Bill C-57

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine

This enactment implements the Canada–Ukraine Free Trade Agreement, done at Ottawa on September 22, 2023.
Among other things, the enactment
(a) sets out rules of interpretation;
(b) specifies that no recourse is to be taken on the basis of sections 9 to 15 or any order made under those sections, or on the basis of the provisions of that Agreement, without the consent of the Attorney General of Canada;
(c) approves that Agreement;
(d) provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of that Agreement;
(e) gives the Governor in Council the power to make orders in accordance with that Agreement;
(f) requires the Minister for International Trade to ensure that Canadian companies operating in Ukraine comply with the principles and guidelines referred to in the Agreement; and
(g) amends certain Acts to give effect to Canada’s obligations under that Agreement.
Finally, the enactment repeals the Canada–Ukraine Free Trade Agreement Implementation Act that was enacted in 2017.

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, our party supports having clear, rule-based dispute resolution mechanisms that allow for certainty for businesses and that contribute to felicitous relationships among allies.

The member mentioned a number of sectors that are very important. Of course, there is Ukraine's agriculture sector. Canada has an important agriculture sector as well. One of the things now being explored at the foreign affairs committee, I know, is a study that Conservatives have put forward on looking at the food and fuel security implications of Russia's invasion of Ukraine. Ukrainian farmers play a critical role. We know that the World Food Programme has sourced significantly from Ukraine in the past, and the disruption to the flow of food from Ukraine has significant implications for people in parts of Africa that rely on imports from Ukraine. There are opportunities for more collaboration on cybersecurity between different parts of our agricultural sectors; on energy, as I spoke about; and in many other areas.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, the hon. member for Sherwood Park—Fort Saskatchewan's hon. colleague, the member for Abbotsford, spoke very eloquently just a few minutes ago about the Conservative Party's mantra for free trade, CPTPP, CETA and some other agreements that were signed. However, during the Brexit debate, there were many members across the aisle who were pro-Brexit, who were for tearing up trade agreements and for the U.K.'s leaving. We have seen the results of that.

Here we are debating, and we virtually have unanimity for, an expanded or improved Canada-Ukraine free trade agreement. Would the hon. member not agree that anyone who really thought about Brexit was really mistaken about the results, because we have seen the results in the British economy?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, respectfully to my hon. colleague, that is pretty far afield. I have to say that I have many thoughts on the Spanish-Dutch trading relationship in the 16th century as well. I do think some mistakes were made at that time.

I will just say, with a little bit more seriousness, that there are trade agreements and there are also political partnerships that nations pursue. Those questions about the kind of political relationships that nations wish to have with each other, I think, are proper, legitimate debates for the people in those countries to have among themselves and to come to their own conclusions.

[Kristina Michaud, Bloc, Avignon—La Mitis—Matane—Matapédia, QC]

Mr. Speaker, my colleague spoke about the cost of inaction and the importance of supporting Ukraine through its current situation. I agree. Given the rising cost of living, some of my constituents, who also want what is best for people in other parts of the world, wonder why the taxes they pay are often sent to support other communities in other countries. While I think that doing so is entirely commendable, I can understand why they are wondering this. At a time when we are finding it hard to manage some of our own issues, why are we not investing more here, at home?

I know that my colleague is very interested in international relations. He knows how important it is to support other communities in need around the world. How would he answer a question like that from a constituent?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, my answer would be that investments in international peace and security, if we make the comparison to domestic life, are like the investments that individuals make in an alarm system. When someone invests in peace and security in protecting themselves, it gives them greater peace of mind and is a way of protecting them from possible threats that may come. The threats may never manifest themselves, but those are still often wise investments to make.

In the case of supporting Ukraine, we are talking about a threat that will potentially come to us and to our other partners in NATO, but Ukraine is on the front lines of that threat. Ukraine stands between us and those kinds of threats. Therefore, investments in international peace and security are not charity; they are, in fact, very much in our own interest. There are several conversations we could have about things that are more in the category of pure charity, but this is clearly a case of our investing in our own collective security with like-minded countries, with Ukraine being on the front line of that battle.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, I want to thank the member for Abbotsford for the leadership he has shown on this file, going back to 2014-15 when he was minister of trade. I had the pleasure of accompanying him on a trade mission to Ukraine when we started this whole process.

