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

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Madam Speaker, to pass this legislation swiftly, as all stakeholders and constituents had requested, so the vacuum of uncertainty would be lifted on our trade relations with the U.S., our official opposition made many suggestions as to ways we would gladly co-operate with the government.

Knowing that the federal election was coming up in October, the Conservatives offered to begin a pre-study on the original legislation, Bill C-100, in May of this year. That way the government would only have to deal with clause by clause later on, but it declined. When the revised agreement was signed in December, the Conservatives offered to come back early from the Christmas break to begin work on the bill. Again, the government declined.

The international trade committee had approximately 200 requests come in on CUSMA, and the amount of work to do on the legislation had not changed. We consistently offered to commence that work earlier, but the government declined.

The Conservatives ultimately offered to complete clause-by-clause examination by no later than March 5, under the assumption that the government would not be recalling the House of Commons during the constituency break. Again, the government declined.

A unanimous motion was passed at the international trade committee, requesting that the government release its economic impact analysis for CUSMA. It was not provided until one day before committee conducted its clause-by-clause review and the government's economic impact report compared CUSMA to not having a NAFTA deal at all.

What this said was that the government wanted Canadians to believe that any trade deal, no matter how unbalanced or restrictive, would actually be better than nothing at all.

Thankfully, the C.D. Howe Institute released a report comparing CUSMA to the old NAFTA deal on February 21. It affirmed that CUSMA would reduce Canada's GDP by $14.2 billion. Canada's exports to the U.S. would fall by $3.2 billion, while our imports from the U.S. would increase by $8.6 billion. The C.D. Howe Institute's report shed some light on why the government said it was important to support the new agreement moving quickly and then balked at every opportunity we gave to expedite the passing of the legislation.

We are here now dealing with the issues around what was not good in the agreement. With those 200 organizations and individuals who wanted to come and talk to the committee, we were able to process through 100 of those.

The Canadian Manufacturers and Exporters said, “If we want Canada to take full advantage of this agreement, the government must take steps to insure Canadian manufacturers' productivity levels are equivalent to that of other OECD countries so they can succeed on North American markets and globally.”

The Canadian Chamber of Commerce said, “The CUSMA, as signed last autumn, was in imperfect but necessary agreement to provide greater predictability in our relations with Canada's largest trading partner.” Predictability was lost to such an extent that we were to the point where people were saying that we needed to just get this done.

Last week, I met with my own chamber of commerce and also held a town hall, with the shadow minister for agriculture, in my riding with a number of farmers from the area.

Agriculture and agrifood producers, manufacturers, exporters and all the support services of small businesses in my riding are experiencing the serious impacts of uncertainty with which the government has plagued our economy: increased costs and a loss of customer base because of the punitive policies of the government: an uncertainty of our relationship with our biggest trading partner, plus the shutting down of supply routes due to strikes and lack of rail cars because oil is flowing on our tracks instead of safely through our pipelines; barricades that created dangerous situations and prevented products from being shipped; carbon taxes on heating and cooling systems that are necessary for manufacturing; and increased payroll taxes and red tape.

People feel they have been attacked and ignored by the government. They know that CUSMA is an imperfect, but necessary agreement to provide better predictability in our relationships with Canada's largest trading partner. Therefore, we are here ready to pass Bill C-4.

The Aluminum Association of Canada said, “As part of the ongoing collaboration between the Government of Canada and industry, we intend to initiate discussions with the government to encourage Mexico to implement a similar measure, which would help limit the arrival of products that do not comply with the rules of the agreement between our three countries.” Canada's aluminum industry is concerned by the government's failure to secure the same made-in-North American provision for aluminum as was given to steel. Canada is North America's largest producer of aluminum.

While the 70% rule of origin included looks good on paper, in reality the failure to include a smelted and poured definition, which is what the industry is asking of in Mexico, will leave the North American industry vulnerable to dumping from overseas, particularly through Mexico.

As well, the government needs to report on the status of the $2 billion in tariffs, the revenue that it has collected thus far, to ensure it actually was used to support Canadian businesses impacted by those tariffs. The manufacturers in my communities were very discouraged by what they saw in the government's behaviour when they were facing shut downs, including its suggestion that it help the manufacturers deal with it by giving more EI. They did not want more EI; they wanted to keep those people working.

As well, there is an urgency to develop a strategy to market Canadian aluminum as the greenest in the world to help shore up our competitiveness in existing and emerging markets. This is part of the Conservative environmental plan. It looks at showcasing and bragging to the world about what Canada already has done and how we can help to impact the global issues on climate change that have impacted so many other countries that are not as clean as Canada.

Then there are our dairy farmers.

The largest group left behind by the government during the negotiations is Canada's dairy sector. The government has managed to simultaneously shrink the opportunities for dairy producers and processors at home, while also limiting their ability to grow by exporting.

