is pointing it out with the EFTA deal as well as the shipbuilders and the shipyard workers.

These individuals deserve to have the opportunity to build Canadian ships in Canadian yards, using Canadian taxpayers money to do so. We do not like to see this industry, or any other industry of that nature, given up to those who say, as John Manley said in 2003, that shipbuilding is a sunset industry. We simply do not believe that for one second. We honestly believe this is a sunrise industry, an industry that has a bright future in our country. That is why we ask the government to do exactly what the United States has done: carve this out of the EFTA deal, sign the free trade deal, but then carry on and allow our shipbuilding to grow and prosper.

Norway has said very clearly that it will pull out of EFTA if shipbuilding is not on the table. Why is it so important to Norway to have shipbuilding on the table? For over 30 years, although it does not do it now, Norway heavily subsidized that industry to the point where it got it absolutely right. Even with a 15 year decline in the import tariff, Norway knows very well it can do much damage to our industry, and it is not just Norway, but is Korea as well. What other trade deals down the road will not only put this industry at risk, but other industries as well?

One more time we ask the government, the Liberals and the Bloc Quebecois to support my colleague's motion to get this carved out from the EFTA deal. We should sign the EFTA deal after that and work on shipbuilding to ensure it has a bright and positive future for Canadians.

The House resumed from March 13 consideration of the motion that Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation, be read the third time and passed, and of the amendment.

Bill C-2—Notice of time allocation motion

[Leona Aglukkaq, Conservative, Minister of Health]

Mr. Speaker, an agreement could not be reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the third reading stage of Bill C-2, Canada-EFTA Free Trade Agreement Implementation Act.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or time or hours for consideration and disposal of proceedings at the said stage.

Canada-EFTA Free Trade Agreement Implementation Act

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, this is an extremely important debate, which is why the NDP is following through, as we have at each level of the debate, to ensure the voices of shipyard workers from coast to coast are actually heard in this debate.

As members well know, there is an Ottawa bubble that is incredibly strong for new members of Parliament, the Conservatives, Liberals and even Bloc members. They come here and forget about the interests of their constituents. It happens time and time again. We see these with trade agreements that sell out Canadians and sell out Canadian jobs.

Essentially, we have Conservative and Liberal MPs who only listen to corporate CEOs, even as those corporate CEOs are moving jobs offshore to other countries, to the third world where they can pay miserable wages and then sell their goods back in Canada. The result has been a hemorrhaging of manufacturing jobs over the last few years, hundreds of thousands of manufacturing jobs lost, and still the government persists in bringing forward sellout agreements, agreements that have not been negotiated with any strength, that have not been negotiated with the interests of the country in mind, but are simply agreements that sell out various sectors of the Canadian economy in the hope that somehow, magically, through George Bush-style free trade agreements, there will be economic benefits.

The reality, which Statistics Canada tells us very clearly, is that approach does not worked. Over the last 20 years, for about three-quarters of Canadian families, their real income has actually gone down, and many of them are listening today. They have seen how disastrous right-wing economic policies, including George Bush-style free trade agreements, have been for the country. They are earning less now than they were 20 years ago. If that is not a silent economic crisis, I do not know what is.

The whole basis that somehow throwing these agreements out and selling out various sectors creates jobs in Canada simply does not work and does not hold up. It is very clear. When the bottom line of these agreements and the whole lack of industrial strategies in a whole variety of sectors does not work, one would think the government would think twice, but no, from Liberals to Conservatives, it is just the same old thing.

Perhaps that is why the NDP representation in this House over the last few years has tripled. It is because people are saying that it does not work in their communities. People are tired of working for minimum wage jobs and are tired of seeing their manufacturing facilities close down.

We saw that with the softwood sellout, which the Liberals and Bloc Québécois members now regret supporting. They are trying to distance themselves as the penalties now start coming into play, with $68 million last week and probably $400 million that softwood communities and small softwood companies, the ones that have survived, will have to pay when the next decision comes down.

It is absolutely absurd and now, the opposition parties that helped the Conservatives drive the getaway car in the softwood sellout, are trying to pretend that they were not in the car. Canadians are not fooled by that.

Now we have an agreement coming forward that every representative, whether a worker's representative or an owner's representative, representing shipbuilding across this country from coast to coast, have said will kill our shipbuilding industry. It has been unanimous. We are not talking about some difference of opinion. We are talking about unanimous recommendations to carve out shipbuilding from the agreement and yet not one Conservative MP has stood up for shipbuilding, even though, in many cases, they represent shipbuilding workers in their ridings. The Bloc Québécois, as I mentioned in French just a few minutes ago, despite being pressed by shipyard workers in Lévis, Quebec, is refusing to stand up for shipyard workers.

Only one party in this Parliament is standing up for shipyard workers and that is the NDP and that is because we have our own shipbuilding critic, the member of Parliament for Sackville—Eastern Shore. We have a new member of Parliament for Welland who represents the shipbuilding workers there and who is doing a terrific job as well.

We represent our constituents. We are standing up for shipbuilding workers. It is not as if the members can pretend they have not heard. Hundreds and hundreds of letters have been pouring in, especially to Liberal MP offices, telling them to support the NDP's amendment for the carve out. More are coming in as we speak. So many are coming in that fax machines have been having difficulty keeping up. The letters say, unanimously, “Support the carve out”.

