Canada-EFTA Free Trade Agreement Implementation Act

An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

This bill was previously introduced in the 40th Parliament, 1st Session.

Sponsor

Stockwell Day  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

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

This enactment implements the Free Trade Agreement and the bilateral agreements between Canada and the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation signed at Davos on January 26, 2008.
The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Free Trade Agreement or the bilateral agreements themselves, without the consent of the Attorney General for Canada.
Part 1 of the enactment approves the Free Trade Agreement and the bilateral agreements and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Free Trade Agreement and the power of the Governor in Council to make orders for carrying out the provisions of the enactment.
Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement and the bilateral agreements.
Part 3 of the enactment provides for its coming into force.

Elsewhere

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

Votes

March 30, 2009 Passed That the Bill be now read a third time and do pass.
March 30, 2009 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation, be not now read a third time but be referred back to the Standing Committee on International Trade for the purpose of reconsidering clause 33 with a view to re-examining the phase out of shipbuilding protections”.
March 12, 2009 Passed That Bill C-2, An Act to implement the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Agreement on Agriculture between Canada and the Republic of Iceland, the Agreement on Agriculture between Canada and the Kingdom of Norway and the Agreement on Agriculture between Canada and the Swiss Confederation, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
March 12, 2009 Failed That Bill C-2 be amended by deleting Clause 33.
Feb. 5, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:10 p.m.
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NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

He is right, Mr. Speaker. Time and time again we have seen grandiose promises from the Conservatives broken.

When we are asking for $22 billion over 20 years and we get $175 million, do we say thanks? Sure. We will thank the government for the mention in the budget and for that small amount.

The major yards will not be doing that small work. The reality is that a lot of this work will go to the smaller yards, which is good for them. We are glad to see that will happen.

However, there is absolutely no guarantee they will follow through. A company in Pictou, Nova Scotia, the defence minister's own riding, made knives for years for the military. It is gone. Its workers are laid off. Those knives are now being made in China.

If the defence minister cannot protect an industry in his own riding, how can I possibly hope that the Conservatives, in any way, shape or form, will protect anything when it comes to the shipbuilding industry?

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:10 p.m.
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Edmonton Centre Alberta

Conservative

Laurie Hawn ConservativeParliamentary Secretary to the Minister of National Defence

Mr. Speaker, the only thing I can guarantee to the House is that the member and his party will vote against every vote that comes to support the military or to support veterans.

We have been talking about support to shipbuilding. The budget and the economic action plan show that we are building 98 coast guard ships, we are refurbishing 40 more coast guard ships, and we have the Canada First defence strategy, which will spend billions of dollars on ships over a 20-year period. That work will be done in Canada. If that is not supporting a shipbuilding industry, then I do not know what is.

With respect to his comments on the truck bid, nobody else bid. It is very hard to give jobs to people who do not ask for the jobs and do not bid for the jobs.

I wish the hon. member would simply stick to the facts and quit pretending he actually supports the military, whereas in fact he votes against every single contract and every single budget that supports the military. He and his party vote against them. He should cut the hypocrisy and stick with the facts.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:10 p.m.
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NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Mr. Speaker, let us go through it.

VIP promised every widow of World War II and Korea would get a benefit immediately. A budget came out two and a half years later. It was less than 10%.

We were told that every person in Gagetown affected by the spraying of Agent Orange from 1958 to 1984 would be covered. That was nonsense. It was for 1966 and 1967 only.

As for the SISIP clawback, the former defence minister said the government would fix it. It still has not been done.

We could go on to the other issues of the clawback of their pensions.

Recently, on September 9, 2008, the Prime Minister told Polish veterans at a hall that if the government were elected, it would institute the allied veterans war allowance for all those allied veterans. It is not in the estimates and it is not in the budget, so if anyone is talking about hypocrisy toward our veterans, it is that member and that government over there.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:10 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, after that despicable display by the Conservatives, we should get back to the subject, which is the European Free Trade Association agreement.

We know the Conservatives will not even stand in the House to defend this agreement anymore. They are simply absolving themselves from any responsibility for the bill.

I would like to thank the member for Sackville—Eastern Shore for his work in protecting the shipbuilding industry and standing up for veterans, and I would like to ask him a question. Why are the Conservatives so embarrassed by the bill?

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:10 p.m.
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NDP

Peter Stoffer NDP Sackville—Eastern Shore, NS

Mr. Speaker, I can only deduce that many of the members of the Conservative Party do not have shipyards in their ridings. If they did, they would have a better understanding of the issue.

I remember when they were in opposition. I remember the Reform Party in 1997. I remember that the Alliance and the Conservative Party, before they were in government, used to stand up for shipbuilding in this country. Now it seems they are sitting down.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:10 p.m.
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Bloc

Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I am pleased to take part in this debate on Bill C-2, which should lead to the implementation of the Free Trade Agreement between Canada and the European Free Trade Association. The Standing Committee on International Trade has already studied it and I am glad to be able to add my thoughts to the current debate.

