Bill C-2 (Historical)

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 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.

Canada-EFTA Free Trade Agreement Implementation Act

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Mr. Speaker, with great respect to the member, it was his party, under Mr. Tobin, that initiated the national shipbuilding strategy, and it has been sitting on the Minister of Industry's desk since 2001. He does not have to write a new policy. We already have one.

The problem is that for the five years following, the Liberals let it gather dust. Now the Conservatives are letting it gather dust. The hon. member should know that we in the NDP do not have anything against trading deals with other countries. That is what we should be pursuing.

I am going to ask him this one question, because I know he is a very intelligent individual. When the United States enters into free trade deals, since 1924 it has excluded shipbuilding and marine services from the trade deals because it knows how vital and strategic that industry is to its economy and its country. If the United States does that, and it is our largest trading partner, why does Canada not do it?

[Navdeep Bains, Liberal, Mississauga—Brampton South, ON]

Mr. Speaker, again I want to illustrate how important the shipbuilding industry is in Canada, in our opinion.

One of the provisions in this agreement that Liberals feel is very important in addressing some of the concerns that have been raised is the buy Canada procurement. There needs to be a recognition that we understand the importance of this provision, because it will allow our shipbuilding industry to create the ships they need for our domestic consumption and use.

Also, it is very important for people to recognize that there is a 15-year phase-out period that would enable this industry to transition, but not in isolation. It has to be done with a comprehensive national shipbuilding strategy. That is something Liberals have been pushing on a daily basis in committee, through press releases and critics, in public and in debates to make sure the government comes up with a national strategy with regard to shipbuilding.

In light of that, I think the three components, that is, a national shipbuilding strategy, the phase-out and the buy Canada procurement, would help the shipbuilding industry, but make no mistake, the industry is going through some very difficult and challenging times. We recognize that and will play a role. In my opinion, whenever the next election occurs, and I do not know that, with the support of Canadians I am confident that when Liberals form the next government, we will work very hard with the shipbuilding industry to have a national--

[The Deputy Speaker, Andrew Scheer]

Resuming debate, the hon. member for Argenteuil—Papineau—Mirabel.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I am pleased to speak on behalf of the Bloc Québécois about Bill C-2, the Canada-EFTA Free Trade Agreement Implementation Act. This is a bilateral agreement between Switzerland, Norway, Liechtenstein, Iceland and Canada.

When we are faced with a free trade agreement, we must be able to take a step back and analyze its pros and cons, and that is what the Bloc Québécois does each and every time, in a responsible manner. We have to look at its strengths and weaknesses. The Bloc Québécois' top priority has always been the interests of Quebeckers. We are the only party in this House that rises every day to defend the interests of Quebeckers.

When we look at this agreement in terms of markets and economies that could generate as many imports and exports from Quebec to the EFTA as from them to us, we can see that there are some very significant markets in Quebec.

First of all, there is aluminum, which is our leading export to Iceland.

When it comes to Norway, nickel accounts for 80% of what we export. In Quebec, we have in Ungava one of the biggest nickel mines in the world, belonging to Xstrata. This too is one of our strengths.

Pharmaceuticals should also be included. We all know that Switzerland is a major producer of pharmaceuticals, and thanks to the skills Quebec has developed in this sector and the assistance provided over the years, Quebec provides very fertile ground for this entire industry and a free trade agreement like this could well give its industry a real boost.

Turning to agriculture, there is always a major problem with international agreements because of the supply management issue. Unlike other treaties, though, this one excludes supply management. It is very important for us to be able to defend the interests of Quebec farmers under supply management. In this agreement, the government has understood, for once, the message that the Bloc Québécois gave it: remove the entire supply management question from the treaty.

One very important thorny point remains and that is shipbuilding. There is a feeling in the treaty that this problem was taken into account. That is why the entry tariffs on equipment and ships and any agreements are subject to a 15 year phase-out with countervailing duties that are reduced with a certain moratorium for three years. This was obviously a major concern.

I will be repeating myself now because I had a chance at another stage of the bill to express my views on this matter. I am very surprised, though, that we could not arrive at a consensus in the House—not to put the free trade agreement on the back burner, because I think it is good for Quebec and also Canada—but to deal right away with the real problem in our shipyards. This is a sector that cries out for a real Canadian policy.

I am amazed that the government has not quickly implemented a Canadian shipbuilding policy and that we are not busy in the House discussing one now. If we look at this Canada-EFTA free trade agreement, it soon becomes apparent that the entire shipbuilding industry has been ignored by the Canadian government for far too long in comparison with what has been happening elsewhere, especially in Norway. I know this is a sensitive issue, but the people opposed to the free trade agreement will understand. I am thinking of the New Democratic Party. It is obvious, though, that if shipbuilding were removed from the treaty, the EFTA countries would no longer have much reason to sign it.

