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

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, the investor state dispute resolution component of this particular agreement is of concern to us. It should be of concern to all Canadians. Just as we cannot put consistency and the Liberals together, we cannot put transparency and openness together with the Conservative government. We have seen this with the CETA agreement and the Korean agreement. They have been negotiated in backrooms. Canadians did not have all the information to make those decisions along the line. Now that we see it, we do support that. Not only that, the current government likes doing things in secret and in backrooms.

This investor state dispute resolution fits right in with the Conservatives, where the public will not know why some of the decisions were made and whether their interests were protected.

There are robust judicial systems in both countries and those systems should have been able to take care of some of the disputes arising from trade. However, the current government has signed on to an agreement that would hear the disagreements in secret and the decisions would be made in secret. That fits right into the back alley of how Conservatives like to function.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Mr. Speaker, I will be splitting my time with the member for Prince Albert.

I am pleased to rise today to speak about the historic Canada-Korea free trade agreement and how this agreement supports the government's broader pro-trade plan. 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. As an export-driven economy, Canada needs free trade agreements. Trade accounts for one out of every five jobs in Canada and is equivalent, in dollar terms, to over 60% of our country's annual income. Despite all the evidence that modern trade agreements create jobs, economic growth and economic security for hard-working Canadian families, the NDP tried to completely sabotage the Canada-Korea free trade agreement at committee. They would have forced our government to completely renegotiate the agreement and set Canadians back even further.

This anti-trade behaviour is just as bad for Canadians who depend on trade for their jobs as the Liberals' record on trade. During 13 long years in the government, the Liberals completely neglected trade, completing only three free trade agreements. The Liberals 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. Their trade critic does not even sit on the committee.

Our government recognizes that Canadian companies are at risk of being at a competitive disadvantage in key markets, as their major foreign competitors, such as the U.S. and the EU, are benefiting from preferential access under existing FTAs. That is why Canada is pursuing its most ambitious trade negotiations agenda in Canadian history.

Eight years ago, Canada had just five trade agreements, but since 2006, Canada has successfully reached free trade agreements with 38 countries, namely, Colombia, the European Free Trade Association, Honduras, Jordan, Panama, Peru, all 28 members of the European Union, and now South Korea. In addition, Canada has 28 foreign investment promotion and protection agreements in force, 13 additional concluded FIPAs. These bilateral agreements establish a strong rules-based framework for increased investment by protecting and promoting foreign investment through legally binding rights and obligations.

Focusing on sectors and markets that offer the greatest opportunities for growth is a priority under Canada's new global markets action plan, called GMAP.

Let me now turn to the historic Canada-Korea free trade agreement.

South Korea is identified as a priority market in the GMAP and the CKFTA represents an important step in increasing access to this fast-growing economy. The Canada-Korea free trade agreement is a landmark achievement that would restore a level playing field for Canadian companies competing in South Korean markets. Stronger economic ties with South Korea would create new jobs and opportunities and contribute to Canada's long-term economic growth and prosperity.

Critically, with this agreement, Canadian companies will become increasingly competitive in the region. With half of the world's population living a five-hour flight away from Seoul, South Korea offers strategic access to regional and global value chains. As a result of improved market access for goods, services and investments under the agreement, Canadian companies can use South Korea as a strategic base for growing their businesses throughout the Asia-Pacific region. The positive momentum of an agreement with South Korea is and will continue to carry Canada forward in this vibrant region, but creating new opportunities for Canadians in the Asia-Pacific region does not stop there.

Just a few weeks ago, the Minister of International Trade led his third trade mission to India, along with the Minister of Foreign Affairs and the Minister of National Revenue. India is a country where we continue to see many opportunities for Canadian businesses.

We have also seen a great deal of interest in India from a number of my colleagues, including the Minister of Agriculture and the President of the Treasury Board in September, as well as the Minister of Citizenship and Immigration in July.