The Bloc Québécois has already indicated that it is generally in favour of this agreement. We think that it is a good agreement, especially for the Quebec economy. There are attractive opportunities for us in the countries that are signing it. Whether in pharmaceuticals, nickel mining or aluminum exports, Quebec is very well positioned and will surely benefit from its advantages. This does not mean, though, that the agreement is perfect. We have serious concerns, especially in regard to the inclusion of shipbuilding. The Bloc expressed these concerns in the supplementary opinion it attached to the committee report, and I would like to take this opportunity to draw this issue again to the attention of the members.

The future of our shipyards is very important to Quebec and especially eastern Quebec. This region lies along the shores of the St. Lawrence River, the largest navigable waterway in the world, and shipbuilding is an important part of its economy. This free trade agreement will therefore have a direct impact on the people of my region in a few years. That impact will be positive or negative depending on the choice that the government makes today.

Shipbuilding has suffered for many years from a flagrant lack of government support. Our shipyards have fallen well behind the Norwegian ones, and Norway is one of the signatories of this agreement. While Norway has been investing massively for years in modernizing its shipyards, it is sad to say that the federal government has long been ignoring our shipbuilders. There is no real marine sector policy in Canada today, and the results over the next few years could be very bad.

Under the existing agreement, the most sensitive shipbuilding products will enjoy a gradual reduction in tariffs for a period of up to 15 years in some cases. After that adjustment period, no tariff protection will be allowed, and vessels from Norway, for example, will enter the Canadian and Quebec market to compete on par with our ships. This would not be a problem, except that we lag far behind in this area. If our borders were to open wide tomorrow morning to the competition, our shipyards would disappear. And that would be very unfortunate, since our shipyards are essential for economic, strategic and environmental reasons. Now the question remains: how will our marine industry look 15 years from now?

If the past is any indication, we have every reason to be extremely pessimistic about the survival of this industry, given the increased foreign competition. Clearly, if the federal government continues to ignore the needs of our shipyards and refuses to take action to support them, we will definitely see them gradually deteriorate over the next 15 years. That is why the Bloc Québécois presented an important recommendation to the Standing Committee on International Trade in advance of this agreement taking effect. The recommendation reads, “The Canadian government must without delay implement an aggressive maritime policy to support the industry, while ensuring that any such strategy is in conformity with Canada's commitments at the WTO”.

That was the only recommendation made in the report. The Conservatives never see any problems with their policies and the Liberals, as usual, failed to propose any recommendations. The NDP, in its predictable opposition to free trade, opposed the agreement altogether.

The Bloc Québécois recommendation, which finally received the committee's support and was included in its report, meets the expectations of many shipbuilders in Canada and Quebec. Even though they have no hope of seeing their sector excluded from the agreement, they do expect the government to act quickly and forcefully. We read in the report that, according to representatives of shipbuilders and marine workers:

...without combined access to the SFF and ACCA, the impact of the agreement would be devastating to the industry and would lead to job losses. In their view, this additional government support was critical if the Canadian industry was to survive increased competition from Norwegian producers.

Some will say that Norway has announced that it has stopped subsidizing its shipbuilders and that that will enable Canada to compete on a level playing field with that country. But what are we doing to make up for all the years when there were no subsidies here, while Norway was achieving the high level of competitiveness it enjoys today, thanks to generous government support? Quite simply, there needs to be a dramatic shift in the federal approach to the marine industry, which means abandoning the laissez-faire policy the Liberals and Conservatives have followed to date.

I am happy that we are holding this debate on the trade agreement with the European Free Trade Association, because it reveals how fragile our marine industry is in the face of foreign competition and forces us to take a stand on these issues quickly. It is not the agreement that is bad, but our policy. That is why a change of direction is imperative. In 5 or 10 years, it will be too late. We must act now. With a few targeted measures, our shipyards can become modern, productive, financially healthy and extremely competitive. The biggest problem to date has been the lack of political will to change things, and it is high time that changed too.

Of all the aspects of this free trade agreement, this one concerned me the most. The other aspects of the agreement, including agriculture, seem to be well handled and in line with Quebec's interests. I would just like to add, as some of my colleagues have already pointed out, that this free trade agreement may open the door to a future agreement with the European Union. We must seize the opportunity when it arises and, more importantly, be ready to compete.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:20 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, because the tariff will be reduced to zero over 15 years, with the phase-out to begin after a three-year waiting period, the recommendation by the Standing Committee on International Trade suggested that the government adopt a vigorous policy to promote the development of the shipbuilding industry. In fact, the government should adopt that kind of policy, to be implemented as quickly as possible.

