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.

[The Acting Speaker, Conservative, Bruce Stanton]

Before resuming debate, I have the honour to inform the House that a communication has been received, which is as follows:

Rideau Hall

Ottawa

November 26, 2014

Mr. Speaker,

I have the honour to inform you that the Right Honourable David Johnston, Governor General of Canada, signified royal assent by written declaration to the bill listed in the Schedule to this letter on the 26th day of November, 2014, at 3:41 p.m.

Yours sincerely,

Stephen Wallace

Secretary to the Governor General

The bill assented to was Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea.

International Trade

[Ed Fast, Conservative, Minister of International Trade]

Mr. Speaker, last night the House passed third reading of Bill C-41 to implement the Canada-Korea free trade agreement. This is an historic agreement that will increase Canada's economic output by close to $2 billion and increase our exports to Korea by 32%

The bill is now in the Senate, where it will be sponsored by my colleague, Senator Yonah Martin. It is my hope that the Senate will pass the bill quickly so that Canadian exporters can take advantage of this remarkable economic opportunity as soon as possible.

The House resumed from October 28 consideration of the motion that Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea, be read the third time and passed.

Canada-Korea Economic Growth and Prosperity Act

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

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea.

Before I begin, in light of last week's events, I want to thank all of the Parliament Hill staff, including the constables, the RCMP officers, the pages, the kitchen staff and all those who are always here on the Hill to support us in our work as parliamentarians. I thank them very much.

I also want to thank them for coming back the next day to support us when we decided to come back to the House, and for protecting Parliament and our lives last Wednesday. It is greatly appreciated.

My remarks on Bill C-41 will be brief because I think there have been very fine speeches and very good questions in the House today. Most of the positive and negative aspects of this bill have been raised by my colleagues.

I am extremely proud to be a New Democrat because our position on how to deal with a free trade agreement implementation bill has always been very clear, just like the way we vote. As my colleague from Chambly—Borduas said, we establish our position on a free trade agreement on certain pillars.

In this case, even though the terms of the agreement and the standards with regard to democracy, human rights, the environment and labour rights seem relatively satisfactory, we have some reservations.

I am very proud to say that we support this bill and that we use these pillars to determine our position every time. However, as my colleagues and I have already said today and at other times during the debate on this bill, we have some reservations.

South Korea is very present in the automotive industry market and competes with us. It is a healthy competition and that is good. However, given how the government treats jobs in the manufacturing sector in Canada, I am concerned about the manufacturing jobs in the automotive industry.

My colleague from Parkdale—High Park said it very well today in question period: under this Conservative government we have lost thousands of manufacturing jobs in recent years. My concern with respect to this bill is understandable, and I believe it is justified.

Other free trade agreements are in the works, and I am saddened to realize that we are unable to obtain the same terms that we negotiated for the Canada-European Union free trade agreement. Unfortunately, we were not provided with the full text of that agreement. The Conservative government shut us down, which is very sad.

We are the only party that proposed amendments to this bill. Unfortunately, they were all rejected in committee. We take our work very seriously when it comes to debating free trade agreements. Even though the amendments were rejected, overall the agreement seems quite satisfactory.

I would like to reiterate that I am very proud to be a member of the NDP, especially when we discuss free trade agreements. We are not like the third party in the House. We have a very solid position on free trade agreements.

I would like to thank my colleagues for their good comments, especially my colleague from Vancouver Kingsway, who does an incredible job when we have to analyze the free trade agreements that the Conservative government presents to us.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, today, I am pleased to speak to Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea. This is a great opportunity because it allows me to acknowledge the work done by our critic for international trade and free trade agreements, the hon. member for Vancouver Kingsway.

Over the past two days, I have heard a lot of rhetoric from our opponents in the House about the NDP's position. In fact, our position is very clear and comprehensive. There is no contradiction between our support for the bill before us and the free trade agreement to which it pertains and our opposition to other agreements.

Allow me to explain. There are a number of criteria to consider. In the recent past, some of the agreements negotiated by this government simply did not meet our expectations or the public's with regard to what we want from a free trade agreement.