As the member for Sherwood Park—Fort Saskatchewan mentioned, he has been a very strong advocate for Ukraine and its ability to defend itself against the Russian invasion and the atrocities that Putin and his proxies are committing in Ukraine. In the trade agreement, the Liberals would be sneaking in one of their ideological platform ideas on carbon taxing and carbon pricing.

Does the member for Sherwood Park—Fort Saskatchewan believe that it is important to put carbon pricing on energy? Every time I have talked to Ukrainians whenever I have been in Ukraine, they want more of our energy and more of our technologies so they can produce more energy there to replace the Russian oil and gas they have to use, which fund Putin's war machine.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, I thank my colleague for his leadership on this critical issue, going back long before I was even in this place.

When I talk to politicians in Europe about energy, they recognize the urgency of the situation. They are looking for all of the above. They want more Canadian energy. They want more energy from other sources. They are in an urgent crunch and they need energy from all sources. The Liberal government continues to put its ideological head in the sand and ignore that situation of urgency.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, it is great to rise in the House on this lovely Monday afternoon. It is a nice day outside. I wish to say that I will be splitting my time with my friend and hon. colleague, the member for Sherbrooke, which is a beautiful part of the country in Quebec.

We are speaking about Bill C-57, the Canada-Ukraine free trade agreement. We all know that we have Ukraine's back and the backs of the Ukrainian people who are fighting for their freedom, security and democracy. We know their fight is our fight. We know they are lauding their homeland, and they have to win. There is no choice in this matter.

I have heard some members speak quite eloquently on what faces us. Ukraine must win this battle versus tyranny and the authoritarian dictatorship that not only has unjustifiably and illegally invaded Ukraine and its territorial sovereignty, but also did so in 2014 in another part of Ukraine, Crimea and the surrounding areas. We know that Russia is involved in the Middle East in destabilizing countries. It is fighting against democracy while we are fighting for democracy and human rights. We on all sides of the aisle, along with all Canadians from coast to coast to coast, need to stand and continue to stand with Ukraine and the Ukrainian people for their sovereignty and for the freedom of all Ukrainian people. We know of the atrocities that have been committed by the Russian forces against Ukrainian women, soldiers and the Ukrainian people, and those folks need to be held accountable. We know that Ukraine will have to be rebuilt in many areas.

We know that the trade and investment ties that exist between Canada and Ukraine must continue to strengthen. Bill C-57 would be another step in this process. We know that Canada is a trading nation, whether with CUSMA, the renegotiated free trade agreement with the United States and Mexico, or CETA with the European Union. I hope one day, when we are speaking about CETA and the EU, that Ukraine will be a full-fledged member of the European Union. I know that on June 23, 2022, the European Parliament adopted a resolution calling for candidate status for Ukraine regarding its EU membership in that process. Therefore, let us look forward to brighter days, as the brave Ukrainian soldiers continue their fight against tyranny.

We know that Canada benefits from free trade agreements and that its trading partners benefit, whether from the Canada-South Korea Free Trade Agreement, the Canada-Israel Free Trade Agreement or the Canada-Taiwan investment accord. We know that with Europe, for example, we attained in 2021 a record high growth of $100 billion in trade. This will be critical as we move forward with Ukraine. The revision of the trade deal with Ukraine, which, to my understanding, is supported by all sides, would help not only the Canadian economy but also the Ukrainian economy.

Canada will be there not only today but also tomorrow to help rebuild Ukraine with our partners who believe in democracy, human rights and the freedoms of individuals, unlike many other countries in the world. It is a sad state of affairs when there are so many countries run by authoritarian governments that are fighting against that and rolling back rights, whether it be the Islamic regime in Iran against its citizens, the Hamas terrorist organization and proxy for Iran in the world doing what it did on October 7 with the slaughter of over 1,400 Israeli and foreign nationals, or other countries as well.

