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

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, this government is committed to creating free trade opportunities for Canadian businesses around the world. In fact, in the past seven years, some 43 new trade agreements have been signed globally by the government. That is something that I think all Canadians should not only be proud of but should also see as opportunities for growth.

The Canada-Korea free trade agreement is going to create thousands of jobs for hard-working Canadians by increasing Canada's exports to South Korea by 32% and boosting Canada's economy by $1.7 billion. This is opportunity.

In much the same way as we recently discussed in relation to the Canada-European trade agreement, this agreement would open up job opportunities to Canadians in Korea, it will bring Korean companies to Canada, and it will give access to Canadian manufacturers and service companies to some 70 million Koreans. As we discussed in relation to the European free trade agreement, there will be some 500 million new customers for Canadian businesses.

This is an opportunity that opens up business opportunities for Canadian business on a level playing field between Canada and Korea, and it is something that I think is good for all Canadians.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, what we have witnessed is a great deal of Conservative spin coming right from the Prime Minister's Office.

Nothing could be further from the truth than to say the Conservative government is a leader when it comes to trade. In reality, when it comes to trade, the government has lost more trade opportunities than any other political entity in the history of Canada.

The member made references to 43 trade agreements, but 28 of those countries are all part of one, the European Union. When the member says 43, he has to watch the way he twists the words around.

When it comes to the Canada-Korea deal, this is a deal Korea expressed an interest in back in 2003. One year later, Paul Martin said that we should act on this opportunity. It took this government years and years of being pulled by the South Korean government, and now we finally have an agreement before us.

How many opportunities and jobs does the member feel Canadians have lost because of the government's inability to negotiate a freer trade agreement with South Korea years ago?

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, if we are going to talk spin, clearly my friend opposite has strayed far from the topic at hand today.

Let us just talk about this. In the tenure of the Liberal Party as government for this country, it signed three free trade agreements. We have signed 43. If we lump in 28 from the European Union, that is fine. Canadian businesses now have access to 500 million consumers.

We are not losing opportunities. We are gaining them every day through an international trade component led by this government that is getting the job done for Canadians and for Canadian growth and Canadian prosperity.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, it is a pleasure to speak to this important free trade agreement and to share my time with the hard-working member for Don Valley West.

I will start off by reconfirming that there is no government in Canada's history that has been more committed to the creation of jobs and prosperity for Canadian businesses, workers, and their families. The Minister of International Trade has been spending many days away from home trying to secure new markets and to deepen Canada's trading relationships in dynamic and high-growth markets around the world. I think it is key to these efforts.

The Canada-Korea free trade agreement, Canada's first FTA with an Asia-Pacific nation, is an ambitious, state-of-the-art agreement covering virtually all sectors and aspects of free trade.

Today I will speak specifically to the foundation of the agreement, which is the extensive and profound people-to-people ties that bind Canada and South Korea. I think that is a very important aspect that has not really been talked about.

It is an increasingly interconnected world. People-to-people ties are crucial to ensuring long-term success in the competitive global economy. It is all about relationships, and this free trade agreement is a classic example. It is a landmark achievement that would result in mutual benefits and prosperity for both of our countries and that would lay the foundation to unlock the full potential of our political, economic, and secure relations.

Canada can leverage its rich history and flourishing people-to-people ties with South Korea to build on this free trade agreement and pave the pathway to jobs and prosperity for generations to come.

Canada and South Korea have had formal diplomatic relations for over 50 years, yet the connections between our two peoples extend back more than a century. Prior to the establishment of diplomatic relations in 1963, Canada came to South Korea's aid in the Korean War, contributing the third-largest contingent of troops to UN forces. More than 26,000 Canadian soldiers stood shoulder to shoulder with their Korean brothers and sisters against the spread of tyranny. Unfortunately, more than 500 individuals ultimately gave their lives. George Barr, from the Royal Canadian Legion Branch 26 in my riding, and others across Canada, have been incredible ambassadors for the Canada-Korea relationship. The memories of helping folks in Korea and Canada continue to strengthen that bond.

Korean President Park was here last month for her official state visit, and she laid a wreath in memory at the National War Memorial. It was one of the highlights of her visit and was a testament to the importance of the shared history of our two nations.