We have to be realistic about this situation. But once again, it is important that the Government of Canada use the moratorium and the 15-year period over which tariffs will be reduced to put in place the Canadian marine policy the industry is calling for.

It was very hard to listen earlier as the Minister of International Trade told us yet again that he had provided enough support for this industry sector with the programs that had been put in place. This is staggering, because I do not sense any openness and, in light of how he answered the question I asked him, I sense that the government is going to take the same approach to the forest industry: they have to be careful, there are international laws, there is the WTO.

While the minister is refusing to introduce loan guarantees for the forest industry, claiming that they are subsidies, his own lawyers are arguing at the WTO and in the London court that loan guarantees are not subsidies. He has given the same answer to every question the government has been asked about this, yet no one has been able to quote a section of any law or regulation that says that loan guarantees are subsidies.

There are loan guarantees in the auto sector and many other sectors. EDC provides loan guarantees for all parts of the aerospace industry. That is a fact, yet we have the feeling that the shipbuilding industry is falling victim to the Conservatives' tendency to help only certain industries and to use international laws as an excuse to refuse help for industries not in that select group.

That is a hard reality, because the forest industry impacts Quebec. And if the government does the same thing in the case of shipbuilding, it will affect the Davie yards in Lévis, near Quebec City. Once again, these are repeated attacks against Quebec that we cannot ignore. We agree with Bill C-2 in principle, but there is a problem in this agreement, and it has to do with shipbuilding, because the government has neglected this industry for too long.

[The Deputy Speaker, Andrew Scheer]

The hon. member for Argenteuil—Papineau—Mirabel will have 12 minutes remaining after question period.

The House resumed consideration of the motion 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 be read the third time and passed.

[The Deputy Speaker, Andrew Scheer]

The member for Argenteuil—Papineau—Mirabel has the floor to continue his speech. He had 12 minutes remaining before members' statements.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I am pleased to continue the debate on Bill C-2, Canada-EFTA Free Trade Agreement Implementation Act, which we have been discussing today.

I would like to remind everyone that when it comes time to discuss a bill to implement a free trade agreement, it is important that we weigh the pros and cons in a responsible fashion. It is important because every sector is affected by trade between the countries. In this agreement, there are some significant sectors, some of which are of considerable influence in our economy.

For example, Quebec has aluminum, which is our leading export to Iceland, one of the signatories to this agreement. Nickel accounts for 80% of our exports to Norway, and that nickel comes from a mine in Ungava operated by Xstrata, a Swiss company. There is also the pharmaceutical sector. Switzerland is one of the world's leading producers of pharmaceuticals. Quebec has an industry that engages in the research, development and sale of generic and prescription drugs. This industry is very strong, because when the Parti Québécois was in power, the Government of Quebec decided to provide it with substantial assistance, with the result that an important structure was put in place. We also have to think about agriculture, because we sell and trade agricultural products with these countries. It was important to us that supply management not be on the table. Milk, poultry, eggs and so on are supply-managed products, and supply management makes the industry profitable. There has been no government assistance for this type of industry since supply management was introduced.

This type of free trade agreement therefore must be analyzed responsibly. There is also a whole other sector, and that is shipbuilding. This is an important part of this agreement, because Norway, for example, is a major shipbuilding nation and its shipyards have been subsidized in the past.

When we do such an analysis, it is important to get to the bottom of things. This free trade agreement is good for many industry sectors, but there is a problem when it comes to shipbuilding. That is why there are specific clauses on shipbuilding. The customs tariffs in effect will be phased out over 15 years, and there will also be a moratorium for a number of years. These clauses were included in the treaty because people knew there was a problem. This is important because it is a crucial part of the discussions in this House. I am willing to debate it, but I have a concern. The shipbuilding industry is calling on Canada to develop a real Canadian marine policy that could solve the problems and keep this industry going.

Despite the fact that the industry, the Bloc Québécois and other parties in this House have been calling for it, the government will not listen. When the Minister of International Trade rose earlier to give his speech, he said nothing to reassure us.

He thinks that everything is for the best in the best of all possible worlds. Even though the industry believes that Canada needs a real marine policy, that is not important to him. This is worrisome. Instead of debating this bill, we should have reached a consensus in this House to pass it, because this agreement is good for the Quebec economy and the Canadian economy. Instead, we should at this very moment be debating a real marine policy for Canada, to reassure the entire shipbuilding sector and all other businesses, and to show them we are tackling the problems they have brought to our attention.

