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

Mr. Speaker, when the NDP looks at trade deals, we use four very important criteria to assess these deals.

Is the proposed partner one who respects democracy and human rights, and does it have adequate environmental and labour standards, and Canadian values?

If there are challenges in these regards, is the partner moving towards these goals?

Is the proposed partner's economy of significant or strategic value to Canada? On this point, I might just comment on the minister's question for the previous speaker.

Currently, seafood from both our coasts is subject, in some cases, to 47% tariffs. Under this deal, not all but most of those tariffs would disappear, which would certainly be good for fishers on both of our coasts. Therefore, on the question of this deal being of strategic value, in many areas it is, and a little later I will talk about the wood and forest industry.

Also, are the terms of the agreement satisfactory, and are they of net benefit to Canada?

There are some issues, which I will talk about in a moment, but on balance, this trade agreement is with a democratic country that has high standards. It is a good deal, and so Canada can support it.

Furthermore, South Korea is an established democracy that has high standards for labour rights, human rights, and environmental protections. It is a large market that offers significant opportunities for Canadian business to gain a foothold in the important Asian market area. Of course, it is also an opportunity for Canada to diversify its trade.

As the forestry critic for the official opposition, I will say a few words about forestry and wood products in this particular deal.

Canada's forestry and wood products industry includes newsprint, wood pulp, wood panels, and other value-added products. Even with the downsizing and the loss of 48,000 jobs in the last few years, the forest industry still contributes over $20 billion to Canada's GDP, and it still employs 230,000 Canadians in primary and secondary manufacturing. Many of these jobs are for high-skilled trades.

Canadian exporters to Korea are really at a disadvantage by tariff lines on Canadian wood products, which are, in some cases, up to 10%. Now, 10% might not sound nearly as bad as up to 47% for some seafood products from Canada, but 10% in a very competitive business means a lot of money on the bottom line for Canadian forest companies.

It is important to note that this free trade agreement would provide growth opportunities for value-added wood products, which would help develop good family-sustaining jobs in the value-added economy. As we move forward, this would be good for the forest and wood products in my critic area.

The Korean free trade agreement is different from the European and China agreements. I will highlight some of the differences, which might help to further explain why we are supporting this trade deal with Korea.

Unlike the China deal, the terms in the South Korea free trade agreement are reciprocal. I think that is a very important element to keep in mind as we move forward in this debate.

The Korea free trade agreement would not apply to provincial, territorial, or municipal procurement or crown corporations, where most Canadian procurement is located. That is good for businesses like Bombardier in my riding, Thunder Bay—Rainy River, so that if the City of Toronto, for example, decides it needs new streetcars, Bombardier can bid competitively and keep its 800 to 1,200 high-paying, family-sustaining jobs in Thunder Bay. That is a good part of this deal that is missing from other trade deals.

The Korea free trade agreement would not apply to or negatively affect supply-managed agriculture products, something the NDP has always protected with the belief—and I know this belief is probably right through this place—that we cannot forget that farmers feed cities in this country and it is important that they be able to keep and work their farms and, hopefully, be able to retire with that income.

The Korea free trade agreement does not contain any negative intellectual property provisions. When I say that, I am thinking of pharmaceutical and copyright, for example. Michael Geist has pronounced positively on the intellectual property terms of the Korea free trade agreement, calling it a “model” agreement.

While the Korea free trade agreement does have investor state provision, it contains transparency guarantees, and we are fully able to cancel that on six months notice. More importantly, particularly for the east coast of Canada, shipbuilding is exempt from federal procurement rules. Therefore, there are some differences, and those differences highlight why New Democrats can support this deal and have perhaps not supported other deals that the government has sought to make.

A question came up earlier in the debate, so I will say a few words about investor state dispute settlements. Quite frankly, an NDP government would not have included investor state dispute settlements in the Korea free trade agreement. Just as a side note, the investor state dispute settlement mechanism in this free trade agreement is also opposed by Korea's main opposition party. An NDP government would negotiate with South Korea to have it dropped. I heard the government say earlier that this is a mechanism that is in all modern free trade agreements. I am not entirely sure that it needs to be; so it needs to be looked at a little more closely.

