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

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, we have stood with Ukraine since the start of Russia's illegal invasion and will stand strong when Ukraine is once again free. The introduction of Bill C-57, an act to implement the 2023 free trade agreement between Canada and Ukraine, is an important milestone in the implementation of the modernized Canada-Ukraine free trade agreement. As the first trade agreement Ukraine has signed since the onset of Russia's illegal war, this modernization would result in a comprehensive and progressive agreement ensuring that everyone feels the benefit of trade. Canada is a trading nation and trade accounts for about 65% of the GDP.

Canada is currently the only G7 country to have free trade agreements in force with all other G7 countries. Canada currently has 15 free trade agreements with 51 different countries and covers 61% of the world's GDP. Together, these agreements cover 1.5 billion consumers worldwide.

I have to give a shout-out to our farmers. Though small in number, our farmers in the agri-food sector are the most aggressive in leveraging every free trade agreement we have signed so far. Canada is the fifth-largest exporter of agri-food and seafood in the world and exports to nearly 200 countries. In 2022, Canada exported nearly $92.8 billion in agriculture and food products, including raw materials, agricultural materials, fish and seafood, and processed foods. I wish other sectors in Canada where we have resource advantage would follow our agriculture sector in exporting all across the world. For example, the steel and aluminum sector could look beyond the North American market and export to Europe and to the Indo-Pacific region.

Despite challenges, Canadian trade reached record highs again in 2022. Canada's goods and and services exports increased by 31.2% to reach $940.4 billion in 2022 and the imports advanced 20.5% to reach $936.2 billion.

Even with Russia's illegal and unjustified invasion of Ukraine last year, which caused a horrific humanitarian crisis and sent shock waves around the world, global trade has remained resilient. Global economic growth advanced by 3.5% in 2022, following the 6.3% rebound witnessed in 2021. Canada continues to uphold and promote rules-based trade, providing confidence and predictability for our businesses.

Free trade agreements represent about 80% of Canada's imports and 90% of Canada's exports in 2018. Free trade agreements are essential for several reasons. They promote economic growth by expanding markets and increasing access to a wider consumer base. These agreements reduce tariffs and trade barriers, encouraging the flow of goods and services across borders. This fosters competition and innovation, driving down costs for consumers and enhancing product quality. Moreover, free trade agreements create a framework for resolving trade disputes, ensuring stability and predictability in international trade relations. They also strengthen diplomatic ties between nations, promoting co-operation and peace. In a globalized world, free trade agreements are crucial for spurring economic development, job creation and overall prosperity. Free trade agreements are effective at lowering trade barriers and overall cost of trade.

The original Canada-Ukraine Free Trade Agreement entered into force in August 2017. Upon entry into force, Canada eliminated duties on 99.9% of the imports from Ukraine. Similarly, Ukraine immediately eliminated tariffs on approximately 86% of imports from Canada with the balance of tariff concessions to be implemented over seven years. This will align with the proposed date for the modernized CUFTA's entry into force.

While comprehensive from a trade-in-goods perspective, the 2017 CUFTA did not include services, investment and many other areas. It instead included a clause committing the parties to review and explore expanding the agreement within two years of its entry into force.

On September 22, 2023, we signed the modernized Canada-Ukraine free trade agreement. This would support long-term security, stability and economic development in Ukraine while also ensuring high-quality market access for Canadian businesses participating in Ukraine’s economic recovery. This would create good, middle-class jobs in both of our countries.

The modernized CUFTA would maintain the preferential market access gained in the original FTA for all current Canadian merchandise exports to Ukraine. It would mark a new era in Canada and Ukraine’s economic relationship and be fundamental to the participation of Canadian businesses in Ukraine’s economic reconstruction and recovery from Russia’s illegal and unjustified invasion. The modernized agreement also includes dedicated new chapters on trade in services, investment, temporary entry, telecommunication, financial services, and inclusive trade, and updated chapters on labour, environment, transparency and anti-corruption, among other areas.

The agreement would facilitate enhanced co-operation, improve the ability of parties to resolve trade irritants, promote openness and inclusivity, increase transparency in regulatory matters and help reduce transaction costs for businesses. CUFTA would commit Canada and Ukraine to respecting and promoting internationally recognized labour rights and principles and to effectively enforcing their labour and environment laws.

For the first time in either country's history, the FTA also includes a new dedicated chapter on trade and indigenous peoples, in addition to new chapters on trade and small and medium-sized enterprises and trade and gender. These elements are designed to increase opportunities for traditionally marginalized groups in trade to participate in and benefit from the agreement. When in force, the modernized CUFTA would not only continue to provide preferential market access for merchandise trade but would also establish ambitious new market access terms for services, trade and investment.