Canada agreed to place a worldwide cap on exports of certain dairy products in CUSMA, which is unprecedented in regional trade agreements. As the nation's prosperity depends on reliable access to global markets in every market, but specifically in dairy, Canada must not agree to this kind of provision in any future trade agreement. Why would the government say yes to giving the U.S. that kind of power over our sovereignty and our opportunity to trade as we wish with other countries?

This concession is an affront to our sovereignty and there is no excuse or rational argument for this capitulation to go hat in hand to the U.S. to ask if we can please have its permission to export dairy to any country with which we choose to trade.

There are so many areas that are faulty in this agreement, which stakeholders brought to the attention of the committee, and we were able to create recommendations for the government to move forward and to rectify a lot of those issues.

Regarding government procurement, we have no chapter on being able to secure Canada's access to the U.S. market.

Regarding auto, Canada's exports of motor vehicles to the U.S. will decline by $1.5 billion relative to the current trade regime under NAFTA, and imports would decrease by $1.2 billion. In light of the hardships faced by Ontario's auto sector, which were compounded by the punitive actions of the government against our competitiveness, it must fulfill the auto sector's request to delay the implementation of CUSMA for the auto sector until January 2021 to allow it to adjust to the new climate of the deal.

Regarding forestry, so many mills have closed and support services, small businesses and whole communities have been brought to a standstill by the government's indifference. They do not deserve this attitude from their Prime Minister, whom they expect to re-engage right now with the United States trade representative to find a solution to this issue.

Regarding cultural exemption, the price of protecting it in CUSMA was to open ourselves up to retaliatory tariffs not limited to that sector. For example, if Canada decides to implement a digital service tax for a company such as Netflix, the United States would be within its right, as per CUSMA, to place a tariff of equal commercial effect on any Canadian export.

These are just a few of the examples of where the government has capitulated to the U.S.. The U.S. reply to the whole document is a huge document of all of its successes. Ours, from what I understand the previous minister of trade on this side of the House said, was 72 pages long. Clearly, Canada has not come out on the best circumstances here, but as stakeholders have said, we just need to get this done and move on, hopefully in the future with better arrangements.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I rise in the House today to speak to the new NAFTA agreement and the repercussions of this important agreement. Of course, it is always a pleasure, and indeed my duty, to rise in this place and defend the interests of my constituents and those across Canada.

I want to thank all those involved on both sides of the House and all our neighbours and friends in the United States and Mexico for working on this agreement. As we all know, there was an incredible effort to get a deal on the table and that effort was a testament to how everybody understood how important this deal really was.

The Conservatives are in support of a trade agreement with the United States and with Mexico. It is good for business and it will provide the certainty for which all are looking.

The Conservatives, of course, are the party of trade. Our party is responsible for negotiating some of the largest and most important trade agreements in Canadian history. It was also under the previous Conservative government that we signed 40 trade agreements with countries all over the world. It was also under a Conservative government that NAFTA was first created. It was a historic agreement that propelled the Canadian economy into the future and provided unequalled opportunities for Canadian manufacturing, industry, energy, agriculture and other sectors.

The previous Conservative government was very forthcoming with information on the free trade negotiations that were taking place. The member for Abbotsford, as the then minister of international trade, provided many opportunities for parliamentarians to ask questions, take part in briefings and see documents. Unfortunately, we have not seen the same from the Liberal government. It prefers that the opposition just trust the government and not worry, that it got the best deal possible.

Over the past few weeks, the Liberal Party has claimed that it is the Conservatives who have delayed the implementation of the new NAFTA deal. Conservative members on the Standing Committee on International Trade sent a letter to the Deputy Prime Minister, outlining the concerns the Conservative Party had heard with a new NAFTA deal and to correct the record that outlined how it was, in fact, the Liberal Party who had been delaying the implementation of this new NAFTA deal.

Knowing that the federal election was coming up in October of 2019, the Conservatives offered to begin a prestudy on the original trade deal. It was originally called Bill C-100. That happened in May of last year. When the government was ready to move the legislation through the House of Commons, the work would already have been done in committee. However, the Liberals declined.

When the revised agreement was signed in December 2019, the Conservatives offered to come back early from the Christmas break to begin work on that bill. The Liberals declined that as well.

The Liberal government waited until January 29 to introduce the implementation legislation in the House of Commons, even though the revised agreement was signed in December. The Conservatives moved that legislation through the House of Commons in just six sitting days compared to the 16 days it took to move the original implementation legislation, Bill C-100, through the House of Commons and to committee.

The international trade committee had approximately 200 requests to appear on that new trade deal. The amount of work to do on the legislation had not changed and the Conservatives consistently offered to commence that work earlier. The Liberals declined.

The Conservatives ultimately offered to complete a clause-by-clause examination by no later than March 5, under the assumption that the government would not be recalling the House of Commons during the constituency break week to conduct report stage and third reading of Bill C-4. The Liberals declined that too.