One would think, as I am speaking, that everything is rosy between the government and the official opposition on this particular bill, but the fact of the matter is that New Democrats proposed six amendments at committee and the government, true to form, dismissed them wholesale. It decided to dismiss these amendments out of hand without a proper discussion or looking at whether these amendments might improve the bill. That is true to form, along with just about everything else that has happened for the last three and a half years in committees. It is unfortunate that the government has always been so heavy handed in terms of amendments.

There are some things New Democrats would like the government to do after this bill passes. We want the government to make sure it supports our automotive industry. We support breaking down trade barriers, but we believe government should provide the support that Canadian industry needs to remain competitive in a more open world economy.

New Democrats also agree with the Canadian Chamber of Commerce and others that the government needs to do more than sign trade agreements. It must do more to promote Canadian exports, attract investment, and help Canadian companies penetrate the South Korean and other Asian markets.

The New Democrats want a strategic trade policy where we restart multilateral negotiations and sign trade deals with developed countries that have high standards and with developing countries that are on progressive trajectories. These are countries like Japan, India, Brazil and South Africa.

The bottom line is that this is not the precise agreement that we would have negotiated. There are some problems, as I have outlined, but we will support this free trade agreement.

[Dennis Bevington, NDP, Northwest Territories, NT]

Mr. Speaker, it is interesting to note that South Korea has now put in place a carbon trading practice. It is very progressive in dealing with climate change. Now we have a situation where a Canadian government that is so lax on its international agreements on climate change has been put in almost last place among developed countries dealing with climate change. The Prime Minister is vilified as a climate change villain by organizations around the world.

Does the member think that circumstances will arise in the next few years where South Korea may take action against Canadian laws and companies that may want to invest in the country because they do not follow the same level of environmental standards that South Korea has?

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

Mr. Speaker, my friend is absolutely right. One never knows what could possibly happen as an offshoot of an agreement like this. It is entirely possible.

I will give one possible scenario of a Korean company that finds itself exporting into Canada. Finding that it has extra costs associated with the environmental rules and regulations that it may have in South Korea but that do not exist here and may not be as stringent, it could become a sticking point and something that would need to be negotiated. Alternatively, with the investor state mechanism, perhaps the Canadian government could even be sued over that kind of situation.

It is a problem. Some might say that it is a good thing. Maybe a trade deal with South Korea would improve Canada's action on climate change. That remains to be seen.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I would like to thank my colleague for his excellent speech.

A certain document prepared by the Department of Foreign Affairs, Trade and Development shows that Canada dragged its feet on signing trade agreements with important markets that are of strategic interest to Canada.

In fact, the government allegedly wasted many resources and a great deal of time negotiating agreements with far-right governments, small Latin American countries and other countries that are of no strategic interest to Canada but are friends of the Conservative government. Unfortunately this has not helped our economic development or our trade.

Could my colleague comment on this document from the Department of Foreign Affairs, Trade and Development?

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

Mr. Speaker, indeed, this free trade agreement has been almost nine years in the making. In that time, other players, like the European Union and the United States, made their own free trade agreements with South Korea. It has put us at a great disadvantage. In fact, if we look at the other free trade agreements that the European Union and the United States have made, one might think they actually got better deals than we did in a number of areas.

We have been playing catch-up. Nine years is a long time, while other countries or groups of countries get in to make their own deals.

I do not want to speak for the government, but I suppose that it made deals with some of the other smaller countries and, in some cases, less developed countries because they felt they were easy and would move ahead, and that Korea would be difficult, just as the European Union deal appears to be quite difficult and still ongoing.

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

Mr. Speaker, before I begin my remarks on the Canada-Korea free trade agreement, I am sure I speak for all of my colleagues when I say that our hearts and prayers are with the family and friends of Corporal Nathan Cirillo in the final ceremonies honouring his life today.

I am very thankful to the RCMP, our security staff on the Hill and especially Sergeant-at-Arms Kevin Vickers for their great work last Wednesday. I am certain that in those first few moments last Wednesday, there were many thousands of prayers offered by Canadians. I want to thank God for his protection that the tragedy of last Wednesday was not much worse than it was.

I am pleased to rise today to speak about the historic Canada-Korea free trade agreement. I will be sharing my time with the hon. member for Willowdale.

It is only our Conservative government that is focused on what matters to Canadians: jobs, growth, and long-term prosperity. By pursuing an ambitious trade agenda, our Conservative government has provided Canadian businesses with access to new opportunities in dynamic markets around the globe.