Amid the ongoing conflict in Ukraine and the economic devastation it is enduring, a free trade agreement is of paramount importance. Such an agreement can provide a lifeline to Ukraine's economy by opening up new markets, reducing trade barriers and fostering economic growth. It would enable Ukrainian businesses to diversify and expand their exports, reducing reliance on domestic markets that may be severely impacted by the war. Moreover, the free trade agreement would bring in financial aid and investments that are crucial for rebuilding infrastructure and industries. In these challenging times, agreements like this can play a pivotal role in Ukraine's recovery and long-term stability.

I want to emphasize the significance for Canada and other western democracies of nurturing and strengthening relations with Ukraine. Ukraine, with its rich history and resilience, has been a pivotal player in recent geopolitical events. It is crucial for us to maintain economic relations and strategically prepare for post-war co-operation and the economic rebuilding of Ukraine. Our relationship with Ukraine holds immense importance due to shared democratic values and principles. Ukraine has made remarkable progress in its democratic journey since gaining independence in 1991.

By fostering economic ties, Canada can provide critical support for Ukraine's democratic institutions, helping them to thrive and promote stability in the region. Economic relations are the backbone of any thriving nation, and in this context, free trade agreements are indispensable. These agreements can pave the way for increased economic opportunity and prosperity for both Ukraine and its trading partners. They stimulate job growth, foster innovation and boost the economic well-being of both parties involved.

Post-war co-operation is equally vital. Ukraine has endured considerable challenges, particularly in the aftermath of the conflict in the eastern regions. We must plan ahead for the reconstruction and revitalization—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I have been trying to signal to the member. I am sure he will be able to add during questions and comments.

The hon. member for Edmonton West.

[Kelly McCauley, Conservative, Edmonton West, AB]

Madam Speaker, I know my colleague was cut off early, so I would like to give him a couple more minutes in questions and comments to finish up.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, we must plan ahead for the reconstruction and revitalization of the Ukrainian economy. This includes rebuilding infrastructure, fostering entrepreneurship and strengthening the country's agricultural and industrial sectors. By formalizing our commitment to the process, we can ensure a smoother and more efficient implementation.

In order to unfold the economic rebuilding of Ukraine, we must prioritize investment in key sectors, such as energy, technology and agriculture. Collaborative efforts to develop green technologies and renewable sources will contribute to a sustainable and environmentally responsible future.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, one of the things that I think is going to be interesting about this potential is the work we can do together with Ukraine on cybersecurity. I would like to ask the member a question with respect to that.

We have a number of cybersecurity advantages. I look at Coding for Veterans, for example, which is a Canadian company. Through Jeff Musson, who has been working on a Canadian system for cybersecurity using veterans, it is now employing them across the spectrum, in banks and other institutions. Mr. Musson has been able to help some veterans with new employment and make sure that we are improving our cybersecurity.

Does the member think that these types of ventures would be good partnerships for Canada? I know that Coding for Veterans is now opening a new chapter in the United States. In fact, it is going to have a float in the Rose Parade for that, which is quite significant.

I would like my colleague's thoughts on how we can use those types of programs, services and benefits to employ Canadians, employ Ukrainians and make our mark in the world very solidly.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I agree with my colleague on the potential for co-operation on cybersecurity. Cybersecurity, as we all know, is becoming as big a threat as the physical security of borders. Canada has some expertise in cybersecurity and Ukraine also has good expertise in cyber-related knowledge. In fact, we have heard reports of Ukrainians domestically developing technologies and using them to develop drones to counter attacks from Russia. I am sure that expertise that is available in both these countries can join hands to develop new levels of cybersecurity protocols.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, as this is my first chance to comment on Bill C-57, I would put this question to my friend from Nepean.

It is heartening to see some reference to climate in trade agreements, but we know that for over more than a decade, since the creation of the World Trade Organization, the WTO has wrongly put itself above international climate agreements with respect to its authorities. I think this is a welcome opportunity, as President Zelenskyy is a champion of the call for climate action.

Would the hon. member for Nepean support a call to the hon. Minister of Trade to review the relationship between the WTO and international climate agreements in order to get the WTO to back off on interfering in climate action?

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, the collaborative efforts to develop green technologies and renewable sources will contribute to a sustainable and environmentally responsible future. That is what we have said with this agreement. I am sure the trade minister in future negotiations with the WTO will certainly bring up the climate-related issues that can also be part of future WTO agreements.

[John Barlow, Conservative, Foothills, AB]

Madam Speaker, today I rise to speak to Bill C-57. I will be splitting my time with the hon. member for Selkirk—Interlake—Eastman.