The Liberals released their economic impact analysis for that trade deal only one day before the international trade committee had to conduct its clause-by-clause review and the first formal briefing that parliamentarians actually received on the new agreement was on December 11, 2019.

Canada's Conservatives sought a unanimous consent motion in the House of Commons to speed up the ratification of that new trade deal. The Liberals declined that too.

Those are the facts.

I want to turn now to the substance of that agreement. The deal is not perfect. We have said that many times on this side of the House and so have some of our other opposition colleagues. There are a number of shortcomings that I would like to put on record.

The Liberal government has left our great aluminum industry vulnerable to backdoor imports from China. While steel was protected with rules that steel must be melted and poured by primary steelmakers in North America in order to receive preferential tariff treatment, no such provision was added for aluminum.

Jean Simard, president and CEO of the Aluminum Association of Canada, said the following:

The advantage thus conferred to Mexico makes it more or less China's North American backyard to dispose of the products of its overcapacity, thereby generating the gradual relocation of North American transformers to Mexico.

The Liberal government also failed to secure a new ISDS, leaving Canadians and their businesses unprotected by unfair laws, tariffs or trade practices of our partners. This will leave many Canadian industries open to abuse, with little to no recourse.

In the early 2000s, the softwood lumber industry was devastated by unfair trade practices and it was only because of arbitration panels ruling against the U.S. that we eventually worked out a settlement.

In a statement, the president of the BC Lumber Trade Council said:

Having a robust and fair dispute resolution mechanism is absolutely critical to maintaining a rules-based trading system and providing an avenue for Canada and Canadian companies to appeal unwarranted duties.

The CUSMA deal, the new NAFTA, fails to include a fair dispute resolution process.

Another huge problem is CUSMA's sunset clause. The sunset clause sets out formal reviews every six years and a termination clause in 16 years unless it is renegotiated. I, among many other Canadians, would like to know why we are not protecting long-term stability for our Canadian business.

Dennis Darby, chief executive of the Canadian Manufacturers and Exporters, said, “With a five-year potential sword hanging over your head, I think what it's going to do is cause manufacturers to not invest and be really, really risk-averse."

I would like to have on the record the shortcomings we see in the dairy section of this agreement. It would reduce Canadian dairy producers' access to the U.S. market at the same time opening the Canadian market to more U.S. milk products. This agreement dictates specific thresholds for Canadian exports of milk protein concentrates, skim milk powder and infant formula. If export thresholds are exceeded, Canada would add duties to the exports in excess to make them more expensive. It would also eliminate milk class 6 and milk class 7, which would affect dairy farms across Ontario and the country.

Pierre Lampron, president of Dairy Farmers of Canada, said, “[T]he message sent to our passionate, proud and quality-conscious farmers and all the people who work in the dairy sector is clear: they are nothing more than a bargaining chip to satisfy President Trump.”

I would like to take a minute to express my concerns with how the government is also handling the coronavirus crisis.

When is the Liberal government going to start to outlining its plan to Canadians in the case of a possible pandemic? Expecting Canadians to stockpile supplies is simply not enough. All Canadians deserve to be reassured that the government is prepared to assist and support those affected by the virus. We need much more vigorous screening processes upon entry, mandatory quarantine for those who do enter from high-risk countries or potentially stopping incoming and outgoing flights from high-risk areas. The health and safety of all Canadians needs to be a top priority.

Canada's Conservatives have offered repeatedly to expedite the new NAFTA deal in order to ensure swift ratification, but again, at every stage, the Liberals have chosen to play politics.

The committee heard from a number of sectors that would be negatively impacted by CUSMA, and it is important the government is aware of those negative impacts so it can work to mitigate them.

I want to reiterate for my friends on all sides of the House that the Conservatives support this legislation. We are the party of trade and we hope to see that continue.

[Andrea Kokonis, General Counsel, Society of Composers, Authors and Music Publishers of Canada]

Thank you, Madam Chair and members of the committee.

My name is Andrea Kokonis, and I am the chief legal officer and general counsel at the Society of Composers, Authors and Music Publishers of Canada, or SOCAN for short. With me is Gilles Daigle, a lawyer with more than 30 years of experience in Canadian copyright law.

SOCAN is Canada's largest music rights society and administers public performance, communication and reproduction rights of authors, composers and publishers of music. We currently have more than 160,000 Canadian members and clients, and we also represent the repertoire of all foreign performing rights societies and several reproduction rights societies in the Canadian territory.

SOCAN is deeply committed to fair compensation for Canadian music creators and their business partners for the use of their work, under a protective regime in Canada that is in line with that of its biggest trading partners.