Canada and India have long-standing bilateral relations, close people-to-people ties and shared goals of free trade, open markets, democracy and good governance for more growth and prosperity. In fact, India is a priority market under Canada's global markets action plan. Bilateral merchandise trade between Canada and India totalled $5.8 billion in 2013, a 10.7% increase from 2012, and has more than doubled over the last 10 years.

Strengthening the Canada-India partnership is one of our Conservative Government's top trade priorities. We believe that an exciting future awaits both our countries, a future based on deeper trade and investment ties. Opportunities are particularly strong in the fields of energy, agriculture and agri-food, infrastructure, and education.

Through our ambitious pro-trade and pro-export global markets action plan, Canadian businesses have the tools to grow, export and build on their success at home and abroad. These tools include trade missions such as the one the Minister of International Trade recently led to India, free trade agreements, foreign investment promotion and protection agreements, together with the support of the on-the-ground Canadian trade commissioners service, Export Development Canada, the Canadian Commercial Corporation and the Business Development Bank of Canada.

Canada has eight Canadian trade commissioner offices and five EDC representatives in India, reflecting the importance both countries place on increasing bilateral trade and investment. Canada's trade network in India is now our third largest globally, after China and the United States, and is also the second-largest foreign network in India, after the U.S.

Export Development Canada is a strong investor in Canadian companies seeking opportunities in India. Five EDC officers are on the ground in the country. To date, EDC has supported 299 Canadian companies with contract volumes of $1.86 billion.

While the Liberals led trade missions purely for photo-ops for politicians, our approach is to lead trade missions to actually help our businesses. The Minister of International Trade led his most recent trade mission to India to interact with Indian businesses and government representatives and to see first-hand the opportunities that exist to boost Canadian exports.

Participants in these trade missions have told us that high-level trade missions are valuable in opening doors and identifying opportunities. By helping Canadian businesses expand and succeed abroad, we are also helping to create jobs, growth and prosperity at home. Canada's competitive edge and combined access to these markets will lead directly to jobs and opportunities in every region of Canada.

Whether we are exporting meat, grain, fish, wood products or industrial goods, the more markets we have access to, the more jobs are created for hard-working Canadians and their families. Canada's long-term economic prosperity is directly linked to market access and other economic opportunities beyond Canadian borders.

Our government understands the importance of trade and exports to our economy. Exports are responsible for one out of every five Canadian jobs. The prosperity of Canadians depends on the continued expansion beyond our borders into new markets that serve to grow Canada's exports and investments. The CKFTA represents one of these key economic opportunities and is a watershed moment in our historical relationship with South Korea.

For this and other reasons, stakeholders from across the country have called for the agreement's entry into force as soon as possible. That is why our government is moving to pass the bill quickly and will not be stopped by opposition stonewalling.

I look forward to the support of the opposition on the bill.

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

Mr. Speaker, the question I have for the member is simple.

The facts are clear regarding chapter 11 of NAFTA, which contains the first investor state dispute settlement mechanism that Canada included in a free trade agreement. The Government of Canada had to pay hundreds of millions of dollars of public funds, taxpayers' money, to a number of American companies. Canadians had to pay American companies because they challenged Canada's right to make environmental and public health regulations.

What do Canadians stand to gain from the inclusion of such mechanisms in the free trade agreement with South Korea? Will it mean that, in addition to having to pay millions of dollars to American companies, Canadians will now have to pay Korean companies and assume those costs too? We are talking about hundreds of millions of dollars of taxpayers' money.

I would like my colleague to tell us what Canadians stand to gain from this type of provision.

[Devinder Shory, Conservative, Calgary Northeast, AB]

Mr. Speaker, the NDP has a long proud history of working against trade. I understand it is finding it very difficult to support this good agreement.

As a matter of fact, the NDP tried its best to gut this legislation in committee. It would have sent us back to the renegotiation table, which would basically put us off trade with South Korea. The U.S. has some deadlines, which come into action on January 1.