I read one of the many letters into the record earlier and I will do it again. It said:

One of the most surprising things to me as a shipyard worker is that all stakeholders in the industry including owners, operators and unions from coast-to-coast have emphasized the need for this support during the many committee meetings that were held on the use of free trade talks. It's a shame that the Liberal party of Canada feels that it has to remain a puppet of the Conservative government in supporting another bad free trade deal for Canada.

These letters are pouring in and they are heartfelt. The shipyard workers are saying that Canada has, by far, the world's longest coastline and a proud shipbuilding tradition. In fact, just a few decades ago we had the fourth largest navy on the entire planet. Shipbuilding yards were turning out ships in Vancouver. We had ships coming out every week. We had tens of thousands of shipbuilding jobs.

The reason that industry is now on its deathbed is because of a completely irresponsible approach by the former Liberal government and continued by the Conservative government. Now we have a coffin that is being presented in the middle of the House of Commons by the Conservative government through Bill C-2, which would kill and finish off our shipbuilding sector.

Liberals and Bloc members say that is okay, that they are alright, they are MPs and that they do not care about the workers in this country. What are they basing their vote on? There is some sort of airy-fairy theory that somehow Canada will be advantaged. There has been absolutely no economic impact analysis of this agreement. Not one Liberal MP, Conservative MP or Bloc Québécois MP has actually said that maybe we need to know how many jobs will be lost from this.

It is absurd that the Ottawa bubble corrupts every MP who comes from other parties. They seem incapable of standing up for Canada and for Canadians jobs once they get elected to Parliament. It is appalling. They cannot say that they did not know. Those letters are coming in, letters that the NDP has read into the record, letters from the B.C. marine workers, Davie shipyard and the Halifax shipyards. It is pretty conclusive.

What happens next? Well, we are now starting debate on third riding. In a few moments I will offering a motion that will carve out shipbuilding from this agreement.

What we are saying is that, over the next two weeks, those shipbuilding workers who are listening in today, those shipbuilding workers who have been sending their letters to Liberal MPs and those shipbuilding workers in Quebec who have been indicating to the Bloc Québécois that they should be voting for this carve-out will get another opportunity.

Over the next week, they need to let their voices be heard. They need to ensure that those MPs who are so willing to sell out our shipbuilding industry for some vague advantage that might come, although there is no economic analysis so they cannot really pinpoint anything, but those MPs will be forced to make a choice. They need to know that if they vote to sell out shipbuilding, they will not come back to the next Parliament. It needs to be that clear.

We have precedents for that. We all recall the softwood sell-out that supported by the Bloc and the Liberals. Many of those Liberal MPs who voted for the softwood lumber agreement, particularly in northern Ontario and northern Manitoba, are no longer here. People in northern Ontario and in northern Manitoba said “No, if you are not going to represent us, we are not going to return you to Parliament”. Those Liberal MPs are no longer here.

The Liberal MP from Welland, who was a flamboyant free trader on the George Bush model, is no longer here and has been replaced by a dedicated social democrat who is standing up for the workers in the riding of Welland.

More and more Canadians are saying that they do not want the old speeches that they have been hearing for 20 years that eventually something will happen, eventually our quality of life will improve, eventually we will get higher incomes, while all the money continues to be concentrated in a few people's hands. Corporate CEOs and corporate lawyers are making more money than ever. In fact, the wealthiest Canadians now take most of Canada's income. Middle class and working class families have lost ground. Their real incomes have gone down, even the hours worked have increased substantially. However, the policies that have been adopted by Liberal and Conservative governments have put the focus on the wealthiest of Canadians to the exclusion of everyone else. Increasingly, Canadians are waking up to that fact.

This is a call out for shipbuilding workers in Victoria, British Columbia and Nanaimo, B.C., shipbuilders with that proud tradition that I mentioned in Vancouver, British Columbia in the Washington yards. They need to contact their Liberal MPs and telling Conservative MPs that this sellout is completely unacceptable. Over the next week, they need to make their voices heard.

Shipbuilding workers in southern Ontario in the Welland yards, who, unfortunately, have a terrific MP, also need to make their voices heard.

People in Lévis, the workers at the Lauzon shipyard, must tell the Bloc Québécois that it is unacceptable for the Bloc to penalize Quebec City because the citizens did not vote the right way. This shipbuilding sell-out is unacceptable. These workers made it clear but they must work to make it even more clear since the Bloc does not seem to understand that this sell-out deal is even worse than the softwood lumber sell-out, which cost Quebec workers thousands of jobs. Those workers lost their jobs because the Bloc, instead of defending Quebec's interests, simply decided to go with the same old free trade policies as George Bush, the Conservatives and the Liberals. The Bloc refused to defend Quebec's interests, while these workers should have been listened to.

The shipbuilding workers in Nova Scotia have sent in hundreds of letters and they cannot be more clear, but they need to phone the MPs for Halifax West and Dartmouth—Cole Harbour who are refusing to stand up for their constituents.

The shipyard workers in Marystown, Newfoundland and Labrador, who have a very good member in the MP for St. John's East, but all of the other Newfoundland and Labrador MPs are trying to vote for an agreement that kills the jobs in Marystown. We heard that from shipyard workers across the country. Over the next week, because we will not be in session, they need to let their MPs know that this is unacceptable, that they must stand up for Canadian jobs and for their community.

