Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment implements the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016.
The general provisions of the enactment set out rules of interpretation and specify that no recourse may be taken on the basis of sections 9 to 14 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Agreement and provides for the payment by Canada of its share of the expenses associated with the operation of the institutional and administrative aspects of the Agreement and for the power of the Governor in Council to make orders in accordance with the Agreement.
Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement and to make other modifications. In addition to making the customary amendments that are made to certain Acts when implementing such agreements, Part 2 amends
(a) the Export and Import Permits Act to, among other things,
(i) authorize the Minister designated for the purposes of that Act to issue export permits for goods added to the Export Control List and subject to origin quotas in a country or territory to which the Agreement applies,
(ii) authorize that Minister, with respect to goods subject to origin quotas in another country that are added to the Export Control List for certain purposes, to determine the quantities of goods subject to such quotas and to issue export allocations for such goods, and
(iii) require that Minister to issue an export permit to any person who has been issued such an export allocation;
(b) the Patent Act to, among other things,
(i) create a framework for the issuance and administration of certificates of supplementary protection, for which patentees with patents relating to pharmaceutical products will be eligible, and
(ii) provide further regulation-making authority in subsection 55.‍2(4) to permit the replacement of the current summary proceedings in patent litigation arising under regulations made under that subsection with full actions that will result in final determinations of patent infringement and validity;
(c) the Trade-marks Act to, among other things,
(i) protect EU geographical indications found in Annex 20-A of the Agreement,
(ii) provide a mechanism to protect other geographical indications with respect to agricultural products and foods,
(iii) provide for new grounds of opposition, a process for cancellation, exceptions for prior use for certain indications, for acquired rights and for certain terms considered to be generic, and
(iv) transfer the protection of the Korean geographical indications listed in the Canada–Korea Economic Growth and Prosperity Act into the Trade-marks Act;
(d) the Investment Canada Act to raise, for investors that are non-state-owned enterprises from countries that are parties to the Agreement or to other trade agreements, the threshold as of which investments are reviewable under Part IV of the Act; and
(e) the Coasting Trade Act to
(i) provide that the requirement in that Act to obtain a licence is not applicable for certain activities carried out by certain non-duty paid or foreign ships that are owned by a Canadian entity, EU entity or third party entity under Canadian or European control, and
(ii) provide, with respect to certain applications for a licence for dredging made on behalf of certain of those ships, for exemptions from requirements that are applicable to the issuance of a licence.
Part 3 contains consequential amendments and Part 4 contains coordinating amendments and the coming-into-force provision.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Feb. 14, 2017 Passed That the Bill be now read a third time and do pass.
Feb. 7, 2017 Passed That Bill C-30, An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments].
Feb. 7, 2017 Failed
Dec. 13, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
Dec. 13, 2016 Passed That this question be now put.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 6:05 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I request that the recorded division on the third reading of Bill C-30, the Canada-European Union comprehensive economic trade agreement implementation act, be deferred until the expiry of the time provided for oral questions tomorrow, Tuesday, February 14.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 5:50 p.m.
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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Mr. Speaker, I am proud to rise today to speak to the third reading of Bill C-30 , the implementing legislation for the comprehensive economic and trade agreement between Canada and the European Union, otherwise known as CETA.

I know there are those in the House who are quick to dismiss the opposition to this trade agreement, but I would remind all members that this is the people's House and these concerns deserve to have their say here in the heart of our democracy.

I also find it interesting that in today's debate, Liberal members of Parliament have decided to sit out and leave the heavy lifting to the NDP and the Conservatives. Perhaps they have grown tired of trying to defend this supposedly progressive trade deal. Be that as it may, I am proud to stand here today to provide a reasoned and principled progressive opposition to this implementation bill.

I want to start my speech by talking about the rushed process which the bill has gone through. I would go back to the solemn promise that the Prime Minister made in his open and accountable government publication, that ministers were to treat Parliament with respect and provide the necessary information for us to do our jobs. I quote from that publication:

Clear ministerial accountability to Parliament is fundamental to responsible government, and requires that Ministers provide Parliament with the information it needs to fulfill its roles of legislating, approving the appropriation of funds and holding the government to account. The Prime Minister expects Ministers to demonstrate respect and support for the parliamentary process.

When we look at what happened with Bill C-30, on October 30, 2016, the Prime Minister signed CETA at the Canada-EU leaders summit, and the implementing legislation was basically put forward on October 31. This rushed process violated the government's own policy on the tabling of treaties in Parliament, which requires the government to table a copy of the treaty along with an explanatory memorandum outlining key components of the treaty at least 21 sitting days before the legislation is presented.

This is just one more broken promise in a string of broken promises. The fact that the government violated its very own policy on this just shows how quickly the government forgets the principles for which it was elected.

We are also aware that all is not well among the members of the European Union. We know there have been several protests with over 100,000 people in attendance at each. In fact, the German constitutional challenge against CETA has garnered 125,000 signatures, and a recently launched referendum campaign in the Netherlands has collected over 200,000 signatures.

I do not believe that this opposition can be pegged simply on a rising tide of protectionism. There are very concrete reasons that people are opposed to CETA. What we have here is that Parliament is essentially being asked to write a blank cheque with this legislation to give the government the power to go ahead with it when we know that each one of the 28 member states of the EU still has to ratify this and it is a process that is expected to take anywhere from two to five years. Again, the question is, why do we have this rushed process?

To get to the crux of our opposition to this bill, it is about the investor-state dispute, the investor court system that is part of this agreement. New Democrats support trade deals that reduce tariffs and boost exports. If only we had a trade deal that was doing just that, but when we have components like investor-state provisions that threaten the sovereignty of our country and the ability of our country to make laws for the good of this place and its people, we believe those have no place in trade deals. The investor court system still allows foreign investors to seek compensation from any level of government over policy decisions that they feel impact their profits.

Earlier, I had an exchange with the member for Sherwood Park—Fort Saskatchewan on the rule of law. I think the rule of law has three constituent components to it: legality, democracy, and human rights.

Legality has to do with the fact that the bills are passed in a democratically elected House of Commons. They have a process they go through: first, second, and third readings, royal assent, and so on. Democracy comes from the fact that the members of the House who propose laws are democratically elected and are accountable to the people. Constitutionality comes from the fact that all laws that we make in this place are subject to the Constitution of Canada and the Charter of Rights and Freedoms.

I think he misinterpreted what I was trying to get at in our argument about the democratic accountability of the investor court system. I feel that when we have an investor court system that can supersede the democratically elected people's representatives, be they at the municipal, provincial, or federal level, that does not satisfy my definition of the rule of law. I think the rule of law is being superseded by a system that is profoundly undemocratic. Never mind that it was set up by an elected majority, which by the way, got there with 39% of the vote. It is the fact that it is able to overturn or sue lower levels of government precisely because of the way they are acting.

To give a perfect example, for my constituents in Cowichan—Malahat—Langford, we have a contaminated soil dump that is causing great grief to the local community. It is a gravelled area that is now taking in contaminated soil, and the company in question is, of course, receiving money for all the contaminated soil it is bringing in. The local government, and even the provincial government, have realized the error of their ways, and now there may be a process afoot to try to reverse that contaminated soil.

If we had an agreement in place like CETA, and it was a foreign company operating there, it could basically sue the local government and sue the provincial government for the loss in profits, for dumping contaminated soil in an area that supplies drinking water to a local community. Where, in all that is logical, does that make sense? For the residents of Cowichan—Malahat—Langford, my home riding, that puts in perspective what this could allow foreign companies to do.

The other thing we in the NDP have gone over is pharmaceutical costs. I used to serve as the New Democratic Party critic and spokesperson for seniors. I have handed that off to the member for North Island—Powell River, and she is doing a great job. We have testimony from the Canadian Generic Pharmaceutical Association, an association that is an expert on this subject. It had a study prepared for it that showed that the proposals in this agreement would delay the introduction of new generic medicines in Canada by an average of three and a half years. The cost to pharmaceutical payers for this delay was estimated to be $2.8 billion annually, based on generic prices in 2010.

I have been helping seniors in my riding for many years. Before I was a member of Parliament, I worked as a constituency assistant. I saw first-hand how seniors are struggling with the cost of living. Many of them, when it comes to the high cost of pharmaceutical drugs, either do not take their dosage or take less than what is recommended by a doctor. This can lead to cascading health effects down the line. Why in the world would we institute a system that would increase the cost of pharmaceuticals, when all the talk in Parliament these days, and a lot of pressure, is on how we can institute a national pharmacare system to bring these costs down? It seems to be at odds.

We know from our conversations with small businesses, the small businesses in my riding, that they want more consistency. We know they want fewer regulations and they want standards that are simple to comply with: simple border processes, less paperwork, and lower costs. If we had a trade deal that was actually just about trade, the free movement of goods, and making sure tariffs were being lowered, we could deal with that. However, this implementing legislation contains a laundry list of acts of Parliament and regulations that are going to have to be changed. It is a 140-page bill, and it goes way beyond trade.

We believe that greater access to European markets is great for Canadian goods, but just as with the TPP, CETA is a massive trade and investment deal that makes significant changes on investor rights, intellectual property, pharmaceutical drugs, and more. I believe that Canada must maintain its sovereignty over the ability to make policy for the good of the country and its residents, and I will stand and defend that for as long as I can.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 5:25 p.m.
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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I will be sharing my time with the member for Barrie—Springwater—Oro-Medonte.

It is my privilege to speak on behalf of the residents of Kitchener—Conestoga on such an important piece of legislation that would have a huge impact on our local economy, as well as the entire Canadian economy.

Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states, better known as CETA, is a landmark agreement. This landmark agreement is a result of years of hard work, especially by our world-class trade negotiators, who did most of the heavy lifting.

I would also like to acknowledge the incredible hard work of my colleagues, the member for Abbotsford, the former trade minister, and also the member for Battlefords—Lloydminster, the former agriculture minister, who did a lot of work to ensure that this free trade agreement would, in fact, be put in place and benefit so many sectors in our society, not the least of which is the agriculture sector, which is largely represented in the riding of Kitchener—Conestoga. We welcome the opportunity to bring the deal into force.

With 28 member states, the EU represents 500 million people and annual economic activity of almost $20 trillion. The EU is the world's largest economy. It is also the world's largest importing market for goods. The EU's annual imports alone are worth more than Canada's GDP.

Conservatives have always been the party of free trade. We will continue to be the party that stands up for free trade, because we know that with free trade comes higher-quality competition and co-operation among countries for shares of economic prosperity.

Between 2006 and 2015, under the leadership of Stephen Harper and exceptional ministers of international trade, the previous government was instrumental in negotiating not only CETA but many other free trade agreements globally. For example, the Conservative government brought negotiated free trade and saw the agreements come into force with Iceland, Liechtenstein, Norway, Switzerland, Peru, Colombia, Jordan, Panama, Honduras, and South Korea.

Today in Canada one in five Canadian jobs is linked to trade. In strengthening Canada's trade relations, we support these existing jobs, as well as job creation and economic growth. We know that the free flow of goods and services creates jobs and economic growth for all Canadians, and that is why I am proud to have been part of a government that always championed free trade globally.

It is because of all of this I am very disappointed that the trans-Pacific partnership seems to be in jeopardy as I truly believe that it, too, could have unleashed great economic prosperity within each country that was involved in its negotiations. However, I will be supporting this piece of legislation and expect members of the House to be unanimous as it stands to benefit the constituents of every single one of our ridings. However, based on comments from many of my NDP colleagues, it again looks like they will vote against jobs and more opportunity for their constituents.

A joint Canada-EU study that supported the launch of negotiations concluded that a trade agreement with the EU could bring a 20% boost in bilateral trade and a $12-billion annual increase to Canada's economy, the economic equivalent of adding $1,000 to the average Canadian family's income or almost 80,000 new jobs to the Canadian economy. This trade agreement is about job creation for Canadians.

These increases would be made possible, because when CETA comes into force, nearly 100% of all EU tariff lines on non-agricultural products will be duty-free, along with close to 94% of all EU tariff lines of agricultural products. This is especially important for Canada's beef, pork, grain and oilseeds producers. These sectors would benefit greatly from the implementation of CETA.

Canadian service suppliers would also have the best market access the EU has ever granted to its other free trade agreement partners. Why is this so substantial? This service industry employs more than 13 million Canadians and accounts for 70% of Canada's total GDP.

The Canada-EU trade agreement would also give Canadian suppliers of goods and services secure, preferential access to the world's largest procurement market. The EU's $3.3 trillion government procurement market will provide them with significant new export opportunities. The agreement expands and secures opportunities for Canadian firms to supply their goods and services to the EU's 28 member states and thousands of regional and municipal government entities.

In the Waterloo region, we have a well-known high tech sector as well as advanced manufacturing. These companies stand to gain access to a huge market share in the EU, companies like Ontario Drive and Gear, which manufacturers the all-terrain vehicle Argo and also manufactures high quality gear products; companies like MyoVision, Clearpath Robotics, Olympia, which manufacturers ice clearing machines similar to the Zamboni but much better than the Zamboni, plus many other startups that are coming out of the Waterloo region.

I also spoke earlier about the benefit to the agricultural sector in my riding of beef, pork, grain, and oilseeds.

Allow me to highlight an award winning dairy farm in my riding, producing what is clearly the greatest cheese in all of Canada. I am talking about Mountainoak Cheese. I would urge all my colleagues, specifically those from southwestern Ontario, if they have not visited Mountainoak Cheese, it is an absolute must, especially for cheese lovers.

Mountainoak Cheese is the recipient of several awards, a few recent ones being first place for the three-year-old cheese in the hard cheese class; first place for its farmstead mild in the semi-firm cheese class. At the 2016 cheese competition at the Royal, its gold was first for the interior ripened Edam, Gouda, Asiago category and the grand champion variety cheese reserve.

Mountainoak has become so well known that even Rick Mercer recently visited to help it make some cheese.

I share this because it is businesses like these that will greatly benefit from the lower tariffs found in CETA specifically pertaining to specialty cheeses. They will be able to bring their award winning cheese to the EU and make us in Kitchener—Conestoga even more proud than we already are.

I remember when we signed this free trade agreement. The dairy industry had big concerns about the 3% import of cheese into the Canadian market. Because I knew about Mountainoak Cheese and other high quality cheese producers in Canada, I was convinced from the very beginning that if Canadian cheese producers were given the access to European markets, they had nothing to fear in terms of imports. In fact, by expanding their ability to ship into the European market, they would actually expand their ability to produce more and better quality cheese.

In conclusion, and keeping the dairy industry in mind, I would like to discuss the promises that our previous government made to this sector in order to help them with the transition into this new free trade agreement. I would also expect that the Liberal government would also honour commitments made to vital sectors of our economy, namely, the supply managed dairy industry as well as commitments made to the province of Newfoundland and Labrador in terms of the CETA fisheries investment fund.

Last week I rose in the House and asked the Minister of International Trade whether he would make the commitment to maintaining these assurances, specifically to the dairy industry, as I had met with the dairy industry just the day prior. Unfortunately, when I asked the minister this question, I was not given a straight answer. If the government were to withdraw or minimize the measures our government made to the dairy industry and to other supply managed sectors, in my opinion, it would be pulling the rug out from under these industries that had been relying upon these promises in order to make the transition.

As CETA approaches its final implementation, our party will continue to hold the Liberal government to account and ensure that Canadians will reap the rewards of free trade. I urge all my colleagues to support this trade agreement because it is in the interests of every Canadian and it is in the interests of creating new jobs and opportunities for Canadians.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 4:35 p.m.
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NDP

François Choquette NDP Drummond, QC

Mr. Speaker, I am very pleased to rise in the House today to talk about Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states and to provide for certain other measures.

The NDP and I are in a very bad spot right now. The Liberals have put us in a very awkward position because we are completely in favour of a free trade agreement with Europe. The Liberals need to understand that. Unfortunately, the agreement was negotiated by Stephen Harper's Conservatives in total secrecy with no proper consultation whatsoever. We did not even have the document so that we could do the work properly. The agreement sacrifices several sectors of our economy. What that means for Drummond is that dairy and cheese producers are paying the price.

That is why we cannot support this agreement as it stands. Had it been done properly and wisely, had they negotiated by the book, we could have ended up with a deal that would have garnered the support of all parties in the House. Unfortunately, because of the way it was done, we cannot support it, so we have to vote against this bill.

The bill includes all the changes needed to implement the agreement right away, including the investor-court system provisions that are going to change, as the European states have already clearly indicated. Even if we accept the agreement, European countries will probably oppose that particular part.

The NDP has been calling for improved trade with Europe for some time now in order to diversify our markets. Many serious concerns and unanswered questions remain regarding the proposed agreement, as I mentioned.

Trade with Europe is too important for us to wind up with a botched deal, one that was negotiated by the Conservatives, based on Conservative concerns, and signed hastily by the Liberals without taking any time to properly review the deal and consult Canadians in all sectors of the economy. Some sectors have been completely ignored. I am thinking of the dairy and cheese producers in my riding of Drummond, for instance. I will expand on this a little later on.

With respect to dairy and cheese producers, it is important to point out that the Liberals are not offering adequate compensation. In fact, this agreement is going to result in a huge loss for our dairy producers. As the member representing the people of Drummond, a riding that is home to many dairy and cheese producers, I cannot support the agreement, which is not enough for our dairy producers.

The Liberals' plan to compensate dairy producers is not really a compensation plan. It is a program that is being added and that is totally inadequate. It consists of $250 million over five years for dairy producers and $100 million for cheese producers. However, we do not really know how this program will work. What will be the exact terms and conditions? Will the people of Drummond and Quebec be eligible? Will small cheese producers be eligible? It is not really clear.

I met with some dairy and cheese producers this summer. The members for Saint-Hyacinthe—Bagot and Berthier—Maskinongé accompanied me on a tour of the communities in my riding. We met with dairy producers. They were very angry with the Liberal government, not just because of the Canada-Europe agreement on the horizon, but also because of its failure to take action in the dairy sector, specifically with regard to the massive entry of diafiltered milk, which is completely illegal.

Today, while the Prime Minister is meeting with the President of the United States, we are still faced with a problem that began over a year ago: the issue of diafiltered milk. The Liberal government said that it would resolve this problem during its first three months in office. However, those three months ended a long time ago. Unfortunately, despite all the pressure dairy farmers and the NDP have been exerting to make them change their minds, the Liberals are still sitting back and doing nothing. Meanwhile, there is a fairly simple solution to this problem: apply the same definition to this product at the border as when it is used in dairy products. Milk is milk, but diafiltered milk products are not milk. They should never be used to produce cheese.

The government's inaction is costing dairy farmers a lot of money. The fact that the government is also signing a bad trade agreement with Europe without compensating producers is unacceptable.