When I had the honour of travelling with the Prime Minister and the delegation in March for the initial signing of the agreement in Seoul, the Prime Minister and the delegation laid a wreath at the Seoul National Cemetery, as well.

I would like to take a moment to think about Corporal Cirillo. His funeral procession is taking place in Hamilton right now. I am thinking about soldiers, the men and women who sacrifice their lives, and our thoughts and prayers go out to their families as well.

After the Korean War, almost 7,000 additional Canadian soldiers served as peacekeepers in South Korea between 1953 and 1957. Canada also participated in supervising South Korea's first elections in 1948 as part of the United Nations temporary commission on Korea. Aside from the United States, Canada is the only other state that has permanent military representation, with the United Nations Command, otherwise known as the UNC, in Korea.

Canada continues to participate in the UNC Military Armistice Commission that supervises the armistice. Last year, a delegation of Canadian veterans, led by the current Minister of Public Safety and Emergency Preparedness, the member for Lévis—Bellechasse, travelled to South Korea to mark the 60th anniversary of the Korean War armistice on July 27, 2013.

Building on our proud and shared history, our bilateral relationship is further championed and advanced by our strong, growing, people-to-people ties. Canada is home to some 200,000 people who identify themselves as being of Korean origin. It is the fourth-largest Korean diaspora in the world. Over 23,000 Canadians are currently residing in South Korea, including around 3,200 language teachers.

Last year, our government designated the year 2013 the Year of Korea in Canada. It marked the 50th anniversary of diplomatic relations between Canada and Korea and celebrated the contributions of the Korean diaspora to Canadian society.

The Year of Korea in Canada featured a number of cultural and artistic events. I am sure many members had the opportunity to take them in. There were great festivities across the country that gave Canadians the opportunity to learn more about Korean culture, tradition, and diversity.

The Canada-Korea Interparliamentary Friendship Group is co-chaired by Senator Yonah Martin, Canada's first and only Korean senator, an incredible, hard-working individual. She shares that responsibility with our acting Speaker, the member for Haliburton—Kawartha Lakes—Brock, who has held three successful Canada-Korea dialogue series on the Hill, the last of which was held in June this year. It was attended by more than 100 participants.

Senator Martin, the Parliamentary Secretary to the Minister of International Trade, and the member for Haliburton—Kawartha Lakes—Brock also travelled to Seoul, Korea, in September to meet with senior government officials, Korean national assembly members, and business officials to discuss the wide-ranging benefits of the trade agreement to continue to move this agreement forward.

Some Canadians were a bit disappointed with the NDP at committee recently when members tried to remove what I believe is one of the cornerstones of a modern trade agreement, the investor protection provisions. The Liberals talked about this trade agreement in 2003, but it was our Prime Minister and the Minister of International Trade who were actually able to get this over the goal line.

The opposition had taken us virtually out of the game of international trade. It was not a priority for them, and I understand their reasons. However, our government wants to create jobs and open doors and opportunities to put Canadian workers and businesses first. The opposition put us at severe risk of falling behind in the era of global markets, but that has changed in a positive manner. Fortunately for Canadians, our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians.

Last month, during President Park's visit to Canada, our government announced its intent to develop a science, technology, and innovation agreement with South Korea, providing Canada with the opportunity to further strengthen the people-to-people ties and to build a lasting strategic framework with one of the world's most innovative economies and top funders of research and development.

The agreement would provide Canadian stakeholders with opportunities to create new partnerships and enhance business-to-business linkages through a mechanism that would directly support bilateral, industry-led research and development funding projects in strategic areas.

As well, I am proud to say that our education ties are extensive and growing. I am sure members from all parties have constituents who have gone to South Korea. It is Canada's third-largest source of international students. We have had constituents going there to teach, and we have had more than 19,000 young and talented students choose Canada as the destination of choice to pursue their education. Based on the average estimated expenditure by international students in Canada per year, that would translate to Korean students contributing over $500 million to the Canadian economy. Many high-calibre international students choose to stay in Canada post-graduation, leading to the enrichment of human capital in Canada. Those who go back to Korea are some of Canada's best ambassadors.

