Bill C-100 (Historical)

An Act to implement the Agreement between Canada, the United States of America and the United Mexican States

This enactment implements the Agreement between Canada, the United States of America and the United Mexican States, done at Buenos Aires on November 30, 2018.
The general provisions of the enactment set out rules of interpretation and specify that no recourse is to be taken on the basis of sections 9 to 19 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Agreement, provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement and gives the Governor in Council the power to make orders in accordance with the Agreement.
Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement.
Part 3 contains coordinating amendments and the coming into force provisions.

Canada–United States–Mexico Agreement Implementation Act

[Deepak Obhrai, Conservative, Calgary Forest Lawn, AB]

Mr. Speaker, it was very clear right from the first, when the tariffs were put here, that we took a very strong stand, which Jason Kenney has done. However, for the government to take credit for it is not right. As my colleague has said, all of us worked on it, including members of the trade committee, who went to the U.S. and lobbied everywhere. Let me put it this way: Irrespective, it was good for Canada.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, I will be splitting my time with the hon. member for Rivière-des-Mille-Îles, whom I had the opportunity to work with on the Standing Committee on International Trade before she became the deputy whip. She did excellent work for her constituents and for Canadians.

Strong and diverse trade is key to Canada's economy. That is why I am proud to speak in support of the benefits of a modernized free trade agreement between Canada, United States and Mexico. Trade has always been at the core of Canada's economy. As a member of the Standing Committee on International Trade, I heard from Canadians about the importance of trade for our economic prosperity and well-being. The goods, the innovation and the skills that we export are the backbone of our economy. It supports the growth of small businesses and creates good, well-paying jobs for Canadians.

In the last four years, we have created over one million new jobs and brought our unemployment rate to its lowest point in over 40 years. Our expanding trade markets are a key part of this growth and have created new opportunities for businesses to grow. When the time came to renegotiate NAFTA, our government approached the task with clear determination and strength.

Our free trade agreement with the United States and Mexico represents the biggest economic region in the world. More than $2.2 billion in goods and services are traded daily. For British Columbia, NAFTA means continued market access security for over 20 billion dollars' worth of exports that we send to the U.S. each year.

However, this negotiation was more important than just what the numbers represent. It was about making sure that Canadian workers who rely on well-paying export-dependant jobs were being protected, as well as making sure that Canadian businesses would have the opportunity to grow and prosper, with access to 480 million consumers in North America.

Throughout this process, the right hon. Prime Minister, along with the hon. Minister of Foreign Affairs, showed strong leadership in getting this deal finalized.

Since our government began negotiations, representatives have visited the United States more than 300 times. We made more than 500 individual contacts with American officials, of whom over 310 were members of Congress, and met with many governors and other business leaders. It is because of this leadership and hard work that we are here today discussing the successful negotiation of this NAFTA agreement.

This agreement preserves free trade across North America's $25-trillion market, which has grown significantly since the original NAFTA was adopted in 1993. lt does this while making sure that we are protected from the threat of auto tariffs that would put thousands of good-paying jobs and families at risk.

There are a number of key elements within this deal that are going to provide protections for Canadians. First, this deal fully upholds the impartial dispute resolution of chapter 19 of the original NAFTA. With this system, any disagreement over trade goes to an independent binational panel that gets to decide on how the matter will be resolved.

Second, this agreement removes the proportionality clause that was not in the interest of Canada's energy sector. It is because of these changes that the oil industry will save more than $60 million a year in administrative fees and costs.

Third, we have successfully negotiated the removal of the investor-state dispute resolution system that has allowed companies to sue the Canadian government. Since coming into effect, this has cost Canadians taxpayers more than $300 million in penalties and legal fees. This system put the rights of corporations over those of the governments, and we have brought an end to that.

As an MP from British Columbia, I am very pleased to note the regional benefits to British Columbia. This means stability for workers in the lumber industry, energy and the processed food sector, to name a few. For agriculture goods under the new agreement, Canadian exports will continue to benefit from duty-free access for nearly 89% of the U.S. agriculture tariff lines and 91% of Mexican tariff lines. This is a big deal for British Columbia. In 2017 alone, farmers in British Columbia exported over $2.1 billion to the U.S. markets. New gains in this agreement mean new market access opportunities for British Columbia exporters of everything, from berries, dairy products and even sugar.

The preservation of chapter 19 is especially important for British Columbia's softwood lumber industry, which exported $4.3 billion to the United States in 2017. It also ensures that British Columbia's 178,000 small and medium-sized businesses will have an easier time shipping their products to the U.S. and Mexico, by eliminating paper processes and providing a single portal for traders to submit documentation electronically. The new chapter on small and medium-sized enterprises will foster co-operation to increase trade and investment opportunities for businesses.