It is important to remember that we are talking about 17,700 additional tonnes of cheese coming to Canada under the Canada-Europe free trade agreement. That is about the equivalent of all the cheese produced in Nova Scotia, for example. Cheese producers are being quickly and heavily penalized.

I will read a quote by Daniel Gosselin and Suzanne Dufresne, owners of the Fromagerie Au gré des champs:

People do not realize what it means to have 17,700 tonnes of European cheese arriving in Canada. It is simple: it is like having 1,000 cheesemakers our size suddenly open up in Quebec.

Small and medium-sized cheesemakers are quite worried, and rightly so, about the impending arrival of 17,700 tonnes of cheese in our market without any real compensation for them, without any real support.

I had the opportunity to visit a number of cheese factories in my region a few months ago. For those who have the good fortune of passing through the beautiful Saint-Guillaume area, the fresh cheese from the Fromagerie Saint-Guillaume is among the best. There is a cheese that the locals like to call “Le p'tit frais”, not just because they are proud of it, but because it is made fresh daily. You can even find Le p'tit frais de Saint-Guillaume here in Ottawa. It is utterly delightful.

We also have the Lemaire cheese factory. It too makes an excellent cheese curd often used in poutine. As everyone knows, the Drummond region is the birthplace of poutine. That is where it was invented. In fact, the greater Drummond region hosts the annual poutine festival.

Anyone who visits the region should try the Lemaire cheese factory's poutine.

Lastly, I want to mention Agropur's five-year-old Grand Cheddar, which is made in Notre-Dame-du-Bon-Conseil and was first in its class at the Sélection Caseus competition. My region needs support for its dairy industry, and it needs protection for its cheese industry. This is extremely important.

We cannot allow our government to abandon our dairy and cheese producers or to ignore the diafiltered milk file. As if that were not enough, the government wants to saddle them with the negative outcomes of a free trade agreement with Europe without providing compensation or a plan to help our cheese producers, who have been asking for import quotas for a long time. There is no news on that front.

I could go on about other issues, such as the legal action the government is opening itself up to, but I will stop there because I see that my time is up.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 1:35 p.m.
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Conservative

Kelly McCauley Conservative Edmonton West, AB

Mr. Speaker, I am pleased to rise in the House today to speak to Bill C-30 to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states.

Before I start, I would like to pass my thanks on to my colleagues, the member for Abbotsford, the member for Battlefords—Lloydminster, and former Prime Minister Harper, for their hard work in bringing this about.

I want to start with the obvious. Trade is good. Trade makes markets better. Trade lowers prices for consumers and gives them more options. Trade does not make life better just for wealthy Canadians; it makes life better for all Canadians.

I am always proud to stand in this House to defend agreements and legislation that make life better for Canadians. I spoke to Bill C-30 at second reading back in November. In that speech, I spoke to four points about why I am supporting the agreement. I want to expand on a few of them today.

First, as I mentioned, trade is good for Canada. A more competitive market means Canadians have access to the best products, at the best prices. Lowering or eliminating tariffs on goods that we import for our own consumption means that the price we pay for these goods will drop.

Again, I will always stand up to defend policies that lower prices for my constituents, and for all Canadians.

Trade agreements help Canadians from both perspectives: consumers benefit when we have lower prices and producers benefit when they can have greatly expanded markets to sell their goods.

Farmers in Alberta can now sell their products to not only people in Ontario, Quebec, and B.C., but once CETA passes, basically duty-free to Belgians, Germans, the French, and every other country signatory to this agreement. The EU represents some 500 million people, with almost $20 trillion in economic activity. The EU's imports alone are worth more than our entire GDP.

If we want our producers to grow, we must ensure they can access newer, bigger, and hungrier markets. When our producers have more customers, they need more workers to fill that demand. I do not think I have to remind members in this House that we could use a few extra jobs in Alberta right now.

CETA is projected at a $12-billion annual increase to our economy. I know $12 billion can be an abstract number, but a $12-billion increase is equivalent to adding $1,000 to the average family income each and every year, or 80,000 jobs.

Some of those jobs will help my constituents in Edmonton West and the constituents of colleagues across Alberta.

CETA will help Alberta grow, access new markets for our goods, and will help Albertans access products at lower prices.

For our producers, the EU is already Alberta's fourth-largest export destination and our third-largest trading partner. The EU currently imports over $2 trillion annually, of which Alberta makes up $1.4 billion. We have just .07% of the European market. We have plenty of room to grow. Alberta's main exports to the EU include high-value items as well as resources, such as nickle, turbo-propellers and other machinery, cereals, medical instruments, cobalt, electrical machinery, mineral fuel and oil, services, wood pulp, inorganic chemicals, meat, animal feed, grains, seed, fruit, plastic, vehicles, pharmaceuticals, beverages, iron and steel products, and animal products.

For our consumers, nearly 100% of all non-agricultural products will be duty-free and nearly 94% of all agricultural products will be duty-free.

Once in force, CETA would eliminate tariffs on almost all of Alberta's exports and enable Alberta's job creators access to new market opportunities in the EU. Eliminating tariffs on almost of all of our exports means we would have more competitive pricing to offer to the more than 500 million new customers. It is like moving our lemonade stand from a neighbourhood street corner to Times Square. The potential for us is enormous.

CETA would also provide Alberta exporters with a competitive advantage over exporters from other countries that do not have a free trade agreement with the EU. That is like moving our lemonade stand from the neighbourhood street corner to Times Square where our competitor is stuck in a location with no traffic and higher costs.

On the day CETA's provisions enter force, 98% of Canadian goods would be duty-free. For agriculture and agrifood products, almost 94% of EU tariffs on Canadians goods would be eliminated, rising to 95% once all phase-outs are complete. This duty-free access would give Canadian agricultural goods, including beef, pork, and bison, preferential access to the European market.

I know some of my colleagues have this stereotypical image that Albertans are all ranchers and cowboys. I hate to play into that stereotype, but I cannot pass up this opportunity to remind the House how important beef is to the Albertan economy and what CETA means to this. According to the CBC, because of CETA, Canada is poised to supply about 1% of all the beef needs in Europe under this new pact. That would mean $600 million for Alberta, $600 million in new business, $600 million in new jobs.

As well, the following industries in Alberta would benefit. The first one is metals and minerals. Alberta's metals and minerals sectors include natural gas, conventional oil, coal, minerals, and the oil sands. More specifically, Alberta's metal refinery and mineral sector is a foundational industry that allows for infrastructure development as well as energy and natural resource production in Alberta. It generated 28% of the province's total GDP in 2011, and employs more than 181,000 Albertans, creating employment opportunities that provide some of the highest earnings in the Alberta economy. Exports of metals and minerals currently face tariffs as high as 10%.

There is agriculture and agrifood. Alberta has more than 50,000 farms with crop and livestock production. They produce an abundance of world-class agriculture commodities. The agriculture and agrifood sector employs nearly 76,000 Albertans and contributes 2.5% to the GDP. Between 2010 and 2012, the exports of agriculture products to the EU suffered tariffs of over $35 million. That is $35 million that can be reinvested in the economy, jobs, and productivity improvement.

There are forest products. The forest products sector employs nearly 19,000 Albertans and represents a significant component of the economy. Forest product exports to the EU average $62 million and face up to a 10% tariff right now. These barriers would be eliminated under CETA.

There is advanced manufacturing. Alberta's advanced manufacturing industry employs more than 28,000 people. Between 2010 and 2012, Alberta's exports of advanced manufacturing products to the EU averaged a quarter of a billion dollars, which face tariffs as high as 22%. Industrial machinery, one of Alberta's key advanced manufacturing exports to the EU, faces tariffs of up to 8%.

Alberta is a major producer of chemicals and plastics. It employs 11,000 Albertans, an important part of exports to the EU, with exports averaging just under $100 million a year. These exports currently face tariffs of up to 6.5%. Again, these would be eliminated.

In addition to beef and agriculture products, CETA would also provide for increases in eligible trade for products with high sugar content. This stipulation would enable a company like PepsiCo, which has a large bottling facility in Edmonton's west end as well as other parts of Alberta, to continue to ship its products abroad and find new customers in new markets duty free. The stipulation for sugary products would also help local Edmonton start-ups, such as JACEK Chocolate Couture, which opened in Sherwood Park last year, and has now expanded into Canmore as well as downtown Edmonton. It will help it to hire new employees and reach a massive new market base.

CETA will open up markets for our burgeoning alcoholic beverage companies, which products are very well known to members of the Alberta Conservative caucus. There are over 50 breweries in Alberta, including favourites like Big Rock, Alley Kat, and Yellowhead. There are distilleries like Eau Claire Distillery, which makes gin and vodka from only local Alberta grains, and Park Distillery, based in Banff, that makes a vodka with glacial waters from the Rockies.

Closer to my home in Edmonton, there is Red Cup Distilling in Vegreville. I am wearing the button today supporting Vegreville. There is also the Big Rig Craft Distillery in Nisku, by the Edmonton airport, where people can get brum, which is basically rum made with sugar beets instead of sugar cane. I want to note it's called brum and not rum, so as not to run afoul with the rum lobby. If the all-powerful rum lobby is watching on CPAC today, please note I called it a brum and not a rum.

Edmonton is home to many head offices of world-class companies that are said to grow, compete, and win with access to this huge new market. PCL Construction has finished Rogers Place in downtown Edmonton, the finest hockey and event arena in the entire world. Stantec engineering, Booster Juice, and Weatherford are all based in Edmonton.