The reality we face is a House where one party is defending Canadian jobs and standing up for Canada and three parties that are selling us out. They are not even selling us out with anything tangible to give us. We have no economic impact statement, nothing that actually says what advantages are here. They say that it is symbolic. I am sorry but the shipyard workers of Canada need more than symbolism. They need jobs. They need a maritime policy that actually creates more jobs. They do not need an agreement that, as shipyard workers have so clearly said to the Parliament of Canada, kills their industry.

The Conservatives say that in 30 years they will be investing more money. Well, in 30 years there will not be any shipyards left. The Liberals say that some day they will be in government and they will put a policy in place. Well, there will not be any shipyards left.

The Bloc Québécois says that it will defend Quebec's interests, except when it comes to shipbuilding. It is ready to sell out in terms of the workers' interests because it believes that Quebec will eventually come out on top. But the Bloc Québécois has nothing tangible to show because there has never been an impact study. The Bloc cannot provide any arguments that counterbalance what is being sold.

With that very clear point, I know that the hundreds of shipyard workers who have been writing to members of Parliament and the thousands of other shipyard workers across the country will be impacted by this agreement unless we get the carve-out that the NDP is proposing. We ask the shipyard workers to write in.

I will complete my speech by moving the following amendment. I move:

That the motion be amended by deleting all the words after the word “That” and substituting the following: “Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation, be not now read a third time but be referred back to the Standing Committee on International Trade for the purpose of reconsidering clause 33 with a view to re-examining the phase-out of shipbuilding protections.”

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, first of all, the member knows very well that the very text of the agreement indicates special concern for shipbuilding: there is a 15-year period, a moratorium. Therefore the entire text is up for discussion. Naturally it is an important issue.

When looking at a free trade agreement from a macroeconomic perspective, there are positives and there are negatives. One of the negatives pertains to shipbuilding. Therefore, Canada must decide to tackle the problem. Of course, if the NDP decides to pout in its corner and not put any effort into making progress on a Canadian marine policy, there will be problems. That is why I stated in my speech that I was disappointed today that there was not unanimous support for Bill C-2and for tackling a real Canadian marine policy.

Once again, it shows divisiveness. We are trying to make our colleagues understand that we have to put our partisanship aside and try to work on the real needs of the industry by developing a Canadian marine policy. When Bill C-2 is adopted, the Bloc Québécois will be available. We have 15 years to adopt a policy and to ensure that our shipbuilders will be competitive.

If they are able to compete with Norway, they will be able to compete with every other country. It is a good opportunity.

If the NDP decides to stay in its corner and to do everything it can to prevent a discussion of this issue and if the Conservatives are no longer keen on it, they will have the backing of the NDP for not having a Canadian marine policy. That is the situation we find ourselves in.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I am pleased to continue the debate on Bill C-2, Canada-EFTA Free Trade Agreement Implementation Act, which we have been discussing today.

I would like to remind everyone that when it comes time to discuss a bill to implement a free trade agreement, it is important that we weigh the pros and cons in a responsible fashion. It is important because every sector is affected by trade between the countries. In this agreement, there are some significant sectors, some of which are of considerable influence in our economy.

For example, Quebec has aluminum, which is our leading export to Iceland, one of the signatories to this agreement. Nickel accounts for 80% of our exports to Norway, and that nickel comes from a mine in Ungava operated by Xstrata, a Swiss company. There is also the pharmaceutical sector. Switzerland is one of the world's leading producers of pharmaceuticals. Quebec has an industry that engages in the research, development and sale of generic and prescription drugs. This industry is very strong, because when the Parti Québécois was in power, the Government of Quebec decided to provide it with substantial assistance, with the result that an important structure was put in place. We also have to think about agriculture, because we sell and trade agricultural products with these countries. It was important to us that supply management not be on the table. Milk, poultry, eggs and so on are supply-managed products, and supply management makes the industry profitable. There has been no government assistance for this type of industry since supply management was introduced.

This type of free trade agreement therefore must be analyzed responsibly. There is also a whole other sector, and that is shipbuilding. This is an important part of this agreement, because Norway, for example, is a major shipbuilding nation and its shipyards have been subsidized in the past.

When we do such an analysis, it is important to get to the bottom of things. This free trade agreement is good for many industry sectors, but there is a problem when it comes to shipbuilding. That is why there are specific clauses on shipbuilding. The customs tariffs in effect will be phased out over 15 years, and there will also be a moratorium for a number of years. These clauses were included in the treaty because people knew there was a problem. This is important because it is a crucial part of the discussions in this House. I am willing to debate it, but I have a concern. The shipbuilding industry is calling on Canada to develop a real Canadian marine policy that could solve the problems and keep this industry going.

Despite the fact that the industry, the Bloc Québécois and other parties in this House have been calling for it, the government will not listen. When the Minister of International Trade rose earlier to give his speech, he said nothing to reassure us.

He thinks that everything is for the best in the best of all possible worlds. Even though the industry believes that Canada needs a real marine policy, that is not important to him. This is worrisome. Instead of debating this bill, we should have reached a consensus in this House to pass it, because this agreement is good for the Quebec economy and the Canadian economy. Instead, we should at this very moment be debating a real marine policy for Canada, to reassure the entire shipbuilding sector and all other businesses, and to show them we are tackling the problems they have brought to our attention.

Thus, we will have to work very hard to convince this government of the need for a real marine policy for Canada. Once this bill passes, I hope the industry and all the parties, including the Conservatives, will understand that it is high time to do so. Now is the time. The tariffs will be gradually phased out over the next 15 years. That time period will also allow us to ensure that our industry can compete with Norway. That is the issue that we should have been addressing.