This agreement would benefit virtually every province and territory. I am from Alberta. Whether it is on agriculture or industrial goods or forestry, this agreement would help every province and territory, including Quebec.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member spoke about India. I am a great fan of India. It is wonderful in terms of the way in which we can look at expanding our relationships.

The member talked about his government's actions in regard to trade with India. The first thing that came to my mind was that former prime minister Jean Chrétien said we were going to go to China. He brought in this whole team Canada approach. He took premiers, stakeholders, industry reps, and so forth to China. There was hundreds of millions of dollars' worth of activity created because of that particular initiative.

Our Prime Minister goes to India, and he took a limousine. It cost $1 million. I am not too sure how he enhanced the trade negotiations by incorporating the different premiers of the provinces and so forth.

It is the same thing on this particular trade agreement. South Korea has wanted this agreement since 2003. Could the member explain why it has taken the government so long to sign the agreement? Could the member comment as well on the lost opportunities due to the government's slow response to South Korea's request?

[Devinder Shory, Conservative, Calgary Northeast, AB]

Mr. Speaker, I agree with the member from the Liberal Party that its prime minister took a huge group of people overseas for photo ops. That I understand.

Let me say that I have been to India with our Prime Minister and with our Minister of International Trade, and when we sit at those tables we talk about what is in the best interest of Canadian people and business. That is why it takes some time.

We do not sign junk agreements for the sake of signing agreements. We definitely work hard to make sure the agreements are signed with the intention and results that would be in the best interests of Canadians and Canadian businesses.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, first of all, I would like to thank my colleague from Calgary Northeast and acknowledge the hard work he has done in committee and the respect he has shown for the committee, attending the meetings, being there, asking the great questions, and making sure we have the best piece of legislation we could possibly have for our Canadian businesses and families.

The Canada-Korea free trade agreement is an ambitious, state of the art agreement, covering virtually all sectors and aspects of Canadian-Korean trade. South Korea is an important export destination for Canada and the Prairies, with exports from the Prairies to South Korea worth an average of $934 million annually from 2011 to 2013.

I would like to highlight some of the key benefits in the agreement, starting with Alberta. South Korea is a very important market for Alberta. It is the province's fifth-largest export destination, with exports from 2011 to 2013 worth an annual average of approximately $635 million. From 2011 to 2013, Alberta's agricultural exports to South Korea were worth an annual average of $195 million, with wheat, pork, canola, unroasted malt barley, and tallow as the main exports.

South Korean tariffs would be eliminated on all of these items. For wheat, the current rate is 3%. On pork, the current rate is 30%. Unroasted malt barley is at a current rate as high as 269%.

Alberta would also benefit from the elimination of tariffs on beef, which is one of the biggest export interests for Alberta in the South Korean markets. Exports to South Korea of fresh chilled and frozen beef, which totalled over $43 million in 2002 prior to the BSE outbreak, are in a rebuilding phase following the restoration of the access to the South Korean market in 2012. Canada's exports of beef to South Korea reached an average of $5.5 million from 2011 to 2013. Separately, exports of bovine genetics, offal, and tallow averaged over $15 million.

The Canada-Korea free trade agreement would eliminate its high beef tariffs and allow Canadian exports to compete head to head with their U.S. competition. Specifically, the 40% tariff on fresh and chilled frozen beef cuts, as well as the 72% tariff on some of the processed and prepared beef, would be eliminated within 15 years. Tariffs of 18% on most beef offal would be eliminated within 11 years, while tariffs on beef fats and tallow would be eliminated upon entry into force of the agreement. Importantly, the 18% tariff on bovine embryos would also be eliminated upon entry into force.

The services sector is another key economic driver in Alberta, and it is expected to benefit greatly from the Canada-Korea free trade agreement. In 2012, the services sector accounted for 53% of Alberta's total GDP and employed more than 1.5 million Albertans. Canada's service exports to South Korea are worth more than $750 million a year. Many areas of export interest in Alberta in the services sector would benefit from the Canada-Korea free trade agreement, including architecture, construction, financial, and telecommunications services, to name just a few.

