House of Commons Hansard #116 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was korea.

Topics

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

12:55 p.m.

Conservative

Joyce Bateman Conservative Winnipeg South Centre, MB

Mr. Speaker, I truly do support my hon. colleague opposite and the NDP's support for the bill because it is these kinds of free trade agreements that are going to make an enormous difference for the prosperity of our children, our communities and Canadian workers or business people. It is so important that we support this.

We have to level the playing field, because we have to catch up in this very important Asian market.

The reciprocity the member referred to is absolutely entrenched in the bill. I specifically compliment the officials who worked with the government on this incredible trade opportunity. This is state of the art. It is a very ambitious and comprehensive agreement and there is reciprocity in every facet. This is about modern commerce.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

Mr. Speaker, our government understands the importance of trade to our economy. We know that trade is responsible for one out of every five jobs in Canada and accounts for 64% of our country's annual income.

Trade is the cornerstone of the Canadian economy, and Canada's prosperity requires expansion beyond our borders and into new markets for economic opportunities that grow Canada's exports and investments. This is why our Conservative government is delivering on its commitment in the Speech from the Throne to expand trade with Asia.

I am pleased to speak today on the importance of the Canada-Korea free trade agreement, or CKFTA. This landmark achievement, Canada's first free trade agreement in the Asia-Pacific region, is a game changer. It will provide new access for Canadian businesses and workers to South Korea, which is the fourth largest economy in Asia with an annual GDP of $1.3 trillion and a high-growth market of 50 million potential customers.

South Korea is a major economic player in its own right and a key market for Canada. It is Canada's seventh largest overall merchandise trading partner, and third largest in Asia after China and Japan. Two-way trade between Canada and South Korea totalled more than $10.8 billion in 2013.

Canadians recognize Asia's growing economic strength and believe that closer economic ties with Asia are necessary for Canada's future prosperity. The Canada-Korea free trade agreement is projected to add thousands of Canadian jobs to the economy, increase Canadian exports to South Korea by 32% and boost Canada's economy by $1.7 billion.

South Korea also serves as a gateway for Canadian businesses and workers to the Asia-Pacific region. As a result of this agreement, Canadian companies will be able to use South Korea as a key base for expanding their presence in Asia and to access its regional and global supply chains. This Canada-Korea free trade agreement creates a mechanism to increase the already substantial people-to-people connections shared by South Koreans and Canadians.

I would like to discuss in some detail the concrete and real benefits that will be available to Canadian businesses, from coast to coast to coast, after the implementation of this agreement. Unlike the NDP who loves to oppose our trade agreements, our Conservative government recognizes that protectionist restrictions stifle our exporters and undermine Canada's competitiveness, which in turn adversely affects middle-class Canadian families.

The CKFTA will cover virtually all aspects of commercial activities between Canada and South Korea, including trade in goods and services, investment, government procurement, non-tariff barriers, environment and labour co-operation, and other areas of economic activity. The agreement increases potential market access for Canadian exporters and investors from every province and territory, and it would remove non-tariff barriers that hinder trade.

Additionally, under this agreement, Canada has secured greater opportunities related to temporary entry for business persons than those enjoyed by South Korea's other free trade agreement partners. This will provide an advantage to Canadian business persons needing to move between the two countries to conduct business.

Investment is a key component of the bilateral economic relationship between Canada and South Korea. It is an area that has great potential for growth, which is assisted by the increased certainty and transparency created by the CKFTA. Canada will be able to attract more investments, such as the 2013 opening of Samsung's first Canadian research and development centre in Vancouver, which focuses on the development of Samsung's enterprise security solutions and provides technical support for the company's diverse customer base. This centre already employs 60 people and more employment is expected.

There will also be many exciting opportunities in agriculture, fish and seafood, forestry products and the industrial goods sector. South Korea imports 70% of its food, representing a $20 billion market per year. However, Canadian agricultural exports to South Korea currently face high tariffs, which average over 50%. This places Canadian exporters at a serious disadvantage with their competitors, notably the United States, when trying to access the lucrative South Korean market.

With this agreement, Canadian businesses like Conestoga Meat Packers, a co-operative of 150 southern Ontario family farmers who have been producing premium-quality fresh pork for more than 30 years, will have the opportunity to be on equal footing with their competitors in the South Korean market. The elimination of tariffs on fresh, chilled, and frozen pork will give companies like Conestoga the opportunity for continued company growth, an integral component of their business plans. The CKFTA would provide Prince Edward Island-based Cavendish Farms with a golden opportunity to grow their presence in the South Korean market and to expand in the Asia-Pacific region as a whole.