Edmonton is also renowned for its start-up culture, and many new enterprises will benefit from increased access to markets and added IP protection. TappCar is a ride-share company that has gained ground by working with municipal governments rather than circumventing local laws. Drizly is an app that arranges liquor deliveries. Should it expand to the Parliament Hill area, I am sure that sales will spike massively. My wife's personal favourite is Poppy Barley shoes, which has grown from a small, shared office space downtown to Edmonton's famous Whyte Avenue, with pop-ups in Toronto.

Edmonton also boasts having three of the top fifteen start-up companies in Canada, as named by Metabridge. The first is LoginRadius, which does customer analytics and serves over 1,000 businesses worldwide. There is Mover, a company that handles cloud file migration. The third company is Showbie, which helps teachers, schools, and students get connected across technology platforms.

Edmonton's bread-and-butter business, the oil and gas sector, stands to benefit tremendously from CETA by increasing market access to our oil and gas products. The Prime Minister wants to phase out oil and gas, but CETA represents a grand opportunity for Canada's job-creating and economic-driving industry to capitalize on new customers.

Supplier diversification is one of the European Union's top energy priorities. Currently Russia has 31% of the EU's oil and gas import market share, making it first. Canada has just 1% of the market share, placing us 26th. It is well known that Russian President Putin uses his country's oil and gas reserves as a weapon. Given that Russia supplies almost one-third of the EU's oil and gas, this position is strong. The EU needs to diversify, wants to diversify, and Alberta has plenty to offer. Not only will this create wealth and jobs in Alberta and the rest of Canada, it will help to free Europe from the bullying and blackmail of the Russian president and deprive him of his desperately needed revenues that he uses to threaten our democratic allies. The Right Honourable Stephen Harper famously told Putin to get out of Ukraine. CETA will help us get him out of Europe's oil and gas business.

As CETA reduces and eliminates tariffs across the board for oil and gas products, Canada and Alberta are well poised to fill the gap and become a crucial energy ally. This is an opportunity that we should not pass up, and frankly cannot pass up. The government may perhaps one day support energy east, and then we can ship Alberta oil to Quebec and New Brunswick for refining and stop sending jobs and billions of dollars to despotic regimes like Saudi Arabia.

Beyond energy, free trade helps foster greater co-operation between our democratic allies. We strongly support international trade initiatives that strengthen the bonds with friendly countries, increase economic productivity, and drive prosperity and job creation.

The world is full of uncertainty, and prior champions of trade and co-operation are retreating. This comes at an unfortunate time for Canada. Our country has the fastest-growing population in the OECD, and the west has the fastest-growing and youngest population in Canada. We have products. We have workers. We have the businesses. We will continue to have more people and more products over the next few years, and we need places to sell these goods.

CETA is an opportunity for us to secure access to the largest single market in the world at a time when other countries are retreating. Not only will this agreement help to give our job creators access to growing and demanding markets, it will give Canadians a head-start advantage over our competitors who are retreating from the global marketplace.

Even after all of these benefits I have discussed and talked about, CETA's detractors argue that the costs outweigh the benefits. They will say that CETA gives too much power to corporations and will allow them to sue governments for compensation if they change policies. The argument is callously thrown around as a holistic and negative point. It is just an assertion.

According to a summary in The Globe and Mail, CETA opens up a new process called the investment court system, or ICS. The ICS essentially acts as a permanent tribunal to handle complaints brought by businesses. Canada and the EU have hailed the ICS as a breakthrough offering a high level of protection for investors while fully preserving the right of governments to regulate and pursue legitimate public policy objectives, such as the protection of health, safety, and our environment.

It is perfectly legitimate for businesses that act in good faith and set up shop in new countries because of a trade agreement to be able to protect themselves from arbitrary changes by the host government. If governments agree to and sign a trade agreement, they agree to be bound by the provisions of that trade agreement with some exceptions. It is unreasonable to make governments the sole power holder in this arrangement.

If we expect companies to come to Canada, to do business in Canada, to create work for Canadians, and create wealth for our country, we must be able to guarantee them some modicum of stability and predictability, or at least grant them some recourse if a future government makes arbitrary changes that violate the provisions of that trade agreement. This is a two-way street, and businesses do not deserve less protection just because they are creating jobs, making investments, and earning profits.

At the same time, it is also important that governments are able to react to changing circumstances and create legislation that is good for Canadians in the event that exceptional circumstances arise. This is why CETA has built in provisions to protect both business and government.

I want to note here that Canadian investment in the EU was almost a quarter of a trillion dollars as of 2014. That is Canadian investment that will also be protected from the whims of a changing political landscape in Europe.

The Consider Canada City Alliance is a partnership with 12 of our largest cities. These cities represent 63% of Canada's GDP and 57% of our population. They work to increase investment in Canada and grow trade opportunities.

Our own highly respected Edmonton Economic Development Corporation is part of this coalition. Michael Darch, president of the CCCA states:

We see Canada moving toward creating the largest trading and investment block in the world. The cities that comprise the Consider Canada City Alliance account for 63% of Canada's GDP fully understand that our economic prosperity is built on global trade and investment....

Modern commerce is much more than moving goods across the borders. It is about financial and knowledge-based consulting services, digital commerce and entertainment, and the freedom of movement for the skilled workers who are creating the 21st century global economy.... CETA addresses these and many more opportunities. Canada is demonstrating leadership in building the agreements necessary to protect our economic future and guarantee access to prosperity for all Canadians.

The Consider Canada Alliance has listed its top five reasons for supporting CETA. Number one is “dollars and sense”. It “will increase Canada-EU trade by 20% and boost Canada's economy by $12 billion..”.

Number two is “unparalleled market access”. “Once...CETA comes into force...investors in Canada will have assured preference access to both NAFTA and the EU” with nearly one billion customers combined and a GDP of over $35 trillion.

Number three is “enhanced investor protection”, as I just mentioned. “CETA will provide Canadian and EU investors with greater certainty, transparency and protection for their investments.” Again, I note, Canadians have invested a quarter of a trillion dollars in the EU. That is Canadian investment that will be protected from the whims of a changing landscape in Europe.

Number four is “easing of investment restrictions”. “The net benefit review threshold under the Investment Canada Act will be raised from the current $600 million to $1.5 billion, following CETA's entry into force.”

Number five is that it “signals open trade, not closed borders”. “While populist movements in some developed countries appear to be antagonistic to expanding trade agreements, Canadian cities are welcoming aggressive investment interests from across Europe and around the world during investment missions conducted in partnership with Federal [and provincial] colleagues.”

Again, I repeat, trade is good. Trade lowers prices and enables competitive and valued Canadian businesses to expand, hire new employees, and prosper in a globalized world. Trade helps strengthen ties with our allies. We will always support international initiatives that nurture greater co-operation between Canada and our friends overseas. Free trade allows billions of dollars in Canadian exports to reach new markets and ensures that European goods flow into Canada at competitive prices for our consumers. Free trade will help Alberta's businesses grow and prosper at a time when Alberta needs it most.

I am proud to support this agreement that will help Alberta's small and large businesses, Albertan consumers, Canadian industry, Canadian producers, and that will deepen our long-standing ties between Canada and Europe.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 1:35 p.m.
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NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I thank my colleague from Hochelaga for her comments.

She is absolutely right. That is the basic problem with free trade agreements. They give a huge amount of power to major corporations and are detrimental to our interests, our neighbours, and the people in our communities. My colleague's example of the plant in Mexico highlights that.

I have another example. An American company is currently suing the Canadian government for $250 million because the Government of Quebec placed a moratorium on oil and gas exploration in the Gulf of St. Lawrence to protect ecosystems. This company is now suing our governments. Taxpayers could end up being out of pocket just because we want to prevent pollution in the St. Lawrence River.

That is exactly what the NDP is rejecting, and that is why we will be opposing Bill C-30.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 1:20 p.m.
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NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I am very pleased an honoured to rise in the House to speak to this important bill. Indeed, the bill relates to an important trade deal, or free trade agreement, with the European Union. We appreciate how natural it seems for Canada to enter into much more intense and closer trade relationships with the European Union, and for a number of reasons. First of all, Europe is a natural trading partner for historical and cultural reasons. Furthermore, several European countries have legislation that is similar to ours or often even better than ours when it comes to environmental protections, collective bargaining, workers' rights, and where unions fit in society and in the economy.

We should realize that, of course, we need to have a free trade agreement with the European Union and increase our trade relationship with the EU. I agree. However, this deal is so huge that it needs to be negotiated properly. We will not accept just any deal that is reached hastily or under pressure, simply because the Prime Minister and members of his cabinet want a good photo op with some nice handshakes that they can post on Facebook. It is much more important than that.

As my colleague pointed out earlier, we should have taken the time to properly review this free trade agreement, which, I would remind him, was negotiated in secret under the previous government, the Conservative government. At the time, the process was heavily criticized by the Liberals. However, in their usual fashion, the Liberals started to change their tune once they came to power.

I would cite a recent example to to argue the importance of proper trade with Europe. On Friday, I was in my colleague's riding, Rimouski-Neigette—Témiscouata—Les Basques. We visited a small business called Utopie MFG, in Saint-Narcisse, near Rimouski. The business employs about 30 people. It makes alpine skis and snowboards. I had no idea how these things were made. I learned some amazing things during our visit. Every ski is made by hand with hardwood. This company's chief competitors are Austria and China. There are only two businesses that manufacture alpine skis in Canada, this business in Saint-Narcisse and another in Whistler. It is important for them to have access to the European and U.S. markets.

In every small community, there are entrepreneurs who are starting up businesses, innovating, and making new products, and who need the opportunity to export their goods to foreign markets.