Thus, we will have to work very hard to convince this government of the need for a real marine policy for Canada. Once this bill passes, I hope the industry and all the parties, including the Conservatives, will understand that it is high time to do so. Now is the time. The tariffs will be gradually phased out over the next 15 years. That time period will also allow us to ensure that our industry can compete with Norway. That is the issue that we should have been addressing.

When conducting a thorough analysis of an issue as important as a free trade agreement, one must always weigh the pros and the cons. There are the pros I mentioned earlier, such as aluminum, nickel, the pharmaceutical industry, agriculture, and so on for Quebec. The agreement might even be good for pulp and paper mills. Once again, supply management has successfully been excluded, which is not the case with other agreements the government signed that jeopardized supply management. This time, the government listened to the Bloc Québécois and excluded supply management from the agreement.

For those who suggest that it would have been easier just to exclude shipbuilding from the treaty, I would point out that shipbuilding is one of Norway's economic strengths. Had we excluded shipbuilding, there would be no agreement, and we would not be talking about it today.

We have to adopt a conciliatory approach to these issues. We have to be open in our approach to these agreements, and we have to do a macroeconomic analysis of the advantages and disadvantages. When there is one sector in particular that could be disadvantaged, such as shipbuilding, we have to address the problem.

I was hoping the minister would talk about that today. Since the witnesses who appeared before the committee—and, indeed the entire shipbuilding industry—are uncomfortable about this, the Minister of International Trade could have told us that the government planned to deal with the problem, support the industry, and ensure that, once the 15 years are up, our industry will be competitive. If it can compete with Norway, it will be able to compete with every other shipbuilding concern in the world.

However, that is not the sense we are getting from the Conservative government. Time and again, it is all about their Conservative laissez-faire ideology. As it turns out, apply that approach to some sectors, and those sectors disappear. The opposition should attack that ideology and try to convince the Conservatives that, when it comes to shipbuilding, they must set their ideology aside and talk about a real Canadian marine policy. The industry would have found that reassuring.

At the same time, we have to act responsibly. The Bloc Québécois studied this free-trade agreement and weighed the advantages and disadvantages for all industries that will be affected. This is a first because the Canada-EFTA agreement covers Switzerland, Norway, Liechtenstein and Iceland. The real objective, for Quebeckers, is to have a true free-trade agreement with the European Union. That is the objective.

Even the Premier of Quebec, Mr. Charest, who does not share my political views, is defending it. He recently travelled abroad in the middle of the economic crisis in Quebec. That is up to him. Nevertheless, he has taken a clear position on a free-trade agreement with the European Union, which reflects the unanimous position of the National Assembly of Quebec. Therefore, agreements with European countries are welcome. Naturally, given our population and the relative strength of our industries in Quebec or Canada, we have to be open to the world in order to develop. By not looking beyond our borders we will never be able to develop and reach our full potential. Just think of the aerospace sector and many others.

Therefore, we must be able to create a greater vision for the economy of the future, but also for the future of our economy. We believe this Canada-EFTA free-trade agreement is the way of the future with its advantages and disadvantages. Obviously, it puts shipbuilding at a disadvantage. Therefore, I hope that the government has heard everyone's position in this House, especially that of the Bloc Québécois, which has said that it is time for the government to sit down and adopt a real Canadian marine policy. The industry has been calling for it for many years. Naturally, starting today, we will support everything that can lead to a real Canadian marine policy so that, once the 15 years have passed, our shipbuilding industry will be able to compete with Norway and all other countries.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, I am profoundly disappointed. The Bloc came here to change Ottawa, yet it seems that Ottawa has changed the Bloc Québécois. They come back with the same old free trade policies as George Bush, the Conservative Party and the Liberal Party. It is exactly the same thing, despite the fact that Quebec's workers are asking them to change their policy.

The Lauzon shipyard workers' union has clearly said:

We represent CSN-affiliated workers working at the Lévis shipyard. We stand with workers in all Canadian shipyards in supporting your efforts to exclude Canadian shipyards from the Canada-European Free Trade Association Free Trade Agreement.

It is very clear. Quebec's workers are telling the Bloc Québécois that they are on the wrong track and making a mistake. They are following the same old free trade policies that linger mainly in Canada. The United States has moved on to a fair trade approach. Here in Canada we are stuck with the old parties making the same old speeches, and this includes the Bloc Québécois.

Now, there is only one question I would like to ask. The Bloc seems to have something against the Quebec City area and the workers in Lévis. Workers in the Quebec City area are asking the Bloc Québécois to say no to this agreement, to take shipyards out of it. Is it that the Bloc Québécois is still upset with Quebec City and that they want to punish workers in the Quebec City area and those who work at the Lauzon shipyard because they did not vote the right way, that is, they did not vote for the Bloc Québécois during the last election? That is the only explanation—

[The Acting Speaker, Derek Lee]

The hon. member for Argenteuil—Papineau—Mirabel.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Of course, the Bloc Québécois does not practice the same politics as the NDP. That party practices the politics of 30 years ago. Its political ideas date from 30 years ago. And the New Democrats will be practising the same politics for the next 30 years. That is their legacy.