Yes, free trade is important. Yes, there are benefits for our communities. That is why we support this agreement. However, a government should not have carte blanche when it comes to these negotiations. There are a number of criteria that must be taken into account.

I remember taking part in the debates on the free trade agreement with Panama. At the time, we were debating an information sharing agreement on tax evasion. I remember the government saying at the time that we should not interfere in the affairs of other governments. However, we saw our American neighbours signing similar agreements with Panama so that they could go ahead with their free trade agreement. Canada did not do that. I am using that example here today because it illustrates why we feel comfortable supporting the agreement before us and not others. There were some shortcomings in the past, but they are not that serious in this case. Overall, this agreement is positive for Canada.

We will now look at the three pillars, so to speak, that make up the NDP's strong position when it comes to international trade. We ask ourselves whether the potential partner respects workers' rights and environmental protections and whether it has a robust democracy. These are important questions.

It is interesting because I heard a Conservative colleague talking just now about the fact that free trade agreements are good for countries that have a democratic deficit and shortcomings with respect to environmental protection, because they are compelled to take positive action. That is true, but only if the Canadian government requires the country to do so in the course of negotiations. That has not always been the case.

It is all very well to negotiate with countries where there may be shortcomings with respect to workers’ rights, but if Canada fails to stand up and say that it will engage in trade transactions with them only if they correct those shortcomings in their human rights practices, nothing else in such transactions will compel them to do so.

The fact that they are benefiting from transactions with the Canadian market, without trying to take corrective action, shows us that this will merely push them to continue those practices. It indicates that free trade will be important only if Canada plays its part in a positive way on the international scene.

That said, the same applies to environmental protection issues. In committee, the six amendments we proposed were all rejected. I will digress here because yesterday, our critic, the member for Vancouver Kingsway, was accused of trying to delay the bill or prevent its passage in committee. In committee, the fact is that we merely proposed amendments. One of them involved ensuring that environmental protection would not be reduced in the future, now that this agreement is in place to facilitate certain investments.

Yes, we are going to support the agreement before us. That does not mean that a few years from now, we will not see shortcomings appearing that were not there when it was negotiated. That is the kind of thoroughness—and that is the right word—that the NDP expects of a government; it is the kind of thoroughness a New Democratic government would apply if it was in power, which would make it possible to engage in free trade with other countries for the good of our economy, and do so in a responsible way.

The next pillar involves asking ourselves the following question: does this partner’s economy hold significant or strategic value for Canada? Obviously, the importance is there. In my view, the most striking example in the agreement before us today is the aerospace industry. It is very important in my constituency and on the south shore across from Montreal. Many investments and jobs are at stake.

Other countries have signed agreements with Korea, including the United States and the European Union. That has created a disadvantage we are going to correct. This is where we can see the economic significance and also the strategic aspect. That is an important element. I heard one of our Conservative colleagues ask a question of a member. He asked her whether, if the economy was not important for Canada, we would ignore developing countries for whom Canada could do a lot of good. That is where the strategic element comes in.

Some considerations involve the work we do internationally to play a positive role in developing countries, where there is great poverty. We must make a positive contribution. That is part of what we mean by strategic importance. However, it does include many other aspects, and one of them is our competitive position. The Asia-Pacific region is physically close to provinces like British Columbia. Several things are involved. It may seem a bit of a grab bag, but the government must be very thorough and look at the big picture. The government has responsibilities during negotiations and must take certain things into consideration.

Finally, the third pillar consists in ensuring that the terms of the agreement are satisfactory. Since we are supporting this agreement, they should be satisfactory, but it is a little more complicated than that. As an example, take the agreement with Europe, which is still somewhat uncertain. In our region, we have a lot of cheese producers. We moved a motion, which was adopted unanimously, that they should receive financial compensation. It was promised by the government, but nothing has been heard of it since. The kind of announcement the government makes can help us better understand the terms of an agreement.

It may seem strange, but I do agree with my Conservative colleague. It is certain that losses in some sectors will bring gains in others. We must be prepared to weigh and balance these gains and losses. That is where we look into the terms.

