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

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, there was a time in which there was more difference between the New Democrats and the Liberals, but the New Democrats are trying to become Liberals on the trade issue.

We need to recognize that when the member said whether it was the European Union, that in principle they supported the concept of free trade. This is much like when Jack Layton was the leader of the New Democrats. He would say very candidly, “We oppose free trade agreements”, even if the free trade agreement was not on the table or if there was no context to the agreement at all. At one time, the New Democrats knew that the content did not matter. It was totally, absolutely irrelevant. They just opposed trade agreements. It is only under this new leader that they have made this flip. That is a good thing.

They do not need to try to come up with this justification. That is all they are really talking about is justification. The Liberal Party believes in the importance of environmental and labour laws. We want to ensure that there is a respect for democracy and human rights. The New Democrats are coming up with a justification for their flip-flop. That is all it is.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I listened with interest to the member for Winnipeg North as he talked about what Jack Layton said and what the NDP stood for. Maybe he should stick to what his own party stands for.

The problem we have on this side is that with respect to what the Conservative government has done in its trade policy, the Liberal policy tends to be “me too”. The Liberals go along with it. They do not think about it. They do not question it. They do not analyze it. They just want to agree.

What we have talked about here with respect to the Canada-Korea trade agreement, like we have with every other agreement that has been brought into the House, is the merits of it, the provisions, what is contained within the agreement and how it benefits Canadians, Canadian businesses and Canadian workers.

Why does the member for Winnipeg North get so offended when the NDP looks at a deal from a logical and principled point of view before we decide yea or nay?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, no offence to the member, but I do not believe the New Democrats are being fully transparent on this issue. The reality is quite different in terms of what they have done in the past versus what they say today.

If we use the same logic that the member just talked about in terms of how they thoroughly investigate and base their decisions strictly on the merits of a trade agreement, did that same principle apply when Jack Layton or Ed Broadbent was the leader of their party? Are they saying that the Jordan agreement and this agreement are the only two agreements that Canada has ever signed that are worth supporting? They need to look in the mirror and reflect on what they say if they want to be consistent and honest with Canadians.

[Rodney Weston, Conservative, Saint John, NB]

Mr. Speaker, it is a pleasure to rise today to speak to Bill C-41.

Our government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. Canada's prosperity requires expansion beyond our borders into new markets for economic opportunities that serve to grow Canada's exports and investments.

That is why our government is currently pursuing the most ambitious trade expansion plan in our country's history. The Canada-Korea free trade agreement is a state-of-the-art agreement which covers virtually all sectors and aspects of Canada-South Korea commercial relations, including trading goods and services, investment, government procurement and intellectual property, as well as labour and environment.

The Canada-Korea free trade agreement would result in job creation and enhanced opportunities for Canadian and Korean businesses, particularly small and medium-sized enterprises, as well as investors, workers and consumers.

Today, I would like to speak about how the Canada-Korea free trade agreement would help the Atlantic provinces to expand their businesses and increase their competitiveness in the South Korean market, which presents many opportunities for my fellow Atlantic Canadians.

From 2011 to 2013, Atlantic Canada exported, on average, $64 million worth of goods to South Korea. Through the elimination of tariffs in major sectors of interest to Atlantic Canada, including fish and seafood products, agriculture and agri-food products, rail products, information and communication technologies, industrial machinery and medical devices, Atlantic Canadian goods would become more competitive in South Korea.

The agreement's outcomes in non-goods trade would also help service providers by facilitating business mobility and investors through increased protection and clearer rules. New Brunswick is one of the Atlantic provinces that stands to benefit significantly from the Canada-Korea free trade agreement.

The agreement would bring numerous benefits to New Brunswick, including the province's industrial goods sector. Our industrial goods sector is an important driver of the economy for New Brunswick and it employs about 6,700 hard-working New Brunswickers each year.

From 2011 to 2013, New Brunswick exports of industrial goods to South Korea were worth an average of $7.8 million. The Canada-Korea free trade agreement would eliminate tariffs on all of New Brunswick's exports of industrial goods to South Korea, including tariffs on information technology products which currently face tariffs of up to 13%. It would also eliminate tariff rates on industrial machinery and power-generating machinery, with the current tariff rate of up to 8%.

Tariff elimination would level the playing field for New Brunswickers relative to key competitors from the Untied States and the European Union, and bring substantial export gains to the province.

Nova Scotia is another Atlantic province that would gain considerably from the Canada-Korea free trade agreement. I would like to touch upon the agreement's benefits for the fish and seafood products sector, which provides jobs to more than 9,200 Nova Scotians.

