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

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, the member across the way is a fellow member on the INDU committee. We have had a lot of great discussions there, and a lot of them came as a result of our connections with the Canadian Chamber of Commerce.

I was the president of the Guelph Chamber of Commerce. I was on the board of the Ontario Chamber of Commerce and worked very closely with Perrin Beatty and his group at the Canadian chamber, who were supportive all the way through our negotiations on the new NAFTA, in particular saying we had to hold our ground when it came to the section 232 provisions on steel and aluminum. When we were successful, the Canadian chamber put out a press release saying that it supported the federal government's efforts to have the unjustified U.S. tariffs on Canadian steel and aluminum products lifted. It took all of Canada standing together.

It sounds like the member was suggesting that we should be more like Mexico. Does he mean we should be reflective of the labour practices of Mexico, or the safety practices? How should we be more like Mexico?

[The Assistant Deputy Speaker, NDP, Carol Hughes]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Saanich—Gulf Islands, the environment; the hon. member for Kootenay—Columbia, child care; and the hon. member for Courtenay—Alberni, the environment.

The hon. member for Central Okanagan—Similkameen—Nicola.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, in my speech I pointed out that this is obviously a three-way agreement and that trade is influenced by many different things: the ease of transport, the tax regime, and tariffs, obviously, because that is what a free trade deal is supposed to deal with.

As I mentioned in my speech, Mexico has seen a rise in the development of its automotive sector because Mexico is not subject to many of the costs that are associated with doing business in Canada, such as the enhanced CPP, for which employers have to pay higher premiums, and the carbon tax, which increases the price of everything, particularly for processes that require a tremendous amount of energy, such as those in the automotive sector.

We must remain competitive if Canada, a nation of traders, is to compete in trade. We cannot take our products and services to other countries if we are priced out of the market because of our input costs. That is an area where we cannot allow Canada to fall back. I hope that when the time comes, the member will advocate for a new government to deal with the red tape and excessive taxation that the government has put on this country.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Madam Speaker, I would first like to thank the member for his many years of service. I know this is not easy work, and he has been doing it for a long time now.

I would also like to say that my colleagues in the NDP and I are fully aware of how important our trade relationship with the United States is. We want to have the best possible agreement with the United States and Mexico, but we must recognize that that is not what we have. That is also why there are people in the United States who want to renegotiate the agreement to get a better deal.

Why rush the vote on this agreement, when we could very well improve on it by waiting a bit and continuing to negotiate?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I want to reiterate my thanks to the member for her kind words, and to say the same. We all should respect members who work so very hard for our constituents. I thank her for her service.

One thing I have learned as an elected official, both at the city council level and now as a member of Parliament, is that business asks for just one thing from government: certainty. While the negotiations kept going on, I heard right across the country at business round tables that people felt they could not make those once-in-a-lifetime or once-in-a-generation investments in their businesses on the Canadian side. Often the reason people chose to go south with those investment choices was that we did not have trade certainty.

I am fully cognizant that this deal is a sub-par deal that the government's approach led us to this position. I will support this only because the business owners I speak to and the people they employ are asking for that basic certainty.

However, we need to make sure that our entrepreneurs, our producers and ultimately our employees have a level playing field. Right now, I am very concerned about the competitiveness aspects of our country. While we maintain trade ties with Mexico and the United States, competitiveness is going to become more and more important. It is something that we should never take our eyes off of.

[Omar Alghabra, Liberal, Parliamentary Secretary to the Minister of International Trade Diversification]

Madam Speaker, I thank my colleague for his gracious final remarks.

We believe that in order for trade deals to be successful, they need to be inclusive. They need to bring onside the majority of the population so that all people benefit, not just the large multinational corporations.

Which of these provisions does the member find to be virtue signalling? Is the labour chapter in the NAFTA deal virtue signalling? Is the chapter that promotes gender equality virtue signalling? Is the chapter that enforces environmental standards virtue signalling? How about the committee that includes SMEs in the trade implementation? Is that virtue signalling?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I will just go back to my speech.

Again, it is about putting forward values that may be important to the Prime Minister, that may be important to Canadians. He tried the same approach with China. China rejected that.

I would just ask it the other way around. If the leader of China came to Canada and said, “We want a free trade agreement, but here is what we want to see” and put values in it that are contrary to Canadian values, Canadians would rightly say that we were not in support.

In the case of Mexico, Mexico was laser-focused on where it could win. When we asked the government where it got any wins, the Liberals said that we kept chapter 19. If they cannot say where their wins are and can only say that they kept one component, it is not much of a win.

There was concession after concession, not to mention the steel and aluminum tariffs that kneecapped many in our industry. That was the wrong approach.