The agreement would also increase the transparency and predictability of South Korea's markets by ensuring that the regulators act impartially, objectively, and in a transparent manner.

Now, I would like to turn to Saskatchewan, my home province. It is the home of the Roughriders, and it is the emerging powerhouse in Canada. Its exports to South Korea in 2011 to 2013 were worth an average of $175 million. This agreement would bring significant benefits to Saskatchewan across sectors including agriculture, agri-food products, the industrial goods sector, and the services sector.

Canola and malt are Saskatchewan's key exports to South Korea. From 2011 to 2013, Saskatchewan exports of barley malt, canola, and canola oil to South Korea averaged $23 million a year. Once the Canada-Korea free trade agreement comes into force, canola and malt producers would benefit greatly from the elimination of duties on these products, which currently face duties of up to 10% and 269%, respectively.

Listen to what the president of the Canola Council of Canada said about the agreement's expected benefits to Saskatchewan's canola industry:

South Korea is an important market for canola, with annual sales ranging from $60 million to $90 million in recent years. Under the Canada-Korea Free Trade Agreement, we could significantly increase—even double—our exports to this market.

Saskatchewan would also benefit from the tariff elimination on industrial goods. From 2011 to 2013, Saskatchewan exports of industrial goods to South Korea were worth an average of $42 million. Exporters of industrial goods such as weighing machinery, scales, electrical transformers, and sporting equipment, which currently face an 8% tariff, would now enjoy preferential access to the diverse Korean market.

I look forward to Saskatchewan's increased prosperity through the benefits of this agreement.

Finally, I turn to Manitoba, located at the heart of Canada. South Korea is also an important trade destination for Manitoba, with exports from 2011 to 2013 worth an average of $124 million.

At the centre of Canada's grain trade is Manitoba's innovative agriculture and agri-food sector. From 2011 to 2013, Manitoba's agriculture exports to South Korea were worth an average of $92 million, with wheat and pork at the lead. This free trade agreement would eliminate many agriculture tariffs immediately upon implementation of the agreement, and would eliminate all tariffs, in whole or in part, on 97% of current agricultural exports when the agreement is fully implemented.

Tariffs would be eliminated on agriculture exports such as wheat, from the current rate of 3%, and pork and most processed pork products, from a current rate of up to 30%. This is important to allow Manitoba producers of wheat, pork, and other products to compete with the other agricultural and agri-food exporters in South Korea, including the United States and the European Union.

In 2010, before the implementation of the South Korea free trade agreement with the U.S. and the EU, Canada's share of Korea's fresh chilled and frozen pork imports was 14.2%. However, in 2013, after the implementation of these agreements, it dropped to below 9%. This represents a loss in export value of $22 million. We must act now to level the playing field for our pork industry.

Regarding Manitoba's services sector, it accounted for 71% of the province's GDP in 2012. It is by far the largest sector of Manitoba's economy and generates more than 75% of the province's total employment. Key export interests in this sector are business and professional services, construction, engineering and architectural services, and marketing and distribution services.

Some of the benefits of the agreement for the services sector include enhanced access to the South Korean market for service providers, which go beyond South Korea's current obligations. Notably, nothing in the agreement would prevent our government from regulating in the public interest. For example, public services such as health, public education, and other social services would be excluded from the obligations of the agreement, and our government remains free to enact the policies and programs it chooses.

We stand with Canadians, incredibly disappointed that the NDP tried to completely gut the bill at the trade committee, where it tabled amendments to remove the investor protection provisions, cornerstones of modern trade and investment agreements. This is just 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. Only our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians.

I call for the urgent ratification of the Canada-Korea free trade agreement, so that we can begin to reap the benefits of this landmark agreement as soon as possible.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the comments the member made, particularly about my home province of Manitoba.

I understand and appreciate just how important the pork industry, in particular, is to Manitoba. It has created literally thousands of jobs over the years. All one has to do is look at the Maple Leaf company as a whole and how much it has assisted communities such as Brandon and Winnipeg.

