Bill C-41 (Historical)

Canada-Korea Economic Growth and Prosperity Act

An Act to implement the Free Trade Agreement between Canada and the Republic of Korea

This enactment implements the Free Trade Agreement between Canada and the Republic of Korea that was done at Ottawa on September 22, 2014.
The general provisions of the enactment set out rules of interpretation and specify that no recourse may be taken on the basis of sections 9 to 15 or any order made under those sections, or on the basis of the provisions of the Free Trade Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Free Trade Agreement and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Agreement and the power of the Governor in Council to make orders for carrying out the provisions of the enactment. Part 1 also provides protection for certain geographical indications.
Part 2 amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement between Canada and the Republic of Korea.
Part 3 contains coordinating amendments and the coming into force provision.

Canada-Korea Economic Growth and Prosperity Act

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Mr. Speaker, that is a very good question.

Up to this point, quite frankly, it has been difficult for Canadian firms to invest as much money in Korea as they would like to invest. We understand the protection in the South Korean economy.

However, for the first time, this levels the playing field. Canadian firms will have every opportunity to invest in South Korea, as South Koreans have to invest in Canada. That is really what these trade agreements are about. If we break them down to the lowest common denominator, there is rules-based trading that is fair for everyone.

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, it is my pleasure to rise in the House today to speak to Bill C-41, an act to implement the free trade agreement between Canada and the Republic of Korea. Before I start, I would like to note that I will be splitting my time with the member for Trois-Rivières.

There are a few points I want to make on this bill. First, I would like to praise our critic in this area, the member for Vancouver Kingsway. This member is a lawyer with a very good reputation. He has spent a lot of time on this file making sure that he is using the utmost of his knowledge to understand and digest this deal and has explained it to the rest of us.

I feel very confident when the member says to us that we should be supporting this trade deal. The diligence he has put into this file gives me a lot of confidence that this is something we should do. I have been looking through the deal myself, and I concur with the critic's recommendation. I will be supporting this at second reading and look forward to this deal going ahead.

It is not just the local links with my neighbour from Vancouver that also gives me great confidence that this is a good idea. We also have a local MLA, Jane Shin, from Burnaby, who is the first Korean-Canadian MLA elected in British Columbia. I have spent many hours talking with her about how we could build closer links between our country and Korea.

Ms. Shin has been doing fantastic work in Burnaby. I look forward to hosting a round table with her and the member for Vancouver Kingsway on this issue in the near future.

My inclination on trade deals goes back to my Scottish roots, which make me hope for the best and plan for the worst. When I see trade deals, I like to think that perhaps we can support them. We start with the idea that we can support a trade deal, then we look at it in as much detail as we can to decide whether it is good for Canada. In fact, the NDP uses three important criteria to assess all trade agreements.

First, is the proposed partner one that respects democracy, human rights, adequate environmental and labour standards, and Canadian values in general? That is very important. I think most Canadians would agree that priority for trade agreements should be given to countries that share our values.

Second, are these deals of significant or strategic value to Canada? We do not want to sign frivolous deals. Is it just an announcement for the sake of an announcement, or is this really going to lead to economic growth in Canada?

Third, are the terms of the proposed agreement satisfactory?

Looking through this deal, and talking to the critic and local representatives, we think this free trade deal with the Republic of Korea passes all these tests.

I am happy to say that along with the deal we have signed with Jordan, this is another trade deal we can support, and I will be voting yes.

One of the reasons I am favour of this is that it is also different from some other deals, such as the FIPA with China. Where I think Canadians should draw a distinction is that the deal with Korea is reciprocal. That means that both countries will have more or less equal access to one another's markets. The terms of the China FIPA deal are not reciprocal, in my understanding.

It is important to go through the various clauses of these agreements to make sure that we are getting the absolute best deal we can.

I am especially excited about building better links with Korea, because in my capacity as the critic for science and technology, I have had the pleasure of meeting with a number of advisers to the President of Korea regarding their investment in science and technology.