With more than a million Canadians who have Ukrainian heritage, I think it is important not only that we have shown our support for Ukraine in the past, but also, certainly, with what is going on with Russia's illegal invasion of Ukraine, that we show it now and into the future. Ukrainian immigrants, more than 100 years ago, literally broke ground and planted the roots for Canada's thriving and vibrant agriculture industry in western Canada, so the connections are deep.

However, when it comes to this agreement in particular, I want to emphasize the importance of due diligence and details. The Liberals have tabled a 600-page trade document that is now being rushed through the House of Commons with little opportunity for stakeholders or parliamentarians to review its intricacies. What chapters have been added? What new implements have been suggested? What are the consequences of those new chapters and new policies? When it comes to the Liberal government and its history with trade agreements, the devil is in the details.

To back up a bit, the Canada-Ukraine Free Trade Agreement began under the Harper Conservative government. It came into force in August 2017. It eliminated tariffs on 86% of Canadian products and exports to Ukraine. However, the modernization of this agreement is important, and I want to emphasize the fact that we want to see the details and take time to review the wording of the new update. The reason I want to be so adamant about that is just simply that, as I said, unfortunately the Liberal government has a history of failures when it comes negotiating or renegotiating trade agreements. We can go back to the very early days of the Liberal government when we renegotiated NAFTA or the Canada-U.S.-Mexico Trade Agreement, CUSMA. It was clear that the Liberals' goal was to simply get a deal done, tick a box and have a photo-op.

The Prime Minister and the Deputy Prime Minister sacrificed a number of critical Canadian industries with trade discrepancies that Canadian industries are still dealing with. Perhaps nowhere were those implications more profound than within Canadian agriculture. The CUSMA agreement impacted a number of agriculture industries, including dairy, where Canada relinquished its ability to export a number of important dairy products, like protein concentrate and skim milk powder. We also added additional access for American products into Canada.

The most glaring error, though perhaps it was not an error but was done on purpose, is the fact that the Liberal government relinquished Canada's trade sovereignty in signing the new CUSMA agreement. That is right. If Canada wants to sign a new trade agreement with any non-market country, we have to get permission or approval from the United States. No G7 country had relinquished that kind of authority to a trading partner. That had never happened, but it is exactly what happened with the Liberals' agreement with CUSMA. Our manufacturers and industry are still dealing with the implications of this agreement, with higher tariffs on aluminum and softwood lumber, which still have not been resolved years later.

There are clearly some important reasons Canadian manufacturers and Canadian industry do not trust the Liberal government when it comes to trade agreements and that it will base those agreements and negotiations on sound economics and the importance of fair trade. It seems, historically, that the Liberals have been basing their trade negotiations on Liberal ideology and virtue signalling. That is not the way trade negotiations should be going.

As recently as last year, the Liberals implemented a Ukraine goods remission order so Ukrainian products, like chicken for example, would be getting quota-free and tariff-free access into Canada. They signed this remission agreement with zero consultation with the stakeholders that would be impacted: Chicken Farmers of Canada, Egg Farmers of Canada and Canadian Poultry and Egg Processors Council. None of them knew this remission order was being signed. The Liberals signed this at a time when avian flu outbreaks around the world, and certainly here in Canada, were devastating the industry. We had these groups at the agriculture committee letting Finance Canada and Global Affairs know about the impacts of the agreement and saying to please not renew the remission order when it came due last spring.

The Liberal government ignored all that stakeholder consultation at committee and renewed that remission order anyway last spring. This has put our biosecurity and our food security at risk as, again, outbreaks of avian influenza were happening around the world and certainly around Ukraine as well.

Last year, we looked at the Liberal-NDP government's decision to impose a 35% tariff on fertilizer coming from Russia and Belarus. Again, there was zero consultation with Canadian producers, especially those farmers in Ontario and eastern Canada who rely almost totally on that fertilizer.

Now, I understand what the government was trying to do: It was trying to punish Putin for his illegal invasion of Ukraine, but Putin was not paying those tariffs. Canadian farmers paid more than $34 million in tariffs just to get the fertilizer into Canada to plant their crops this spring. No other G7 country put such a tariff on fertilizer. None of our allies, including the United States, did this. They understood the importance of their farmers being competitive and the impact the tariff would have on commodity prices, not only here at home but also around the world.

Again, despite every stakeholder telling the government to lift that tariff to ensure that we are competitive and that we have access to affordable fertilizer, the Liberals have ignored them. In fact, when we asked the government on many occasions why it implemented this tariff when none of our G7 allies did, the answer was, “I didn't even know we bought fertilizer from Russia and Belarus”. This just shows why there is such frustration from our stakeholders and our industry. When it comes to the Liberals negotiating trade agreements, they are not consulting. They are plowing ahead with these agreements without doing their due diligence. As much as we support a free trade agreement with Ukraine, we want to make sure that we have the time to review the details within this agreement.