There is, no doubt, concern with regard to this particular agreement, particularly with the automobile industry, but from the pork industry a great number of accolades have been directed toward the agreement.

Because this is such an important industry, I am wondering if the member might want to provide some further comment as to how he expects the pork industry in Manitoba to grow with this. He might also want to provide some comment in terms of the need for workers within the pork industry because of the growth that has taken place in that industry in Manitoba.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, it will be really interesting to watch the growth in the pork sector, and there will be some challenges in that industry, no question about it, but they are great challenges. They are challenges of growth, challenges of expansion, rather than the opposite challenge of shutting things down, of seeing things collapse.

It is not just in Manitoba where we would see growth. We would see hog producers right across the Prairies ship their pork into Brandon and Winnipeg where the pork is processed and shipped on to Korea.

This whole area would expand and grow. It went down to 9% and should be up higher to 15% to 20%. The growth potential in Korea for Canadian pork is huge. As we start exporting into that market, the cash would flow back into western Canada, back into communities such as Brandon, back into little communities that have hog barns and hog facilities, and that money is spent throughout the economy, throughout rural Saskatchewan, rural Manitoba, and rural Alberta.

This is such a positive agreement, and it trickles right back to every individual in a direct or indirect way. That is why it should be ratified rather quickly.

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

Mr. Speaker, I will be sharing my time with the hon. member for Notre-Dame-de-Grâce—Lachine.

Although it seems almost as difficult to agree with the government as to disagree with it, I am still pleased to rise today to speak to Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea.

As I mentioned in my speech at second reading, I am proud to support the implementation of this agreement because it is very important for our agricultural producers and our exporters.

The discussions regarding a free trade agreement between Canada and South Korea began in 2004, and negotiations officially began in 2009. It took nine years to conclude the treaty.

During that time, Korea signed agreements with the United States and Australia. Canada's delay cost our producers and exporters dearly. Canada has been losing significant market share. We need to step up our efforts in order to recover those losses. Canada's delay in signing an agreement with Korea shows just how important it is to have an international trade strategy. Signing agreements right and left without a coherent plan is certainly not in the best interests of Canadians.

What is more, in its haste to pass this agreement as quickly as possible, the Standing Committee on International Trade conducted a rapid study. We had a limited number of study sessions, and we were only able to hear from a limited number of witnesses.

The NDP meticulously studies free trade agreements that are presented to us. We know that once they are ratified, it is difficult, if not impossible, to turn back the clock and fix any errors. We apply three criteria in our assessment. First, is the proposed partner one that respects democracy, human rights, adequate environmental and labour standards, and Canadian values? If there are any issues, is the partner on the path to meeting those objectives? Second, is the proposed partner's economy of strategic value to Canada? Third, are the terms of the proposed deal satisfactory?

The agreement with Korea meets those three basic criteria. Korea is an established democracy that enforces high labour, human rights and environmental protection standards. It is a developed country that is ranked 15th on the human development index, the highest ranking of all East Asian countries. In addition to introducing social programs and the rule of law, South Korea has low levels of corruption and provides high access to quality education. With respect to the environment, Korea has emerged as a world leader in renewable energy and green technology.

Furthermore, the agreement with Korea represents a significant and strategic value to Canada. This agreement is viewed positively by a plurality of Canadians and is supported by virtually all sectors of the Canadian economy. South Korea is Canada's seventh most important trading partner.

Even more importantly, this agreement would be Canada's first trade agreement with an Asian country, so it provides a significant opportunity to capitalize on the Pacific region economies and to diversify our export markets.

The agreement with South Korea also passes the test if we look at the terms of the agreement. A very broad coalition of Canadian economic stakeholders believe that this agreement will have a positive impact. I must note, however, that certain terms of the agreement are not what an NDP government would have negotiated.