I have a copy of the letter from the Lauzon shipyard workers' union and I will finish reading the paragraph. It says:

We are convinced that the creation of a Canadian marine policy would be much more profitable and beneficial for the shipbuilding industry than this kind of free trade agreement.

This is where the Bloc Québécois will help. The Bloc Québécois will ask the NDP to work towards creating a real Canadian marine policy. One thing I regret about this House is that the NDP does not attack the Conservatives' laissez-faire ideology. The NDP has decided to attack this agreement. However, as I said earlier, when looking at a free trade agreement, one must do so with macroeconomics in mind. I will not grandstand, as they tend to do, nor will I say that the NDP is attacking the aluminum industry, the nickel industry and the pharmaceutical industry. I will not say that about them. But the fact remains, when you practice the politics of 30 years ago, it is easy to return to old habits.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Mr. Speaker, I wish to thank my hon. colleague for his speech, but I would like him to answer the following question.

How is it that the three other parties in this House voted against the workers of Canada's shipbuilding industry? Clearly, in 15 years, Canada is going to lose that industry. The statistics are clear. It is also clear that the United States is protecting its shipbuilding industry, as are other countries.

How is it that, here in Canada, no one cares about the shipbuilding industry and we agreed to sign this agreement for no good reason, other than to have an agreement signed? I would like him to explain that.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, first of all, the member knows very well that the very text of the agreement indicates special concern for shipbuilding: there is a 15-year period, a moratorium. Therefore the entire text is up for discussion. Naturally it is an important issue.

When looking at a free trade agreement from a macroeconomic perspective, there are positives and there are negatives. One of the negatives pertains to shipbuilding. Therefore, Canada must decide to tackle the problem. Of course, if the NDP decides to pout in its corner and not put any effort into making progress on a Canadian marine policy, there will be problems. That is why I stated in my speech that I was disappointed today that there was not unanimous support for Bill C-2and for tackling a real Canadian marine policy.

Once again, it shows divisiveness. We are trying to make our colleagues understand that we have to put our partisanship aside and try to work on the real needs of the industry by developing a Canadian marine policy. When Bill C-2 is adopted, the Bloc Québécois will be available. We have 15 years to adopt a policy and to ensure that our shipbuilders will be competitive.

If they are able to compete with Norway, they will be able to compete with every other country. It is a good opportunity.

If the NDP decides to stay in its corner and to do everything it can to prevent a discussion of this issue and if the Conservatives are no longer keen on it, they will have the backing of the NDP for not having a Canadian marine policy. That is the situation we find ourselves in.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, I quite like the member, but he is misleading Quebeckers.

More than half of all Quebeckers want fair trade. That is what most Quebeckers want. But the Bloc Québécois is aligning with the Conservative Party and the Liberal Party, both of which are championing John McCain and George W. Bush's behind-the-times ideas. It is absurd to suggest that we cannot protect certain strategic industries.

Workers in the Lévis and Lauzon shipyards have asked the Bloc Québécois to vote in favour of the NDP amendment to exclude shipbuilding from the agreement. The United Stated have done so systematically. Under their Jones act, they have excluded shipbuilding and shipyards to ensure that the industry can make a full contribution to their economy.

The NDP is the only party in the House that says that shipyards deserve our support and should be excluded from the agreement. This is the only way to force the government to come up with a proper marine policy.

Why is the Bloc supporting an agreement that sells out shipbuilding when the NDP is offering a solution that would bring in a marine policy? Saying that we might come up with something someday is not good enough. This agreement will kill shipbuilding. That is what shipyard workers all over Canada, including those in the Lauzon shipyard, have told us.

They have made their needs clear. Why is the NDP the only party listening to these workers?

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, one thing is certain, and that is that the Bloc Québécois wants to protect the values and interests of Quebeckers. The government says it is open to discussions with the world. At a time of crisis, the Premier of Quebec took the trouble to spend a few weeks discussing a possible free trade agreement between Quebec and the rest of the European Union with EU representatives. We have to keep in mind that Quebec has a population of 7 million, while Canada has a population of 33 million. If we want to lead the world in aluminum, nickel, aerospace and many other industries, we have to be able to open up to world markets.

Obviously, when we enter into agreements and analyze them on a macroeconomic level, we see that they have advantages and disadvantages. One of the disadvantages of this agreement has to do with the shipbuilding sector. However, because of the political divide in this House, which is supported by the NDP, we are unable to tackle the issue of a real shipbuilding policy.