When conducting a thorough analysis of an issue as important as a free trade agreement, one must always weigh the pros and the cons. There are the pros I mentioned earlier, such as aluminum, nickel, the pharmaceutical industry, agriculture, and so on for Quebec. The agreement might even be good for pulp and paper mills. Once again, supply management has successfully been excluded, which is not the case with other agreements the government signed that jeopardized supply management. This time, the government listened to the Bloc Québécois and excluded supply management from the agreement.

For those who suggest that it would have been easier just to exclude shipbuilding from the treaty, I would point out that shipbuilding is one of Norway's economic strengths. Had we excluded shipbuilding, there would be no agreement, and we would not be talking about it today.

We have to adopt a conciliatory approach to these issues. We have to be open in our approach to these agreements, and we have to do a macroeconomic analysis of the advantages and disadvantages. When there is one sector in particular that could be disadvantaged, such as shipbuilding, we have to address the problem.

I was hoping the minister would talk about that today. Since the witnesses who appeared before the committee—and, indeed the entire shipbuilding industry—are uncomfortable about this, the Minister of International Trade could have told us that the government planned to deal with the problem, support the industry, and ensure that, once the 15 years are up, our industry will be competitive. If it can compete with Norway, it will be able to compete with every other shipbuilding concern in the world.

However, that is not the sense we are getting from the Conservative government. Time and again, it is all about their Conservative laissez-faire ideology. As it turns out, apply that approach to some sectors, and those sectors disappear. The opposition should attack that ideology and try to convince the Conservatives that, when it comes to shipbuilding, they must set their ideology aside and talk about a real Canadian marine policy. The industry would have found that reassuring.

At the same time, we have to act responsibly. The Bloc Québécois studied this free-trade agreement and weighed the advantages and disadvantages for all industries that will be affected. This is a first because the Canada-EFTA agreement covers Switzerland, Norway, Liechtenstein and Iceland. The real objective, for Quebeckers, is to have a true free-trade agreement with the European Union. That is the objective.

Even the Premier of Quebec, Mr. Charest, who does not share my political views, is defending it. He recently travelled abroad in the middle of the economic crisis in Quebec. That is up to him. Nevertheless, he has taken a clear position on a free-trade agreement with the European Union, which reflects the unanimous position of the National Assembly of Quebec. Therefore, agreements with European countries are welcome. Naturally, given our population and the relative strength of our industries in Quebec or Canada, we have to be open to the world in order to develop. By not looking beyond our borders we will never be able to develop and reach our full potential. Just think of the aerospace sector and many others.

Therefore, we must be able to create a greater vision for the economy of the future, but also for the future of our economy. We believe this Canada-EFTA free-trade agreement is the way of the future with its advantages and disadvantages. Obviously, it puts shipbuilding at a disadvantage. Therefore, I hope that the government has heard everyone's position in this House, especially that of the Bloc Québécois, which has said that it is time for the government to sit down and adopt a real Canadian marine policy. The industry has been calling for it for many years. Naturally, starting today, we will support everything that can lead to a real Canadian marine policy so that, once the 15 years have passed, our shipbuilding industry will be able to compete with Norway and all other countries.

The House resumed consideration of the motion that Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation be read the third time and passed.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I am pleased to speak on behalf of the Bloc Québécois about Bill C-2, the Canada-EFTA Free Trade Agreement Implementation Act. This is a bilateral agreement between Switzerland, Norway, Liechtenstein, Iceland and Canada.

When we are faced with a free trade agreement, we must be able to take a step back and analyze its pros and cons, and that is what the Bloc Québécois does each and every time, in a responsible manner. We have to look at its strengths and weaknesses. The Bloc Québécois' top priority has always been the interests of Quebeckers. We are the only party in this House that rises every day to defend the interests of Quebeckers.

When we look at this agreement in terms of markets and economies that could generate as many imports and exports from Quebec to the EFTA as from them to us, we can see that there are some very significant markets in Quebec.

First of all, there is aluminum, which is our leading export to Iceland.

When it comes to Norway, nickel accounts for 80% of what we export. In Quebec, we have in Ungava one of the biggest nickel mines in the world, belonging to Xstrata. This too is one of our strengths.

Pharmaceuticals should also be included. We all know that Switzerland is a major producer of pharmaceuticals, and thanks to the skills Quebec has developed in this sector and the assistance provided over the years, Quebec provides very fertile ground for this entire industry and a free trade agreement like this could well give its industry a real boost.

Turning to agriculture, there is always a major problem with international agreements because of the supply management issue. Unlike other treaties, though, this one excludes supply management. It is very important for us to be able to defend the interests of Quebec farmers under supply management. In this agreement, the government has understood, for once, the message that the Bloc Québécois gave it: remove the entire supply management question from the treaty.

One very important thorny point remains and that is shipbuilding. There is a feeling in the treaty that this problem was taken into account. That is why the entry tariffs on equipment and ships and any agreements are subject to a 15 year phase-out with countervailing duties that are reduced with a certain moratorium for three years. This was obviously a major concern.

I will be repeating myself now because I had a chance at another stage of the bill to express my views on this matter. I am very surprised, though, that we could not arrive at a consensus in the House—not to put the free trade agreement on the back burner, because I think it is good for Quebec and also Canada—but to deal right away with the real problem in our shipyards. This is a sector that cries out for a real Canadian policy.