The Canada-Korea free trade agreement is a landmark achievement that will restore a level playing field for Canadian companies competing in the South Korean market. It is also Canada's first agreement with an Asian country. This is an important point to keep in mind.

As chair of the Standing Committee on Environment and Sustainable Development, I would like to focus some of my remarks on the environmental provisions contained in the agreement. I am proud of our government's action to protect our environment.

Both Canada and South Korea have committed to ensuring that trade does not come at the expense of the environment by negotiating robust and ambitious environmental obligations into the environment chapter in this free trade agreement.

While Canada has traditionally included strong, legally binding commitments to protect our environment in parallel environment agreements, we have in these negotiations moved those provisions within the free trade agreement itself. This is the same approach we pursued in the Canada-European Union trade agreement negotiations and reflects the importance that Canada places on ensuring that free and open trade and environmental protection are prominent and mutually supportive in our agreements.

Canada and South Korea have committed to promote sustainable development and to undertake their commitments in a manner that is consistent with environmental protection and conservation.

This environment chapter obliges both countries to maintain high levels of environmental protection, as we intensify our trade relationship. It commits us to effectively enforce our environmental laws and to ensure that we do not weaken them in order to encourage trade or investment.

In addition, we have agreed to obligations that address accountability and transparency, public awareness and engagement, all fundamental Canadian values.

This builds on a tradition of transparency and public engagement enshrined in all of our trade agreements beginning with our first environmental agreement, the North American Agreement On Environmental Cooperation.

We have a strong record of achievement in implementing our first and most comprehensive environment agreement with our North American partners. In fact, this year we celebrated the 20th anniversary of the North American Agreement On Environmental Cooperation. The Minister of the Environment had the privilege of hosting her American and Mexican counterparts in Canada's north this past July.

In Yellowknife, our three countries agreed to focus on three priority areas for the organization's next strategic plan: climate change, green growth and sustainable communities and ecosystems.

The environmental chapter also requires that each party provide appropriate and effective sanctions or remedies in the case of domestic law violations. Ensuring that our citizens have access to strong and robust legal systems is a priority for this government. In this regard, our government has enhanced enforcement of federal environmental legislation through the Environmental Enforcement Act.

Once fully implemented, existing environmental laws will be further strengthened through the establishment of minimum fines and increasing maximum fines which will more accurately reflect the severity of environmental offences.

Recognizing the value of international co-operation in addressing environmental challenges, we are affirming our commitment to implement the multi-lateral environmental agreements that we have already ratified. This includes such agreements as the convention on biological diversity.

We also look forward to sharing Canada's achievements under the national conservation plan. Through this plan, Canada will invest $252 million over five years, with a focus on conserving our lands and waters, restoring our ecosystems, and connecting Canadians to nature.

The environment chapter of the Canada-Korea free trade agreement will also provide for potential future co-operation to support the objectives of the agreement. Both Canada and Korea recognize the value of sharing expertise and best practices to help advance our shared commitment to sustainable development and environmental responsibility.

Distinct dispute resolution mechanisms are also included in this chapter to ensure that the obligations are respected. If a matter comes up, we would seek to resolve it through consultations and co-operation, including at the ministerial level. If the issue remains unresolved, we would seek advice from a panel of experts and work together to implement the panel's recommendations.

Beyond the environmental chapter, the free trade agreement itself includes important trade-related environment provisions. These include provisions stipulating that nothing in this agreement shall prevent Canada and South Korea from taking measures necessary to protect the environment.

The agreement also includes commitments for both governments to encourage their respective enterprises operating abroad to observe internationally recognized standards of responsible business conduct, including respect to environment.

We stand with Canadians incredibly disappointed that the NDP tried to completely gut the bill at the trade committee. It tabled amendments to remove the investor protection provisions that are cornerstones of modern trade and investment agreements.

This is just as harmful as the neglect of international trade under the Liberals. For 13 long years, they took Canada out of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets.

Canada and South Korea have demonstrated through this agreement our commitment to protecting the environment. From Canada's perspective, it is a commitment that we see reflected across our agenda. For example, Canada is taking action on climate change both domestically and internationally. On the international stage, we continue to work with our international partners to reduce greenhouse gas emissions and to address climate change globally.

Canada continues to play an active role in the United Nations framework convention on climate change and is fully committed to establishing a fair and effective climate change agreement that includes all major emitters.