More specifically, there is a mechanism for resolving disputes between investors and the state. A New Democratic government would not have included that in an agreement. However, it is in this agreement. It would not have been our first choice, but it is not enough to cause us to vote against the agreement. That is why we want to look at the terms, not only individually, but also as a whole.

I hope that my remarks have demonstrated that our position is solid, contrary to the accusations we hear that we are flip-flopping in our support for different free trade agreements. We base our support on a thorough assessment. We did our homework, as a number of my colleagues have said. We will not give the government carte blanche but we will keep an open mind for the sake of our economy and our communities.

I shall stop there. I eagerly await questions from the House.

[José Nunez-Melo, NDP, Laval, QC]

Mr. Speaker, it is my pleasure to rise this evening and speak to Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea.

Like my colleagues, I am very pleased to say that our caucus is prepared to support this bill at third reading. At the same time, I would like to clarify certain points related to the amendments we suggested and proposed in committee meetings. Unfortunately, they were rejected by our Liberal and Conservative colleagues.

I particularly want to emphasize the criteria that the NDP caucus has always insisted on regarding the negotiation of free trade agreements. They can be summed up in three little points—small but also very important points—that have far-reaching significance. We know that a partner proposing a free trade treaty must respect democracy, human rights and proper environmental and labour standards. Naturally, these are Canadian values, and both countries must agree on these ideas.

The second point is that we should ask ourselves this question: is the potential partner's economy of significant or strategic value to Canada? That is obvious. We know that South Korea is a developing country, but one that is quite advanced. It is one of Canada's primary trading partners in Asia. Canada's clear need to diversify its international trade is a step in the right direction.

When I was studying economics and international marketing, I became aware that our country, Canada, was really very dependent on the economy of our neighbour to the south, the United States, to such an extent that some 80% to 85% of our exports were going south of the border.

Still, that need has always been great, since Canada has always emphasized the development of new markets for its technology and natural resources. That is why our international trade strategies came to focus on free trade agreements of all sorts. It all started with NAFTA in the 1980s. Later, there were more treaties with a number of developing countries. We supported some of these agreements and disagreed with others.

The third criterion concerns the terms of the agreement. This is an important point. One of the main problems we raised in committee relates to the resolution of trade disputes. We submitted amendments, corrections and modifications concerning certain aspects of this free trade treaty. From the perspective of the ethics of a democratic country, there is no problem. However, resolution of trade disputes should absolutely not be part of this agreement. This should not be dealt with by the government. We firmly believe that any trade dispute must be resolved through the appropriate legal processes.

The free trade agreement with Korea offers Canada a significant opportunity to diversify its economy. This is another step in the right direction, because we rely a great deal here on natural resources, and if I recall correctly, this was the main sticking point regarding one of the specific items in other free trade treaties. In those treaties, much criticism was levelled at the approach taken by Canada, which wanted only to export raw materials, without even putting them through some sort of processing that would have given them uniquely Canadian added value, highlighting our expertise and our technologies.

This free trade treaty with Korea is a step in the right direction, because that country enjoys support from a broad coalition of economic stakeholders in Canada. This partner shows that it has a firmly established democracy where human rights are respected. It also has adequate environmental and labour standards. The unions are firmly established and all have an affinity with Canadian values.

In all secondary or manufacturing sectors—to put it precisely, as we should—such as heavy industry, wood products, agriculture, food processing, seafood and high tech, we can genuinely share the expertise of each country and find a win-win formula somewhere, as should be the case for any trade with other countries.

We should note certain other important facts relating to these treaties. Korea is a member of the G20. It ranks fifteenth among those 20 countries, which puts it relatively high on the ladder. Korea is Canada’s seventh-largest trading partner. Obviously, this is something that must not be forgotten. In fact, Canadian imports have already lost about 30% of the ground. We have been backsliding and we need to catch up.