In response to the criticism of international trade that has led to rising protectionism and a retreat from the international rules-based order, Canada is committed to creating more opportunities for people to engage in and benefit from trade. As such, as part of the Government of Canada's trade diversification strategy, we are pursuing an inclusive approach to trade that seeks to ensure that more Canadians have access to the benefits and opportunities that flow from international trade and investment. This includes Canadians who have traditionally been under-represented in international trade and investment, including women, SMEs and indigenous peoples. This means seeking trade policies that are sustainable, transparent and inclusive.

Today, I am proud to announce that the modernized Canada-Ukraine free trade agreement, or CUFTA, reaches these high standards with respect to inclusive trade with specific chapters on trade and gender, trade and SMEs and trade and indigenous peoples.

We know there are well over a million Ukrainian Canadians who have helped build this beautiful country. Their contributions are so richly valued. We know there are almost 200,000 Ukrainians who have come over in the last two or three years because of the war.

We know they are working hard to build this blessed country we call home, Canada. Hopefully some of them will return to Ukraine to help rebuild that country, in the parts of the country that have been impacted, and others will stay. God bless them all. Their contributions are noted from coast to coast to coast.

Allow me to give an overview of the new chapters of the Canada-Ukraine free trade agreement. The chapter on trade and gender aims to promote gender equality and remove barriers to trade for women in all their diversity and facilitate their improved access to the benefits and opportunities of CUFTA.

For Canada, advancing women's equality could add up to $150 billion to our GDP by 2026. To ensure that the benefits of free trade can be maximized and widely shared, it is important, therefore, for Canada to consider gender-related issues when developing trade policy and negotiating FTAs. As such, this chapter aims to empower more women to participate in trade and benefit from the modernized free trade deal upon its entry into force.

To achieve these goals, the trade and gender chapter includes an article committing parties to enforce, and not weaken, their domestic laws and protections afforded to women in order to attract trade and investment. It also includes a commitment to undertake co-operation activities, as well as the establishment of a committee to facilitate the chapter's implementation.

Additionally, and responding to stakeholder demands to see the enforceability of the trade and gender chapter, Canada and Ukraine delivered by replicating the dispute settlement arrangement found in the Canada-Israel FTA trade and gender chapter. This sends an important signal to Canadian stakeholders that Canada is committed to advancing gender equality and women's economic empowerment at home and abroad.

Another new chapter concluded under the CUFTA modernization is the chapter on trade and SMEs that seeks to enhance their ability to participate in and benefit from the opportunities created by the agreement.

Over the 2015-19 period, SMEs contribution to Canada's GDP was, on average, 53.2% in the goods-producing sector and 51.8% in the services-producing sector. Additionally, in 2021, small- and medium-sized businesses composed, respectively, nearly 98% and 1.9% of the 1.21 million employer businesses in Canada. Based on this recognition of the importance of SMEs to the economy, both Canada and Ukraine are committed to working together to remove barriers so that SMEs may be better placed to participate in and benefit from international trade and investment.

It is very important to note that it is not just trade and investment that is really important in this deal. It is also the expertise that Canadian business have here at home that would be utilized by Ukrainian businesses in rebuilding certain areas of Ukraine that have been impacted by war, in strengthening their standard of living and in allowing Ukrainian SMEs to proactively grow their trade.

As economists say, international trade tends to lift all boats. We have seen it throughout the world in the last decades, how trade has literally lifted hundreds of millions, if not billions, of people out of poverty, improving standards of living, not only here at home but abroad.

I wish to end with the belief that we will have unanimous support in implementing this bill. There are over a million Ukrainians working hard today in Canada, making sure that their kids have brighter futures. They are looking to Parliament to pass good legislation, like all Canadians are.

Bill C-57, the Canada-Ukraine free trade agreement implementation act, 2023, is a good piece of legislation. Much as other members have stated, Canada is an open economy. We are a trading people. We are competitive folks who compete in a global economy. Our workers are the best in the world. They are skilled, they are hungry, but they are also folks who would like to trade with other like-minded countries in the world. Ukraine is a like-minded partner.