We are also a founding partner and a major financial contributor, as well as an active participant, in the climate change and clean air coalition to marshal global efforts to tackle short-lived climate pollutants. This is in addition to action we are taking domestically through a strategic and pragmatic sector-by-sector regulatory approach.

We have already taken action on some of the largest sources of emissions in our country, the transportation and electricity generation sectors. As we announced last week at the United Nations climate change summit, we will build on our record by taking pre-emptive action to reduce and limit harmful hydrofluorocarbon, or HFC, emissions before they actually increase.

We are proud that Canada's economy has grown substantially, while our greenhouse gas emissions have decreased, with per capita emissions now at their lowest level since we started recording in 1990. We have demonstrated that we can protect the environment, while supporting a strong and robust economy.

Our government values high-quality economic growth and is committed to sustainable development as we continue to cultivate new opportunities for Canadian businesses abroad. We believe that trade and environment can go hand-in-hand, and this agreement proves it.

No government in Canada's history has been more committed to the creation of jobs and prosperity for Canadian businesses, workers and their families.

The farmers, food processors and manufacturers of Waterloo region are supportive of this agreement and are excited that they will reap the fruits of our labours.

On this side of the House, we recognize that Canadian business can compete and excel around the world, given a level playing field. I do not understand why the opposition seems to be against our attempts to put Canadians on equal footing with our international competitors.

I call for the speedy implementation of the Canada-Korea free trade agreement.

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

Mr. Speaker, I have immense respect for my colleague here on the other side and my other colleagues. However, they have been telling the House that we were trying to kill the bill at committee and that we are not respecting the will of Canadians. This is a legislative process and the opposition has proposed valuable amendments that the Conservatives voted against. They keep telling us that we are trying to kill the bill. I spoke three times on the bill. We are not trying to kill the bill, we are trying to discuss it.

I have immense respect for my colleague. I am sure he has immense respect for the legislative process. How is proposing amendments to make a bill better trying to kill the bill?

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

Mr. Speaker, if I did say kill the bill, I misspoke. I certainly did not intend to say that. I do not believe I said that. I may have said to gut the bill because I believe very strongly in the important provision of investor protection. If we are to encourage Canadians to invest in Korea, it is important that we have these mechanisms in place to protect the equity Canadians would like to invest.

To acknowledge my colleague and her concern, I want to thank the New Democrats for their intention of supporting the bill. It is a great move forward. To finally see some support for responsible initiatives that would be good for Canadian families and businesses is a change that we welcome on this side.

[Dennis Bevington, NDP, Northwest Territories, NT]

Mr. Speaker, my colleague said something in his presentation that is kind of a half truth, which is that our per capita emissions are the lowest they have ever been. That is not how the world measures and has agreed to measure emissions of CO₂. Rather, it is by the actual amount of CO₂ emissions. My colleague would have to agree that since 1990 those have gone up and to try to change the statistics by using different formulas to present a case is disingenuous.

We put forward a motion to prohibit the weakening of environmental standards to encourage investment. If my colleague is so concerned about the environment, why would his government and the Conservative Party vote against this amendment, which was designed to ensure that nothing would change our ability and our desire to improve environmental standards in both countries?

Why would the Conservatives reject this amendment? Was it rejected because they foresee that there may be times in the future when investment will ask for lower environmental standards?

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

Mr. Speaker, this gives me a great opportunity to set the record straight, because my colleague may remember that he is quoting statistics from 1990. Between that time and the time that our government took office, there were 13 years of Liberal inaction on climate change. The Liberals signed agreements but under those agreements the greenhouse gas emissions rose by 30%.

Since we took office, greenhouse gas emissions have dropped by over 5% during a time when the economy grew by over 10%. Therefore, I think members see that there is definite improvement on the environmental front under this government.

I could go on about many of the other environmental initiatives that our government is working on, and my colleague often serves on the environment committee so he would be aware of them. In our national conservation plan we are partnering with partners on the ground who are already actively doing work to protect our environment, and this would have the synergistic effect of doubling or tripling the effect to be had from investments we make.

I am proud of our government's record on the environmental protection standards that we have implemented.

[Chungsen Leung, Conservative, Parliamentary Secretary for Multiculturalism]

Mr. Speaker, it is a pleasure to stand in the House to speak on the Canada-Korea free trade agreement.

At the onset, I should indicate that prior to entering politics, I had an opportunity to do a significant amount of business in South Korea. As a matter of fact, one of the subway systems that is used in a suburb of Seoul is a system that I introduced to them back in the mid-1980s.