We want Utopie MFG to be able to sell its skis in the United States, Europe, and anywhere in the world where there is snow. That is why we need a good free trade agreement, and we must not rush into it as the government is currently doing. I would add the Liberals are exceptionally gifted when it comes to using words to say the opposite of what they mean.

Once in power, the Liberals copied the free trade agreement negotiated by the previous Conservative government. It is the same free trade agreement, but it has suddenly become a progressive agreement. It is the same thing but they have tacked on the word “progressive”. Given that it comes from the Liberals, it has magic powers. Abracadabra. I would like to be able to do that with my kids at home. It is the same as what we had before. This agreement is a threat to many of our economic sectors, including cheese producers, who will see 17,000 tonnes of European cheese enter Canada, without having any protection and receiving only a pittance in compensation.

I also went to the Saguenay last December. We visited Fromagerie Blackburn, a family cheese company that started out as a dairy farm. Its cheeses have won prizes in Europe. The company is currently expanding, but growth could be stalled by the massive arrival of European cheese if we do not provide the protection and assistance the company needs.

How can the government abandon our cheese producers who have also been growing for years in Quebec? Thirty years ago, people were eating cheddar cheese and that is about it. There were no other types of cheese available, besides the kind eaten on toast in the morning. However, today, there are dozens of great cheese producers across Canada, particularly in Quebec. How can the Liberal government abandon them and offer them almost nothing in the way of compensation? That is a concern for us. My colleague also mentioned it in her speech earlier.

Another concern is the fact that this agreement with Europe deals with intellectual property and the associated definitions, which will impact the price of prescription drugs. The progressive Liberal-Conservative agreement will delay the introduction of new generic drugs in Canada by three and a half years. Big pharma will obviously be thrilled, but this will directly impact those who need those drugs.

According to estimates, the yearly cost of drugs in Canada could increase by $850 million to $2.8 billion. That will have a huge impact on the people who need those drugs and who do not have good private insurance, since few provinces provide public insurance. Canadians are the ones who will have to bear these costs at a time when they are already struggling to pay their bills and make ends meet. It has to be said: the Liberal government does not care that this agreement will benefit large pharmaceutical companies to the detriment of seniors, the sick, and people with disabilities.

There is another very fundamental thing that concerns us about the free trade agreement with Europe. We have talked about economic sectors, exports, and the cost of drugs, but there is a dispute settlement mechanism in the free trade agreement with Europe that is extremely dangerous for our governments and even for the quality of our democratic life. Think chapter 11 of NAFTA, only in the free trade agreement with Europe.

I do not understand how a progressive agreement can give companies the option of suing a government or a level of government for making regulations that could jeopardize their future profits. Talk about belt and suspenders. Companies make plans to invest. If a government makes a decision that is in keeping with the will of the people or to protect public health, public safety, or the environment, those companies could take legal action against that government before the trade tribunal and demand compensation for the loss of expected future profits.

That is handing over tremendous power to corporations and big companies to the detriment of democratic choices made by the elected representatives of the people. This kind of dispute settlement mechanism subverts democracy. That is extremely dangerous, and the NDP will never stand for it. We will never agree to giving big companies that kind of power. It happened with NAFTA. Canada was sued several times. It cost us millions of dollars, and we do not want to make the same mistake again with the European Union.

We are not the only ones saying so. People in the European Union share our concerns, including in Germany, the Netherlands, and of course in Belgium, where the Walloon Parliament stood up and set conditions that had to be met before it would accept the Canada-European Union free trade agreement.

People like José Bové are also concerned that the agreement is going to weaken environmental standards and social programs on both continents, whether here in Canada, with respect to pork or beef production, for example, or in Europe, with respect to accepting oil-related products that produce a lot of greenhouse gas emissions, which goes against the philosophy of people from the European Union right now.

This deal is dangerous, and we should have taken the time to study it properly.

These are the reasons the NDP will be voting against Bill C-30, knowing full well that a good free trade deal, a good trade agreement with Europe, would be in our interest. However, we cannot afford to mess this up, which is what the Liberal government is doing.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 1:05 p.m.
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NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, I will be splitting my time with the member for Rosemont—La Petite-Patrie.

Today we are here to talk to this important bill, Bill C-30. I am glad to have a second opportunity to speak to this, the economic and trade agreement with the European Union, commonly known as CETA.

The bill is now on its third reading, having been studied by the Standing Committee on International Trade. This will probably be my last opportunity to speak to this important bill.

In January, I completed a series of 11 town halls on seniors issues. Just so the House understands, when I asked the people of my riding what the most important issue was for them, by far seniors issues were number one. I took the opportunity to travel around the riding. I went to larger and smaller communities to really hear the stories from seniors and from the people who supported and loved those seniors. I wanted to hear about the specific challenges they faced on a daily basis.

Unfortunately, it was a very sad series of town halls. I heard stories about having to make decisions between medication, heating their homes, and feeding themselves. Again and again, I heard of seniors who had no access to the guaranteed income supplement because the process in getting that guaranteed income supplement was a challenge for them. When it came down to the core, the biggest issue was the cost of medication for seniors.

I know this is not an issue that is exclusive to North Island—Powell River. It is all over the country. Seniors are falling more and more behind.

The last time I spoke to this bill, I raised a few issues. The first was the issue of prescription drugs, for which I profoundly care. I mentioned that with the provisions in CETA, consequently the bill would change intellectual property rules for pharmaceuticals. Under this agreement, consumers, including our seniors on fixed incomes, could expect to have their drug costs increase by more than $850 million annually.

In the town halls, a lot of constituents came up afterward and shared stories with me. They also shared stories during the town halls. I remember one woman who told me that she and her husband were in good health right now. They were recent retirees and life felt pretty good. However, when they looked at the future, they realized they had to plan for when they would not be as healthy. Unfortunately, part of their plan included the time when they would have to legally separate, and would have to deal with the fact that the cost of living would become so high due to medication costs and having to put somebody in a care facility. The woman told me that she had worked hard her whole life, but with the increasing cost of pharmaceuticals and cost of living, she did not know how they would make it, even though they saved, they had well-paying jobs, and they had a good pension. The reality for seniors today is one that is leading to more and more poverty.

While in opposition, the Liberals demanded that the Conservatives present a study on the financial impacts on provincial and territorial health care systems and prescription drug costs. In government now, the Liberals are telling provinces and territories that they will cut health care transfers, while pursuing agreements that risk increasing drug costs for provinces and territories. I am very concerned about this.

The reality on the ground is that people will have serious health issues. More and more people will have to go to emergency rooms because they have not taken their medications. I remember one doctor sharing with me that seniors were unable to afford medications so they were going to the emergency rooms every day to get refills. Think of the expense. If the costs go up, the implications will be devastating on our health care system.

I was glad that our great trade critic, the member for Essex, brought up this important issue in the committee. The NDP brought forward amendments to make certain that an analysis of the impact of CETA on pharmaceutical drug costs would get done. What happened? This is an important issue, and our constituents and Canadians deserve to know. There will be little to no debate on our amendments. They were all rejected, showing no interest in fixing the the flaws of the deal or addressing the serious concerns of Canadians.

Jim Keon, the president of the Canadian Generic Pharmaceutical Association, at committee said:

From a cost perspective, as I've said, generics on average now are selling at something like 20% to 25% of the price of an equivalent brand-name product. If you delay for two years, you're paying an extra 75% to 80% on that product for an extra two years. That affects provincial drug program budgets; it affects employee plans; and it affects people who pay out of pocket, and those costs are very significant.

Our seniors, and all Canadians, deserve better.

The former minister of international trade and now global affairs minister was honest about why Liberals have decided to rush this agreement through Parliament. For them, the deal symbolizes an open Canada in light of rising protectionism. I am sorry, but trade with Europe is just too important to get wrong. Canadians expect a good deal, and they deserve a good deal.

We need to be talking about some of the serious concerns with CETA so we can make a better deal for Canadians, because this is about health care costs. This is about medication. I have heard too many stories from health care providers talking about seniors and other people splitting their medication in half, not taking the full dosage. If the costs go up, this means people will not be getting the medication they need to take care of themselves.

I support deepening the Canada-EU trade relationship in order to diversify our markets, but there remain significant concerns that need addressing. Once again, when in opposition back in 2014, Liberals decried the limited time to study this agreement. In their dissenting report, on p. 47 they wrote, “The brevity with which this committee has dealt with this agreement should be of concern to anyone interested in let alone concerned about the CETA.” Where is that language now? Why are we not taking the opportunity to do that very important work of looking at just the parts that we should be seriously concerned with, the parts that would have huge ramifications on Canadians?

Maude Barlow said, “Given the process could take another five years in Europe, what's the rush here other than another photo op?” Is this the reality? I do not know, but Canadians deserve a good approach, not just a fast one.

The biggest roadblocks to CETA's ratification by all the EU members are a referendum in the Netherlands, opposition from the Bundesrat in Germany, and the European Court of Justice examination of CETA. Therefore, let us take the time to figure out the issues, mitigate them, and get it right. I am afraid the Liberals do not see this reality, and for them it is like a big show.

I saw and heard some shocking truths from the seniors of North Island—Powell River. These are not unheard of across Canada, where seniors are facing multiple challenges. It is a great honour for me to have the new role as critic of seniors issues. I am really proud of the work that the communities I represent have done in educating me about what those particular concerns are around seniors' challenges. Right now, we are not seeing that follow-up with the funding for home care so seniors can stay in their homes and get the support they desperately need. It saves money. It is good for the health and well-being of people who built our country. Now we are seeing CETA, which would have huge impacts on their health care and getting the medication they so desperately need.