While current South Korean duties range from 18% to a staggering 304% for potato products, the CKFTA would provide tariff elimination on most potato products, thereby helping to level the playing field with South Korea's other FTA partners. This means jobs and opportunities for Canadians.

On fish and seafood products, which are the economic mainstay of approximately 1,500 communities in rural and coastal Canada, the CKFTA contains an ambitious outcome that would eliminate 100% of South Korean tariffs once the agreement is fully implemented. Companies like Nova Scotia-based Clearwater Seafoods, North America's largest vertically integrated harvester, processor, and distributor of premium shellfish, will benefit from this strong CKFTA outcome.

In fact, we are already getting a taste of what increased seafood trade with South Korea will look like. Shortly after the announcement of the conclusion of negotiations on the CKFTA, Korean Air Cargo launched weekly service to South Korea from Halifax and is expected to transport a minimum of 40,000 kilograms of live lobster over the course of the summer. This would benefit Atlantic Canadians, as it would help to develop the South Korean market for fresh Canadian lobsters and provide a gateway for exports to other Asian markets.

South Korea imports $500 billion worth of industrial goods every year, including aerospace products. Canada's aerospace industry, which consistently ranks as one of Canada's top manufacturing sectors, will benefit from the immediate elimination of tariffs on turbo propellers, turbojet and propeller parts, and ground-flying training equipment. Tariffs on all aerospace goods would be eliminated upon implementation.

For Montreal-based CAE, a global leader in modelling, simulation, and training for civil aviation and defence, this agreement is very welcome news. CAE employs approximately 8,000 people in close to 30 countries and offers civil aviation and military and helicopter training services worldwide, including in South Korea. CAE is a prime example of Canadian companies that have recognized the value of South Korea as a regional base to serve clients in the Asian market. This type of investment would only increase once the CKFTA is implemented.

As we can see, the benefits to Canada and Canadians from this agreement are robust, multi-sectoral, and significant. Being well positioned in the Asia-Pacific region is critical to Canada's prosperity, and this agreement is a major step in realizing the untapped potential in Asia.

Of course, it is shameful that this past summer the NDP trade critic protested alongside well-known radical anti-trade activists, such as The Council of Canadians and the Canadian Centre for Policy Alternatives, at an anti-trade protest. Despite all the evidence that trade creates jobs, economic growth, and economic security for hard-working Canadian families, the NDP, together with its professional activist group allies, is ideologically opposed to trade.

Just as bad are the Liberals, who, during their 13 long years in government, completely neglected trade and completed only three free trade agreements, compared to our 43 free trade agreements. The Liberals took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets.

To close, I am happy to hear that both parties have now decided to support this bill. I am very optimistic that they have learned from the past and that they will continue to support our trade agenda.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:10 p.m.

NDP

Laurin Liu NDP Rivière-des-Mille-Îles, QC

Mr. Speaker, on this side of the House we do our homework for every free trade agreement. We studied this agreement with South Korea and we decided to support it even though the agreement is not perfect. We believe it can produce rather significant economic spinoffs for Canada.

However, the Conservative government negotiates free trade agreements with all sorts of countries, including undemocratic ones such as Honduras, where journalists and workers are murdered. In committee, witnesses told us that the free trade agreement with Honduras would only make matters worse when it comes to the serious human rights problems in that undemocratic country.

Is there a country the Conservatives do not want to negotiate a free trade agreement with? What are the criteria? Will they do their homework next time?

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:10 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

Mr. Speaker, it is on record that the NDP has a long, very proud history of being anti-trade. Some people call it the “no development party”.

I understand why the New Democrats find it difficult to find points to criticize in this free trade agreement. We, the Conservative Party of Canada, know that trade is good for Canadians and good for families. It creates jobs. It will bring prosperity, and prosperity tackles so many other problems.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:10 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I listened closely to the speech by my colleague from Calgary Northeast.

He mentioned the urgent need to ratify the agreement, as did his colleague from Winnipeg South Centre. However, the need would not have been so urgent if the government had been more serious about the negotiations, instead of focusing on countries such as Honduras that have less strategic value. If the government had focused on this agreement, we probably could have signed it sooner and devoted the necessary resources to it. I am not the only one to say so. In fact, this was also mentioned in an internal memo at the international trade department.

I would like to know what my colleague has to say about that. Why did the government spend so much time negotiating agreements with much less strategic value, as it did with Honduras and Panama, instead of devoting all its resources to more significant agreements such as the one with South Korea?

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:10 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

Mr. Speaker, that ratifies what I said earlier about how it is very hard for the NDP to support a trade agreement.

We can see from the comments that my colleague made how many heels the New Democrats are digging in, how deeply they are digging them, and how hard it is for them to come out and say that they are very proud to support trade.