Ukraine must win this war against Russia. There is no question about that. We must always be there for them. I believe we have dedicated almost $10 billion of resources to Ukraine in their fight against Russia. As a government, we must continue to stand together with Ukraine against Russia, no ifs, ands or buts, to ensure that victory, to ensure that democracy always wins over the evil that Ukraine has faced for the last two years in the unjustified, illegal, atrocious Russian aggression that Ukrainian soldiers are fighting against today.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, I thank my colleague for his speech on the need to provide more support to Ukraine.

The member talked about the military aid we provide for Ukraine. I can tell members that when I was in Ukraine earlier this summer, they were very grateful for the support that Canada has given them. However, as Conservatives, we have been advocating for quite some time that the Government of Canada actually provide more military aid to Ukraine, including more weapons.

One of the things that we are about to be decommissioning here in Canada, and some have already been sent off to the scrap heap, is a number of our older armoured vehicles. Armatec, in London, Ontario, has offered to take those old vehicles, refurbish them and send them off to Ukraine to help them win this war. We know that the M113 track LAVs that Canada has would be very welcome along with our old Bisons and Coyotes that are in the process of being retired.

The old M113s that were sent from the United States and Australia have actually helped liberate Kharkiv, and we know that in this fight today, the more Ukrainians are being put in armed vehicles, the more they can push back and the more they can win.

I would ask the member if he would support having Armatec refurbish old, outdated LAVs that the Government of Canada is retiring from the Canadian Armed Forces.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I will say that whatever we can send in resources to the brave Ukrainian soldiers on the front lines fighting the Russian regime's illegal invasion, we need to assist in. I am not an expert on military equipment or supplies, but if the Canadian defence forces and the Minister of National Defence deem that the equipment identified would be useful and available for the Ukrainian forces, then I am a believer that we need to do everything we can to support the Ukrainian soldiers on the front lines fighting for democracy, human rights and everything we believe in as a country.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, my concern is that while we support Ukraine and we want to make sure that we can deal with the horrific war that has gone on, until we deal with the massive destruction of homes, the massive destruction of the environment, there is not going to be much of a trade going on, and we are now coming into the second winter of a brutal war.

I want to follow up on what my Conservative colleague asked about on the light armoured vehicles. We know that General Dynamics in London can produce them, which is an advantage that Canada has. We cannot compete militarily with some of our allies, but light armoured vehicles from General Dynamics could do the job. Is this government willing to augment the supply force that it has already sent to Ukraine in order to hold the Russians back in what is going to be a very hard winter coming?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, as the chair of the Canada-Europe Parliamentary Association, last week, I was at the Council of Europe meetings. We did have a bilateral meeting with Ukraine.

Yes, winter is coming, the leaves are falling off the trees and the Ukrainian soldiers are going to be more exposed to the air superiority that the Russians do enjoy right now. As I said to the hon. colleague in the prior question, we as Canadians should be doing everything we can to support the brave men and women fighting for Ukraine against Russia. They are fighting for the values we deeply believe in. If it is deemed that there is equipment that can help them, then I am a hawk on this, and we should assist them in all possible manners.

[The Deputy Speaker, Conservative, Chris d'Entremont]

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Sherwood Park—Fort Saskatchewan, Public Safety; the hon. member for Leeds—Grenville—Thousand Islands and Rideau Lakes, Democratic Institutions; and the hon. member for Port Moody—Coquitlam, Housing.

[Élisabeth Brière, Liberal, Parliamentary Secretary to the Minister of Families]

Mr. Speaker, it is my honour to rise in the House today in support of the legislation to implement the modernized Canada-Ukraine free trade agreement and present to the House important new additions that were negotiated in the area of services.

Nine specific new chapters and nine updated chapters of the 2017 Canada-Ukraine Free Trade Agreement are the result of extensive negotiations as part of our efforts to bring the agreement up to date and make it ambitious, exhaustive and inclusive.

Among these chapters, five of them concern the general area of services, with new or expanded chapters on cross-border trade in services, temporary entry for business persons, financial services, telecommunications and digital trade, formerly e-commerce.

These new commitments will allow Canadian service companies, which accounted for 78.8% of employers in 2021, mostly SMEs, to operate overseas without any additional barriers and with easier and more predictable access to the Ukrainian market.