Between 2011 and 2013, Nova Scotia's fish and seafood exports to South Korea were worth an annual average of $23 million. Nova Scotia would benefit from tariff elimination on products such as live and frozen eel from a current rate of up to 27%. Tariffs would also be eliminated on live and frozen lobster, frozen crab and scallops, which have a current rate of up to 20%.

On a point of interest, shipments of lobster from Halifax Stanfield International Airport to Seoul have already begun, with loads this past summer of nearly 40,000 kilograms.

Throughout the negotiations on the Canada-Korea free trade agreement, our government has actively engaged stakeholders to ensure that the agreement best reflects their needs. Stakeholders have provided strong support for the agreement, including the Nova Scotia Fish Packers Association, which is congratulating our government on the agreement with the following statement, “The free trade agreements to eliminate tariffs will seriously open up the markets. I very much applaud the efforts of government to reduce trade barriers.”

I am very excited for the many benefits that the Canada-Korea free trade agreement will bring to the Nova Scotians. That is a pretty strong statement in and of itself.

Prince Edward Island also has a lot to gain from the Canada-Korea free trade agreement, including P.E.I.'s agriculture and agri-food products sector. In 2012, this sector employed about 5,600 people in the province. From 2011 to 2013, P.E.I.'s agricultural exports to South Korea were worth an annual average of $2.6 million. Frozen french fries and pork products were the top export items.

P.E.I. would benefit from the agreement's elimination of tariffs on frozen potato products, which includes frozen french fries, from a current rate of 18%. The agreement would also eliminate tariffs on all pork and pork products of export interest, which range anywhere from 3% to 30%.

I would like to share a quote from the vice-president of Cavendish Farms, a producer of frozen potato products. He said:

...a free trade agreement between Canada and South Korea presents a golden opportunity for us to grow our presence in the South Korean market, and in the Asia-Pacific region as a whole. Free trade helps to support our industry, the workers we employ and the sale of the high-quality products that we’ve been producing for more than 30 years.

The Canada-Korea free trade agreement would bring numerous benefits that would help to boost the economy in Newfoundland and Labrador. The province's services sector, for example, would benefit significantly from the Canada-Korea free trade agreement. This is an important sector for Newfoundland and Labrador, employing some 180,400 Newfoundlanders and Labradorians in 2012 alone and accounting for more than half of the Newfoundland and Labrador economy. The province's key export interests in the services sector include retail and wholesale trade, environment, travel and tourism, construction, and real estate services.

The Canada-Korea free trade agreement would provide services suppliers from Newfoundland and Labrador with greater and more predictable access to the diverse South Korean market. The Canada-Korea free trade agreement contains temporary entry commitments that are the most ambitious South Korea has agreed to in any of its free trade agreements and would go a long way to boosting services exports for the province.

We are standing with Canadians on the Canada-Korea free trade agreement by ensuring that investor protection provisions remain as the cornerstones, as has been the case in all modern trade and investment agreements. We take tremendous pride in our record on free trade agreements, which has put Canada back in the game of trade negotiations. Canadian workers and businesses were at risk of falling behind in this era of global markets, but thanks to the aggressive agenda of our government, we are giving our citizens a competitive advantage.

By continuing to actively pursue broader markets and access to new investment opportunities, our government is providing Canadian businesses and exporters with access on preferred terms to the largest, most dynamic, and fastest-growing economies and regions around the world. No government in Canadian history has been more committed to the creation of jobs and prosperity for Canadian businesses, workers, and their families. Deepening Canada's trading relationships in dynamic and high-growth markets around the world is key to these efforts.

Without a doubt, the Canada-Korea free trade agreement promises many benefits for Atlantic Canada. It would level the playing field for Atlantic Canadian businesses relative to their competitors in the U.S. and the EU. It represents a concrete next step in bolstering Atlantic Canada's presence in the fastest-growing and dynamic Asia-Pacific region.

Today I am asking that all members of the House ensure the speedy ratification of the Canada-Korea free trade agreement, so that hard-working Canadians can start reaping the benefits of this agreement and solidify their presence in the Asia-Pacific region as soon as possible.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, I would like to thank my colleague across the way. We served together for a while on the Standing Committee on Fisheries and Oceans, always in a spirit of collegiality, a very pleasant attitude which has prevailed here for nearly a week. I am very glad to see that in the House.

We have already stated that the NDP will vote in favour of Bill C-41 at third reading. However, there are a few little things I have noticed. For instance, I am still worried about manufacturing jobs in this country.