Canada really has to take a moment and ask the government why it is okay for seniors to be put in a position where they cannot afford the medication they need, when they are making choices between household expenses, like food, power, and heat, and medication.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 12:35 p.m.
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Conservative

Blake Richards Conservative Banff—Airdrie, AB

Mr. Speaker, I am happy to rise today in the House to speak to Bill C-30 and about the important role trade plays in our Canadian economy.

This is one of the few bills I can praise the current government for. It is something I wish I could do more often, if the Liberals would follow the Conservative path.

They obviously picked up on the great work we were doing as a government and have been able to help carry it through. Maybe the Liberals can take some of those lessons on things like balancing the budget or lowering taxes. One can only hope that maybe their understanding and recognition of the importance of trade will extend to other things that are important to our economy and to our fiscal situation in this country. Again, that is me being an optimist.

Let me get to the heart of the matter we are speaking to today, which is trade itself. Canada is a trading nation, and trade really is the lifeblood of our economy. In fact, one in five jobs in Canada, and about 60% of our GDP, are linked to exports. We do not have to look very far or very hard to figure out how important trade is to our economy and to opportunities for Canadians, based on those statistics.

History has shown that trade is the best way to help us create jobs and growth and long-term prosperity here in Canada. As trade increases, so does our nation's economic success, which obviously then puts more money into the pockets of hard-working Canadians. That is really what it is all about, at the end of the day. People talk about a strong economy and opportunities. What it all boils down to is putting more money into the pockets of Canadians to feed their families and provide better opportunities for their children. That is really what we are speaking about when we talk about trade and economic prosperity.

Under our previous Conservative government, the Stephen Harper government, one of our key accomplishments was that we launched one of the most ambitious pro-trade plans in our country's history. It was probably the most ambitious, in fact. I would like to take a moment, while I am on that point, to add a note of praise. I have heard others who spoke do the same, but it is important that it be said, because credit should be given where credit is due.

I look at the member for Abbotsford, who was the former minister of international trade, and the member for Battlefords—Lloydminster, who was our agriculture minister, and the great and hard work they put in. I know the travel schedules those two individuals and others had to undertake to accomplish some of the things that were accomplished under the Stephen Harper Conservative government. Under the leadership of former Prime Minister Stephen Harper himself, some great things were done, but it was a lot of hard work on the part of those members in particular. I want to note the legacy they created, because I think that is important. The two of them remain here in the House and continue to work hard in opposition to encourage these kinds of things to continue.

Under the leadership of those individuals, we were able to conclude free trade agreements with 38 countries. Examples are Colombia; the European Free Trade Association, which includes Iceland, Liechtenstein, Norway, Switzerland; Honduras; Jordan; Panama; Peru; South Korea; and the 28 member states of the European Union. There were some pretty significant advancements there.

We also concluded, signed, or brought into force foreign investment promotion and protection agreements, FIPAs, with 24 countries. That was more than any other government in Canadian history as well.

One of our historic achievements was the Canada–Korea Free Trade Agreement, which was Canada's first free trade agreement in the Asia Pacific region, which is one of the fastest-growing regions in the world. South Korea is not only a major economic player and a key market for us in Canada but also serves as a gateway for Canadian businesses to the entire Asia Pacific region. This agreement is projected to increase Canadian merchandise exports to South Korea by 32% and to boost Canada's economy by $1.7 billion.

Additionally, in November 2013, our Conservative government released the global markets action plan, which was our pro-jobs, pro-export plan. It was aimed at creating new opportunities for Canadians, through trade and investment, by targeting emerging and established markets with broad Canadian interests.

Obviously, when we look at our record, we strongly support international trade, and we support international trade initiatives that will generate increased economic activity, jobs, and a collaborative relationship between Canada and emerging economies.

Canada should also strive to maximize the benefits we have as a free trading nation and establish trading relationships, beyond North America, with these emerging markets. To that end, it is important that the government vigorously pursue the reduction of international trade barriers and tariffs. This is why we supported Bill C-13, the trade facilitation agreement, which received royal assent not long ago. The trade facilitation agreement will simplify customs procedures, reduce red tape, expedite the release and clearance of goods, reduce costs associated with processing, and make international trade more predictable for Canadians.

Predictability is certainly key. We see the effects when we lack predictability when we look at the current government and its never-ending, constant changes to regulatory processes for energy project reviews. We can see what the lack of certainty creates when the chill is put on investments. Certainty is certainly key when we look at providing opportunities for businesses to help grow the economy. They need to have certainty.

Canadian investors, importers and exporters of goods, and small and medium-sized businesses will certainly benefit from the implementation of the TFA.

Another trade agreement that was successfully negotiated by the previous Conservative government was the Canada-Ukraine free trade agreement. This agreement will continue to strengthen the Canada-Ukraine partnership in peace and prosperity. Total bilateral merchandise trade between Canada and Ukraine averaged $289 million in 2011-15. It is expected to expand by 19% as a result of the implementation of this trade agreement. With this agreement, Canada and Ukraine will eliminate duties on 99.9% and 86% of our respective current imports, thereby benefiting both Canadian and Ukrainian exporters and consumers. Our GDP will increase by about $29.2 million under that agreement, and Ukraine's GDP will expand by about $18.6 million. Canada's exports to the Ukraine will increase by about $41.2 million.

Canada's export gains will be broad-based, with exports of pork, machinery and equipment, transport equipment, other manufactured products, motor vehicles and parts, and chemical products being some of the leading industries. Our previous Conservative government also established market access for beef in Ukraine in July 2015. Canada exported about $35.5 million worth of agriculture and agrifood and seafood products to Ukraine in 2014. These obviously show some of the benefits of trade and trade agreements and what they can mean for Canada.

Let me get to the trade agreement we are talking about today, the Canada-European Union comprehensive economic and trade agreement. Negotiated by our previous Conservative government, CETA is by far the most ambitious trade initiative Canada has ever concluded. Once this agreement comes into force, Canada will be one of the few countries in the world to have preferential access to the world's two largest economies: the European Union and the United States.

The Conservative Party strongly supports international trade initiatives that will generate increased economic activity, drive prosperity and job creation, and foster greater co-operation between our democratic allies.

A joint Canada-EU study concluded that a trade agreement with the EU could boost Canada's economy by about $12 billion annually, and increase bilateral trade by 20%. It is important to put some sense to what that means for the average Canadian and Canadian families. It is the economic equivalent of adding about $1,000 to the average Canadian family's income. It would add about 80,000 new jobs to the Canadian economy. That is something that the government has failed at to this point. This would be something to help create some jobs to put people to work, and provide new opportunities for Canadian families to increase their income.

When CETA comes into force, nearly 100% of all EU tariff lines on non-agricultural products will be duty-free, along with close to 94% for agricultural products. The agreement would also give Canadian service suppliers the best market access the EU has ever granted any of its trading partners. That is great news for the 13.8 million Canadians who are employed in the industry. It accounts for about 70% of our country's GDP.

Under CETA, Canadian firms could bid on contracts and supply their goods and services to the three main EU level institutions: the European Commission, the European Parliament, and the European Council, as well as the EU member state governments, and thousands of regional and local government entities. The Canada-EU trade agreement would give Canadian suppliers of goods and services better access to the EU's $3.3-trillion government procurement market, which would provide them with significant new export opportunities.

Investment plays a key role in the Canadian economy. CETA would provide Canadian and EU investors with greater stability and transparency for their investments. The stock of known foreign direct investment by Canadian companies in the EU totalled about $210 billion at the end of 2015, representing about 21% of Canadian direct investment abroad. Conversely, in that same year, known foreign direct investment from European companies in Canada totalled more than $242 billion, representing 31% of total foreign investment in Canada.

This is a landmark agreement. It has resulted from years of hard work, especially by our world-class trade negotiators who did all the heavy lifting on this.

I would like to focus in and speak to the benefits CETA would bring to my home province of Alberta. Times are tough in Alberta right now, so when we hear any good news on the economic front, it is something we can greatly appreciate. There is no question Alberta stands to benefit from the preferential access to the EU markets. The EU is already our province's fourth largest export destination and our third largest trading partner. Once in force, CETA would eliminate tariffs on almost all of Alberta's exports, and provide access to new market opportunities in the EU. CETA also includes provisions that would ease regulatory barriers, reinforce intellectual property rights, and ensure more transparent rules for market access. Alberta exporters could benefit from all of these improved conditions. When we look at some of the opportunities there, the main merchandise exports from Alberta to the EU are agriculture and agrifood products, advanced manufacturing, metals and mineral products. Some of our other exports include chemicals and plastics, fishing and fish products, forest products, and information and communications technology.

I would also like to take a minute or two to talk about one very specific opportunity that we have already seen open up as a result of this agreement.

In 2014, when negotiations had proven to be successful toward this agreement, a beef processing plant in my riding reopened. It had been a farmer-owned plant that had closed down in 2006, and had been sitting vacant since then.

In 2014, we were able to announce that there was a buyer, Rich Vesta from the United States, who is well known in the beef industry and has brought a lot of great opportunities to some of the businesses he has been involved with in the United States. He decided to purchase this facility and bring it back online. He chose to do that largely based on this agreement. He saw an opportunity for specific cuts of beef to go to some niche markets that would be based around some of the trade agreements we had been able to sign for Canada, in particular, the opportunities that CETA would create. Even before being implemented, we already could see the benefits of these opportunities.