Most recently, the Liberal-NDP government has fast-tracked the United Kingdom to join the trans-Pacific partnership, the CPTPP, again without consulting with Canadian ranchers and pork producers. They desperately wanted some major gaps within the trade agreement with CETA and Canada to be addressed for the U.K. to have accession to the CPTPP.

The numbers are stark. Last year, the United Kingdom imported about 4,000 tonnes of beef, worth $33 million, into Canada. Do members know how much beef Canada exported into the United Kingdom? It was zero; it was not so much as a burger or a steak. Canada's pork industry is facing a very similar trajectory, as the United Kingdom has put in non-tariff trade barriers to block Canadian imports. Not once has the Liberal government stood up to defend Canadian producers.

Free trade must be fair trade, and we are asking the Liberal government to do a side letter, a bilateral, with the U.K. to address this trade discrepancy. It has yet to do that. This is a massive gap, and Canadian producers are the ones paying the price for the Liberal government getting photo ops and ticking a box when it comes to its agenda, without thinking about the consequences for Canadian industries, manufacturers and producers. One thing is very clear after eight years under the Prime Minister: He is failing Canadian agriculture and our industries on the global stage, and our valuable industries are paying the price.

The Conservative Party supports free trade, and we are very proud of the 40 free trade agreements we signed under Prime Minister Harper. However, those agreements benefited Canadian industry and Canadian workers; they did not come at the expense of our hard-working producers.

We want to clearly and carefully review this trade deal and consult Canadian stakeholders to ensure that we reach a free trade agreement with Ukraine. It should be a free and fair trade agreement, not just ticking a box, that will preserve and enhance Canadian industries, including Canadian agriculture, and not follow the same failed policies and failed direction that the Prime Minister has become very famous for.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I completely disagree with a good part of the member's speech.

Let us talk about facts. He just finished saying “the 43 agreements” under Stephen Harper that they signed off on. That is just not true. Because the member stands up inside the chamber and proclaims something, that does not change history. The history is that it was not Stephen Harper who signed the 40-plus agreements. The member is trying to take credit for those agreements, yet he is being critical of the agreements we signed off on.

The bottom line is that no government in the history of Canada has signed off on as many trade agreements. That directly has an impact on the number of middle-class jobs that have been created, somewhere around a million-plus, prepandemic, and the trade agreements did contribute to that.

I wonder if he could—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member for Foothills.

[John Barlow, Conservative, Foothills, AB]

Madam Speaker, I appreciate the member's speech but just because he gets up and says it does not mean it is true.

In fact, by giving the United Kingdom accession to the CPTPP, an agreement that was negotiated by the Harper government, signed off, barely, almost failed, as a result of the Liberal Prime Minister, they are going to deteriorate this agreement by bringing in non-science, non-tariff trade barrier implements into the CPTPP from CETA because of this, by putting the United Kingdom into this agreement without addressing these issues first.

The CPTPP works because it is science-based. Yes, the Liberals also signed CETA, which has been probably the worst trade agreement we have had as a result of their playing with the end result, same with CUSMA.

Under Harper, we signed trade agreements that worked for Canada. Under this government, they are failing Canada.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, I wanted to pay my respects to my hon. colleague from Foothills.

He demonstrates, without a shadow of the doubt, with real clarity, how important it is for our farmers to have the free facility to address some issues, compared to what they have in our counterpart, in America, or somewhere else, with fertilizer, just to give one example.

How could Canada have helped Ukraine and the world if this government had not shut down 15 projects of LNG that we had eight years ago? None of them have been accomplished under the watch of this Liberal government.

[John Barlow, Conservative, Foothills, AB]

Madam Speaker, this is probably the biggest impact we could have had on Ukraine, barring anything else with agriculture or free trade. When two of our important allies, two of the most important economies in the world, come to Canada asking for Canadian LNG so that they can stop funding Putin's war machine, our Prime Minister turns his back and says that he is sorry, that there is no business case for that.

What has happened? They are still funding Putin's war machine and then they have gone to sign LNG agreements with Qatar, which certainly does not have the environmental standards, the humans rights standards or the labour standards that Canadian energy would have.

We could have shown that we have a critical role to play on the global stage, and we failed because of this Prime Minister.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I have been asking a number of questions related to this on cybersecurity. I have mentioned Coding for Veterans, where we have veterans from Canada who are getting training to do coding for cybersecurity.

I would like the member to maybe talk a little bit about the potential for that, because Ukraine has been under a lot of cybersecurity threats. Perhaps this is also an opportunity to do security and economic development. I think those things are really underestimated in terms of potential but could be really good opportunities for us in Ukraine.