I am amazed that the government has not quickly implemented a Canadian shipbuilding policy and that we are not busy in the House discussing one now. If we look at this Canada-EFTA free trade agreement, it soon becomes apparent that the entire shipbuilding industry has been ignored by the Canadian government for far too long in comparison with what has been happening elsewhere, especially in Norway. I know this is a sensitive issue, but the people opposed to the free trade agreement will understand. I am thinking of the New Democratic Party. It is obvious, though, that if shipbuilding were removed from the treaty, the EFTA countries would no longer have much reason to sign it.

We have to be realistic about this situation. But once again, it is important that the Government of Canada use the moratorium and the 15-year period over which tariffs will be reduced to put in place the Canadian marine policy the industry is calling for.

It was very hard to listen earlier as the Minister of International Trade told us yet again that he had provided enough support for this industry sector with the programs that had been put in place. This is staggering, because I do not sense any openness and, in light of how he answered the question I asked him, I sense that the government is going to take the same approach to the forest industry: they have to be careful, there are international laws, there is the WTO.

While the minister is refusing to introduce loan guarantees for the forest industry, claiming that they are subsidies, his own lawyers are arguing at the WTO and in the London court that loan guarantees are not subsidies. He has given the same answer to every question the government has been asked about this, yet no one has been able to quote a section of any law or regulation that says that loan guarantees are subsidies.

There are loan guarantees in the auto sector and many other sectors. EDC provides loan guarantees for all parts of the aerospace industry. That is a fact, yet we have the feeling that the shipbuilding industry is falling victim to the Conservatives' tendency to help only certain industries and to use international laws as an excuse to refuse help for industries not in that select group.

That is a hard reality, because the forest industry impacts Quebec. And if the government does the same thing in the case of shipbuilding, it will affect the Davie yards in Lévis, near Quebec City. Once again, these are repeated attacks against Quebec that we cannot ignore. We agree with Bill C-2 in principle, but there is a problem in this agreement, and it has to do with shipbuilding, because the government has neglected this industry for too long.

[Navdeep Bains, Liberal, Mississauga—Brampton South, ON]

Mr. Speaker, I am very glad to have this opportunity today to speak on EFTA, as I have done in my previous capacity as the critic for international trade. During my tenure as critic, I had the opportunity to debate this issue, to work on it in committee, and to work with my caucus colleagues in the Liberal Party on this very important bill.

I want to say from the outset that we need to recognize what this debate is really about. This debate is about free and fair trade. I think we as parliamentarians must recognize now more than ever during these hard economic times that we need to promote free and fair trade.

Very close to my constituency of Mississauga—Brampton South, there is an airport that acts as a hub for many businesses that export, and I am reminded that we are seeing the challenges now in this global recession.

I think it is so important that we recognize that we have to avoid the protectionist tendencies that exist in various countries, including here in Canada. We need to recognize that we need to open up our borders and have access of goods and services back and forth to other countries.

We are a nation of 33 million people. For us to succeed and have the quality of life that we enjoy, for us to be able to export the goods and services that we need to make sure we generate the revenue so that we can have government play a role in people's lives and improving people's lives, we need to make sure that we create opportunities for trade and growth, both domestically and abroad.

This morning I was reminded again how difficult this economic situation is and the challenges we face. In the month of February, we lost 83,000 jobs. That is a big number, in my opinion. It speaks volumes about the concerns that people have about job losses.

The unemployment rate now, I think, is close to 7.5% or 7.7%. The projection is that it will go into double digits by the end of the year. These are alarming numbers, and in my opinion, a major cause of concern.

One thing I did hear from the minister and that I do want to echo on behalf of the Liberal Party before I speak on EFTA specifically is the importance of making sure that we promote not only bilateral trade, but multilateral trade.

We are a nation of only 33 million people, and when we engage ourselves in bilateral negotiations with other countries we have a difficult time of negotiating a favourable position because of the relative size of our country. Even though we have great human resources, great potential and great geography, because of the sheer numbers it makes it very difficult for us to get a favourable deal. I think that poses a challenge.

I would encourage this government to work very aggressively through the multilateral system, through the WTO, for example, to be able to negotiate better terms for Canada. That should be the number one priority when it comes to promoting trade with Canada.

The Liberal Party supports Bill C-2, but we have extreme caution and concern with respect to the shipbuilding industry. Yesterday our critic for industry made it very clear that we need to have a national shipbuilding strategy. It is absolutely imperative that we have a strategy in place to help our shipbuilders.

As indicated before by my hon. colleagues, Norway, for example, for many years subsidized their shipbuilding industry and put it in a very unique position in light of this free trade agreement.

I think it is important that Canada has a domestic shipbuilding strategy that puts us in a position where we remain competitive. That would be consistent with provisions in the free trade agreement with respect to the buy Canada procurement policy. I think that is very important and would be consistent with those principles. So I would encourage and request this government to take action immediately in putting together a comprehensive strategy to help the shipbuilding industry.

Another cause of concern that many people had expressed to me, especially from the agricultural sector, was in regard to supply management. I am glad to see that in this bill supply management is protected. It is something that the Liberal Party fought for very hard in committee. It is something we really fought for when this was being negotiated and we made our position very clear to the government. So I would hope people recognize the role we played in shaping some of the elements in this particular free trade agreement.