That plant had been sitting there dormant since 2006. I was able to tour it recently and it is nearing its opening. It is expected to open later this month, in fact. When I toured it a couple of months back, I could see it was really coming together. I heard about all of the innovations and improvements being made. This is going to be an absolute world-class facility. The processing innovations that it is going to bring to Canada are amazing. They are all based on trade opportunities being created by some of the trade agreements under the Conservative government and the hope generated by this particular agreement as well.

We can already see the success stories and I am sure they will continue. It is something that people are very excited about and proud of in my home community of Airdrie, as well as Balzac in Rocky View County, where the facility is located. It will create jobs for people in the area. Many people are struggling right now and trying to find work. Not only will this create opportunities for people, but down the line there will be opportunities, such as more buyers for our cattle as well. Small cow-calf operations would benefit, right up through feedlots, etc., because it would create opportunities for everyone. People are really excited about what it would mean for my area.

I will take a minute to speak about some of the opportunities and benefits that CETA would bring to the forestry sector in Canada, which is another example. The EU is actually the world's third largest importer of forest products. In 2015, it accounted for about 14% of global forest product imports, or about $46 billion. While most Canadian forest products already enter the EU duty-free, when CETA comes into force, Canadians will also enjoy quota-free market access. This means Canada would have a preferential trade advantage with the EU that many competitors will not have.

As well, bilateral dialogue on forest products would enhance Canada's ability to influence the development of EU measures, reducing the potential negative impacts of EU measures on Canadian exports, and help ensure continued access for Canadian forest products to the European Union. That would provide Canada with a really unique window into the regulatory development process in the EU. Canada would then be able to raise industry concerns with proposed regulations at a very early stage. That would be of benefit to our forestry producers as well.

We are also looking at a new phytosanitary measures joint management committee that would facilitate discussions between Canadian and EU experts. It would provide a venue for experts to resolve issues impeding trade before they become major problems.

CETA would also establish a framework for co-operation on the full scope of animal health, plant health, and food safety provisions.

Tourism is also something that I focus on greatly. It is pretty important in my riding. We already have great links and ties between Canada and the European Union countries when it comes to tourism. I have often said that tourism breeds trade and trade breeds tourism, so opportunities would be created by those links that already exist. This agreement would help to build on all of those things.

I stand today to show my support for CETA and for the opportunities that it would create, the jobs it would create certainly for small and medium-sized businesses in our country and right on through. I appreciate the opportunity to speak in support of the bill.

Business of the HouseOral Questions

February 9th, 2017 / 3:05 p.m.
See context

Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons and Minister of Small Business and Tourism

Mr. Speaker, we will be continuing today to debate the NDP opposition day motion.

Tomorrow we will call Bill C-31, the Canada-Ukraine free trade agreement, for debate at third reading.

Monday, we will resume third reading debate on Bill C-30, the CETA legislation.

In the coming days we will give priority to Bill C-37 on safe injection sites.

Next Thursday, February 16, shall be an allotted day.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 8th, 2017 / 5:10 p.m.
See context

Conservative

Michael Cooper Conservative St. Albert—Edmonton, AB

Madam Speaker, I rise this evening in strong support of Bill C-30, an act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures.

It has been a long time coming, more than a decade, and there have been so many people who have been involved on the Canadian side in helping shape CETA. Certainly, much credit is owed to Canada's world-class trade negotiators, who for 10 years did much of the heavy lifting. I would be remiss if I did not acknowledge several hon. members in this House who played an instrumental role in concluding CETA.

Much credit is due to the hon. members for Abbotsford and Battlefords—Lloydminster. Under their leadership, Canada reached an agreement in principle with the European Union in 2014.

Credit is also owed to the hon. member for York Centre, who, as Canada's international trade minister, commenced the negotiations with the European Union back in 2009, and did a lot of the early heavy lifting, as did Stockwell Day when he was the minister of international trade.

Credit is owed to our current Minister of Foreign Affairs, who, in her previous portfolio as Minister of International Trade, helped get CETA across the finish line.

Finally, credit is owed to former Prime Minister Stephen Harper. It was Prime Minister Stephen Harper who had a great vision when it came to market liberalization and free trade. For 10 years, Prime Minister Harper presided over a decade of success when it comes to trade, including the signing of 46 historic free trade agreements, CETA being the largest of those free trade agreements. Indeed, CETA is the largest free trade agreement since NAFTA.

Canada is a trading nation. Two-thirds of Canada's GDP is tied to trade. One in five jobs is tied to trade. Since the ratification of the Canada-U.S. free trade agreement in 1988, trade between Canada and the United States has flourished. Each and every day there is some $2 billion in trade occurring between Canada and the United States. Of course, Canada has preferential access to the U.S. market through NAFTA.

With CETA, Canada stands to gain preferential access to the largest economy in the world, the European Union, which is comprised of 28 member states, has a population of more than 500 million people, and boasts an annual economic activity of nearly $20 trillion.

What is more the European Union is the largest importer in the world, which complements Canada's export-driven economy. Canada already does a lot of trade with the European Union. The European Union is Canada's second largest trading partner. Each and every year, Canada does approximately $80 billion to $90 billion in trade with the European Union.

Over the years, Canada's economic ties with the European Union have been strengthened. When we look at exports, for example, we have seen exports to the European market increase from some $17.9 billion in 1997 to $40 billion today. With CETA, Canada's economic and trade ties to the EU promises to grow even stronger. Indeed, an early Canada-EU joint study projected that bilateral trade between Canada and the European Union stands to gain by some 20%, thanks to CETA.

For my province of Alberta, CETA is nothing short of a big win. The European Union is Alberta's fourth largest export destination. It is also Alberta's third largest trading partner. Simply put, what CETA means for Alberta is the elimination of almost all EU tariff lines on Alberta exports destined for the European market.

Under CETA, EU agricultural and agri-food tariff lines will be eliminated, 94% will be eliminated immediately. That number will eventually rise to 95%. With the elimination of those agricultural and agri-food tariff lines, there are tremendous opportunities for Alberta's large and vibrant agricultural and agri-food sectors.

In that regard, the Canadian Agri-Food Trade Alliance projects that Canadian agri-food exports to the European Union will grow by some $1.5 billion, thanks to CETA.

It is not just the agricultural sector that stands to benefit from CETA, frankly it is all sectors of the Canadian and Alberta economies. That is because under CETA, nearly 100% of non-agricultural tariffs will be eliminated. That presents enormous opportunities for many sectors, including the service sector.

The service sector comprises about 54% of Alberta's GDP; 1.5 million Alberta jobs are tied to the service sector. Under CETA, Canadian service suppliers stand to gain the best market access to the European Union compared to the EU's other free trade partners. What that means is new markets and new opportunities for Alberta and Canada's service suppliers.

Investment is important to the Canadian economy, and it is absolutely crucial in connecting Canada to global supply chains. When we look at, for example, investment, Canadian foreign direct investment to the European Union last year equalled $210 billion. That is roughly 21% or 22% of Canadian foreign direct investment directed into the European Union.

What CETA promises investors is to help facilitate investment, both for Canadian investors and European investors. Not only that, CETA means more certainty, more transparency, and more protection for investors.

While there is much to be proud of and much to look forward to with CETA, it is not entirely good news, because when our government left office 15 months ago and passed the torch to the Liberal government, we gave the government, essentially, a free trade agreement with the European Union on a silver platter.

For whatever reason, the Liberals decided that it somehow was not good enough, that they would reopen it. What did that result in?

It resulted in a lesser deal for Canada when the European Union made the commitment to regional governments to put in agricultural safeguards to protect against import surges. When we talk about investment, which is very important and a very important aspect of the CETA agreement, there is also some uncertainty surrounding the investor state settlement dispute process, which will not be part of the provisional coming into force of this agreement, which it was under the deal that was negotiated by our previous Conservative government.

It is not all good news, but that should not take away from the fact that on the whole, CETA is a good deal. In that regard, when we take a step back and look at CETA, and what it means for Canada, one important fact is that it will mean that Canada will have preferential market access to both the United States and the European Union, the two largest economies in the world.

Combined, the United States and the European Union represent about 50% of global GDP. From a strategic standpoint, CETA is a big win relative to the United States, inasmuch as Canada would get first mover advantage in relation to the European Union.

That presents many opportunities for Canada in terms of becoming an investment gateway for European Union investors seeking access to the United States market for NAFTA, and an investment gateway for U.S. investors seeking access to the European Union market.

CETA means more trade, more opportunities for Canadian businesses, and it means more jobs for Canadians. After 10 years of hard work and tough negotiations, Canada is on the cusp of achieving this historic free trade agreement.

For jobs, for growth, and for the long-term prosperity of Canada, let us get it done. Let us get CETA across the finish line. Let us pass Bill C-30.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 8th, 2017 / 5 p.m.
See context

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Madam Speaker, as things stand, the Bloc Québécois will not be supporting Bill C-30 at third reading. It is with heavy hearts that we will vote against it. As everyone knows, we supported the Canada-Europe agreement in principle. The agreement will benefit Quebec in many important ways.

Right now, our neighbour to the south is fairly unpredictable. Some would even say erratic. The election of Donald Trump reminds us that hitching our wagon to the American star is not good enough. We need more than one partner. Europe is perfectly suited to be that partner.

The Minister of Canadian Heritage was absolutely right when she said yesterday that Quebec is the high-tech heart of Canada. We have an international reputation for the cutting-edge sectors such as aeronautics and artificial intelligence that are part of our economy. Thanks to our creative people, we are considered world leaders in sectors such as video games.