It is amazing.They talk about the criteria, and of course we have the criteria. This side of the House understands that we have to negotiate to the point to make sure that we get what is in the best interest of Canada, Canadian workers, Canadian businesses, and Canadian families. That is why negotiations were very important.

We will not sign any agreement if it is not for a good cause and good for Canadians.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:15 p.m.

Okanagan—Coquihalla B.C.

Conservative

Dan Albas ConservativeParliamentary Secretary to the President of the Treasury Board

Mr. Speaker, I would like to thank the member for his speech and particularly for his last intervention, in which he talked about trade being good for all Canadians.

Many people may not know that South Korea sells steel rebar, which is used to create buildings. Lowering tariffs would reduce housing costs for people in people in British Columbia, something that I am very supportive of.

The member mentioned the Samsung centre and how it is looking to expand, hire more Canadians, and expand operations in British Columbia. These are great benefits.

The NDP has this issue with countries like Honduras. However, in Okanagan—Coquihalla, we have cattle ranchers. Some operations are larger and some are smaller. When we have multiple markets, including larger markets like South Korea and smaller markets like Honduras, does it not make sense to the member that all Canadian producers, whether they are smaller operations or larger operations, should be able to find niche markets or large markets and get the best value and the best price?

I ask the member if he could clarify whether my thinking is correct.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:15 p.m.

Conservative

Devinder Shory Conservative Calgary Northeast, AB

Mr. Speaker, diversification is important. Smaller and bigger markets are both important, because they provide opportunities to all kinds of businesses, specifically small and medium-size enterprises, to open new gates—even floodgates, I would say.

As I mentioned in my speech, tariffs on potatoes can be up to a staggering 304%. That tariff would be eliminated. Imagine the opportunities we Canadians and Canadian businesspeople could have in a market like South Korea, which is projected to increase exports by 32% and boost the Canadian economy by $1.7 billion annually.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

September 25th, 2014 / 1:15 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I am pleased to rise today to speak to the Canada-Korea free trade agreement. I will have the opportunity to speak at length about why the NDP believes, all things considered, that it can support this agreement with a democratic country whose economy has high standards. I am not saying that everything is perfect, because that is not the case. If the members on this side of the House had been at the negotiating table, we could have done things differently.

Before I get into the compliments, I want to start with some criticism. Our colleagues opposite like claiming that they are the champions of all things trade. However, the data on this topic shows a different story. Since 2000, Canada's trade balance has experienced a sharp decline and it has been consistently declining since 2004. To be more specific, we went from 5.75% of the GDP to a deficit of 0.61% of the GDP. I do not understand how the government can seriously claim that it is effective and committed to trade when it gets such poor results for our exporters.

I am getting off topic. Let me get back to Korea. I remind members that Canada is lagging behind compared to other countries and major economies in terms of trade with Asia Pacific countries, and in particular Korea. While Canadian companies had to wait for the never-ending negotiations to come to a close, the United States and the European Union had already signed free trade agreements with South Korea in 2012.

Over these two years, our exporters lost 30% of their share of the South Korean market. What is worse is that the government dragged its feet and chose to sign bad agreements with trade partners that have questionable human rights records, such as Honduras, which we have already talked about. I am bringing this up today because this very issue came up in internal memos at the international trade department.

It is rather absurd to see that the government insists on negotiating agreements that legitimize bad working-condition and human rights practices, when doing a better job with Korea would have helped our exporters much more quickly. Our exports to Honduras in 2013 were just over $43 million. With Korea, we are talking about $3 billion a year in potential exports.

I have some serious questions about the government's priorities. Why wait 10 years to negotiate with South Korea? Why give priority to less developed economies and smaller trading partners?

I have other questions as well. What did our exporters lose because of this delay? How many jobs could have been created or maintained? We will not get a trade policy that works and helps our economy, our companies and, especially, our workers by signing any old agreement and then bragging about how many of them there are afterwards. Instead, we should be signing good agreements and supporting our exporters.

This government likes to paint the NDP as a party that is fundamentally against trade and supports blind protectionism. Therefore, I will once again try to explain to the Conservatives the criteria that the NDP has developed and that shape its position on international trade. Perhaps it will clarify things.

Unlike the other major parties in the House, we carefully analyze each agreement, then we support or reject it based on its merit. The criteria we use are completely logical and legitimate and reflect our social responsibilities as a developed country.

The first criterion concerns respect for democracy, human rights, environmental values and labour condition standards. Based on this criterion, South Korea has made significant progress since the dictatorship fell in 1987. It is now a democratic and multi-party political regime that supports freedom of expression in a relatively diverse society. In terms of labour standards, sweatshops are not common practice, far from it. Wages are adequate, and labour movements and unions are not openly suppressed or delegitimized.