The President of South Korea, Park Geun-hye, is an engineer by profession and has decided to continue her country's investment in science and technology in order to build their economy. I applaud this.

In my conversations with the advisers to the President of South Korea on investment in science and technology, a number of very interesting things came to light.

First, the President of Korea has made a commitment to ensure that 5% of their entire economy is reinvested in research and development.This is a massive amount of money, both from the private and public sector. It actually leads the world in the proportion of money invested in research and development.

It was explained to me that the reason Korea was so gung ho on science investment was that after the war Korea was essentially bombed flat with very few energy resources, so Koreans decided to invest as much as they could into innovation to grow their economy. We can see through the companies Korea is famous for, like Samsung, that this investment has paid off.

In conversations with presidential science advisers, they have said their goal is to make Korea the leader in the world in science and technology, not only in investing in applied sciences but also basic sciences. In addition to committing to investing 5% of the GDP into research and development, the President of Korea recently said that there would also be extra investment in basic sciences. That is in stark contrast to what happens here. Where Korea is aiming at 5% of GDP to be invested in research and development, Canada is only at about 1.7%, and that is a decline over the past few decades from about 2% when the Liberals were in power.

These trade deals will provide windows. We are often boastful in Canada, thinking we are the best in the world and there is not much we can learn from other countries. Closer ties are important to us because maybe here we will see the importance of investing in science and technology.

What is also extremely interesting with the Koreans is that they recognize the link between basic sciences and applied sciences. We cannot have companies building new types of widgets if we do not invest in the basic infrastructure of science and technology. That is exactly what the Koreans do and I hope we will learn from them.

The other thing the President of Korea has also said is that Korea will invest in stable funding for its science community. It is critical not to lurch from year to year with unstable investments, wondering if a lab is going to continue on. Rather, the President of Korea has said that Korea will invest in stable funding, not just increases but longer term.

The value of such agreements is that we get to see what other countries are doing, and Korea is leading us at this point in investment in science and technology.

The New Democrats have a number of proposals going forward that we would like to put in place which would complement this kind of Korean approach to science and technology. At a recent policy convention, we developed a national science strategy just like Korea has. More important, we passed a unanimous resolution that we move to match the percentage of GDP invested by public and private sectors in research and development as found in other global leading countries, such as the United States.

It is not just Canada that is trying to catch up to Korea in its investment in R and D. Korea invests 5% of its GDP into research and development and the United States is at 3%. We are at 1.7%. However, if the NDP became government, this resolution would build on these types of deals in order to increase Canada's investment in R and D.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, a number of years ago, I travelled to Seoul with the then foreign affairs minister. While I was there, we had a briefing from some of the people who were conducting the efforts to achieve this agreement. At the time, I asked them if there were provisions to allow for Canadian automobiles to have access to the country. The room went rather cold in a hurry. They had not reached that stage of the agreement.

Being the critic for international human rights, for me a concern is the standards of labour law, labour respect and human rights in that country. My belief is that it is more solid than any other agreement we have seen the government sign. In fact, Colombia's and some of the others were disgraceful. What is the member's opinion of this?

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I thank the member for the great work he does in and outside of the House. If we take post-war Korea, there is a dedication to rebuild the economy first and then a commitment from the late eighties onward to democratic reform and human rights. I think those are present in the labour force in Korea, the labour standards, and I would think they would be equally as strong in Korea as in Canada. Again, this is another reason why I support the agreement.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I want to follow up on my colleague's concerns about reciprocity in the auto sector. Coming from Ontario, the auto industry has been a huge player in the Ontario economy and we have heard a great deal of concern expressed about the lack of reciprocity when we deal with other markets, especially the emerging car markets.

My question for my hon. colleague is about the protections that have been negotiated to ensure we maintain a strong and vital car industry in Canada, as well as being able to trade into markets like Korea. I would like to hear my hon. colleague's concerns on this issue.