The new NAFTA has opened the door to implement an important and long-awaited change in the term of copyright—extending it from 50 to 70 years after the life of the author—and to do so immediately. Yet, despite the clear intention and wording in the new NAFTA, Bill C-4 as it now stands does not address basic term extension.

There is no valid reason for Canada to delay, yet again, term extension of copyright in our country. We therefore urge this committee to recommend, in the strongest possible way, that the necessary term extension amendments be added to Bill C-4.

As it stands, Canada's copyright protection term is not meeting the current international standard. This places our members and all Canadian creators at a disadvantage compared with our major trading partners. An extension to copyright term would increase Canadian investment and business in copyright-based industries located in Canada by removing disparities between Canada and other major economies.

The current term of copyright protection in Canada—life plus 50 years for creators of musical and other works—is out of line with modern copyright law. After the original NAFTA was ratified, the United States, in 1998, increased its term to life of author plus 70 years. In 2003, Mexico increased the term of protection to life of author plus 100 years. As part of the NAFTA renegotiation, we asked for provisions that reflected this new reality, recommending that the minimum term of copyright protection be life plus 70 years. Our position was supported by all major organizations in the North American music ecosystem.

While in Canada protection for musical works is life of the author plus 50 years, by contrast the majority of Canada's largest trading partners recognize a general standard of the life of the author plus at least 70 years. These countries include all of the European Union members, the United Kingdom, Australia, Israel, Norway, Switzerland, Peru, Brazil, Iceland, Japan and even Russia. Canada's current law is consistent with only the minimum protections set out over a century ago in the Berne Convention for the Protection of Literary and Artistic Works. The intention at that time was to establish a term of protection that was enough to benefit two generations of descendants of the creator of the work. With longer life expectancies, a term of life plus 50 years no longer reflects the underlying intention of that treaty. Around the time that Canada joined the Berne Convention, in 1928, the average life expectancy was 60 years. It rose to about 81 years between 2007 and 2009.

As a result, the current term of protection afforded under the Canadian Copyright Act is insufficient to cover two generations of descendants of a songwriter, and the current term is therefore out of line with the policy objectives of the Berne Convention. As mentioned, this has been recognized and remedied by Canada's major trading partners. Canada's shorter term is also out of step with the emphasis and value that Canada has otherwise placed on the creation of works, both domestically as part of our heritage and internationally as leaders of cultural exports.

Canadians authors and composers of music, and their publishers, can be at a disadvantage as cultural exporters because their works may be subject to lesser protections internationally because of Canada's outdated term of protection. This is unfair and most unfortunate, as Canada's laws should not place limits on the ability of Canadian creators to exploit their works around the world.

A longer term of protection in Canada would better allow music publishers to reinvest the revenues they derived from the exploitation of copyright-protected works in the discovery, support and development of songwriters and composers. Additionally, from a multinational perspective, longer terms of protection in a market provide incentives for foreign companies to invest in repertoire in that market. In both cases, providing for a longer term of copyright protection in Canada would strengthen domestic reinvestment in cultural development and diversity, as well as foreign investment in Canada's substantial local talent. There is no justifiable reason to further delay the implementation of the extension. The government should fulfill its commitment immediately.

When Bill C-100 was introduced in the House last year, replaced by Bill C-4 in this Parliament, SOCAN and other music organizations were disappointed to see that, while some copyright modifications were made in the implementation bill, the term extension was not modified. It is our understanding that Canada has two and a half years to fully implement all of CUSMA, but we strongly believe the term extension was—and remains—a key piece of the renegotiation in light of the same extensions that our trading partners have implemented in their own home copyright laws.

The embarrassing reality at the moment is that Canadian authors have the same limited copyright protections as creators from countries such as Iran, Liberia, Pakistan, Syria, Zimbabwe, Afghanistan, Angola and the Democratic People's Republic of Korea. Our members deserve better than that. All Canadian creators deserve better than that.

SOCAN, therefore, recommends that Canada amend the Copyright Act to extend the term of copyright protection for musical works to the life of the author plus 70 years, in recognition of current international copyright norms as well as the underlying intention of the Berne Convention and other such benchmarks for valuing intellectual property. Specifically, SOCAN recommends that the basic term of copyright be extended under section 6 of the Copyright Act, as well as the very few other provisions that need to be added.

As part of the submission that we have handed out, we have also included with the speaking notes the chart that Music Publishers Canada created to show where the amendments should be made.

Thank you very much.

[Risa Schwartz, Legal Counsel, Assembly of First Nations]

Thank you, Judy.

With the ratification of CUSMA, Canada, working together with first nations, will be taking steps to make international trade more inclusive and more equitable for indigenous peoples, especially for indigenous women.

CUSMA didn't ultimately include a trade and indigenous peoples chapter, but the text of the final agreement mainstreamed many important provisions for first nations. CUSMA maintains Canada's traditional reservations, exceptions and exclusions in the areas of services, investment, environment and state-owned enterprises. It continues the WTO agreement on procurement carve-outs for indigenous businesses. It contains provisions that recognize the important role that indigenous peoples play in conserving the environment.