I believe that my colleague said it before me, but for information purposes, South Korea rates 15th on the United Nations human development index. Social programs are also being developed in South Korea, particularly access to post-secondary education and energy strategies, while corruption is at a minimum. Therefore, this agreement meets this first criterion, which covers human rights.

Our second criterion relates to the overall economic and strategic value of this alliance for Canada. We could talk about this criterion in terms that the government could understand by looking at the Investment Canada Act, for instance. We are asking the same questions. Is this agreement in the best interests of Canada? However, instead of relying on the arbitrary opinion of just one minister, we are assessing and quantifying this criterion in light of the global economy and trade figures.

The answer to the question about the objective meaning of the partnership is clearly positive. South Korea is Canada's seventh largest partner and the third largest economy in the Asian market. Canada's trade exports with South Korea are essentially the same as those with France or with Germany. We are talking about $3.4 billion in 2013.

In economic terms, this agreement could be fruitful for Canada, given that Korea is an attractive gateway to other Asian economies. In addition, our two economies are quite complementary, which means that not many of our industries will be in direct competition. That is an important point.

In addition, virtually all the economic sectors in Canada welcome the agreement and will very likely derive substantial benefits from it. These sectors include the aerospace industry, the high tech sector, the shipping industry, the forestry sector, the mining sector, the agricultural sectors—namely the hog, beef, wine and grain industries—and the seafood industry. We therefore recognize that this agreement has strategic value and meets the second criterion.

The final criterion relates to the practical terms of the agreement. We need to read an agreement before we can approve it. It is a signed contract between two nations. The details of the agreement are very important, and that is why it is inconceivable for us to support or reject an agreement without having even read it. We therefore took the time to read the terms of the trade agreement between Canada and South Korea.

Are the specific terms of the agreement satisfactory? Will they be advantageous for Canada or not? As was mentioned earlier, the two countries will essentially be on equal footing thanks to our complementary economies and South Korea's improvements in the areas of human rights, environmental standards and treatment of workers.

Speaking of workers, we are not the first country to sign a free-trade agreement with South Korea. Many countries have done so before us, including the United States. Earlier, I mentioned the fact that our economies complement one another and that work conditions are good. Many large union groups, such as the UFCW, have thrown their support behind the agreement between Korea and the United States because it has the potential to create thousands of jobs. What is more, those jobs will be local, well-paying jobs in sectors of the economy where the jobs are often unionized. They support the agreement between Canada and South Korea.

To continue, I will now explain why this agreement meets our criteria and why we will be supporting it at second reading. For a while now, it has been recognized and often stated that Canada must diversify its trade partners and try to reduce the percentage of trade that it conducts with the United States and the European Union, its traditional partners.

In light of that, it makes sense to strengthen ties with South Korea, which is our seventh-largest trading partner. In fact, when it comes to Asia, we need to be talking about the entire region, not just Korea. South Korea is our third-largest trading partner in Asia, and it is important to expand trade with the country. The NDP recognizes that increasing trade with Asia is a crucial step towards ensuring prosperity, economic growth and dependable jobs in Canada in the 21st century.

Korea is also a gateway to the rest of the Asian market. Under this agreement our exporters will have more and better opportunities in the Asian market. This will be good for our economy and for diversifying Canada's international trade.

Unlike other countries that Canada has signed agreements with despite the NDP's objections, such as Honduras, South Korea is a well-established, globally recognized democracy. Supporting a toxic, authoritarian regime that violates its citizens' rights is not even an issue in this case. In other words, this is exactly the kind of developed economy that we should be developing a deeper, more sustainable trade relationship with. It has high labour and human rights standards, and it is the kind of partner we should be looking for.

When we trade with other nations, we have to think about the goods that will be traded, that will travel from one country to the other, but we also have to think about what we are supporting with that trade. In the case of Honduras, I spoke at length in the House about how the agreement would support a country that is heading the wrong way in terms of human rights, a country where, in most cases, workers struggle with terrible working conditions.

Those concerns do not apply to Korea. Instead, this is a partner that shares our values of democracy and justice. By doing business with Korean companies, Canadian exporters will be working with partners who understand their obligations in terms of working conditions and how employees should be treated.

Consider how easy it is for a Honduran company to lower its labour costs and provide a dangerous working environment for its employees. How can we ask Canadian companies to accept that a foreign competitor can be subject to domestic regulations that are so radically different from our own? With South Korea, our companies will be dealing with partners and competitors who are subject to very similar regulations and whose reality is the same.

That is really good, because even by purchasing Korean products here, our consumers will be giving their money to responsible businesses that have good practices.