However, what I would like to address today is the broader implications of the Canada-Korea free trade agreement being the first of our many agreements, hopefully, in the Asia-Pacific region.

Our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. The creation of jobs and economic growth for the benefit of Canadian businesses, workers, and their families continues to be our focus. That is why we will continue to deliver pro-export leadership.

I would like to highlight the Canada-Korea free trade agreement in the broader context of Canada's foreign policy in the Asia-Pacific region.

This dynamic region accounts for half of the world's population and is expected to contain two-thirds of the world's middle class by 2030. By that point, it is further estimated that the region would account for one-half of global GDP. Canada and our competitors recognize the significant potential Asia-Pacific has to offer, in terms of productivity, investment and innovation.

In the last Speech from the Throne, we committed to expanding trade in the Asia-Pacific region to benefit hard-working Canadians and businesses, especially, our crucial small and medium-size enterprises and industries across the country.

In addition to the Canada-Korea free trade agreement that we are discussing today, Canada continues to pursue agreements with other Asia-Pacific nations. Earlier this month, we ratified a foreign investment promotion and protection agreement with China. We are also participating in the trans-Pacific partnership negotiations with 11 other countries in the region, and are negotiating an economic partnership agreement with Japan.

The tremendous economic momentum and potential of the Asia-Pacific has been accompanied by political and demographic shifts across the region. Amid this transformation, Canada has made our relations with Asia-Pacific a top foreign policy priority in order to contribute to regional and global security and prosperity.

In August, the Minister of Foreign Affairs announced additional Canadian funding in the amount of $14 million to help address security issues of shared concern in Southeast Asia. The projects include those to mitigate biological and nuclear threats; disrupt illicit flows, while protecting legitimate trade; combat human smuggling activities; improve regional cybersecurity tools; and work with our Association of Southeast Asian Nations partners to prevent and respond to terrorism.

For example, we are helping states by providing training and equipment, and technical and legal assistance to address the foreign fighter phenomenon and radicalization. Canada committed $2.3 million to support efforts by the Association of Southeast Asian Nations to identify and detect foreign fighters, individuals who are returning to their countries from abroad having been further radicalized and with the training and experience to undertake terrorist activities at home.

Canada also provides bilateral development assistance to countries such as Afghanistan, Bangladesh, Indonesia, Mongolia, Pakistan, Sri Lanka, Vietnam, and the Philippines, as well as other countries across Southeast Asia.

Furthermore, Canada provides development assistance through multilateral and global programs in Asia, as well as through partnerships between Canadian organizations and counterparts in Asia. In the fiscal year 2012-13, Canada provided approximately $1 billion in official development assistance to countries in Asia.

As an example, in September, our government announced funding for World Vision Canada and the Canadian Red Cross to support projects that are improving the health and well-being of vulnerable people in Afghanistan, as well as strengthening community resilience to natural disasters in Southeast Asia. Stability and security are vital to the prosperity of the region and that of Canada. We have a stake in attaining these objectives and we have made important contributions to supporting them in the Asia-Pacific region.

South Korea has witnessed rapid development, democratic evolution, and growing regional and international interests. It joined the United Nations in 1991 and in 2010 it was accepted into the Development Assistance Committee of the Organisation for Economic Co-operation and Development.

These milestones have facilitated and enhanced co-operation between Canada and Korea in a number of political and security dimensions such as arms control, disarmament, peacekeeping and development assistance. Canada and Korea are both active in multilateral fora and partners in promoting global peace and security. Both countries also co-operate on security issues in other fora, such as the ASEAN Regional Forum and the Asia-Pacific Economic Cooperation forum.

Additionally, we share important alliances with the United States and the Asia-Pacific and beyond. Canada supports efforts to maintain peace and stability on the Korean Peninsula and in that region, and takes seriously the threat posed by North Korea to regional and indeed global security. We stand with South Korea in its efforts to ensure peace on the peninsula. North and South Korea technically remain at war as hostilities were concluded with an armistice, not a peace treaty.

Canada remains gravely concerned about North Korea's provocative and destabilizing actions such as nuclear and missile tests and related proliferation, as well as its egregious human rights abuses. Canada strongly supports the six-party talks as a framework for credible negotiation on the denuclearization of the Korean Peninsula. Some of the great success stories of democratization in the last generation can be found in the Republic of Korea as well as Taiwan, Indonesia and Mongolia.