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, again, I appreciate the great work my colleague does in his riding and in the House. We have some concerns about the impact on the auto industry, but where we should start is the lack of effort on the other side of the House to support our automakers. The industry has essentially been abandoned by the Conservatives. On this side of the House, we have done our best to protect it, and that is where things have to start.

Again, there are clauses built into the agreement to protect our auto industry still and we will monitor those as they go along. I share my friend's concerns, but wish the government would actually do more to encourage and boost the auto industry in Canada.

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, I would like to ask my colleague if he agrees with me on that. I get the sense that the potential problems the auto industry could face have more to do with the Canadian government's lack of a strategy for the industry than with possible competition.

Korea has overcome absolutely extreme difficulties. Its economy was based on subcontracting: it manufactured low-end vehicles for competitors. However, it invested heavily in research and development and achieved a level of excellence that makes it competitive. Why do we not do the same thing here?

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I would like to read a quote from Jerry Chenkin, president and CEO of the Japanese Automobile Manufacturers Association of Canada, who said:

Free and open trade with priority markets in Asia, most notably Korea and Japan, is vital to Canada's national interest to be globally competitive, create jobs and increase prosperity...

We have consulted widely on the bill and support it because we feel it is a great deal for Canada and for all sectors of the economy.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I am tremendously pleased to rise this morning to express my point of view on the free trade agreement with South Korea. I very humbly but very fervently hope to dispel or shatter the false impression that the New Democratic Party is a party opposed to free trade agreements.

Unlike the other opposition party, the NDP understands that people think we should take the time to thoroughly analyze an agreement before deciding where we stand on it. That way, we can provide crystal clear explanations of why we support it, what its weak points are and what can be improved.

We take this thorough approach to studying these files and figuring out the real benefit to Canadians, whether they are workers or business people, because of the analytical ability and experience of our leader, the member for Outremont. He is very capable of sharing his analytical ability and his experience with the whole caucus, and I believe that makes us all better analysts.

Getting back to the free trade agreement with South Korea, one of the key principles around trade policy is the diversification of export markets. The slowdown in demand from the United States in 2008 made each and every one of us realize the risks involved in concentrating all of our exports and investments in just one market.

The vagaries of current economic conditions are pushing us to gradually reduce our trade dependence on the United States. Supporting the measures set out in Bill C-41 is therefore crucial. However, we must not forget to use our critical thinking skills when it comes to certain controversial measures in the bill, notably the investor state dispute settlement mechanism.

It is important to bear in mind that NDP support for free trade agreements depends as much on democratic criteria as it does on criteria related to Canada's economic interests.

In fact, those criteria must be analyzed together when we assess the social and economic effectiveness of a free trade agreement. It would be completely absurd and counterproductive, for instance, to sacrifice respect for labour and environmental standards on the altar of economic effectiveness.

Accordingly, we support the implementation of this free trade agreement, especially given that South Korea represents a successful model, both politically and economically. Moving from a dictatorship to civilian rule, the Korean political system has proven its openness to civil society by allowing freedom of expression and promoting a multi-party system. The Korean political system rests on a vibrant trade union movement that is working to provide social protection for workers by guaranteeing labour standards comparable to ours here in Canada and offering relatively high wages.

The South Korean government's budget for 2014 includes a significant increase in spending on improving that country's social safety net and support for local communities. In economic terms, South Korea has a diverse industrial base, bolstered by high public spending on research and development, to the tune of 4% of GDP. Canada can learn something from the Koreans in that regard, since Canada is far less involved in research and development. A top-notch education system supports the efforts by the government to strengthen the industrial fabric.

These criteria are vitally important. Other countries offer attractive economic opportunities for Canada, but the absence of democracy, minimal social protection and transparency makes their political system completely unpredictable and therefore naturally detrimental to trade and investment. Accordingly, having South Korea as a preferred trade partner is a good choice on many levels.