That is not the case in some other agreements. It is also important to remember the environmental aspect. Korea has high environmental standards and is a world leader in that regard. It leads the world in renewable energy and green technology, and it is in our interest to boost our trade with these sectors, which are so important for the future. The Koreans are offering us this opportunity, and it just seems logical to me that we should take it in order to increase the portion of our economy that depends on greener power. This will be quite a change from what we are doing now.

We are definitely not the only ones who think this agreement could be good for the Canadian economy. A number of industry associations in sectors including aerospace, agriculture and agri-food, fish and seafood, chemicals, energy, forestry and financial services also think so.

This agreement is good news for our agriculture sector, because it will enable our pork and beef producers not to expand their presence on Korean markets, but actually recover lost ground. For instance, Canadian beef exports to South Korea dropped from $96 million in 2011 to just $8 million in 2013. Canadian pork experts dropped from first place on the South Korean market to fourth place between 2011 and 2013. The free trade agreement with South Korea will eliminate nearly 87% of agricultural tariff lines and finally allow Canadian exporters to play on a level playing field.

It is becoming increasingly urgent to conclude this agreement before Australia's trade deal with South Korea is implemented, because Australia is one of our major competitors in agriculture.

As for seafood, fishers on both coasts will benefit. Current tariffs are 47%, and most of them will be eliminated. Fishers and processors on the west coast can barely keep up with their competitors in Alaska because of the trade agreement that already exists between the United States and Korea.

Some 230,000 jobs in the country depend on forestry. It is also important to my riding, Rimouski-Neigette—Témiscouata—Les Basques, where the sector has gone through some tough times. Canadian exporters currently face tariffs of 10%, which will disappear with the agreement.

In light of all these facts, it seems that the free trade agreement with South Korea satisfies our three criteria. I am quite proud that we took the time to do this analysis instead of just sticking to a purely ideological approach like some parties that are prepared to sign any agreement no matter what or other parties that approve these agreements without even reading them. Only the NDP has a sensible, balanced approach to trade. We are the only ones who want to ensure that trade agreements with other countries will truly benefit Canadians.

Now that I have gone over the positive aspects of the agreement, I want to be clear that it is not perfect. The agreement in its current form is not something we as a government would have signed. Let us talk about the automotive sector. There are some positive aspects, of course, such as the elimination of the 6.1% tariffs on imports and the 8% tariffs on exports. This will be good for consumers here, and also for our exports to Korea. Other positives include the rules of origin provisions that recognize Canadian-U.S. integrated products, which is vital to our manufacturers. The same goes for the accelerated dispute resolution mechanism, which will make it easier to lift non-tariff barriers.

There are also some legitimate concerns about the automotive sector. That is why an NDP government would do everything in its power to allay those fears and mitigate the potential consequences by encouraging Korean automakers to set up plants here in Canada and helping Canadian automotive products access the Korean market more easily. We should monitor non-tariff barriers closely, act swiftly and effectively to resolve disputes, and conduct frequent trade missions to Korea. That is why I would like the government to explain how it plans to mitigate the consequences for the automotive sector, especially since the conditions it obtained are less favourable than what is in the American agreement.

Yesterday, when we announced our support for this agreement, my colleague, the member for Vancouver Kingsway, clearly said what I mentioned earlier: this is not the agreement that we would have negotiated. The biggest problem with this agreement is obviously the investor-state dispute resolution mechanism. An NDP government—just like the main opposition party in Korea—would not have included this mechanism in the agreement. When the NDP is in power after 2015, we could perhaps negotiate with the government of Korea to remove this provision.

The principle of these investor-state mechanisms is cause for concern and rightly so in many cases.

Consider the Canada-China foreign investment promotion and protection agreement. It took the government a long time to negotiate the agreement and then to ratify it after it was announced. My colleague from Skeena—Bulkley Valley just mentioned that in a question.

This investment protection agreement has a number of flaws. First, it is not a reciprocal agreement and it clearly favours China. We mentioned that in several speeches. Even if the agreement had to be cancelled, Chinese firms could sue the Canadian government before secret tribunals for 31 years. That is another major flaw of the agreement.

Furthermore, China could continue to impose conditions concerning local preferences, such as suppliers and jobs, whereas Canada could not. The fundamental issue of reciprocity is involved here.

Finally, the Conservative government was not even able to negotiate national treatment for any new Canadian investment in China—not for companies already in China, but for all new investment made after the agreement is signed.

The investor-state dispute resolution mechanism in the Canada-Korea free trade agreement is different. It is 100% reciprocal, as is the rest of the agreement. What is more, if the agreement is cancelled, it ceases to apply after only six months, not after 31 years, as is the case with the foreign investment promotion and protection agreement between Canada and China.