Now, if I may, I will provide a more detailed overview of these chapters, which would make this agreement a positive addition for Canadian firms and a model agreement for Ukraine to demonstrate its ability to reach a modern, ambitious and high standard agreement with partners all around the world.

Canada and Ukraine have negotiated a modern and comprehensive chapter on cross-border trade in services, including substantive obligations consistent with Canada's existing trade agreements. This FTA chapter would provide market access, non-discriminatory treatment, transparency and predictability for both Canadian and Ukrainian service suppliers.

Additionally, this chapter includes provisions on the recognition of professional qualifications seeking to facilitate trade in professional services, which is strategically important for both parties in a knowledge-based and digital economy.

The chapter on temporary entry for business persons is another new chapter, which supports economic opportunities for Canadians, including permanent residents, by making it easier for business persons to move between the two countries as well as encouraging highly skilled workers to benefit from jobs in both markets.

The temporary entry provisions remove barriers such as economic need assessments and digital quotas and establish new reciprocal commitments in terms of market access for Canadian and Ukrainian business persons who meet certain conditions.

This includes new access for Canadian investors to enter and stay in Ukraine to establish, develop or administer an investment, with a duration of stay of up to one year, thereby facilitating business opportunities and the growth of partnerships. The chapter also includes commitments that would ensure accompanying spouses of Canadian investors, intra-corporate transferees or highly skilled professionals would also be able to enter Ukraine and work.

For Canada, this chapter offers options and benefits to Canadian employers, who will have greater access to highly skilled Ukrainian talent on a temporary basis in a wide range of professions, such as engineering, programming, development and architecture.

As part of the CUFTA modernization, Canada also negotiated a comprehensive and progressive stand-alone financial services chapter with Ukraine that would provide a level playing field through a framework of rules tailored to the unique nature of the financial sector. This includes ambitious commitments for financial services through legally binding rights and obligations while maintaining flexibility for regulators to preserve the integrity and stability of the financial system.

The chapter on telecommunications offers more legal certainty to telecommunications service providers operating or investing in the Ukrainian and Canadian markets.

This chapter also facilitates trade, including e-commerce, in a broader sense by making sure that companies in fields other than telecommunications can access and use telecom networks and services.

Lastly, the digital trade chapter includes updated language previously contained within the CUFTA e-commerce chapter, ensuring that customs duties would not be applied to digital products transmitted electronically. This modernized chapter also contains ambitious commitments to facilitate the use of digital trade. This includes protections against unnecessary requirements to store data locally or provide access to proprietary software source code, as well as commitments to facilitate public access and use of open government information to support economic development, competitiveness and innovation.

Additionally, commitments regarding the protection of individuals online have been included, which would ensure frameworks are in place to protect personal information and address online fraudulent and deceptive commercial practices in order to build trust and confidence to engage in digital trade.

I am also proud to announce that this chapter contains a provision that forbids government authorities from using personal data collected from private organizations in a manner that constitutes targeted discrimination on prohibited grounds. This is the first Canadian free trade agreement to contain such a provision.

With increasing concerns about how governments are using personal data, this commitment is intended to improve user confidence in the digital economy.

The new and updated chapters present a great opportunity to build a strong foundation that is in line with the new realities of modern trade that Canada and Ukraine can build on to strengthen their trading relationship. I hope that all members of this House will support the legislative amendments contained in Bill C-57 that will bring into force the new Canada-Ukraine Free Trade Agreement.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, for 607 days now we have witnessed Ukraine valiantly fight back against the Russian invasion. For 607 days, we have watched Russia carry out mass atrocities, and we know that Vladimir Putin wants to commit a genocide against the people of Ukraine.

One of the things that Ukraine is begging for is Canadian energy to make sure that Ukrainians are able to survive another cold winter since this war has started and not be dependent upon natural gas and oil from Russia. Will the member commit today to making sure we can send Canadian ethical energy, our liquefied natural gas and oil, to Ukraine so that it can have a comfortable winter and not be putting money into the fuel tank of Putin's war machine?