Quebec is also at the head of the pack in research and development despite inadequate federal government support. We have the most highly rated shipyard in North America. Quebec is a world leader in green energy production. In contrast to Canada, which is mired in tar, we will emerge victorious from fossil fuel dependency. Quebec's future is bright.

However, developing a leading-edge product is a long and expensive process. Our high-tech companies, our industries of the future, could not possibly be profitable based on domestic markets alone. We need access to the world. Our high-tech sectors depend on it. Our future depends on it.

The Canada-Europe agreement could have been a great agreement. It had the potential to be tailor-made for Quebec, which in some ways already serves as a bridge between North America and Europe. Approximately 40% of the trade between Canada and Europe is done with Quebec. On top of that, about 40% of European investments in Canada are made in my province of Quebec. The strength of the Quebec economy speaks for itself. Our development model is a little different than that in the rest of North America, but this does not frighten European investors. After all, Germany is much more unionized than we are, and it is doing very well, thank you. Europeans do not mind that our employees are more unionized than anywhere else in North America. The exact opposite is true of American investors, who fear the differences in Quebec, in part because Canada is doing a terrible job promoting and selling Quebec's strengths.

Considering the growing protectionism in the United States, Europe will be looking more and more to Quebec to act as a gateway to North America.

Yes, this agreement presented its share of opportunities, but we cannot support just any old thing. We see what happens all around the world when governments fail to support those on the losing side of trade agreements. The Canada-Europe agreement has its share of victims in Quebec, and Ottawa is neglecting to compensate them. Quebec is a trading nation and we have always played our cards right, despite the fact that Quebec is not independent and must continually fight to ensure that Ottawa takes Quebec's differences into account in trade agreements.

Unlike the government, we will not leave our people behind. We have a very stable dairy and cheese sector thanks to supply management. The Canadian government has chosen to favour the western beef industry at the expense of Quebec's cheese producers. The reality of the European market is quite different from that of Quebec's market. In Europe, producers are highly subsidized, which is not the case in Quebec. They can easily sell their cheese here in Quebec below cost. That is not possible in a system where supply meets demand in order to avoid waste and where farmers are ensured stability. More often than not, Quebec's cheese producers are small artisanal businesses, fragile businesses. The Canada-Europe agreement will open the Canadian market, including the Quebec market, to European cheese products, but the reverse is not true. Under WTO rules, the supply management system does not allow us to export our products. The cheese producers are in a lose-lose situation.

European businesses that receive very large subsidies will be able to sell cheese in Quebec at a very low price. That will put tremendous pressure on our producers. Given that Quebec produces half of Canada's cheese and more than 60% of its fine cheeses, Quebec is most affected by this agreement.

The agreement will give 7% of the Canadian market to Europe, specifically 18,000 tons of cheese. Almost all future imports will consist of fine cheeses. I will repeat that Quebec produces over 60% of Canada's fine cheeses and it will be the first victim of the agreement. It is estimated that cheese producers will loose more than $300 million year after year.

The government has never committed to compensating producers for all their losses. In fact, it offered the dairy and cheese industry a total of $350 million over five years. It did not provide any details about the criteria or the allocation. Moreover, it gave no guarantees for the future. All we were asking the government to do was to make a firm commitment to fully compensate producers for their losses. It never wanted to do that.

Quebec's cheese producers are resigned to the fact that the government is implementing the Canada-Europe agreement and is opening up our market to European cheese. Consequently, UPA is requesting financial compensation for the losses that dairy and cheese producers will inevitably incur. The Government of Quebec is also asking for compensation for these producers.

Our cheese producers are concerned, and the Canadian government has not done what is necessary to reassure them by giving them the guarantees they have asked for. Diversifying our markets is a good thing because having more trade partners will make our economy more stable. However, unfortunately, the Government of Canada has once again failed to consider the Quebec market.

Since Quebec is not a country, Canada speaks on its behalf, even though Canada does not understand the Quebec model. Often, the Quebec model is not compatible with the Canadian model. Of course, in those types of situations, the federal government does what is best for the rest of Canada, simply because it is more politically expedient to do so. It is a matter of numbers. That is what is happening again with the Canada-Europe agreement.

If the government had done its homework, it could have proposed innovative solutions, such as allowing artisans and small businesses to get import licences for European cheese. That way, they could have profited from selling European cheese and compensated for any losses incurred because of this agreement. If nothing is done, the large chains will get licences and they will be the ones to profit. That will be even more harmful to our producers. To date, the government has not given any indication that it is sensitive to the plight of our cheese producers.

In short, for all of these reasons, we cannot support this bill. The Bloc Québécois will not abandon Quebec's dairy and cheese producers. We made a firm commitment during the last election. We promised that we would support the Canada-Europe agreement only if the government promised to fully compensate the dairy and cheese industry. Since the government has not made a clear commitment in that regard, we will oppose the bill. The Bloc Québécois keeps its promises, and it condemns the government's insensitivity toward producers. We stand with producers.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 8th, 2017 / 4:45 p.m.
See context

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Madam Speaker, I will be sharing my time with the member for Joliette.

Madam Speaker, thank you for the opportunity to speak here today on this important piece of legislation. It is a privilege to speak in support of the passage of Bill C-30, An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures.

I congratulate the Minister of Foreign Affairs, the minister of the previous government who was involved, as well as the team of negotiators for their diligent and successful work in bringing this international trade agreement to the final steps required for implementation.

There are many reasons to support freer trade. It ensures that consumers, businesses, and government have access to a broader assortment of goods and services. It enhances competition and makes available better quality products at lower prices. In a broader policy context, it provides leadership, with an inclusive, progressive approach to global trade and the development of more sophisticated, effective, and valuable trade agreements. However, most of all, trade leads to economic growth, and economic growth means more jobs, and more jobs means greater opportunities for the middle class and those working hard to join it.

In an uncertain global trading environment, Canada's economy will thrive only if we pursue a market diversification strategy. That strategy requires that we should always be exploring new markets while at the same time improving sales performance in as broad a set of our existing markets as possible. The European Union is the world's second largest market. To illustrate the scale, 500 million Europeans buy more from the rest of the world every year than everything that Canada produces in a year.

When trying to improve sales, the first place to look is whether there is room for improvement with the customers we already have, like Europe, where we have been doing business for 200 years. Europe is already one of Canada's best customers. The European Union is Canada's second largest trading partner, after the United States. In 2015, Canada's merchandise exports to the EU totalled $38 billion.

I represent the electoral district of Kitchener South—Hespeler, in southwestern Ontario. To bring the issue a little closer to home, in 2015 Ontario's merchandise exports to the EU totalled $19.7 billion, more than half of all of Canada's exports to the EU. Ontario and Kitchener South—Hespeler stand to benefit from increased access to the European market.

Once CETA is implemented, Canada will be strategically positioned to become one of a few developed countries with preferential access to the world's two largest markets, which are the European Union and the United States.

I want to bring this a little closer to home. In my riding of Kitchener South—Hespeler, the implementation of CETA stands to benefit advanced manufacturing, which is a big economic driver there. It employs many people with well-paying jobs in my riding.

We are able to achieve that $38-billion level of sales to the EU despite the fact that 75% of what we sell to the EU is currently subject to tariffs and taxes, which the EU collects on Canadian goods at the border, adding to the cost of our goods for Europeans, making our merchandise less price competitive. CETA would make Canadian goods more competitive and give our goods an edge over goods from countries that do not have preferential access to the European Union markets.

On the first day that CETA enters into force, 98% of EU tariff lines on Canadian goods will be duty free, including the most significant Ontario exports: metals and mineral products, manufactured goods, chemicals and plastics. Within seven years that duty-free percentage will rise by one more per cent to 99%. Virtually all manufactured goods Canada exports to Europe will be duty free.

Similarly, for agricultural and agrifood products, 94% of EU tariff lines would become duty free immediately, rising to 95% within seven years.

The European Union is also the world's largest importer of services. Under CETA, Canada's service providers would benefit from the greatest access the EU has ever provided in an agreement. This is particularly important for the Ontario economy, in which services accounted for 77% of the province's total GDP and employed more than 4.9 million Ontarians in 2015. Once Canadian goods or services have been imported into the EU, CETA provides that they must be treated no less favourably than the locally produced products. For example, they cannot be subject to higher taxes, stricter product regulation, or restrictions on sale than for a similar domestic good.

At the end of 2015, Europe was a venue for 21% of foreign direct investment by the Canadian companies, totalling $210 billion; and $242 billion of foreign direct investment in Canada had been made by European companies, representing 31% of all foreign direct investment in Canada.

CETA would provide investors in both Canada and Europe with greater protection while respecting governments' ability to enact legislation and to regulate in accordance with the public interest, such as environmental protection or people's health and safety.

Governments are some of the most substantial purchasers of goods and services. The annual procurement spending by European governments is estimated to be in the area of $3.3 trillion. CETA would provide Canadian firms with the opportunity to bid on contracts to supply their goods and services to European governments at all levels.

Under CETA, skilled Canadian professionals and business people would find it easier to work on a temporary basis in the EU and to move across borders as required; for example to establish branch offices and to provide services related to goods sold.

I stand here today, enthusiastic about the increased trade agreement with CETA. Trade means more growth. Growth means more jobs. More jobs mean greater opportunity for those trying to enter the middle class. CETA would be good for my constituents in Kitchener South—Hespeler, creating jobs and opportunities, it would be good for Ontario, and it would be good for all Canadians.