Furthermore, this free trade agreement with Korea contains transparency measures. Some hearings will be public and teams of experts may even allow third parties who are not directly involved in the dispute to make presentations or submit written briefs. Civil society and non-governmental organizations can therefore get involved. There are no such measures in agreements such as NAFTA or previous versions of this type of investor-state provision.

The dispute resolution mechanism in the agreement with Korea is also faster. For example, chapter 11 of NAFTA provides for a period of 90 days between the date that the claim is submitted and arbitration. The disputed measure must be in effect for at least six months. The technical summaries that we received for the Canada-Korea free trade agreement indicate that the timeframe will be shorter and that things will move faster in cases involving fresh produce or motor vehicles.

That is why, despite this negative aspect, there are advantages to the Canada-Korea free trade agreement that outweigh the disadvantages.

After conducting a complete and comprehensive assessment of this agreement, we decided to support it. It is not the agreement an NDP government would have negotiated. However, we find it acceptable.

Ultimately, we believe that this agreement will be good for Canada and our exporters. It will have a positive effect on the forestry and agricultural industries in my riding and those of many other members on this side of the House.

However, I want to emphasize that the government should tell us about its plan for one of the industries that will be the hardest hit, the automobile industry. We still have not heard any answers from the government in this regard.

The NDP's prudent and balanced approach is the right approach, and it should be used so that trade agreements benefit our exporters, our economy and our workers.

It is imperative that we have a healthy debate in the House. However, when I listen to the Conservative members' speeches, and particularly their answers to our criticisms of the agreement, I can see that they do not feel they should have done anything differently.

In internal memos, officials with the Department of Foreign Affairs and International Trade were critical of the fact that the department's resources were focused on less strategically important agreements than the one with Korea, for example. That prevented us from concluding the agreement as quickly as we could have.

The United States and the European Union have had trade agreements with Korea since 2012. We lost considerable ground because of the government's strategic choice, which I do not understand. In all honesty, the government has not managed to explain this choice to me.

For example, beef and pork exporters who had extremely well-established niches in Korea lost that initial advantage because the government was slow to act.

I will soon take questions from Conservative members, I hope, and probably from other members of the House.

I would like them to keep in mind that no party in the House is perfect, the process itself was flawed and the government should learn from its mistakes so that it can be much more effective in future trade agreement negotiations.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:35 p.m.

Conservative

John Carmichael Conservative Don Valley West, ON

Mr. Speaker, in my colleague's mostly positive speech, he kept slipping between the Korean free trade agreement and the Canada-China FIPA. I am trying to follow where he got lost a bit, but I will focus strictly on Korea, which is the purpose of this debate.

In his comments, he mentioned the U.S. snap-back provision that was provided through the U.S. free trade agreement with Korea. From my understanding of snap-back provisions, they have really limited practical value. I think that when we measure the tariff level of 2.5% between U.S. and Korea against the 6.1% level that we are dealing with in the Canada-Korea relationship, there is a different set of dynamics. The other piece of the snap-back provision, which I think really minimizes its impact, is that it is a 10-year provision in the U.S.-Korea agreement, and it cannot even be used in the first four years.

I wonder if my colleague opposite would comment on where he sees the deficiency in our agreement and the substantive impact that he was referring to.

The other thing I want to mention quickly is that 85% of Canadian production is built for export. I wonder if he would comment on where he sees the impact of that export production impacting this relationship.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:35 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I thank the hon. member for his questions.

It is clear from my speech and my previous interventions in the House that we are in favour of diversifying markets for Canada and our exporters. Putting almost all of our eggs in one basket—be it the European Union or the United States, our two main markets right now—is a risky approach. That is why we like the possibility and the prospect of diversifying our export markets.

If we compare our agreement with the agreement the United States signed with Korea, we can see that we took a long time to act once the agreement was signed. I think the member would agree that the government put a great deal of emphasis on signing the agreement with the European Union, to avoid having to compete with negotiations between the United States and the European Union. This agreement should have been just as urgent, but that was not the case. The timing of the negotiations and the fact that they were probably not given as much attention as they should have are to blame in part for our being behind the United States, which has already eliminated many of its tariffs because of its agreement.

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:40 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the member talked a great deal about the automobile industry. It is a very important industry. I can recall my party, the Liberal Party, being very proactive going all the way back to the 1960s in terms of the Auto Pact arrangement. We are talking about hundreds of thousands of jobs. It is obviously a concern. Having said that, we will be very diligent as we continue to watch what is taking place within that industry.

The member made one specific comment which I want to flesh out a bit. I am not sure about this and this is why I am looking for clarification. He indicated that he believes an NDP administration would force Korean manufacturers to make their automobiles here in Canada. How would the member propose to do that?