South Korea is Canada's seventh-largest trade partner, with Canadian exports to South Korea worth $3.7 billion.

It is interesting to see that the Canadian and Korean sectors that will benefit from this free trade agreement are complementary markets rather than competing markets. There is a high demand for raw materials in South Korea, while Canada has a limited ability to export its energy resources. The free trade agreement will create a market for Canada's energy resources, thereby creating jobs in the energy sector in Canada. This is an important part of the NDP's analysis of each free trade agreement: looking at how it will improve the everyday lives of Canadians, no matter which province they live in.

What is more, with regard to Korea's social and environmental standards, Canada's economic sectors will not fall prey to social and fiscal dumping measures, and neither will the social safety net that our workforce enjoys.

Korea has also worked on improving its corporate governance. Some groups broke up or restructured in the wake of the Asian crisis in order to rebuild on a more solid financial and management foundation. Korea has an economic profile that is highly favourable to us. Rating agencies have assigned Korea an A2 risk rating. In other words, its political, social and economic situation is conducive to business and long-term investment.

Of course, Bill C-41 will allow us to win back the market shares lost to our American and European competitors, whose countries have already ratified free trade agreements with Korea. This has had a negative impact on the Canadian aerospace industry, whose exports to Korea have dropped by 80%.

I would also like to point out that free trade agreements rarely obtain the consensus and support of all of the economic sectors involved. I am thinking here of the Canadian automobile industry's concerns about this free trade agreement. In reality, it is up to the government to support the automobile industry's growth. The evolution of this industry strongly depends on the growth recorded in countries such as China and Korea. The same could be said for the forestry industry, which specifically affects Quebec and the riding and region that I have the pleasure of representing.

However, Bill C-41 provides for a dispute resolution mechanism that promotes the export of Canadian automobiles to Korea, and includes transitional safeguards if there is a sudden increase in imports affecting the Canadian automobile industry.

Finally, let us look at the unfortunate investor state dispute settlement mechanism included in this bill. It is a regressive and undemocratic measure. Under this mechanism, private companies could take legal action against the Canadian government if the government were to pass legislation that would reduce the future profits of those private companies or investors.

With such a mechanism in place, private companies would have the ability to undermine Canadian health policies, social policies and financial regulation policies by suing for damages in courts outside Canada's jurisdiction. What is more, the investor state case law shows that the courts more often find in favour of investors, calling into question the sovereignty of states over their own jurisdictions. An NDP government would repeal this provision, which is opposed by the main opposition party in South Korea. We have found some kindred spirits there.

The free trade agreement between Canada and Korea provides a momentous opportunity to diversify the Canadian economy and promote the creation of quality jobs in Canada. Some of the terms of the agreement are not what an NDP government would have negotiated. However, a cost-benefit analysis shows that the advantages outweigh the risks involved.

A critical examination of free trade agreements can be vital since such agreements can undermine local producers and entire sectors of the economy that were once thriving. Nevertheless, it will allow Canada to gain market shares in an area of the world where economic growth has not yet reached its full potential.

[Lois Brown, Conservative, Parliamentary Secretary to the Minister of International Development]

Mr. Speaker, I specifically thank my colleague for his support for this initiative.

Before I ask my question, I would just like to bring to the attention of members in the House a very interesting article in the fall edition of the official news magazine of the Canadian Snowbird Association. It is on fascinating South Korea, story and photos by Barb and Ron Kroll, talking about some of the tourist opportunities that are coming in South Korea. It looks like a fascinating place to visit. I have visited several countries in Asia, and I sincerely look forward to the opportunity to visit Korea if this article is any indication of what is available there.

One of the things we know about free trade is that countries can work on what is their comparative advantage. The province of Quebec has a real comparative advantage in the forestry industry, and I wonder if the member could talk about some of the advantages he sees for the forestry industry in Quebec with this Canada-Korea free trade agreement.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I would like to thank my colleague. If an all-party delegation one day tours Korea, I would be pleased to go.