There is a new emphasis in CUSMA on co-operation activities to promote and enhance opportunities for indigenous businesses in the chapter on small and medium-sized enterprises. Indigenous peoples are the youngest and fastest-growing demographic in Canada, and opportunities for indigenous business means opportunities for women and for youth. There is a new provision in CUSMA for handcrafted indigenous textiles and apparel goods, which are now eligible for duty-free treatment.

Also, importantly, for the first time in a Canadian trade agreement, CUSMA includes protections for inherent and treaty rights through a new general exception in article 32.5, “Indigenous Peoples Rights”. The general exception clause is much stronger than we have seen in other agreements. This new exception clause covers the entire agreement and applies to indigenous peoples in all three CUSMA countries. It will allow all three states to take action to fulfill their legal obligations to indigenous peoples.

As well, we'd like to note that the investor-state dispute settlement will be phased out as between the United States and Canada. ISDS is a threat to indigenous peoples' rights. All these matters are groundwork for positive change.

Once CUSMA is ratified, we must work together to realize economic gains and to ensure these provisions are implemented in a manner that provides for greater economic equity for first nations. We note that the mandate letter for the Minister of Public Services and Procurement includes that “at least 5% of federal contracts awarded” must be “to businesses managed and led by indigenous peoples”.

This commitment needs to be monitored by each federal department and reported upon to cabinet on an annual basis to ensure the target is being met. Progress in meeting the 5% target should also be published by the Government of Canada for transparency.

While CUSMA is an example of the difference it makes to engage with indigenous peoples at an early stage, there must be increased opportunities for first nations to participate directly in international trade negotiations, consistent with the United Nations Declaration on the Rights of Indigenous Peoples.

The Assembly of First Nations will continue to advocate that Canada move beyond engagement and invite first nations to the negotiation table; include trade and indigenous peoples chapters in all new or modernized international trade agreements; explicitly acknowledge the United Nations Declaration on the Rights of Indigenous Peoples in international trade and investment agreements; and ensure that a general exception to protect indigenous people's rights, such as the one in CUSMA, is a red-line item for negotiation agreements. Like New Zealand, Canada must commit to protecting indigenous rights in international trade agreements. This is not a matter that should be up for negotiation.

As well, we ask that Canada halt the negotiation of new ISDS provisions in new international trade and investment agreements and remove ISDS provisions when older agreements are being modernized.

Finally, we ask Canada to invest in programs and services needed for first nations trade networks and inter-nation trade so that additional capacity can be established in first nations trade policy and programs and services. We are also here today to recommend an amendment to Bill C-4. The bill is missing a non-derogation clause. The non-derogation clause amendment was proposed previously by the national chief when he appeared before this committee during the study for Bill C-100.

All implementing legislation for international agreements that have the potential to impact inherent and treaty rights must include a non-derogation clause. It is not just the international trade and investment agreements that can impact inherent and treaty rights, but also how the agreement is implemented through domestic regulatory and policy matters. A non-derogation clause will clarify that the act and CUSMA shall be construed so as to uphold existing aboriginal and treaty rights recognized and affirmed in our Constitution.

Chi-meegwetch for the opportunity today to present to the Standing Committee on International Trade.

[The Chair, Liberal, Judy Sgro]

Here is a suggestion as we move forward. When we were dealing with Bill C-100 in the previous Parliament—on this particular legislation—there were 15 witnesses from 12 different groups. There has been a fair amount of consultation prior to its coming before us. In fact, it's my understanding that CETA and so on moved through much faster, just in the essence of time here.

If we are going to have extended hours next week in addition to this week, we should be able to accommodate most of the witnesses. The letter—in anticipation of that comment that Mr. Carrie mentioned—is ready to go. The clerk has it. I just have to sign it with the approval of the committee.

The letter will go out to standing committees very quickly. As you know, most of them are fully aware of the process and so on, and I think they can probably meet the date, the February 21 date. They know this is coming as well.

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I call to order meeting four of the Standing Committee on International Trade. We are continuing our study on Bill C-100, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

With us on our first panel today is the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Intergovernmental Affairs. We're glad to have you here with us today. From the Embassy of Canada to the United States of America, we have Kirsten Hillman, acting ambassador of Canada to the United States. From the Department of Foreign Affairs, Trade and Development, we have Steve Verheul, chief negotiator and assistant deputy minister, trade policy and negotiations. Welcome back again. We're pleased to have you here.

I will turn the floor over to Minister Freeland for her remarks.