As I mentioned earlier, all of these achievements took hard work, resolve and, above all, the strong leadership of this Prime Minister and the Minister of Foreign Affairs. When the United States applied tariffs to Canadian steel and aluminum products, we responded quickly with our own dollar-for-dollar tariffs. Despite calls from the Conservatives to drop our retaliatory measures, we held firm and secured the full lifting of steel and aluminum tariffs.

It was the NDP that wanted us to hold off on signing the side letters that protected our auto industry from tariffs. This agreement is going to help the auto industry in Ontario. Despite the all-or-nothing calls from the NDP, we know that Canadians' economic prosperity is too important to sacrifice for political gains.

This modernized and upgraded NAFTA agreement is going to make sure that our economy continues to grow, Canadians continue to work in good-paying jobs and our interests as a country are protected for many years to come.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

Mr. Speaker, I have the pleasure of sitting on the trade committee with the hon. member. He certainly is a valuable asset.

I would like to ask the member what his feelings are about the agreement as it relates to the constituents he represents so well in British Columbia? What opportunities are there for people in B.C. as well as the rest of Canada?

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, I work with the member for Sault Ste. Marie on the international trade committee. When it came to the tariffs on steel and aluminum, the member showed great leadership. He mentored us in the right direction. We were able to get a deal done that his constituents wanted.

My riding of Surrey—Newton in British Columbia is only minutes away from the U.S. border. This agreement would give us stability and predictability so businesses in Surrey—Newton and the rest of British Columbia can flourish and do well.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Speaker, I heard my colleague's comments about the softwood lumber, steel, aluminum and automotive sectors, but I did not hear him say anything about supply-managed producers.

We are being asked to ratify this quickly, but would that not mean giving the government a blank cheque to ratify the agreement without compensating our supply-managed producers? We should be sending a cheque to every supply-managed producer rather than giving this government a blank cheque.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, I want to thank the hon. member for raising the issue of supply management. It was the Conservatives that wanted to eliminate supply management and it was our government that protected it so our farmers can do well in the coming years.

[The Deputy Speaker, Bruce Stanton]

There will be two and a half minutes remaining for questions and comments for the member for Surrey—Newton when the House next gets back to debate on the question.

The House resumed from June 11 consideration of the motion that Bill C-100, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, be read the second time and referred to a committee.

Canada-United States-Mexico Agreement Implementation Act

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am pleased to be here once more in the House of Commons with all of my colleagues to talk about the benefits of the Canada-United States-Mexico agreement for all Canadians.

In keeping with Canada's inclusive approach to trade, we have worked very hard since the negotiations began to get results that will advance the interests of Canada's middle class, small and medium-sized enterprises, women, indigenous peoples and entrepreneurs. The cultural exemption is also particularly important to me.

[Some hon. members]

Oh, oh!

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, the members are talking very loudly, and it is bothering me.

[The Deputy Speaker, Bruce Stanton]

Order. I would ask the hon. members to continue their conversations outside the House.

The hon. member for Rivière-des-Mille-Îles.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, thank you for making sure everyone is listening. The agreement we are discussing is very important.

We worked hard to secure a good deal that will benefit all Canadians. For example, the provisions that protect women's rights, minority rights and indigenous rights are the strongest in any Canadian trade agreement to date. This includes obligations with respect to the elimination of employment discrimination based on gender. The new NAFTA is also the first international trade agreement that recognizes gender identity and sexual orientation as grounds for discrimination in its labour chapter.

I would add that, from the very beginning of the negotiation process, we emphasized the need to protect middle-class jobs and support economic growth. The vast majority of Canadian businesses are SMEs. They employ over 10.5 million Canadians, accounting for about 90% of the private sector workforce. The new agreement will help these Canadian businesses by giving them access to the U.S. and Mexican markets and promoting collaboration between the parties to create more opportunities for trade and investment.

During the 42nd Parliament, I had the honour and privilege of being a member of the Standing Committee on International Trade for two and a half years. The agreements that we signed include CETA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. However, the agreement with the United States and Mexico is very important. The committee and parliamentarians worked very hard to move forward on this file, which is of vital importance to Canada. CUSMA includes a chapter on SMEs designed to complement the other commitments made throughout the agreement. It includes requirements to make available information that is specifically tailored to SMEs, including information on entrepreneurship, education programs for youth and under-represented groups, and information on obligations in the agreement that are particularly relevant to SMEs.

CUSMA also provides SMEs with an opportunity to collaborate in addressing any issue that could impact them in the future. In my riding of Rivière-des-Mille-Îles, which includes Deux-Montagnes, Saint-Eustache, Boisbriand and Rosemère, SMEs are the main employers. The new agreement establishes a committee on SME issues and an annual trilateral SME dialogue that brings together representatives of private sector employees, non-governmental organizations and other experts to discuss issues pertaining to the agreement that are relevant to SMEs. By doing so, CUSMA will give a voice to Canadian SMEs and facilitate discussions on issues that matter to them.