Let us get back to her question, which has two parts. First, my colleague thanked me for supporting her government with respect to this free trade agreement. The NDP is proving that when members take the time to carefully analyze bills, it is possible to greatly decrease or even eliminate the partisan approach that hinders debate and the continued development of this country.

All parties in the House should follow the example set by the New Democratic Party in that regard. Just this past Saturday there was a very well-attended walk in support of forestry in the region I represent. In Shawinigan, plants in the forestry industry, especially pulp and paper plants, are still closing.

If we focused on research and development, for example in the area of new fibres or value-added wood products, my region would flourish with this free trade agreement. It would be a great support because there are large quantities of this resource in the area.

We have to develop exports of value-added products rather than raw materials.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I would like to thank my colleague for his speech. While listening to him earlier, I was thinking a lot about Descartes's Discourse on Method, and I think we should reread the classics.

My colleague has clearly shown the reasoned approach taken by the NDP to free trade agreements, which is quite the opposite of the ideological approach of saying yes to everything, regardless of the consequences, as long as there is business to be done.

I am convinced that my colleague is a person of reason. Could he tell me a little more about the problem caused by extrajudicial tribunals in the conduct of government business? That is one of the NDP's concerns.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I thank the philosopher from Louis-Hébert for his question.

Every country needs to protect itself against the loss of self-governance. The dollar sign should not be put on the economic altar above the best interests of citizens, the very people we are supposed to serve.

When we look at each party's approach to free trade agreements and economic measures in the House, we can see that there will be choices to be made when it comes to choosing a government in 2015. There is indeed a variety of choices; these choices have to do with the development and vision of a society.

We want to do everything we can to serve the Quebec and Canadian public, to ensure that no one is left behind because of a measure we would not have control over.

[Erin O'Toole, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, it is my honour to stand today in the House to speak to the Canada-Korea free trade agreement. I am proud of the work done by our Prime Minister, our Minister of International Trade, and truly our government in growing new markets for Canadian employers, because one in five jobs is directly attributable to trade. It is an honour for me to talk about yet another important trade agreement that this government has brought to Canadians and to Canadian exporters.

I am also going to use some of my remarks today to talk about why I am very proud of this agreement in particular, as a Canadian and as the member of Parliament for Durham, for bringing together two peoples who have a deep and rich shared history, although it is only about 70 years long in duration. Our relationship was forged in the battles of the Korean War and has emerged as an important relationship for Canada and Asia. I will dedicate a few remarks to that aspect of the relationship.

Trade promotes dialogue between nations, and it also promotes security. The deals we are negotiating are not just huge wins for Canadian employers, but they are also huge wins on international security and helping make sure that globalization allows all people to benefit. The result will be a mutual dependence between countries on the trade and commerce front and more stability and security for their citizens, particularly in Asia.

This is truly yet another incredible free trade agreement negotiated by our government. The Korean GDP is $1.3 trillion. Korea's economy is the 15th largest in the world and it has roared into that position in the last few decades. It is already Canada's seventh-largest trading partner, which is an important point that we focused on. It is a market of 50 million people, and increasingly, a market that is seeing a middle class emerge in the country, and with that middle class comes the demand for quality of products, particularly food and agricultural products, from a country like Canada. People want to provide the best food in the world for their families, and we are seeing that in Asia, particularly in South Korea.

We are following a pattern of engagement to make sure we also keep the playing field level with our main competitors in global commerce. The European Union negotiated a free trade agreement with South Korea in 2011. The United States negotiated a free trade agreement with South Korea in 2012. We have been at the table pretty much alongside our friends and competitors from Australia. We want to make sure our exporters have a level playing field and the opportunity to grow in an important market. Since the U.S. free trade agreement with Korea came into force, we have seen a reduction of $1.5 billion in exports to South Korea because of the tariff elimination that some of our competitors saw.