Canada now has more diplomatic staff in Asia than anywhere else in the world. Canada places great value on our relationships with the Asia-Pacific region and with Asian countries. We increased our presence on the ground with over 10 new offices in China and India since 2006. We will be establishing Canadian diplomatic presences in both Cambodia and Laos, and Canada is establishing a mission to the Association of Southeast Asian Nations headed by a new ambassador.

While in Burma in September, the Minister of Foreign Affairs opened Canada's newest diplomatic mission. Establishing a trade commissioner service in Burma is an integral component of the embassy as Canadian companies will have an important role to play in fostering sustainable economic growth while providing opportunities for Canada's private sector. 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 relations in dynamic and high-growth markets around the world is key to these efforts.

Canada's network of missions across Asia will help us to promote Canadian values: freedom, democracy, human rights and the rule of law. People in the region seek a bright future, including freedom and opportunity. Canada is ready to help them and to invite Canada's private sector to expand our engagement. Economic opportunity, in Canada and elsewhere, rests on free, transparent and open markets, the rule of law and democratic governance. As like-minded partners, Canada and Korea share a strong commitment to these values. Canadian foreign policy, including our trade policy, will not only promote peace and prosperity, but will contribute to the development of the wider Asia-Pacific region. In this context, the Canada-Korea free trade agreement is an important achievement that would advance our bilateral relations with Korea as well as Canada's broader objectives in this region.

We stand with Canadians incredibly disappointed that the New Democrats tried to completely gut the bill at the trade committee, where they made amendments to remove the investor protection provisions, cornerstones of modern trade and investment agreements. This is as harmful as the neglect of international trade under the Liberals who took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets.

Thanks to the leadership of our government, in less than seven years our government has reached free trade agreements with 38 countries, bringing Canada's total to 43 countries. By continuing to actively pursue broader market access to new investment opportunities, we are providing Canada's businesses and exporters with access on preferential terms to the largest, most dynamic and fastest-growing economies and regions around the world.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, I listened to the hon. member's speech very carefully. I have been listening to speeches by the Conservatives since this morning and one of the things they keep bringing up is the investment that South Korea makes in science and technology. Korea became one of the tigers in Asia because of its investment in science and technology, yet the record of the current government is that it has made cuts to scientists. It has eliminated thousands of positions, and that is not a direction that we should be heading toward, having learned from what Korea has done over the years. Not only did the Conservatives cut scientists, they actually muzzled them to ensure that it is the Conservative spin that carries on.

My question is very simple. What can the Conservatives learn from Korea in regard to investment in science and technology?

[Chungsen Leung, Conservative, Willowdale, ON]

Mr. Speaker, the Korean scientific model was built very much on Korea's acceptance of trade. When I went there in the 1980s and the 1990s, the first request was for us to help with scientific development. Scientific development in railroad technology and subway technology was a Canadian investment in the Korean marketplace. Understanding how that technology worked helped Korea to develop its railroad technology to where it is today.

Canada's investment record in developing all these technologies, such as in urban transit, is second to none. We have advances in software development, agriculture, and in all of our technology. We are ready to go from innovation to commercialization. The Canadian innovation record is excellent.

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, I thank the parliamentary secretary for his remarks. I particularly endorse his point that opening up Canadian trade to Asia and opening up Asia to the Canadian economy is absolutely essential.

As the House knows, the really big deal, which would cover 40% of the world's economy, is the TPP. I would be very interested in the member's views on how those talks are going. If, as some observers fear, it looks as though they are getting bogged down, does the hon. member believe that Canada should be pursuing its bilateral talks with Japan more energetically?

[Chungsen Leung, Conservative, Willowdale, ON]

Mr. Speaker, the trans-Pacific partnership is like other agreements in which Canada participates through the Association of Southeast Asian Nations and with APEC. The coastline spans the Pacific, covering more than half the world's population. It is possibly one of the greatest consumer markets as well, and one of the higher-income markets as we approach the next generation.

Canadian TPP negotiations are well under way. Unlike some countries, we are not the first to jump in. We are looking to see how the trade negotiations transpire. As a matter of fact, as we speak, the Minister of International Trade will be returning from his discussions on this matter.

I have also participated in a number of briefing sessions on the TPP, especially in the greater Toronto area. I think we are advancing quite well in this area.