Business of the House

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, there have been discussions among the parties and if you seek it, I think you will find unanimous consent for the following motion:

That, notwithstanding any Standing or Special Order or usual practice of the House:

(a) the amendment to the motion respecting the senate amendments to Bill C-83, An Act to amend the Corrections and Conditional Release Act and another Act, be deemed negatived on division and the main motion be deemed carried on division; and

(b) the amendment to the motion for second reading of Bill C-100, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, be deemed negatived on division and that the Bill be deemed read a second time and referred to the Standing Committee on International Trade.

The House resumed from June 18 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, and of the amendment.

Canada-United States-Mexico Agreement Implementation Act

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, if only we had seen that passion from the member for Fredericton a few years ago, we might have been able to avoid some of the disastrous results we have had on the trade front.

On nights like this, I wonder if he is reflecting on that fact and on what he is going to say when he goes back to Fredericton. He will have to say that we are rushing through bills like Bill C-100 and Bill C-101 in the final hours of Parliament because we were not able to secure good outcomes for Canada. This is despite the fact that we were able to join a deal that Mexico and the United States had signed.

As I was saying before he had his outburst, if there is a trilateral agreement being negotiated and one of the three parties is no longer at the table, we should ask how we let that happen. As I said in my remarks on Bill C-100, this year is the first year that Mexico has surpassed Canada as the number one bilateral trade partner for the first two months of this year. Mexico surpassed us, negotiating the USMCA. It had a deal on 232 tariffs before Canada, despite the fact we are NORAD partners and we have had free trade with the U.S. for years before Mexico did.

We have to work with what the government has been able to table. We have to make sure that we do not have the tariffs come back on, because steel fabricators in Fredericton and MacDougall Steel in Prince Edward Island cannot afford another year of tariffs.

In fact, I can summarize and conclude with this. Canadians cannot afford another four years of the Liberals.

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, I am not quite sure how to follow my friend from Sackville—Preston—Chezzetcook. I will try to do so with facts, as opposed to volume. He knows that my family, who live in Fall River in his riding, have a great deal of respect for him, as I do. Unfortunately, the speech he was given tonight with respect to NAFTA does not reflect what really happened in the negotiations and the deal.

As a Nova Scotia MP, the member would know that the future of economic development in Nova Scotia, the success being had right now, is attributable to two things. First is the amazing potential of institutions and entrepreneurs in Atlantic Canada, and Nova Scotia in particular. Second was the strategic focus on trade and infrastructure that took place during the Harper government. Specifically, Atlantic Canada has never seen a larger investment than the awarding of the shipbuilding contract to the Halifax shipyard. The largest investment in the history of Atlantic Canada is attributable to the Conservatives.

I am very proud of that, having served on board one of the frigates bought previously by the last majority Conservative governments of Mulroney. When Conservative governments are in, they have to modernize and update the Canadian Armed Forces every generation. We see the current government buying 40-year-old used aircraft from Australia and being parodied on the world stage, but the investment at the Halifax shipyard is impressive. In fact, I will be going to see it again this summer.

What is interesting as well for the Halifax Regional Municipality, an area that the member for Sackville—Preston—Chezzetcook should know well, as his riding abuts the Halifax airport, is that Peter MacKay made it a priority for the runways at the Robert Stanfield airport to be extended. Longer runways allowed for more cargo flights to take Atlantic Canadian exports around the world, exports like lobster to South Korea. As parliamentary secretary in the Harper government, I was proud to visit the cargo terminal at Stanfield International in Halifax to see one of the first few months' worth of flights taking Nova Scotia lobster, fished from Cape Breton right down through to the south shore and to Yarmouth, to new markets in Asia, to secure a better price for the products.

In fact, the CETA trade deal was particularly beneficial to a number of key industries in Atlantic Canada, particularly on the seafood side, as was the bilateral trade deal with South Korea, which I was involved in.

If we do the rundown, at Cape Breton, the tar ponds that were talked about for generations, when I was in law school at Dalhousie or serving at Shearwater, were finally cleaned up under the Conservatives. The trouble is that by the time we get these projects done, we have done the heavy lifting and we do not get to cut some of the ribbons that the new people do. However, I would like the member to spend a few moments researching that.

At the moment, I cannot point to one major investment by the current government. In fact, when the minister in charge of the Atlantic Canada Opportunities Agency is based out of Mississauga, and when the Liberals tried to break with 80-year tradition to block an Atlantic Canadian jurist from the Supreme Court of Canada, defying constitutional precedent, I would suggest Atlantic Canadians have seen that there is zero priority for their needs with the government. There are lots of photo ops and selfies, but that is wearing thin on them.

I would like the member to do some research on the items I have just spoken about. I would like anyone to bring it to the floor of the House of Commons if I am wrong about the shipbuilding investment in the Halifax shipyard being the largest single public procurement infrastructure project ever in Atlantic Canadian history. As someone who lived, served and studied in Atlantic Canada, I am very proud of that track record.