There are over 100 active agreements among institutions in Canada and South Korea facilitating the exchange of students, faculty, staff, and curricula and providing joint research and degree programs. That is very important. The Government of Canada has a number of memoranda of understanding with South Korea, including in the areas of industrial science, engineering and technology, research, co-operation, clean technologies, energy, and Arctic research and development.

On tourism, over 140,000 Korean tourists visited Canada in 2013. It is the eighth-largest source of tourists to Canada, which is very important to my riding of Kelowna—Lake Country. They spent almost $250 million in the Canadian economy. South Korea is one of the Canadian Tourism Commission's top-ten priority leisure markets. In 2013, the annual growth in the number of Korean tourists to Canada stood at 3.3%. An estimated four million Korean travellers are actively considering a Canadian holiday in the next two years.

On September 22, the Prime Minister and Korean President Park witnessed the signing of an open-skies air transport agreement between Canada and Korea, another significant milestone moving forward.

Ultimately our goal is to create jobs and growth for the benefit of Canadian businesses, workers, and their families. That is why we will continue to deliver pro-export leadership.

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

Mr. Speaker, I would like to thank my colleague for his comments. As members probably know, his riding borders mine, and we work together on a number of issues.

I would just like to get a straight answer, if I can. We have brought up investor state rights, and I am hearing from the other side that wanting to have an amendment to this agreement to take out investor state rights is somehow contrary to trade or means wanting to block the agreement.

I have been following the whole idea of investor state rights ever since NAFTA. It seems ludicrous to me that any government would allow a foreign company to sue the government because it might feel that it was not treated fairly by certain environmental legislation or laws that were put in place by people at the municipal, provincial, or federal level.

I would like clarification. Why is it so important to have these investor state rights, when we have a legal system in both of our countries that can do the job, that will give our tax dollars to foreign companies, should they choose to sue us, either to defend the federal government or to make a payout? To me it does not make any sense. Why do we need to have this provision in an agreement between two civilized countries that would take our tax dollars to pay their corporations? Something is not quite right here, and I would like a definite explanation.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, I too would like to thank my hon. colleague from the British Columbia Southern Interior. I know that he is not going to be running next year, so I wish him all the best in his retirement. We have had many opportunities to spend hours in the air together and chat as we have crossed back and forth to our ridings.

Philosophically, the aspect the New Democrats need to understand is investor protection. Our government believes that it is important that Canadians investing in another country are protected through a neutral third party, just as another country's investors who are investing in Canada would expect to be protected by the rule of law. What we would have is an independent third party that would protect the investments and look at them from an objective, neutral perspective. That is the challenge. Anyone doing business would expect to be treated fairly. I do not think it is unreasonable to have the expectation, whether it is Canadian investors investing in another country or people from another country investing in Canada, that they will be treated with respect and objectively and with fairness.

That is what we would have with the investor state provision. It has been around. It has been a cornerstone of trade agreements since NAFTA. It is an important cornerstone of modern trade agreements that we recognize around the world.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I would like to thank the member for Kelowna—Lake Country for his comment, and I would like to ask a question. We in the Liberal Party support free trade. There is sometimes a focus on declaring victory as soon there is the free trade deal, as though that in itself is the end point. It is more complicated than that. In the end, does it turn out to be a good deal for Canada?

Things like trade balances sometimes give us a bit of a clue as to whether it has been successful for Canada. On the issue of the trade balance, sometimes the figures are a bit discouraging. I am not saying that they are all-important. In the end, if we increase our trade, even though we may still have a trade imbalance with the country we are dealing with, that is still a positive thing.

The government talks about all the free trade deals it has negotiated. Has it analyzed whether, in the end, they are turning out to be a good deal for Canada, in terms of the deals that have been negotiated? I certainly hope they are.

Have we negotiated hard enough that this would actually profit Canada as much as we would like it to?

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, I too would like to thank my hon. colleague for his contributions prior to being in the House and in the House, as well as taking the opportunity to visit my riding and sample some of the fruits of the labour.

We enjoy the fact that aspects of this agreement are going to benefit my constituents of Kelowna—Lake Country as the export of ice wine is one of the great opportunities for Canadian vintners across the country. I was told that Korea has the highest price point for red wine in the world. The agricultural community has been screaming that we need to get this bill through as fast as possible. It would absolutely be a big win for agriculture. The Canadian Federation of Independent Business is also speaking out strongly in favour of it.