In my speech, I gave an alternative view. We should not have allowed Mexico to isolate Canada in those bilateral talks that ended up being trilateral ones. That was a key error, regardless of what the government says. I know there are Liberals on that side who would agree with that assessment.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Madam Speaker, I have a question about how the member feels about investor state dispute settlements being removed from the agreement, and also about article 22, which limits state-owned corporations.

In light of that, how does he feel about the Canada-China FIPA? It was an investment treaty, not a trade agreement, that was pushed through by the Harper government without any debate in this House, whereby Chinese state-owned corporations can use investor state dispute settlements to seek compensation for the loss of potential profit when our laws and policies get in the way of their profitability.

I am just curious about how the member feels about investor state agreements in trade agreements, about state-owned corporations, and about the Canada-China FIPA in light of those things.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, the member seemed most offended by the Canada-China FIPA, so I will address that straight away.

First of all, the member should review the Constitution. It is the executive, in this case the Prime Minister and cabinet, that has the authority to enter into agreements with other countries. It was actually the Harper government that made changes that allowed those agreements to be tabled for 21 days here so that parliamentarians could review them.

If the member and his leader want to win enough seats to form an official party, they can make that the question on their opposition day.

When we push Canadian companies to sell their products and services abroad, and they choose to enter a place like China, they may not feel that they are going to be treated the same way they are in a rule-of-law country like Canada, like the United States and like many in the European Union, where there is due process and similar values in that due process. They would ask how they were going to protect themselves in case there was confiscation without compensation. Having that process in place in places like China allows some protection.

I would be happy to speak with the member further about his views.

[Omar Alghabra, Liberal, Parliamentary Secretary to the Minister of International Trade Diversification]

Madam Speaker, I am pleased to rise to speak on the new NAFTA. Before I start, I would like to point out that I will be splitting my time with my colleague from Nanaimo—Ladysmith.

Let me take the time to highlight, first and foremost, our government's record on international trade. Consecutive governments have talked about trade diversification and trade expansion, but most governments have failed. I acknowledge that the previous government, under Mr. Harper, had started some negotiations, but unfortunately, it was not able to close the deals. When it came to the free trade agreement CETA, while the Conservatives started the negotiations, they could not close the deal. When it came to the CPTPP, the Conservatives negotiated the previous agreement known as TPP, but it failed. It took our government's leadership and our Prime Minister's leadership to renegotiate it to include progressive, inclusive elements and revive it, improve it and ratify it.

Canada is a trading nation. One out of six Canadian jobs is related to trade. Our government has recognized the value of trade. However, we also know that it is really important to make sure that when we sign trade agreements, they are inclusive. We keep in mind our middle class, we keep in mind small and medium-size enterprises and we keep in mind gender equality. Those issues are not virtue signalling. Those issues are economic issues. Those issues benefit all Canadians. They help lift many people out of poverty and invite them into our labour force to ensure that everyone is benefiting from those free trade agreements.

I want to talk about how we were able to close the deal on CETA, sign it and ratify it here in the House of Commons. We were able to renegotiate and improve the previous agreement known as the TPP, the CPTPP, sign it and ratify it here in the House of Commons. In fact, we were one of the first countries to ratify the CPTPP. We were also able to renegotiate NAFTA, and now we are in the midst of the ratification process.

If we add all that up, that is 1.5 billion new customers for Canadian businesses and Canadian workers. Today Canada is the only member of the G7 that has a free trade agreement with all other G7 nations. These are not just any free trade agreements. They are fair, inclusive trade agreements that keep in mind the interests of all Canadians, particularly our middle class.

I also want to highlight our investment in expanding trade. Our government has put the largest investment into trade infrastructure and trade support systems in Canada's history. We have invested over $1.2 billion in expanding our trade corridors, including ports, roads and rail. We have invested in the Canadian Trade Commissioner Service, which is our best asset. It is our Canadian businesses' and Canadian workers' best asset. It is Canada's global sales force. It is present in 160 countries around the world, promoting Canadian businesses and promoting Canadian interests, and we are proud to invest in it and to expand its presence around the world.

We are creating programs that support small and medium-sized businesses that are looking to expand and trade, because we know that small and medium-sized enterprises that trade pay better, are more resilient and are more profitable. It is in our best interest, if we want to continue to create more jobs, that we support small and medium-sized enterprises that export. Today only 14% of our SMEs trade, and we want to increase that number.

We have created programs such as CanExport that help small and medium-sized enterprises that are thinking about trade but are worried about the upfront costs. We are providing support to those SMEs all across our great country so that they are able to take advantage of those new markets that are available to them.