It must be recalled that for the 10 years that negotiations went on, particularly in 2000, the Shipbuilding Association of Canada did not agree with the government’s policy. The tariff reduction period was much shorter still. Ultimately, the Association agreed to the reduction in the tariff, but over a 15-year period, and after a three-year waiting period. When representatives of shipyards appeared at the committee, they asked that priority be given to two measures: allowing purchasers of Canadian ships to take advantage of accelerated depreciation and adopting a structured financing facility.

My colleague can tell you this, because I will give him an opportunity to reiterate it: the Bloc Québécois is making many more recommendations than this; there are numerous others. These are things that should be adopted as quickly as possible to assist the shipbuilding industry. I would therefore ask that my colleague elaborate a little on all of the proposals made to the Conservative government by the Bloc Québécois.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:25 p.m.
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Bloc

Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I thank my colleague for giving me the opportunity to explain the recommendations made by the Bloc Québécois in the report. Because of the high cost of these products, the industry is calling for special financing arrangements for the shipbuilding industry so that it can purchase equipment of that value. Precisely because of the value of these products, which often comprise the bulk of the purchaser’s assets, the industry needs special tax rules in order to be competitive. Again, because of these major investments, the industry needs to share the risk it assumes at the research and development stage, in particular to facilitate access to credit.

Another very important measure involves offering financing to cover a large portion of the value of the contract, 87.5%. That is what we are calling for. To conclude, all these measures should be available both to Canadian purchasers and to foreign purchasers.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:25 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I listened very carefully to the speech by the member for Rimouski-Neigette—Témiscouata—Les Basques. If I understood correctly, he is against the agreement and deplores the repercussions it will have on the shipbuilding industry in Quebec and elsewhere in Canada.

We are well aware that with the loss, at least temporarily, of 1,100 jobs at the Davie shipyards, the shipbuilding industry is presently in crisis.

My question is very simple. The Bloc Québécois has already made the mistake of supporting the softwood lumber agreement, which led to the loss of thousands of jobs. We cannot blame Guy Chevrette for recommending the agreement. It was a bad agreement for Quebec and it led to the loss of thousands of jobs. At present, we know that hundreds of jobs will be lost, especially in Quebec, because of this bill and that it will be disastrous for shipbuilding throughout Canada.

Is the member prepared to vote against this bill?

We cannot act like the Liberal Party that always speaks against an issue but then always votes with the Conservative government. It is time for the Bloc Québécois to stand up, to follow the lead of the NDP and to vote against this bill. Is it prepared to do so?

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:25 p.m.
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Bloc

Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I would have been very surprised had my NDP colleague not mentioned the softwood lumber crisis. He had to do it, he just could not help himself.

The Bloc Québécois believes that this agreement with the European Free Trade Association is a good agreement. However, in order to accept it, Canada needs to have a true policy for the development of its shipyards. The Bloc position on this agreement is very clear.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:25 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, to allow my colleague from the Bloc Québécois an opportunity to continue to present his views on the shipbuilding industry, in reply to the question from the NDP, which was a little biased, it must be noted that is indeed sad, it is heart-breaking, that there have been job losses in Quebec in the shipbuilding industry. But we must also set the record straight: the accord has not been adopted yet.

So this is not a trade issue, it is an industry issue. What is happening now relates to the industry. The accord is not what is having an effect on the job losses in Quebec, which I hope are temporary. Rather, it is a matter of industrial policy, it is a matter of the shipbuilding industry, which neither the Liberal government of the day nor the Conservative government of today wants to address.

So it is relatively simple. We need appropriate measures to promote the development and modernization of the industry, and I believe firmly in the abilities of the workers in the shipbuilding industries, in their skills and potential, but to do that, the Conservative government has to provide the tools. We know this is a laissez-faire government, but in times of economic crisis such as we are experiencing today it is even more important that it adopt policies. And we have policies to offer. I am sure my colleague could list a few more for you.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:30 p.m.
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Bloc

Claude Guimond Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, as one of the measures that should accompany this policy, we have talked about loans and loan guarantees for shipyards that have to invest so they can provide a financial guarantee in order to bid on new contracts. That takes capital, and the government should provide support so they can do that.

The tax rules for financial lease agreements absolutely have to be improved, and these people have to be given additional tools so they can sign contracts. We are talking about refundable tax credits for shipbuilders. Again, this is a measure to make their lives easier.

We believe that all these measures should be included in a genuine policy for our shipyards, in both Quebec and Canada. This would enable them to deal with free trade, particularly under the agreements with Norway that are part of the agreement with the European Free Trade Association.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

The hon. member for Burnaby—New Westminster has the floor for a very short question.

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:30 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, in a sense, this is a supplementary.

I asked a direct question but did not get a direct answer. We know that the bill will have a negative effect in Quebec. Are the hon. member and his caucus prepared to follow the NDP's lead and vote against this bill, yes or no?

Canada-EFTA Free Trade Agreement Implementation ActGovernment Orders

February 2nd, 2009 / 4:30 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

The hon. member for Rimouski-Neigette—Témiscouata—Les Basques has the floor for a short answer.