The largest private sector employer in my riding is the aviation industry, Kelowna Flightcraft. Here is a quick quote from Jim Quick, who is the president and CEO of the Aerospace Industries Association of Canada:

Our industry depends on exports and access to international markets to remain competitive and continue creating jobs and revenues here at home.... This agreement is imperative to restoring a level playing field for Canadian firms in the [southern] Korean market.

This is especially important given the considerable growth in the aerospace industry we will see in the Asia-Pacific region in coming years. He continued:

We congratulate the government on this achievement, and thank [its representatives] for their ongoing commitment to boosting Canadian competitiveness in international markets.

That is 50 million-plus people to feed, opportunities galore, and a great win for Canada and Korea. We look forward to implementing this agreement as soon as possible.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I am very pleased to rise once again in the House to speak to Bill C-41 on the free trade agreement with South Korea. I will share my time with the member for Thunder Bay—Rainy River.

I have been a member of the House of Commons Standing Committee on International Trade for over a year, so I can say that I understand the issues raised by my Conservative colleagues, since the NDP has been trying for years to convince the government to adopt a fair and balanced approach to international trade negotiations.

Since the Conservatives came to power, they have adopted a rather simplistic approach to international trade. First, they completely discarded the notion of multilateralism, which is extremely important in a globalized economy like ours. They decided to adopt a bilateral approach and to sign free trade agreements with as many countries as possible. It almost seems as though we are in a time-limited relay race, as though the government has to sign as many free trade agreements with every country in the world before a certain date.

However, free trade in and of itself is not harmful. It is an extremely important aspect of our global economy. Nevertheless, it is just as important to take a fair and balanced approach and to gauge the interests of our own industries versus Canada's competitiveness on the international scene.

The Conservatives must understand that their simplistic approach to international trade is harming our businesses, not making them more competitive. When so many bilateral free trade agreements are being signed with other countries, there has to be a complementary approach at the national level. We need to give our businesses the support they need to remain competitive and ensure that there is reciprocity between the two states.

To summarize my opening comments, the free trade agreement with South Korea will be good for our economy and for all Canadians. However, as is the case with any approach, if we do not provide the necessary support to our own industries, unfortunately, they will lose out in the long term. We saw that happen when thousands of jobs were lost in our auto sector and manufacturing industry.

In my riding, the manufacturing industry has suffered a great deal because of lack of support from successive governments. Several hundreds, if not thousands, of manufacturing jobs have been lost in Quebec. It is wrong to think that signing dozens of free trade agreements can erase all that. The government's role is to negotiate free trade agreements, of course, but it must also provide Canadian industries with the support and tools they need to remain competitive on the international scene.

The NDP will be supporting the free trade agreement. It is really unfortunate that the government decided to vote against our amendments. We proposed three, as the hon. member for Rivière-des-Mille-Îles said, and they were all rejected by the Conservative majority on the Standing Committee on International Trade. That situation is all too familiar for me. This is not the first time we have tried to work with the Conservatives and had them leave us in the dark and reject all of our attempts to improve legislation that has been introduced in the House of Commons.

Yes, on the whole, the free trade agreement will be good for Canada.

Since 1987, South Korea has become a democratic, multi-party democracy. It respects the fundamental values of democracy and human rights, and its labour rights standards are adequate. In terms of environmental protection, I would say that the Conservative government could learn a thing or two from South Korea. A few years ago, that country adopted a renewable energy and environmental protection policy that has made it a world leader in green energy. It seems to me that the Conservatives could learn a few things from our friends in South Korea, who have made the environment a priority.

South Korea's economy is extremely active and is very important to Canada. I believe that our exports to and imports from South Korea are comparable to our trade with European nations. It is therefore of strategic value to Canadians.

Having studied all of these criteria, the NDP decided to support this bill. As my colleagues have mentioned a few times, our agriculture, automotive and aerospace industries will benefit significantly from this free trade agreement. However, there is always a “but”: a free trade agreement will stimulate the economy, but only up to a point because our industries will now compete with other industries. If the government does not give them the tools and support they need, our industries could suffer in the long term, unfortunately.