I am now speaking on a continued debate on Bill C-100 and the amendment offered by the NDP. I might as well get to the crunch of the challenge we face here.

As Conservatives, we negotiated 98% of Canada's export access; 98% were deals negotiated by the Conservatives. That included the U.S. free trade agreement, NAFTA, CETA and the trans-Pacific partnership, which basically was agreed upon in the middle of the 2015 election, but then the U.S. pulled out and there were some changes made. There was the agreement with South Korea and a tonne of bilateral agreements. There are really only two or three free trade agreements that were not negotiated by Conservative governments: the Israel free trade agreement, which we modernized, and I think maybe the Chile agreement. However, by and large, 98% of our export access was negotiated by Conservatives. Therefore, we have been frustrated in this process, seeing a lack of attention on trade, exports and key market sectors to be put forward in the renegotiation of NAFTA. This amendment raises a range of issues.

Core to the problems with the NAFTA negotiation were not the outcomes on labour, because the U.S. was concerned basically about labour rates in Mexico. In fact, Canada is a signatory to more ILO treaties than the U.S. is. What is interesting is that, just today, in front of Congress, the USTR, Ambassador Lighthizer, viewed it as a success that Mexico is going to have a secret ballot in the union elections, something the Liberals oppose as a democratic approach to elections for union representation. They likely oppose it because Jerry Dias appears to be a senior advisor to the Prime Minister, advising now on how to spend the $600 million media fund. That should trouble Canadians.

However, the problem was the focus in the NAFTA negotiations, which was softwood lumber, our eternal irritant with the U.S. relationship. In fact, Canadian softwood allows home ownership in the United States to be available to more people. The only reason the tariffs on our softwood lumber, which were agreed upon by the current government, are not having as big an impact as they could is the voracious appetite in the United States right now for construction and softwood in general. Therefore, the price and demand are strong enough that they are living with the tariff that has been imposed.

Members may recall that when the Harper government came in, it made the unusual decision of asking David Emerson to switch parties to help drive toward a deal on softwood. That was the last agreement we were able to lock down with the United States. Therefore, it has been a perpetual irritant in the trade relationship with Canada, which is largely due to a few stakeholders in the U.S. who have a lot of influence in Washington holding back affordability for millions of Americans. The Liberals should have used this opportunity of opening up NAFTA to get resolution on a core irritant of trade. If we are going to modernize, let us fix something that we are always fighting with the Americans on. It was not even mentioned in the priorities of the Liberals, nor was auto.

As I said earlier, the Auto Pact of 1965 was the first free trade agreement between Canada and the U.S. We would not have NAFTA, nor the USFTA, were it not for the Auto Pact. That was not mentioned as a priority.

Most of the agriculture sector is not mentioned. In fairness, the minister did mention supply management but did not push back at any of President Trump's inflated rhetoric on 200% tariff quotas. The U.S. spends more on agricultural subsidies than we spend on our military. When were we pushing back on that? There is no level playing field in agriculture if the U.S. is spending billions in direct subsidies.

We ignored agriculture, auto and softwood. We literally left out most of the areas that we should have been focused on right from the start. That is what the Conservatives said. That is what our leader said. That is what I said. That is what many of our members said.

We also urged them to look at ballistic missile defence, modernizing NORAD as a way to remind Americans that if they are going to impose 232 tariffs because of security grounds, they do not do that with their one partner on homeland defence and security, Canada. They did not do that. In fact they took positions antithetical to the U.S.

Canada pulled out our jets in the fight against ISIS. When France and the U.S. were asking us to do more in security, the Prime Minister in a second vote in this Parliament, whipped by the former head of our army, I would note he is retiring. He was the whip. I know how difficult that must have been to withdraw from a battle when our allies are trying to step up.

The Obama presidency, the bromance the Prime Minister brags about all the time, wanted us to stay in. We were not seen as a trusted, reliable security partner under the Prime Minister. When 232 tariffs were being talked about on security grounds, we were not making our case.

Here is something else I recommended and I would recommend the Minister of Environment and Climate Change, who informed us how they try and fool Canadians by being persistent, yelling, being loud and then Canadians will totally believe them. The big myth we have in modernizing NAFTA was modernizing trucking and transportation in North America. We knew that President Trump had issues with Mexican trucking and some of the border rules in terms of states on the border and trucking regulations.

When the Mulroney government negotiated the U.S. Free Trade Agreement, concluded in the 1988 election, Canada still owned Air Canada. We had not liberalized passenger airline travel. It was still a Crown corporation. Fast-forward to today in 2017, 2018, 2019, we see efficiencies for more open skies. I would like to see even more. We see efficiencies in the North American railroads where Canadian companies like CP and CN have done very well with liberalized transportation rules.