In keeping with our commitment to adopting an inclusive approach to trade, Canada carefully considered the interests of indigenous peoples throughout the negotiations. The Government of Canada is determined to advance the process of reconciliation with indigenous peoples through a renewed nation-to-nation relationship based on the recognition of rights, respect and co-operation. Given the efforts made by Canada to renew this relationship, one of Canada's objectives is to better advocate for the commercial interests of indigenous peoples. To that end, the Government of Canada has undertaken a vast consultation with chiefs and indigenous representatives and also with businesses and experts to better understand their commercial interests and obtain their advice on the priorities for the negotiations.

For the first time in a Canadian free trade agreement, the CUSMA includes a general exception that clearly states that the government can adopt or maintain measures it deems necessary to fulfill its legal obligations towards indigenous peoples. This exception is a testament to the commitment by all three countries to ensure that the agreement's obligations do not interfere with a country's legal obligations towards indigenous peoples.

We are proud to have made indigenous peoples the focus of the NAFTA renegotiations. As National Chief Perry Bellegarde of the Assembly of First Nations said, the new NAFTA's provisions addressing indigenous peoples make this most inclusive international trade agreement for indigenous peoples to date. The provisions will uphold the ancestral, inherent and treaty rights of first nations.

Furthermore, we are proud to have included a chapter on the environment in lieu of the side letter to the original NAFTA.

The chapter on the environment recognizes the important role indigenous peoples play in long-term environmental and biodiversity conservation, as well as sustainable fishing and forestry. The environmental provisions also take into account the rights of indigenous peoples under the Constitution for the use and development of natural resources.

Finally, for the first time in a Canadian free trade agreement, the preamble recognizes how important it is for indigenous peoples to participate more in trade and investment decisions. In addition to achieving results for SMEs, indigenous peoples and, of course, the cultural exemption, Canada has made gender equality and women's empowerment top priorities.

For instance, the labour chapter levels the playing field when it comes to labour standards and working conditions in North America, and includes commitments to ensure that national laws and policies provide protections for fundamental principles and rights at work. This includes provisions on non-discrimination in the workplace, including gender discrimination. It also includes provisions that encourage the adoption of programs and policies to tackle barriers to the full participation of women in the workforce. The agreement supports co-operative activities dealing with questions on gender issues in the workplace, particularly gender equality.

The investment chapter includes a special provision that reaffirms the importance of encouraging businesses to uphold standards of corporate social responsibility, including those that apply to gender equality.

The chapter on small and medium-sized enterprises encourages the parties to collaborate on activities that will maximize trade opportunities for SMEs owned by women and promote their participation in international trade. Taken together, the agreement's provisions on equality address the issue directly.

I have to say a few words about the cultural exemption. I remember the Standing Committee on International Trade's trip to Washington. When I said that Canada has over eight million French speakers, they had no idea what I was talking about. That is why the cultural exemption is so important. It affects the cultural industry and means that Canada will still be able to create and maintain programs and policies that support our thriving cultural industries. The industry represents 75,000 jobs in Quebec, and culture represents 2.7% of our GDP and 3.6% of all jobs in Canada. That was a very important gain, and I am very proud of it.

In conclusion, let me reiterate that we worked incredibly hard to make sure the new agreement benefits Canadians, and not just middle-class workers and small businesses, but traditionally under-represented groups, such as women and indigenous peoples, too.

As I said, the cultural exemption was very important, and I can proudly say that our goals were met. We made significant progress in improving standards and benefits for all Canadians.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Speaker, one of the problems with the agreement has to do with its impact on supply management. Farmers from across Canada are looking at the concessions that were made to the Americans on dairy and other products.

In New Westminster, I am seeing American milk on the shelves for the first time in my life. That milk is cheap because it contains ingredients like bovine growth hormone. Generally speaking, the quality of that milk is not as good, but it puts consumers in a difficult position because it costs less.

The question I want to ask my colleague is very simple. Why did Canada and the government make so many concessions with regard to supply management? They are undermining all of our existing supply managed products.

What is more, why did they not offer dairy farmers the kind of compensation they should be able to expect from a government that supports them?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am pleased to answer my colleague's question about supply management. That issue is very important to me. We have heard a lot of talk about supply management in Quebec. However, from what dairy and poultry farmers are telling me, they are very satisfied.

It is important to remember that there are also new opportunities available. Take, for example, refined sugar and margarine. Markets are opening up. We are able to go there.

I would like my NDP colleague, who often speaks about international trade, to tell me whether there is an agreement, other than the one between Canada and Ukraine, that the NDP would have accepted. They do not think any agreement is good enough.

As for the official opposition, they were willing to accept any agreement as quickly as possible. They thought it we should just take whatever we could get without any negotiation.