A free trade agreement can be part of a strategy, but unfortunately, if we look at the big picture, the government has failed in its duty toward our Canadian industries, particularly the automobile and manufacturing industries, because it has not provided them with the support they need, nor has it implemented adequate industrial and economic stimulation policies for our industries, which are now suffering as a result.

My riding in eastern Montreal, La Pointe-de-l'Île, is home to many manufacturing industries that would benefit greatly from some help from the federal government. Unfortunately, they have been forgotten. Perhaps the government has won the race to see how many free trade agreements it could sign, but it has failed in its duty to protect Canadian jobs, including jobs in Quebec and in my riding in particular, La Pointe-de-l'Île.

This brings me to my final point. The Conservatives like to point fingers at us. They are saying that it does not make sense that the NDP wants to get rid of the part on investor state dispute settlement. I would like to remind all Canadians who are listening that their tax dollars—hundreds of millions of dollars, in fact—have been given to American companies because they challenged our regulations on the environment and on public health. These kinds of provisions do not need to be included in any free trade agreement, because unfortunately, our capacity and our sovereignty as a nation and as a House of Commons to make regulations to protect the environment and public health have been up for negotiation. Chapter 11 of NAFTA has given us ample evidence of this. Indeed, Canada has had to pay hundreds of millions of dollars in taxpayers' money to American companies because they did not agree with our environmental protection measures.

It is all well and good to point fingers at the NDP, but unfortunately, the facts and figures show that these kinds of provisions are not good for Canadians.

[Gail Shea, Conservative, Minister of Fisheries and Oceans]

Mr. Speaker, I am happy to hear the NDP will be supporting this trade agreement, because it is very important for the seafood sector. Of course, her home province of Quebec is a significant seafood producer.

On a recent trip to South Korea, I learned that price point factors very significantly with consumers in Korea when purchasing goods. Obviously, as a seafood producer without a trade agreement with Korea, we find our competitors enjoy much more sales in that marketplace than Canada does. Of course, one of those countries is the United States. What I did hear as well, loud and clear, is that Canadian seafood has a reputation for having the highest quality available anywhere in the world.

Expanding our market is crucial to providing a better return to Canadian fishers. Some would have heard me say in the House earlier this year that Canadian lobster landings have increased by 93% in the last six or seven years. The supply is growing faster than demand, which is contributing to depressed prices. Therefore, we know how important it is to expand these markets, because every new consumer we reach creates more demand for our delicious fish and seafood.

I would like to ask the hon. member several questions. What is the size of the potential new market for Canadian fish and seafood? What are the current tariffs in the fish and seafood sector? Could she comment on what this deal means for Quebec fishermen?

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I totally agree with my colleague. This free trade agreement will benefit our seafood producers. We are on the same wavelength. I think that the tariffs are roughly 47% on Canadian seafood, which is a rather significant barrier. Obviously, eliminating these tariff barriers will help open the market to our seafood producers.

I know that a number of associations, including the Lobster Council of Canada—my colleague mentioned this—and also the Seafood Producers Association of British Columbia supported this bill. The same goes for the Atlantic provinces and Quebec.

This bill must move forward in order to support our industries. Nonetheless, I would remind my colleague, who is a minister, that she has to understand that the government has a responsibility to support our industries at the local level. It is good to open barriers and create new markets, but if our industries cannot remain competitive and do not get help from the federal government, then the free trade agreement serves no purpose.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, Conservative speaker after speaker has gotten up in the House and talked about investment in research and technology and how Korea has invested over the years in science and technology. That is one of the reasons it has emerged as a tiger in Asia. They talk about investment in science and technology. Could the member tell me what the Conservative record is in regard to investing in science and technology?

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, my colleague put his finger on the problem, which is the principle.

The Conservatives think that signing free trade agreements will solve all the problems in our industries. As I said, this applies to any industry: agriculture, science and technology, the auto industry, and especially the aerospace industry. Montreal lost hundreds of jobs, even though Canada was a leader in the field.

A free trade agreement is not an investment. The Canadian government must invest in its national industries and then sign free trade agreements. Then it must ensure that the health of our industries is reflected in all the other states.

[John Rafferty, NDP, Thunder Bay—Rainy River, ON]

Mr. Speaker, as has already been indicated, the NDP will be supporting the bill at third reading. I am glad to see that my friend from Kitchener—Conestoga is happy about that.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Hear, hear!