The manipulation of Korean currency as a form of protectionism as well as the investor state dispute settlement mechanism are two aspects that keep coming up in the discussions. Despite the NDP's demands, no real study has been conducted to examine how these aspects will affect Canadians.

We proposed amendments to improve the agreement at the Standing Committee on International Trade. In total, the NDP proposed six amendments. These amendments aimed to protect the right of Canadian governments to legislate in the public interest and to prohibit the weakening of environmental standards.

Furthermore, two of these amendments directly addressed the auto and steel industries. Neither the Conservatives nor the Liberals proposed any amendments to improve this agreement. Obviously, as usual, the Conservatives voted against all of our attempts to improve this agreement. It is sad that members choose to do this.

Nevertheless, we believe that, overall, the benefits of the Canada-Korea free trade agreement outweigh the risks. For these reasons, I am pleased to support Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea. However, I believe that our work does not end here.

South Korea is a new market for our exporters. It would be magical thinking to believe that simply signing the agreement will automatically enable our exporters to take advantage of the Korean market. Many of our Canadian exporters, especially SMEs, need a little help to benefit from this opportunity. Co-operation among businesses, the Canadian embassy in South Korea, the Trade Commissioner Service, Export Development Canada and other services is essential to implementing the agreement and improving trade.

In my riding, Laurentides—Labelle, the Oviva group, which produces maple water, contacted me for more information about opportunities available to them to get into that market. They do not know where to go for help from the government. Maple water is a niche product. The quality of their product is exceptional. I will personally make sure that these exporters from my region get all the help they need to access the Korean market.

In closing, I believe that this free trade agreement with Korea will create new opportunities for Canadian producers and exporters. I think it is a real shame that all of the amendments my party put forward to improve this agreement were rejected out of hand. I think that this agreement will be good for Canadians, so I support Bill C-41.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I would like to thank my hon. colleague for his remarks.

I would like to know why the Conservatives did nothing when they received the document from the Department of Foreign Affairs, Trade and Development showing that Canada took too long to sign trade agreements with strategic markets because it wasted resources and energy negotiating agreements with governments of smaller countries just because they were friends and allies, instead of signing agreements with countries like this one that would really have benefited Canada and its people.

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

Mr. Speaker, that is a very good question, one that is nearly impossible to answer.

I think common sense dictates that when we want to achieve a certain outcome or goal, we need to focus on one task. When we spread our resources too thin and try to do too many things at once, we invariably fail or miss out on projects that are more serious or more important.

This probably happens simply because there is no plan and no industrial strategy or international trade strategy.

[Michelle Rempel, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, I am a bit puzzled by both the question and response from my colleague opposite. He made it seem like trade with other countries was an either/or proposition, and that is not the case. Canada has diverse industries. We should be looking at the diverse markets to ensure we have market sustainability for our products.

I am curious as to how the NDP can arrive at the school of thought that we should only have one trade agreement. I do not understand the logic of that.

This agreement would allow us access to the Asian supply chain and put us on par with the U.K. and the U.S., and that is a good thing. I certainly hope my colleague will comment on his support for that.

I cannot understand the NDP's logic in opposing trade just out of fundamental opposition to it, then asking false questions about it and coming up with a false dichotomy in terms of either/or for entering into free trade agreements with one country or not. Could the member comment on that?

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

Mr. Speaker, the government is spending most of its time explaining to us that resources are limited and that we have to tighten our belts and do more with less. In these circumstances, I imagine that the resources dedicated to international trade are not really a matter of choice. We need to have priorities. I think that the agreement with South Korea is considerably more important than other agreements signed with countries like Nicaragua, for example. It is simply a question of priorities.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I thank the member for talking about the importance of farming in his community. It is important in mine as well.

I want to refer to the investor state dispute resolution mechanism. Earlier I pointed out the fact that it was a very secretive process. It is also costly for governments to have to defend themselves on these dispute resolution mechanisms.

Could the member comment on the fact that this really needs to be a more open and transparent process and safeguards need to be put in place for countries so they do not get involved in these costly battles?