We were still able to forge a great deal. We do not rush and make a poor deal on behalf of our exporters. We make sure we stay at the table to negotiate an ambitious and important outcome, and that is where we are at.

A review of this free trade agreement has led to estimates that our exports to South Korea would increase upon implementation of this deal by 32%. That is almost a $2 billion addition to our gross domestic product. When fully implemented, the agreement would remove duties on 98% of tariff lines.

I will go back to what I said at the beginning of my remarks. One in every five Canadian jobs is attributable to trade. Deals like this not only secure those jobs that are there now, but they grow more, because as a modest country in the 33 million to 35 million range, we need to sell beyond our borders.

I would remind the House, particularly people who are just waking up to the benefits of trade such as my friends in the NDP, it is Conservative governments that have granted Canadian exporters access to 98% of the markets that are available to Canadian exporters. Pretty much every trade deal or all of that access is attributable to this government and the last Conservative government. That is a fact that as a free trader I am very proud of. Our exporters, once given a level playing field, can compete with the best. Those are the opportunities, an almost $2 billion addition to our GDP from this deal.

What are the big winners? As parliamentary secretary, I have had the good fortune of visiting parts of this country to talk trade, to talk this agreement and to help industries consider market access to take advantage of these agreements. The big winners are all regions of the country because of their particular products, and I will run through those, but also our agricultural sector. In the years of our best friend and trading partner to the south playing games on the trade front with country-of-origin labelling and things like this, our beef and pork producers needed secure access to a growing market. Korea is big beef- and pork-consuming market. It is only going to grow more. The Koreans want access to high-value, high-quality products, yet we could not get in there.

First, there were regulatory issues that we had to smooth out, but also a tariff rate of up to 72% on beef and beef products. Adding 72% to the cost means we cannot access that market; it is as simple as that. Pork and pork products had a 30% tariff rate with most pork products and processed pork products. The tariff walls that Canada has had in reverse on some South Korean products are trivial in comparison. We are talking about 4% or 5% nominal tariffs that an efficient business can perhaps absorb. We cannot absorb a 30% or 72% tariff rate, so those markets are essentially not accessible. Now they will be.

Another huge winner is a part of the country that is dear to my heart. Atlantic Canada will have immense wins with this deal, and British Columbia as well and potentially the Arctic. Seafood tariffs were another one of those high-tariff ranges, ranging from 16% to 47% tariff rates. That is essentially a tariff wall.

I had the honour of being in Korea a few a weeks ago, and I will speak to that in my remarks shortly. We were there a few days before the beginning of Chuseok, which is the Korean thanksgiving celebration. The Koreans were happy to tell us about this and we were talking about the differences between our Thanksgiving and theirs. Theirs is more of an ancestral history event where they go back to the town where they grew up, and it is a point of honour for them to bring a special food to their ancestral home and their family at Chuseok. The most popular food in the last year to two years was Atlantic Canadian lobster. That is a product that already had a 20% tariff rate, yet people were recognizing that the best lobster in the world comes from Atlantic Canada and they were still absorbing that 20% hit. That is going to be eliminated.

I was also fortunate to be at the Halifax Stanfield International Airport some months ago to meet with Korean airlines officials as they sent their second of many dedicated cargo flights to Halifax to take Atlantic lobster back to South Korea, where most was consumed in South Korea or traded in Asia. That is a market we have already been forging, and it will only benefit more from this deal.

Wood and wood products, another major export for us, had tariffs in the 5% range on most wood products and 10% on processed wood products. I have seen first-hand Viceroy Homes, which employs people in both Port Hope, Ontario, and in Burnaby, B.C., a Unifor unionized workplace that has predicted it will double the size of its workforce as a result of South Korea alone. It already had market access as a high-value wood-product company of windows and homes. With the reduction of the 10% tariff, it is now very competitive and it is hiring Canadians because of that.

