Mr. Speaker, I am pleased to have the opportunity to speak today about Bill C-13, the legislation that would allow Canada to implement the World Trade Organization agreement on trade facilitation, otherwise known as the TFA.
As members may know, Canada played a key role in the negotiation of the TFA at the WTO. The TFA focuses on streamlining, harmonizing, and modernizing customs procedures. It has enormous potential for reducing trade costs and times. The TFA would enhance predictability and transparency of customs decisions for traders, expedite the release of goods through the use of modern technologies, and increase the efficiency of customs procedures through improved coordination between border agencies. In these negotiations Canada ensured that the TFA would provide a full range of trade consultation measures while preserving our ability to protect the health and safety of Canadians and the environment.
I would like to speak today about some of the legislative amendments that are required for Canada to join the ranks of 92 other WTO members, including the EU, the U.S., and China, who have ratified the TFA.
While Canada's customs system is compliant with the vast majority of provisions in the TFA, certain statutes do require amendment for Canada to fully implement the TFA and maintain safeguards on the health and safety of Canadians and the environment. These amendments relate to two provisions of the TFA: article 10.8.1, rejected goods, and article 11.8, goods in transit.
Article 10.8.1 requires WTO members to allow importers to return to the exporter goods that were rejected on account of their failure to meet certain health and other technical requirements, unless another means of dealing with the rejected goods is provided for in that country's laws—for example, seizure and disposal. Therefore, governments that wish to retain the ability to treat incoming goods other than by permitting their return will need to be able to point to specific provisions in their laws or regulations providing authority to do so.
Article 11.8 prohibits the application of technical regulations to goods moving through a WTO member's territory from a point outside its territory to another foreign point, known as goods in transit. This provision would allow foreign goods to move through Canada, for example, from Europe to the United States, without complying with our technical regulations.
The transit through Canada of some goods, such as pharmaceutical drugs, cleaning products, or pesticides, that do not comply with technical regulations is currently prohibited by certain federal statutes, which need to be amended. To ensure that the Government of Canada's statutes and regulations comply with this article of the TFA while maintaining safeguards to the health and safety of Canadians and the environment, amendments to five statutes administered by Health Canada are required. Those statutes are the Canada Consumer Product Safety Act; the Food and Drugs Act; the Hazardous Products Act; the Pest Control Products Act; and the Radiation Emitting Devices Act.
Bill C-13 identifies criteria under which non-compliant goods could either be returned to the exporter, re-consigned in accordance with article 10.8.1 of the TFA, or alternatively, seized, detained, forfeited, and/or disposed of by inspectors or customs officers. This means that non-compliant goods such as drugs, medical devices, cosmetics, food, tanning equipment, children's toys, hazardous products, and pesticides that pose unacceptable health and safety risks could be seized and not returned in certain cases. In other cases, in the absence of significant risk factors, products could be returned or re-consigned.
These amendments will enhance the predictability and transparency in how rejected goods are treated at the border, and will help ensure that the health and safety of Canadians and the environment continue to be protected.
In regard to article 11.8, most importers are aware of the prohibitions on the transit of unregistered or unauthorized products, although sometimes companies request one-off permission to transit such products through Canada.
Presently, these activities are expressly prohibited by legislative or regulatory requirements, and are routinely denied.
Preventing products that do not comply with technical regulations from transiting through Canada can be considered a trade barrier. This is because the health and safety of Canadians and the environment can in fact be protected in an equally effective and less trade-restrictive manner.
The legislative amendments proposed in the bill specify that Canada's technical regulations would not apply to goods in transit through Canada as long as certain requirements to protect health, safety, and the environment are met. More specifically, Bill C-13 includes requirements designed to mitigate the risk that certain goods in transit could be diverted into the Canadian market or compromise the health and safety of Canadians or the environment as a result of accidents or spills.
For example, labelling requirements for certain goods in transit would enable inspectors, border officers, handlers, and sellers to distinguish between goods destined for import and those just passing through. Such labelling would denote the origin, intended destination, and product safety and handling procedures for goods in transit.
By implementing the proposed amendments to the Food and Drugs Act, the Pest Control Products Act, the Radiation Emitting Devices Act, and the Canadian Environmental Protection Act, 1999, Canada would meet its international obligations under the TFA with respect to article 10.8.1 in dealing with the treatment of rejected non-compliant goods, and with respect to article 11.8 to improve the flow of goods across its borders.
Bill C-13 would enable Canada to update and better coordinate customs processes that will help bring economic benefits to Canadians. I support this bill, and I urge all hon. members to support this bill, which would enable Canada to do its part to bring this agreement into force, and ensure that the health and safety of Canadians and the environment remains protected.