Canada-Korea Economic Growth and Prosperity ActGovernment Orders

1:40 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I agree with the member for Winnipeg North. The automobile industry is extremely important, and we will also be watching how this agreement affects the industry, particularly in terms of the non-tariff barriers that were perceived as a problem with the agreement between the United States and South Korea. They are also a concern here. I understand and we will be watching that.

I do not think the interpretation reflected what I said. I did not talk about forcing Korean companies to move to Canada. I talked about encouraging them to do so. There is a series of measures we could implement, especially when we have this type of agreement with a country. Obviously, much closer trade relations could make it easier to negotiate and, with various incentives, could encourage companies to move here.

If tariff barriers are eliminated, and hopefully non-tariff barriers will not stand in the way, our current producers will have significantly more export opportunities.This is a good thing, but it requires ongoing monitoring and we will have to draw some conclusions eventually. Right now, we export roughly 100 cars to South Korea. With this trade agreement, we will have greater opportunities. I hope our car manufacturers will be able to take advantage of that. We will do everything we can to help them, specifically by organizing trade missions to South Korea.

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1:40 p.m.

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, in an earlier question, the member opposite mentioned that he wondered why the NDP member was raising the issue around the Canada-China FIPA in the context of this piece of legislation. My understanding is that the member was drawing a parallel between the fact that in the Canada-China FIPA there is no ability to renegotiate the investor-state dispute settlement mechanism for 31 years, whereas in this agreement it can actually be renegotiated in six months.

The member certainly raised some concerns about the investor-state dispute settlement mechanism as outlined in this particular agreement. I wonder if he could highlight for the House specifically some of the concerns with regard to this investor-state dispute settlement mechanism.

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1:40 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I thank my colleague from Nanaimo—Cowichan for her question. In fact there has been an ongoing debate on such a provision since NAFTA was signed.

The NDP has never been in favour of such a clause, particularly because of its secret nature. Administrative tribunals usually meet behind closed doors, and people cannot really attend or participate, even though some individuals might be directly or indirectly affected. We are therefore not very fond of this provision.

However, in the case of South Korea, even though we could eventually renegotiate or even eliminate the clause if the South Korean government agrees, there is still more transparency than in other agreements such as NAFTA. There is greater effectiveness and, most importantly, greater accountability for the decisions that are made. We do not welcome this provision in particular, quite the contrary—as a number of debates and speeches have made clear—but it is a provision that we could eventually renegotiate when the NDP is in power and if the South Korean government is open to that.

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1:45 p.m.

Okanagan—Coquihalla B.C.

Conservative

Dan Albas ConservativeParliamentary Secretary to the President of the Treasury Board

Mr. Speaker, I appreciate the member opposite and find him to be a very reasonable and very kind gentleman. However, I am confused. The New Democrats say they do not like certain measures of this agreement and they have concerns around the auto provisions, but they will encourage the Korean companies to set up shop in Canada. However, the very policies of the NDP increase costs, whether they be the inputs themselves or its labour policies coupled with its taxation policy. They actually discourage that kind of investment.

There are so many great things about this country. We have an educated population. Ontario has a thriving auto sector. There are great workers, suppliers, and the supply chain. It makes a world of sense. However, the New Democrats say that they do not agree with investment protections that give investors long-term security so that when they build these big plants and choose to come to Canada they have some sense that they will not be arbitrarily picked on and treated differently from the way the local companies are treated.

Could the member opposite square this circle? Could he help me with my confusion on his stances that seem to be total polar opposites?

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1:45 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I have the utmost respect for the hon. member. I have had the opportunity to chat with him on occasion.

I see no contradiction there. Clearly, we would look at the benefits and disadvantages of any NDP policy that we would hope to apply. Obviously, if the policies implemented were a disincentive to investment, we would study that negative impact.

These conditions are more than just economic in nature. Other criteria should also be taken into consideration. For example, there is a possibility that non-tariff barriers in the auto sector could be lifted. We need to monitor that.

We must also ensure that this is a two-way street. The conditions applied here must also be applied by South Korea to our exporters.

We are completely consistent on that. We want this agreement to be reciprocal, to foster good trade relations and, at the other end, we also want to provide good conditions for the Koreans who are looking to invest.

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1:45 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I am speaking today to raise a question of privilege regarding a worrying incident that took place today on Parliament Hill. I feel that it was a prima facie breach of my privileges as a member.

The incident took place just after 10:40 a.m. As we all know, earlier today, the government proposed a time allocation motion, the 76th of its kind, at the report stage and third reading of Bill C-36.

At approximately 10:40 a.m., the bells were ringing to call in the members for the vote on this motion. The bells were still ringing when I was physically blocked from entering the House of Commons at the appropriate time.