I want to emphasize why this free trade agreement is important. EFTA countries are the world's fourteenth largest merchandise traders and Canada's fifth largest merchandising export destination. We export billions of dollars worth of goods to the EFTA countries, including nickel, copper, pharmaceuticals, machinery, precious stones, metals, medical devices, aluminum, and so forth. In addition, we import from them pharmaceuticals, organic chemicals, and many other goods and services. I think it is important to recognize that there is a healthy relationship there.

In my opinion, there is one thing that the agreement does lack that is a challenge, because it is a generation one agreement. It does not have a comprehensive strategy to deal with investment, promoting two-way investments and having that flow of investment between both countries. I hope that is something that will be considered in the near future as well to further enhance this very important relationship that we are developing.

There is concern, and I think rightly so, with respect to this bill. I hope the government exercises good judgment and is careful in monitoring this free trade agreement, especially when it comes to the snap-back provisions, if there are violations of any of the provisions in the agreement. The 15-year phase-out should be monitored very carefully to make sure that there is no violation of that. I would encourage the government to really pay attention to those two provisions, which are very important to making sure that the shipbuilding industry, in conjunction with the national shipbuilding strategy, is in a position to be competitive once this free trade agreement comes into effect.

I would like to raise one other very important point. In my opinion, EFTA is just the first step to something bigger. As I alluded to earlier with respect to multilateralism, I think it is important that we use EFTA as a launching pad to negotiate with the European Union. It is a very important trading bloc. It is something that we need to recognize. This downturn reminds us that our dependency on the United States has compromised our position. I think it is very important we recognize that we need to diversify our trade and look at other markets.

One of the other key markets is the European Union. I think there is enormous potential there as well, and I hope the government understands and recognizes the importance of working with not only the EFTA countries but other European nations to be able to promote free and fair trade.

I have taken enormous pride in working very closely with my colleagues in the Liberal Party on this file. As I have indicated before, I think this is a very important step in the right direction to promote trade. Trade is very important now in light of the economic challenges we are facing. As a nation of 30 million plus, we need to recognize that we have to open doors. We need to be in an environment where we foster an openness and a sense of opportunity for our businesses here to succeed. I very much believe in our businesses. I very much believe in our workforce and the fact that we can be productive. We can be competitive. We can be innovative, and we can compete with the rest.

However, I also want to underscore the importance of promoting fair trade. One of the concerns that my colleagues and I have expressed in the past is the fact that Norway, for a very long period of time, subsidized the shipbuilding industry in their country. We need to recognize that. In order to combat that and be able to put ourselves in a favourable position once the 15-year phase-out is eliminated, we need to make sure we have a national shipbuilding strategy.

With that, I just want to say that I look forward to this debate. I look forward to working with my colleagues from all political parties to make sure that this bill is passed and that we continue to promote free and fair trade, consistent with Liberal principles and the legacy of a party that has very much engaged in free and fair trade and has negotiated free trade agreements in the past as well. Hopefully when we form government in the near future with the support of many Canadians, we will continue to do so.

[Lee Richardson, Conservative, Calgary Centre, AB]

Mr. Speaker, I am delighted Bill C-2 has come to third reading because it is part of a broader plan. I wish the minister had more time in his address to speak to the bigger picture, the broader plan of global trading patterns and where we are in Canada's initiatives, being at the forefront of the new trend of freer trade around the world, particularly in this difficult economic time.

When President Obama visited Canada, there was some concern about protectionism. I think the dangers of protectionism became clear to most Canadians, particularly in a tough economic time.

Would the minister comment on the bigger picture? We have debated, at length, Bill C-2, and most of the House has agreed that this is a favourable and positive approach. However, I would like the minister to comment on the bigger picture of free trade and Canada's plans for the future.

[Stockwell Day, Conservative, Minister of International Trade and Minister for the Asia-Pacific Gateway]

moved that Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation, be read the third time and passed.

Mr. Speaker, I would like to thank my colleagues for taking an interest in the bill before us today.

I realize that free trade agreements can cause some conflict. Our world has been hit hard by the global economic crisis, and the crisis will have an impact here at home. We can take comfort in the fact that Canada has the most stable banking system in the world.

However, we must also recognize that our industries, our workers and our exporters are all under pressure.

That is why it is important for the government to do everything in its power to make things better by developing policies and programs that will lighten the burden on our industries and companies.

We know we are in a time of fiscal crisis and we know there are pressures all around. It is in times like these, more than any other, from the government's point of view and, I think, most Canadians that we should be looking at opportunities to open up the doors for, not just Canadian companies, but Canadian workers also. We should not be looking at ways in which to build walls but in fact to tear down walls and to open up possibilities.

History is very clear, as we have indicated before, that when we build a trade wall up we bring our economy down. We do not want to see that happen, which is why we are taking a number of initiatives to pursue possibilities for Canadian workers and businesses to make their products and services more available world-wide.

As our economic history shows, we are as prosperous as we are in Canada because of the fact that we believe in trading freely. Because of our great capabilities, not just on the technology side but because we are innovative and productive, we can actually produce more products than we can all, as individual Canadians, consume.

Therefore, if we are going to truly move in the area of increased prosperity, we need to look for ways to sell our goods and services abroad into other countries. That is why pursuing free trade agreements, or more comprehensive economic agreements, as some countries prefer to refer to them, is part of our plan.