In Newfoundland and Labrador, frozen shrimp and a lot of crab products have a 20% tariff wall. In Nova Scotia, known for its blueberries, there is a 45% tariff on fresh and 30% on frozen. In Prince Edward Island and New Brunswick, parts of our country known for potatoes and processed potato products, such as french fries, of which I perhaps have had a few too many from time to time, there is an 18% tariff rate, making it hard to be competitive in that market.

In Quebec, maple syrup has an 8% tariff. As for flight simulators, CAE is a company I visited while I was in South Korea to see its investments in that country. On flight simulators there is a 5% tariff rate that will come down. In Ontario, aerospace and rail has an 8% tariff. On nickel products and a lot of refined metal products, there is an 8% tariff. In Manitoba, chemicals have an 8% tariff. On pork, as I said earlier, there is a 30% tariff. I toured the Maple Leaf site in Brandon, which is waiting for access to South Korea. It has made the investments and is ready to do it. It just needs the markets that we are now opening up.

In Saskatchewan, canola oil has a 5% tariff. One of the craziest ones is unroasted barley malt, which has a 269% tariff rate. That is a wall. That is a tariff cage, I would suggest. In Alberta, industrial machinery is at an 18% tariff rate. Once again, Alberta beef, which we just enjoyed here in Ottawa last week, has a 72% tariff rate. We cannot access those markets. In B.C., of course, which has a robust, diverse economy but is also known for its wine, wine has a 15% tariff rate. I know my friend, the MP for Kelowna—Lake Country, is quite keen to see access to that market increase.

This is our first free trade agreement in Asia. As I said at the outset of my remarks, the cultural and historical bonds between the countries make this a perfect partner for our first FTA in Asia because its dynamic economy, which is now the 15th largest in the world, with brand names we all recognize, that opportunity and freedom was secured by Canadians.

There were 26,000 of our young men and women who served in the Korean War from 1950 to 1953, and 516 gave the ultimate sacrifice. When I was in South Korea last month, I was amazed. From schoolchildren to ministers of the government, every one of them thanked us for that commitment 60 years ago. That is the foundation upon which our relations are built. This is a lovely evolution to that relationship now, that we will drop our tariff walls and fully trade as partners.

Many of us took part in the PPCLI, Princess Patricia's Canadian Light Infantry's 100th anniversary just last week on the Hill. There was a wonderful parade, joined by the Van Doos, another proud regiment also celebrating its century. That regiment distinguished itself on the battlefields of South Korea.

In the battle of Kapyong, the PPCLI was one of the few units, the only Canadian unit, to receive a presidential unit citation because its bravery over the course of several days, repelling a communist Chinese advance and saving the lives of Americans, New Zealanders, Australians, and Koreans. They were surrounded. They called in fire on Hill 677, their own position, to make sure they held that line. That is the Canadian commitment to countries such as South Korea and that is why I was so touched to see that first-hand in Seoul.

I also had the honour of joining Minister Park, Korea's Minister of Patriots and Veterans Affairs, at the national war monument and national hall of honour, where our delegation, which included the MP for Haliburton—Kawartha Lakes—Brock and Senator Yonah Martin from British Columbia, laid wreaths at the hall of honour and at the 60th anniversary marker that our government erected when we tried to make sure that our veterans from the Korean War do not think of it as the forgotten war anymore. We have been trying to show them how much we appreciate them. Minister Park laid those wreaths with us and spoke with fondness of the Korean War veterans from Canada he has met over the years.

In the hall of honour and in the war museum, we got to see the spectacular artwork of Canadian war artist Ted Zuber. It was really Korean veterans themselves who raised a lot of the money to hang that spectacular painting by a Canadian artist, a war artist who, incidentally, served in the Royal Canadian Regiment. Now I have named all three of our regiments. His work depicting our service and sacrifice in South Korea is stunning and sits in a place of honour in that war museum.

