Mr. Speaker, like my colleagues, I am very pleased to stand in the House and speak about Bill C-41, an act to implement the free trade agreement between Canada and the Republic of Korea.
Let me start by saying how pleased and proud I am of my colleague, our trade critic, the member of Parliament for Vancouver Kingsway. He has been on this file for a couple of years now, and he has done a masterful job of carrying forward with the New Democratic Party vision on trade.
The member has analyzed any agreements that have been made public, which, by any stretch of the imagination, are few and far between. That member has done a great job, not only in examining and analyzing any details that we do find out, but also in speaking with people involved in trade from one end of this country to the other and around the world to help develop our policy.
New Democrats want a strategic trade policy whereby we restart multilateral negotiations and sign trade deals both with developed countries that have high standards and with developing countries that are on progressive trajectories. Countries such as Japan, India, Brazil, and South Africa are examples.
The precise terms of this agreement are perhaps not what we would have negotiated, but it is fair to say that we think that—surprise, surprise—it is not a bad deal on balance. We have some concerns about the agreement, but it is a deal that we think deserves to be supported.
Unlike the Canada-China FIPA, this agreement does not tie the government's hands for 31 years. It is unlike CETA, in which the investor state dispute settlement mechanism chapter would continue to apply for 20 years after cancellation of the deal. Under the Korea free trade agreement, it can be fully cancelled after six months.
It is important that members of this House, particularly the Liberal members, understand that it is important to make sure people use their heads when they are negotiating any deal and make sure that they understand what is contained within that deal.
As I said when I started out, we certainly support the idea of trade, but we need to think about it in a responsible manner. We need to approach it in a common sense fashion, as any democratic government would, to make sure it is in the best interests of the people of our country. For example, we need to make sure we do not make deals that tie the hands of sub-national governments, as happens with investor state dispute mechanism provisions.
We need to understand that we are a democracy, that we uphold democratic principles in this country, and that we are not going to give up those principles. We are not going to give up the rights of citizens and governments to make decisions over purchasing and over matters that are determined through democratic process. We are not going to cede those rights to corporations, either here or elsewhere.
What do we want? New Democrats want to deepen Canada's trade linkages with the Asia-Pacific region, something that we recognize is essential to maintaining Canadian prosperity in the 21st century.
We want the government to do more to support our automotive industry, for example. We understand that there are some concerns about the impact that reducing the 6.5% tariff will have on the automotive sector. We have to recognize that the automotive sector is under increasing global pressure as a result of competition, so the government should be participating actively with the automotive sector to make sure that it is providing the supports necessary to maintain a vital and vibrant industry that provides a lot of family-sustaining jobs.
We support breaking down trade barriers, but we believe that government should provide the support the Canadian industry needs to remain competitive in a more open world. We agree with the various organizations and individuals who say that governments need to do more than simply sign trade agreements. They must do more to promote Canadian exports, attract investments, and help Canadian companies penetrate the South Korean and other Asian markets.
Finally, we want a strategic trade policy, as I said earlier, whereby we have multilateral negotiations and sign trade deals with developed countries that have high standards and with developing countries that are on a progressive trajectory.
What do we have here, then?
As has been explained by my colleague, our trade critic, we have three main criteria for trade agreements that we look to in evaluating them.
First, is the proposed partner one that respects democracy, human rights, adequate environmental and labour standards, and Canadian values? I would suggest that South Korea is such a country.
Since South Korea emerged from a dictatorship in 1987, it transitioned into a vibrant, multi-party democracy with an active trade union movement, relatively high wages, a diverse civil society, and freedom of expression. In fact, in recent years, we could learn a great deal from a country like South Korea. It has invested billions in an ambitious green growth strategy aimed at improving energy efficiency as well as boosting renewables and green technology. It clearly respects high environmental and labour standards and it shares our values of human rights and democracy.
Second, is the proposed partner's economy of significant or strategic value to Canada? I would suggest that again South Korea passes the test.
South Korea is Canada's seventh most important trading partner and third in Asia, behind the two largest economies, China and Japan. In 2013, Canadian exports to South Korea totalled $3.4 billion, while Korean exports to Canada totalled $7.3 billion. We export the same amount to South Korea as we export to France and Germany. We import the same amount as we do from the U.K. This is Canada's first trade agreement with an Asian country, and it provides an opportunity to take advantage of the Pacific region, which is extremely important.
Third, are the terms of the proposed deal satisfactory? Again I suggest that in this case they are satisfactory.
With regard to jobs, the agreement will create a level playing field for Canadian companies and workers exporting to South Korea.
In agriculture, the free trade deal is essential. Canada has suffered significant losses in market share for Canadian agricultural exports to Korea following the implementation of the Korea-U.S. FTA.
In the aerospace sector, there is general support for a Korean FTA among manufacturing sectors, notably from Bombardier and from aerospace industry associations. The deal will gradually remove 100% of industrial tariffs, with an estimated value of $1.9 trillion in business to be generated by this sector of the economy.
With regard to seafood, there is a 47% tariff on Canadian exports to Korea. It will be eliminated. It is a big deal for seafood exporters in my community on the east coast and for exporters on the west coast as well.
With forestry and wood products, it is the same thing. This is a good deal.
However, I mentioned that there are concerns about the impact this deal may have on the auto sector. We are calling on the government to pay attention to those concerns. They are very legitimate, and we want the federal government to do more to support the auto industry in Canada.
We will propose solid, effective policy measures to strengthen the Canadian auto sector. It is a move that needs to happen, so I would indicate that to members.
We are using our heads when it comes to analyzing the trade deal. In this case, we give a thumbs-up.