Free trade agreements are very significant. They will help Canadian producers and our workers. However, we also need to look at, as we do, areas like funding research and innovation, research and development and science and technology agreements. We pursue air agreements and open sky agreements with other countries to advance the air industry and make travel and the shipment of cargo even more productive and more competitive. We do a number of things, on several fronts, to ensure Canadians are positioned among the best in the world so their products and services can be manufactured and sold abroad.

This particular agreement, which is represented by Bill C-2, involves what will be the first ever free trade agreement with European countries. Iceland, Norway, Switzerland and Liechtenstein agree with us that there will be mutual benefits if we can tear down tariff walls, tear down the barriers that make trade more difficult back and forth and open the doors of opportunities on both sides.

If we look at last year's figures, we have about a $4.2 billion relationship when it comes to merchandise exporting and trade and, even more important, we have over $18 billion of direct investment. That means jobs for Canadians and the expansion of Canadian activity. We have a fairly stable and productive trading relationship with these countries, which are pulled together in this bill known as the EFTA, and we want to see this continue and enhanced.

As important as this bill is and as important as trade is with the individual countries that are named in this bill, it also serves, and we are not hiding this fact, as a lever into the larger EU community. Colleagues will know that we have made great progress on the EU front with 27 other countries eventually encompassed in the EU agreement. We have now gone through what is called the scoping exercise or the first phase of discussions and are very close to getting into official and formal negotiations with the broader EU community. That is something we are hoping to see develop over the next few months.

However, right now we want to focus on the countries named in this particular bill. These are friendly countries and long-standing friends and allies, and we want to see our capabilities back and forth to continue.

A number of issues have been raised, some in committee and others over a long period of time, in terms of consultation. I thank all the members of the committee for recognizing that a lot of work has gone on and a lot of consultation has taken place and we believe all of the substantive issues have been addressed.

These are not always easy discussions at the committee level, especially if there are ideological differences, but my sense is that most of us in the chamber and most of the people on the committee recognize that the opening of doors and the expansion of opportunities is something that is key to us at any time, regardless of the economic environment but especially now in a tough time of economic pressure.

It is important to note that political and democratic pressures come to bear in the negotiations of free trade agreements. Inevitably, certain industries will feel that if they do not have the protection of a tariff wall and they do not have the ability to tax goods coming into the country even before they get here, thereby forcing up the prices so that the goods coming into the country are less attractive to Canadian consumers, the Canadian product is more attractive because an incoming good has a tariff slapped on to it. Some industries, invariably, will be affected by any trade agreement. These are called sensitivities, which is why we work with those industries to try, as far as possible, to soften the impact of a free trade agreement.

I will use one example in this particular agreement that is represented in Bill C-2 and that has to do with the shipbuilding industry. We have had consultations with the shipbuilding industry that go back as far as the 1990s because there have been very high tariffs in that particular industry, some as high as 25% or more. That would mean that a product coming into Canada that is under the shipbuilding umbrella could be facing a tariff as high as 25% or more, which means that the price of the product coming in is artificially raised because a tariff has been slapped on it and that gives a competitive advantage.

We are very careful to protect our industry. When we negotiate a free trade agreement with any country we need to ensure its shipbuilding industry is not being subsidized. We must have a level playing field. I believe, time and again, that Canadians have shown that they can compete with the best anywhere in the world as long as we are on a level playing field. As a government, that is where we need to be vigilant and vigorous when it comes to dealing with other countries. If we are looking at a free trade agreement abroad or an economic comprehensive agreement, we need to be aggressively pushing those other countries to ensure those tariffs are gone and that subsidies to those particular industries are removed so they do not have an unfair advantage competing against Canadians.

On the shipbuilding industry, we have put in place a 15-year phase-out of our tariff. That is the longest phase-out ever in Canadian history in a free trade agreement. We want to make this incremental and we want to give that industry as much time as possible to adapt.

We also have estimated, going over the next three decades, some $43 billion in procurement in the shipbuilding industry. We are showing our shipbuilders that the opportunities are huge moving into the future. We have also put in place a finance structuring facility of up to $50 million that assists our industry in terms of dealing with interest costs when it comes to purchases related to shipbuilding. We have carefully done this in a way that is compliant with our free trade agreements. It will not put us offside or at the risk or threat of any World Trade Organization dispute or any contest.

We have also indicated to our shipbuilding industry that just on the acquisition of Coast Guard vessels alone over the next few years, there are $175 million of acquisition geared specifically to the Canadian industry. Since shipbuilding has been mentioned, I am using it as an example of how we can deal with a particular sector within a free trade agreement.

As elected people, we need to keep in mind that we must be constantly looking at what will be good overall for our producers, manufacturers and the economy of Canada. When we are approached individually by a sector that would be opposed to a particular agreement, we need to consider a couple of things. We first must consider what can we do within the agreement to soften the impact of a free trade agreement and to help that particular industry adjust and stay competitive over time when eventually those tariffs are completely removed.

The other thing we have to consider is this. There will always be in any free trade agreement one or more industries that come forward and say that it will make them less competitive and that they do not want the deal to go ahead. At that time, we not only have to look at it seriously, but we also have to consider that if the deal does not go ahead, other industries will be affected and will stay uncompetitive because we do not have a free trade agreement.

When we look at the agreement in Bill C-2, and we look at, for instance, the fishing industry, which has a huge impact in Atlantic Canada, if we do not move ahead because we have another industry that feels it could not be competitive, an advantage will be lost for our entire marine and fishing industries.