I would remind members that this free trade treaty has been in negotiation since 2005, or for nearly a decade; it has been at least nine years. We do not understand why the government did not move forward with this sooner. I suppose that, as usual, it was because of the Conservatives' laissez-faire attitude and mismanagement of our country's economy. It is all very well to announce that there will be job creation, but at the end of the day, we see that it never amounts to anything concrete.

Korea is a democracy and the fourth-largest economy in the entire Asian region.

To conclude briefly, we have certain affinities with some countries and South Korean opposition parties. They, like us, in our caucus, think that the investor state dispute settlement mechanism, as proposed in this agreement, must be eliminated.

I hope that at third reading stage, someone will think it would be worth reconsidering this situation, to make it acceptable to everyone.

We New Democrats know that international trade is essential to Canada's prosperity, and we have sought for a long time to diversify our trade with our trading partners in all regions of the world, including Latin America, Asia, Europe and Africa.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Rodney Weston, Conservative, Saint John, NB]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mr. Speaker, I thank my colleague across the aisle for his speech.

I gave a bit of a summary of what happened with Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea. In the latest reports I have read, I noted that the committee has had only one meeting on this free trade agreement.

Although the NDP supports this bill and the government on this free trade agreement, we still proposed six amendments. These relatively simple amendments were meant to improve the free trade agreement and, more importantly, to protect Canadian jobs, especially in the manufacturing and automotive sectors. Unfortunately, those six amendments were rejected.

Did my colleague across the way have a chance to study those amendments? Did he not think they were good?

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I am 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. There are a number of things I would like to highlight in my few minutes here.

I would like to say why I support the bill.

First of all, I follow the party criteria that we should only be engaging in trade negotiations and signing deals with partners that respect democracy and human rights, have adequate environmental and labour standards, and share values similar to ours.

Second, we should only be doing deals that provide an economic advantage to us.

Third, we should only sign deals if the terms are satisfactory.

Our trade critic, the very hard-working member for Vancouver Kingsway, has put his mind to this bill, as have all of us on this side of the House, and we think this agreement is worth supporting. I am proud to say that. We will keep an eye on this measure as it moves forward.

When I reviewed the deal and looked at the history of the two countries, I was struck first by how different they are and then, perhaps thinking about the lessons that I have learned from having a very large Korean community in Burnaby, by what we can hope to gain from this deal beyond merely trade. I am hoping that we can take some inspiration from how the Koreans have built their economy.

We have a tale of two countries that have come together to do a trade agreement. In the 20th century, Korea was at war from 1950 to 1953 and had 375,000 civilian deaths. That is a massive loss of life. In talking to Koreans, we hear that the country was more or less bombed flat. Koreans had a very difficult rebuilding process, both economically and politically. I have talked to the scientific adviser to the President of Korea, who said that with essentially no energy resources, they had to be quite creative when it came to rebuilding their economy.

South Korea became a full democracy in the 1980s, when the constitution was changed to allow direct election of the president. South Korea then held its first free parliamentary elections in that decade, the same decade that it hosted the Olympics.

South Korea also has a very troubled relationship with North Korea, as everybody in the world does. It is a very difficult neighbour to have. In 1980, South Korea's GDP per capita was just over $1,700. Twentieth century Korea was very different from 20th century Canada.

Canada participated in the Korean War. We sent 26,000 troops and we had 512 casualties, which is a high number, but it was well worth the effort. As we move toward Remembrance Day, we want to remember all those who fought in the Korean conflict.

Where Korea had a massive loss of civilian life, there was no real domestic destruction here in Canada in that conflict. Where South Korea moved to becoming a full democracy in the 1980s, we are one of the oldest democracies in the world. As for problems with our neighbours, we have none. The U.S.-Canadian relationship is one of the strongest in the world. In 1980, the South Korean GDP per capita was $1,700, while in Canada it was $11,000, ten times higher than in Korea. It really paints two different pictures of 20th century Canada and South Korea: one is a picture of a country getting on its feet after a tremendous struggle and the other is a picture of a very strong and enduring democracy.

It is also worth thinking about where our countries are now, in the 21st century. In Canada, our GDP per capita is $52,000. That is five times higher than in 1980, so we have had significant economic growth. Our population is 35 million, and we are 15th in the world in terms of GDP, at $1.5 trillion.