I was denied access because of security measures put in place today for an official visit from a foreign dignitary. An RCMP officer prevented me from entering the parliamentary precinct, saying that he had received very strict instructions not to let anyone pass. That obstruction was a serious breach of my privileges as a member.

I got here just in time to vote. Regardless of whether I was late, access to the parliamentary precinct, whether it is to vote, to participate in a committee meeting, to attend question period, to deliver a speech, or just to listen to the debate, is a strictly protected privilege.

As you know, Mr. Speaker, the second edition of House of Commons Procedure and Practice states on page 108 that:

In circumstances where Members claim to be physically obstructed, impeded, interfered with or intimidated in the performance of their parliamentary functions, the Speaker is apt to find that a prima facie breach of privilege has occurred.

Incidents involving physical obstruction—such as traffic barriers, security cordons and union picket lines either impeding Members’ access to the Parliamentary Precinct or blocking their free movement within the precinct—as well as occurrences of physical assault or molestation have been found to be prima facie cases of privilege.

I would ask you to consider my question and the facts I just related. I believe you will also find that my privilege was breached and that I was prevented from carrying out my functions as an elected member of the House of Commons.

If you find that there was a prima facie breach of my privileges as a member, I am prepared to move the appropriate motion.

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1:50 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I have had the opportunity to speak to a couple of my colleagues, and I echo some of the remarks by the member for Acadie—Bathurst. There was a bit of an issue getting into the chamber because of some proceedings taking place outside the House of Commons.

In this case, with the question being put, we need to recognize that we have an internal security system within the House of Commons. My understanding is that it has nothing to do with our internal staffing or security. It has more to do with people from the outside in particular. Quite possibly it might have been some RCMP officers, but I am not a hundred per cent sure of that.

It is worth having the Chair look into this. At times when we do have dignitaries coming to the Hill, perhaps there should be some additional information provided on additional security being brought on to the Hill so members, such as the member for Acadie—Bathurst or the other two members who have raised it with me personally, do not have to go through the frustration of having their privileges, on the surface, appear to have been infringed upon.

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1:50 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, when you look at the case of jurisprudence and tradition in the House, particularly in 1989, former Speaker Fraser ruled that a prima facie case of privilege existed. That is when a roadblock on Parliament Hill prevented members from accessing the House of Commons. In 2004, as well, a question of privilege was raised regarding the free movement of members within the Parliamentary Precinct.

Therefore, the member for Acadie—Bathurst is absolutely right to raise this question. The reality is the government planned these votes and the visit. The government was responsible for both and it could have understood, given the importance of these precedents, that stopping members from coming to the House of Commons is an insult to the privilege of members.

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1:50 p.m.

Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

Mr. Speaker, I appreciate the opportunity to shed a little light on it as well.

I happened to be on the Standing Committee on Procedure and House Affairs a couple of years ago when exactly the same incident occurred and was studied by the committee.

At that time, the conclusion was that unfortunately when RCMP officers were involved with the visit of dignitaries, they were not familiar with the process of respecting the rights of MPs to have unimpeded access to the Hill, particularly on occasions when they had to vote. We were told at the time that this would be rectified, but it appears that sadly exactly the same thing has happened roughly two years later.

There is definitely, in my opinion, a breakdown of communication between the Hill and the RCMP officers who come in and do not understand the existing rules with respect to access to the Hill.

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1:55 p.m.

York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

Mr. Speaker, the question of privilege that has been raised by the member for Acadie—Bathurst is important. It is an important question that members do have unimpeded access.

I would appreciate the opportunity to see if I can ascertain any additional facts that might be helpful to put to the House before a determination is made by the Speaker on the question of whether we do have a prima facie case. However, the principle is an important one.

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1:55 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I want to raise what I think is an important perspective on this that has been missed. Converting the House of Commons into the official greeting place for visiting heads of state is a perversion of our Constitution. The place for visiting heads of state is Rideau Hall.

The conversion of the House of Commons as a photo backdrop for political purposes, interfering with the work of this place is, frankly, offensive. I hope perhaps this unfortunate incident will draw attention to the fact that red carpets, flags and in some cases tanks in front of Parliament Hill to greet visiting dignitaries is an inappropriate use of Parliament.

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1:55 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

I thank the hon. members for Acadie—Bathurst, Winnipeg North, Burnaby—New Westminster, and Westmount—Ville-Marie.

I note the hon. government House leader reserves the opportunity to perhaps get back to the House once greater facts are known, and for the intervention of the hon. member for Saanich—Gulf Islands.

As is customary in these cases, we will take these interventions under advisement and get back to the House in due course.

The House resumed consideration of the motion that Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea, be read the second time and referred to a committee.