There could be an entire sector of agriculture products that if we did not move ahead with a free trade agreement, we would be still stuck with high tariff walls. If we try to be sensitive to one area, like shipbuilding, our entire agriculture sector will be affected.

Look at the shipment and the export of our paper products. Can we legitimately look at this entire industry, the Canadian companies that manufacture paper products, and say we cannot help with free trade because another sector will be upset, especially in a time when the forestry and paper industry is probably getting hit harder than at any other time in its history?

This is where the democratic process puts us in a bit of a dilemma. We will always have one group of constituents who will be, quite rightly, concerned about a free trade agreement. If we are only being sensitive to that group, we could in fact be denying many other groups the opportunity to more freely and ably market their goods abroad.

We can use the agreement and this arrangement, under Bill C-2, as an example. We can show how we identify an industry, in this case it would be the shipbuilding sector. We have worked with it. We have made the provisions to assist it through this 15 year phase-out period. We have clearly shown the economic advantages and the purchasing opportunities in the years ahead. We have taken great steps to not only sensitize it to a free trade agreement, but also to signal to many other industries that they will benefit from this agreement as well. Provisions are being made and overall, as an economy, we will see things improve.

As we consider Bill C-2 at third reading, I ask our colleagues to give fair thought to this. I ask them to show the world, which is watching us in a time of economic downturn, that Canada does believe that opening the doors of opportunity is the way to go.

This is the worst time for countries to give in to what would be an impulse that is understandable. It is natural that industries, companies and business would step forward and say, in a time of global contraction, that they need protection. The last thing we want to do is start building walls and making it more difficult to market our goods abroad.

We can be a leader and we can be an example. I believe we are doing that. Soon in this assembly we will see free trade agreements related to Peru and Colombia. In the not too distant future we hope to see the materialization of agreements that we are pursuing in Asia and the Americas.

When I was in India last month, I met with the prime minister and the minister of trade. I have an agreement to begin discussion on a more comprehensive trade agreement with India. I will be in China next month where we will open six new trade offices there. We are sending the indicators very clearly, not just in the pursuit of things like science and technology agreement but on a broader array of sectors, that we want an even more vigorous and more robust relationship with China.

At every opportunity we can, we want to allow the world to see and to be aware that Canadian producers, innovators, exporters and merchandisers are the best in the world. We can compete with anybody in the world at any time as long as the playing field is level. This is our intention with our free trade agreements.

I thank members for their involvement in this and hopefully for their support as we continue the third reading discussion on Bill C-2.

[The Deputy Speaker, Conservative, Andrew Scheer]

It being 5:30 p.m., the House will now proceed to the taking of the deferred recorded division on Motion No. 1 at report stage of Bill C-2.

Call in the members.

The House resumed consideration of Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation, as reported (with amendment) from the committee, and of Motion No. 1.

Business of the House

[Jay Hill, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, the hon. House leader for the official opposition has many questions for the Thursday question and I will try to get to all of them.

Today we will continue debate on Bill C-14 on organized crime, which he mentioned. Following Bill C-14, we will consider Bill C-15, drug offences, and Bill C-16, the environmental enforcement act in that order.

Tonight we will complete the debate on the first report of the Standing Committee on the Status of Women.

Tomorrow we will begin debate at third reading of Bill C-2, the Canada-European free trade agreement and continue with any unfinished business that carried over from today.

When the House returns from the constituency week, we will continue with the business from this week, with the addition of Bill C-9, transportation of dangerous goods, which was reported back from committee.

You can add to the list for the week we return, Mr. Speaker, Bill C-7, marine liability, Bill S-3, energy efficiency, and Bill C-13, Canada grains, which are all at second reading and any bills that have been reported back from committee by then.

As to one of the questions that the member specifically mentioned, the last day in this supply period shall be on Tuesday, March 24, when the House will vote on supplementary estimates C, interim supply and the interim supply bill. As he noted, it is a very important day as these are the resources necessary to provide the stimulus to which we have all been looking forward and which Canadians are greatly anticipating.

Hopefully, the Senate will have passed the budget bill, Bill C-10 by then. In fact, as my colleague mentioned, my understanding is the opposition has suddenly discovered the parts of the budget bill that pertain specifically to the extension of employment insurance benefits, which will come into effect immediately upon royal assent of Bill C-10, the budget implementation act. Therefore, rather belatedly, the Liberal senators have decided to work with the Conservative senators in the other place and get the bill passed expeditiously. I hope that takes place this afternoon. It would be therefore my hope as well that royal assent could take place as early as this evening and we would see that bill enacted as quickly as possible.

As to the reiteration of my colleague's support for Bill C-14 and Bill C-15, our two latest justice bills, I welcome his support and I appreciate that. We are open to moving these bills through all stages as quickly as possible. Failing that, we would look to put up a minimum number of speakers, as we have done on many pieces of legislation already in this session, to move legislation through as quickly as possible. The problem, as my hon. colleague well knows, is not with the official opposition on or of the Conservative Party, the Conservative government, but with the other two parties, which are unwilling to do so.

Canada-EFTA Free Trade Agreement Implementation Act

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Speaker, as my Bloc Québécois colleagues and I have said repeatedly during the debates on Bill C-2, we think this free trade agreement is an excellent agreement. We have all been very clear. However, we must make sure it is accompanied by a real, vigorous policy in order to ensure that Quebec and Canada can be very competitive in the coming years, to be able to compete with countries like Norway.