Can the hon. member give me some more details? Does he know what kind of protection will be provided for jobs in the automotive sector? As he knows, trade with South Korea is quite substantial, especially in the automotive sector.

Will the federal government be introducing protective measures to ensure that the automotive sector in Canada remains competitive?

[Rodney Weston, Conservative, Saint John, NB]

Mr. Speaker, I want to say that I enjoyed my time in committee with the hon. member. It is a committee that is very collegial and certainly continues to be to this day.

To the member's question, I spoke today about what I saw as the benefits to Atlantic Canada in this agreement. I saw a lot of opportunities. I spoke about a lot of opportunities that are there for Atlantic Canadians, and in every agreement there have to be some areas where one sector will do better than the other. We see great opportunity in Atlantic Canada, whether it comes from the seafood and fish products that are produced, the agriculture and agri-food products that are produced, or some of the services that we market around the world, such as industrial machinery. There are different opportunities that present themselves in this market. This is a rich and growing market, and we see huge potential for Atlantic Canada; and for my province alone, the potential is so great. We see a growing market.

As I said earlier, I would ask all members to ratify this agreement so we can get on with it and start taking advantage of the opportunities that lie ahead for us.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Mr. Speaker, I want to follow up on the question that my colleague from the NDP raised for the member for . I too want to express my concern, given that I come from Ontario and given the potential impact that this Canada-South Korea free trade agreement may have also on the auto sector, notwithstanding the fact that our party will be supporting this particular deal.

I would like to get my friend's comments with respect to the ultimate accessibility that Canadian manufacturers would have to South Korea, particularly as it relates to the auto sector.

[Rodney Weston, Conservative, Saint John, NB]

Mr. Speaker, my riding is Saint John. I just want to clarify that, because people in my area are very particular about that. I just want to make sure that members understand very clearly.

We see a lot of potential with this trade agreement, from my area in particular, from Atlantic Canada's perspective, and from New Brunswick's perspective. New Brunswick is the largest, most export-oriented province for percentage of GDP per capita in the entire country. We are very dependent on trade, and we see a huge potential here. We have opportunities that go far beyond what most could imagine. We see a growing marketplace with great demands, and we look forward to meeting those demands.

[The Deputy Speaker, Joe Comartin]

It is my duty pursuant to Standing Order 38 to inform the House that the question to be raised tonight at the time of adjournment is as follows: the hon. member for Thunder Bay—Superior North, National Defence.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, it is my pleasure to rise today in this House to speak in support of Bill C-41, an act to implement a free trade agreement between Canada and the Republic of Korea.

Whenever we are looking at free trade agreements, no matter which country they are with, it behoves the parliamentarians and those who are negotiating those agreements to ensure that due diligence is done and that the agreements we end up with are good for Canada. However, we want them to be good for the other country as well, because that is how strong relationships are built in the long run.

On balance, this trade agreement with a democratic, high-standards country is a good deal for Canada and one that the NDP can support. South Korea is an established democracy with high standards for labour rights, human rights, and environmental protections. Its large market offers significant opportunities for Canadian businesses to gain a foothold in important Asian markets and diversify our trade. Just so members know, we believe not everything is perfect and we will say that this agreement is not perfect. There are things we would have liked to see changed in it, but on balance we believe this is a good deal and it would benefit Canadians and would benefit Korea as well.

Unlike another party that sits on this side of the House—a party that, when a free trade agreement was announced, without seeing the details, said, “We approve; we like it; us too”—we actually believe in doing the work of parliamentarians and waiting to see what the deal is, reading it, studying it, and then trying to make it better before we go out and make grand pronouncements. That is what the people who elect and send us here expect of us. They expect us to do the kind of hard work that the NDP is prepared to do.

At this point, let me acknowledge the stoic work done by an amazing member of Parliament from Vancouver Kingsway. He has taken on this file and has been very thorough, balanced, and measured as he has looked at the policies and the agreements that have been presented to this House. He has put forward thoughtful amendments at committee and, now that it is here, has recommended to the caucus that after his thorough investigation, this is a good deal. That is the kind of work parliamentarians expect from all parties; not the “me too” attitude of the party at the other end of this House.

As members know, we do not always agree with the government on the other side or with our colleagues at the other end, so when we are looking at free trade agreements, we actually have some criteria and we examine free trade agreements against the criteria we have established.

The first criterion is this. Is the proposed partner one that respects democracy, human rights, adequate environmental and labour standards, and Canadian values? If it does not have those rights yet, is it on a trajectory that is moving it toward human rights, labour rights, and environmental rights?