On a personal level, in Durham, my friend who lives quite close to me, Doug Finney, is currently the president of the Korean Veterans Association of Canada representing those veterans in Canada. I was honoured that he was able to join our government, the Prime Minister and the Governor General at a state dinner just last week at Rideau Hall honouring the visit of President Park from South Korea, the night before the historic signing ceremony for this trade agreement.

We are forged in the history of war and of conflict, but what has emerged is a robust, strong democracy in Asia that is now our gateway into a fast and growing part of the world.

The Koreans I met were truly inspiring. Our first evening in Korea we met with children from H2O Pumassi, who had just two months earlier visited Canada to come and thank our veterans. In fact, in solemn ceremonies, they even washed the feet of some of our veterans. These are children whose parents may not have even born when the conflict took place. Their deep remembrance of our sacrifice is palpable and moving for us. That was our first dinner. They hosted us to show us photos of their trip to Canada. It was truly inspiring.

Many Korean Canadians came here for opportunity, have done well and are now trying to help out back in their home country. Mr. Ron Suh was on the ground in Seoul and joined us for some of the events. He has been working to build bridges for decades as the regional president of the National Unification Advisory Council. It is a position that the president of South Korea asked Ron to fill so that he could work as part of the diaspora toward unification, which is something I think all of us would like to see to eliminate some of the horrors of oppression in North Korea. People who have been building these person-to-person ties between our countries since the war are inspiring.

Similarly, there are South Korean veterans who fought in the war and then immigrated to Canada afterward. They have an association and I have been very fortunate to meet some of these veterans in my travels across the country. They are the living embodiment of the bridge between our countries.

Our work in the national assembly during that visit was to make sure that our friends in South Korea ratified the deal on their side quickly, as we will in the House. I have to thank Minister Park and Minister of Education Hwang; Representative Chung, the speaker of the national assembly who met with us and hosted a meeting; Representative Kim and the trade committee, who we met with us directly to ensure quick passage of this free trade agreement.

We also met with members of their opposition to make sure that events in their country at their national assembly and other things did not interfere with the passage of this important new evolution of our relationship as countries. We met with Representative Woo, the policy chair for the opposition coalition, NPAD.

I thank all of those representatives for the meeting and for helping forge the bonds between our countries.

Durham is an area with a history of a strong and productive auto industry with General Motors in Oshawa. My father is a GM retiree. As the member of Parliament for Durham, I am happy to say that our government has secured an outcome on automobiles that is as strong or stronger than some of the provisions our U.S. friends have. Not only do we get immediate duty-free access to those markets, but we have a permanent specialized dispute settlement procedure for non-tariff barriers.

This is not a five-year dispute settlement such that the U.S. secured in its agreement. We have a permanent dispute resolution so that we can make sure that our automakers have access.

An important point that some of my friends in the opposition like to ignore is that the decision on what vehicle rolls off the lines for our great and productive workforces in Oshawa, Oakville and Windsor is not made at the Canadian subsidiary. That decision is made in Detroit.

How could our government possibly allow our country and those plants to have one less market that they could access? How could we possibly do that? I said to Unifor and representatives of one of the big three that it would be against our national interest. We want to make sure our plants, which are some of the most efficient in North America, have the same market access as their counterparts in the U.S. because they compete for new products to roll off their lines.

I hope that, with my remarks today, I have shown why South Korea is our partner in Asia with our first free trade agreement there. It is a relationship forged in sacrifice, service, and mutual respect. This agreement would be a tremendous win for both countries.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, I listened with intent to my hon. colleague's comments, and he definitely made some good points.

However, since 2012, Canadian exporters have lost about 30% of their market share. When it comes to the EU and the U.S. implementing trade agreements with South Korea, they got preferential access.

I wonder if the member could comment on why the government has taken this long and why it was not able to negotiate as good a deal or a better deal than the U.S. and the EU on that?