It does not end there. In 2018, foreign direct investment in Canada grew by 60%. Why? Canada is receiving an unprecedented level of foreign investment, because the rest of the world is noticing that Canada has access to an incredible array of markets. The U.S. market does not have the same access to foreign markets as Canada does.

International businesses are noticing. International investors are noticing. That is why we have seen a 60% increase in foreign trade investment. Direct investment from countries other than the U.S. has increased by 300%. Those investments bring jobs to our middle class. Those investments bring wealth to our businesses. This is good news for our country and good news for Canadians.

Let me take a moment to talk about NAFTA.

We had to renegotiate NAFTA when the current President of the United States campaigned on tearing up NAFTA. He told U.S. citizens that NAFTA needed to be torn up.

We started the negotiations with the new administration in good faith. We wanted to keep an open mind. NAFTA was over 20 years old, and it needed an overhaul. It was a tough negotiation process.

I want to take a moment to acknowledge how Canadians of all political stripes and Canadian businesses rallied around our government as we were in the midst of a tough negotiation with our partners.

However, many on the Conservative benches, and other Conservative voices, were asking us to capitulate. The Conservative Party loves to brag about Stephen Harper's record. Here is a direct quote from a memo written by Mr. Harper in 2017. He wrote, “it does not matter whether current American proposals are worse than what we have now.” He wanted us to capitulate, and he was encouraging people to put pressure on the Canadian government to capitulate.

My colleagues on the Conservative benches were asking questions in question period, and this is on the record. They were demanding that our government capitulate to U.S. demands. I am glad, and I am proud, that our Prime Minister, our Minister of Foreign Affairs, and our team did not capitulate. We stood firm for Canadian values. We stood firm for what made sense for Canadian businesses. We ended up with a great deal.

We did face a challenge with steel and aluminum tariffs, unjust and illegal steel and aluminum tariffs, but we hung in. We pushed and we advocated. At the time, my colleagues on the Conservative benches again asked us to drop our tariffs. They called them “dumb”. Our retaliatory tariffs worked, and we were able to negotiate the elimination of those tariffs with our partner, the United States.

My friends say that we were virtue signalling. I would like to know from them what part of this new NAFTA is virtue signalling. Is the new labour chapter virtue signalling? Is the new chapter on the environment virtue signalling? Is the new chapter on gender equity virtue signalling? These inclusive chapters will benefit all Canadians and will raise their wages. They will make sure that we have more productive jobs for the middle class.

I am disappointed in the Conservatives. I am relieved that they will be voting for this agreement. It does not make sense to me, but still I am relieved that they will be voting for it. I ask them to join us and agree that those provisions and this deal are good for Canadians and good for middle-class Canadians.

[Randy Hoback, Conservative, Prince Albert, SK]

Madam Speaker, I need to straighten out the record. The parliamentary secretary said that his government saved the TPP. The reality is that it was signed, and if we had passed it, we would not have had to renegotiate NAFTA. What happened? The government stalled. The Liberals dragged their feet. They kept hesitating. They kept making it impossible for the U.S. to move forward. If the Liberal government had embraced it and ratified it, we would not be talking about NAFTA today. That is the reality.

The Liberals have upset many of our trade partners around the world: China, Saudi Arabia, the Philippines. Which country has the Prime Minister travelled to where he has not upset someone?

The reality is that this agreement is not perfect, but it would provide stability, and business communities want stability.

Our structural steel is going to face tariffs in August. Our softwood lumber has tariffs right now. What are the Liberals going to do to solve those problems once they ratify this deal?

[Omar Alghabra, Liberal, Mississauga Centre, ON]

Madam Speaker, I have a lot of respect for my colleague, but I find it interesting that he is doubling down on the old TPP. I find it interesting that he has taken the side of the Saudi Arabian government over the Chinese government. I find it interesting that he is saying that we should not be upholding our own laws or values. I am really—

[Some hon. members]

Oh, oh!

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member for Prince Albert had an opportunity to ask the question. If he has other questions or comments, then he should wait for the opportunity to be recognized again.

The hon. parliamentary secretary.

[Omar Alghabra, Liberal, Mississauga Centre, ON]

Madam Speaker, when we are defending Canadian interests and values around the world, my hon. colleague should support us in that effort. Yes, we have disagreements domestically, but I wish he would not take the side of the Saudis or the Chinese government's side.

Our government has proven that we will continue to defend Canadians' interests. We will continue to defend the interests of the middle class. All of our trade negotiation results have proven that. We have a million jobs to speak for that, we have the lowest poverty rate in Canada's history to speak for those results and I am very proud of our government's record.