The second criterion is this, and my colleagues at the end of this side could actually learn from doing this kind of homework. Is the proposed partner's economy of significant or strategic value to Canada? These are all very important.

The third one is this. Are the terms of the proposed deal satisfactory?

We have a measured approach, and I am proud of the way we do it.

It is important to note that we did have some concerns with this agreement, and I want it to be noted that once again at committee it was NDP members who did their homework and the hard pulling. It was NDP members who moved amendments based on our concerns over the provisions for investor state dispute settlement. We were very concerned.

However, we were pleased that in this case, unlike the case of the Canada-China FIPA, the agreement would not keep the hands of government tied for 31 years. This agreement can be renegotiated or cancelled after six months. Unlike the other FIPA, the Korean free trade agreement has guaranteed transparency rules for ISDS tribunals. Hearings must be in public. We still expressed our concerns about that, but the other party said it was quite willing to live with that provision.

We also have some major concerns around the auto industry. Once again, it was the NDP and only the NDP doing the hard work that we do as parliamentarians. We brought amendments at the committee stage in order to strengthen protection for the auto industry.

I would like to welcome my colleague across the way, who is new to Parliament. He raised the question as if to say that we had abandoned the auto industry. In fact, it was NDP members who brought forward amendments that would provide further protection for the auto industry.

We have serious concerns about other free trade agreements, but on balance we are prepared to live with this one because it does have a six-month opt-out rule. However, both CETA and the China FIPA have provoked widespread public concern in Canada. I do not know about other members when they go home to their constituencies, but this is a topic I get asked about over and over again.

People feel that parliamentarians, especially members from the government across the way, are giving away too many Canadian jobs and are not doing their due diligence. I want to reassure them that a New Democratic government would pursue policies to strengthen the Canadian auto sector, including policies that would encourage Korean automakers to locate production facilities right here in Canada. Decent paying jobs would assist the Canadian auto sector to better access the Korean and other Asian markets.

We would closely monitor non-tariff barriers and act quickly and effectively to resolve disputes. Of course the relationship, as with any relationship, has to be nurtured, and we would utilize frequent trade missions to Korea to cement that relationship.

We realize that this agreement with Korea is a major agreement for us, and it does give us an entry into the Pacific gateway, but we also agree with the Canadian Chamber of Commerce and others that the government needs to do more than just sign trade agreements: we have to do our due diligence and make sure that these agreements will benefit Canadians and not put some of our sectors at risk.

We must do more to promote Canadian exports as well. It is a major job to attract investments and help Canadian companies penetrate the South Korean and other Asian markets.

As members know, the UFCW, one of our major public sector unions, has spoken in favour of this trade agreement. The UFCW can see the benefits of it for our fisheries industry, whether that be lobster, tuna, or salmon. We will make financial gains.

When the NDP forms government, we will work to strengthen this free trade agreement so that it benefits everyone.

[Bradley Trost, Conservative, Saskatoon—Humboldt, SK]

Mr. Speaker, when the hon. member was going through her three criteria that New Democrats have for whether or not they support trade deals, one of the criteria was whether the partner would be a significant strategic partner for Canada. Judging from the way the hon. member describes what a strategic and significant partner would be, Canada would not engage with any low-income nations or smaller nations around the world.

Free trade helps countries. We engage in trade to boost our relationships with them and to boost other countries' standards of living. Why is the hon. member opposed to a significant Canadian foreign policy tool that can help countries in places like Africa or Latin America, countries that are not large, wealthy, or strategic in the sense that New Democrats are using those terms?

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I thank my colleague across the way for his very thoughtful question, and I want to say this to you: I will read the second criterion, and then you will see you do not need to have that concern.

[The Deputy Speaker, Joe Comartin]

Order. Will the hon. member direct her comments to the Chair, please?

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, how could I have forgotten that I have to share my intimate thoughts with you?

The second criterion I read out is this: is the proposed partner's economy of significant or strategic value to Canada? That does not just mean economic. That covers other parameters.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I am very much interested in what New Democrats would have to say in regard to the amendments they said they brought forward in committee. I am sure the member realizes that had these amendments passed, there would have to have been more negotiations with Korea to make sure they were in compliance with the amendments that were being passed by the New Democrats.

Would the NDP then make changes to the free trade agreement? Are we to assume that if the NDP were in a position of power, it would renegotiate? That is an awfully big “if” that scares a lot of people.

If it were to occur, would it then be the policy of the New Democratic Party to give South Korea the six months' notice so that New Democrats could make the changes they wanted to make at committee stage?