However, what is remarkable is what has happened in South Korea. The GDP per capita in 2014 is almost $26,000, which is 25 times what it was in the 1980s. That is the fastest-growing economy in the world over that period. The current population is 50 million. South Korea has passed us in terms of GDP, with a $1.7 trillion economy. It is 13th in the world; we are 15th in the world.

The question is, how did South Korea do this? How did it pull off what we might consider an economic miracle?

Korea invested in science. It invested in research and development. It is worth looking at how this investment has rolled out and compare it with what we are doing here in Canada with the hope that we will take lessons from this.

In 1991, Korea, both the public and private sector considered, spent 1.8% of its total GDP on research and development. That is very close to what Canada spent on research and development in 1991, which was 1.55% of total GDP. That is about a 0.25 percentage point gap in 1991.

However, in 2006, when we elected the Conservatives who unfortunately were not investing in science, the Koreans certainly did. In 2006, where Canada was spending 1.96% of our GDP on research and development, the Koreans were investing over 3%, so it is a big jump. The gap between the two countries became very sizable at a 1.05 percentage point gap. When we think about that in GDP terms, that is a massive amount of money.

The Korean government committed to investing in research and development and that is what they have done. Look where they are now. In 2012, Korea is the top investor in research and development, and 4.36% of their GDP goes into research and development. We have fallen. We have actually lost significant ground, not just to Korea but to many other countries in the world. Canada only invests 1.69% of our GDP. That is a 2.67 percentage point gap. That is a huge gap.

The Koreans are almost tripling our investment in research and development, which is why we have very different economies. What is scary is that the Koreans have just recently committed to investing 5% of their entire economy back into research and development. Again, that is public and private sector spending. That is the way the Koreans pulled themselves out of the horrors of war and it is the way they are going to continue to develop economically.

We just have to look at the companies that Korea has built from scratch. Look at Samsung Electronics. It is a $165 billion company when we look at the market capitalization of outstanding shares. The Hyundai Motor Company is $50 billion; POSCO, the steel company, is $33 billion; Kia Motors, $29 billion; Hyundai Mobis, which is an auto parts business, $26 billion; LG Chemical, $20 billion. The list goes on and on.

If we compare that with what is going on in Canada, the Royal Bank of Canada is the biggest company in Canada by market cap at $88 billion, which is half the size of Samsung. Toronto Dominion Bank, Bank of Nova Scotia, Bank of Montreal, all within are our top ten companies, are financial services, not necessarily innovators.

That is really what we see when we look at what companies dominate the Korean economy: Samsung, Hyundai, Kia, LG, Hynix semiconductor. These are all big companies that have been really driven through a sustained and very focused effort on understanding economic drivers and making sure that the proper monies are put in to encourage research and development. In Canada, we have been relying on finances and natural resources. Besides the banks, our big companies are Suncor, Enbridge and TransCanada.

I hope we can learn from the Koreans. Innovation never goes away, unlike natural resources, which do disappear. If we look at our fish stocks, our trees, even oil and gas, these things all go away. What the Koreans have learned is that innovation is essential to the future.

I am pleased that we have decided to sign this trade deal in the hope that we will take lessons from the Koreans and build our knowledge economy here.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, the NDP certainly supports Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea.

We use three criteria to determine whether or not we will support trade agreements. First, we must ensure that the proposed partner respects democracy, human rights, adequate environmental and labour standards, as well as Canadian values. If there are problems in that regard, is the partner making progress towards achieving these objectives? Next, is the proposed partner's economy of significant or strategic value to Canada? Finally, are the terms of the proposed agreement satisfactory? These are the criteria we use when studying agreements such as this one.

Since 2012, when the United States implemented trade agreements with South Korea and obtained preferential access for its businesses, Canadians exporters have lost 30% of their market share.

Why was this government so slow to act, and why has it negotiated an agreement that is not as good?

The House resumed consideration of the motion that Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea, be read the third time and passed.

[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.

[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.