We urged the government, if it wants a game-changer, to truly modernize NAFTA, modernize trucking because in many cases because of state or provincial rules, if we send goods from Quebec to California, or from Ontario to Massachusetts, those trucking resources often have to come back empty or do not have the ability to transport interstate.

What is interesting about that, and I know my friend, the leader of the Green Party is listening intently, is that, had we brought cabotage and trucking into it, it would have been the single largest reduction in greenhouse gases in the history of North America, by modernizing trucking.

I recommended that and when David Emerson, a former transportation minister, someone very well regarded in the industry as well, appeared at transport committee, I asked him would that not have been a win on both the trade front and the environment front. He agreed it would have been the single largest way to reduce greenhouse gases.

Despite the rhetoric, the government's greenhouse gas emission reduction plan is a tax. We could have worked this into NAFTA. The timing was there. As I said, liberalizing trucking regulations was not even forecast in the eighties because there was still state ownership of airlines and so on. Today with air liberalized to a large degree to rail, to short sea shipping in many cases, we could have added trucking. Not only would it reduce greenhouse gases, it would have made businesses more efficient, would have potentially reduced costs and maximized the utility of our trucking infrastructure.

That is something we recommended for the agreement, particularly with a president who likes to tell everyone that he is a business leader. That would have been a way to say we can have a win for the customer, a win for competitiveness, fewer trucks on the road and fewer emissions. Let us modernize that in NAFTA.

No, we did not mention that either. We did not mention our core industries, like auto, softwood or key agriculture sectors. We did not even get modernized professional work abilities in the United States. We did not get digital modernization. We did not get security and certainty with respect to where data and data storage would be for privacy reasons. We really did not get anything in this agreement, because we did not go into the negotiations in a strategic fashion.

The Liberal government underestimated what the negotiations would amount to, and they went in with the sort of posturing image of the Prime Minister, his much vaunted progressive agenda. Liberals kind of said that they would work with Mexico, too. The Prime Minister went down to Mexico to say that we would work together. Then, what did Mexico do? It had 85 direct meetings with White House administration officials.

By the end, the last two months, we had negotiated ourselves away from the table, and the member for Fredericton should know, because the exporters in New Brunswick have been let down by him, remarkably, on this file, that when Canada is not present at the negotiation of a trilateral agreement, when there are only two parties present, it is a failure of the third party.

I understand why the member for Fredericton is frustrated. He might be the next first-term Liberal to announce his retirement. I am losing track of how many. Today it was the member for Pierrefonds—Dollard. We had a few others, I think. I would love to have the Library of Parliament research this fact because I am not 100% sure, but maybe the member for Fredericton could research it too. I think that a majority government has never seen more first-time MPs leave than the current government.

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, what to say after that speech? Winston Churchill once said that a man was about as big as the things that made him angry. Certainly, the member for Sackville—Preston—Chezzetcook was quite angry tonight, trying to defend the government's record on trade, which is not a good one. It reminds me a little bit of the advice he was given by the minister for climate change when she said that if we wanted people to believe something, just keep saying it, yell it, get angry and then they would totally believe it.

I would ask the member this. He talked a lot about how the Prime Minister fought for the progressive agenda in the U.S. trade deal. Of course, in the last two months of this trade deal, which is represented in Bill C-100, Canada was not even at the negotiating table. Mexico got the deal. We had to be added to it.

The member talked about the signature of the progressive agenda and he mentioned the gender lens. I would like that member to refer me to the chapter in the agreement on gender. Here is a hint for Canadians watching: There is no chapter. None of the items the government laid out in their objectives were met.

I know the member worked a lot in education. I think he will be going back to that in the fall. Could he tell me something? In the six core objectives, when the Liberals got zero out of six, would he fail a student with that mark?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, I stand in the House tonight, as the member of Parliament for Sackville—Preston—Chezzetcook, in Nova Scotia, excited to to speak to this important bill, yet saddened, as this will be my last speech in the House for the 42nd Parliament. I have mixed feelings.

In my closing speech for the 42nd Parliament, the theme I would like to speak on is CUSMA. Bill C-100 is a great example of the work our government has done throughout the four years it has been in power.

If we want a country to be strong, we have to ensure Canadians, the business community and all citizens have opportunities. This is the third trade deal we have brought forward.

A couple of years ago, we brought forward CETA, which was a very important deal with the European Union. With that deal, we potentially have access to 500 million people who can purchase our goods as well. We need to remember that under that deal, 98% of tariffs are gone. In the past, it was only 25%. We are opening the market tremendously and there is great potential for Canadians to move forward with important opportunities.

Our second deal was the CPTPP, once again providing us access to 500 million people. We now have access one billion people. It is an outstanding potential opportunity in Asia and the Pacific. We know we have great entrepreneurs who continue to innovate. They are able to sell and trade with those countries.

The third deal is CUSMA, which is extremely important. Of course, it adds access to 500 million people more. We are now have access to 1.5 billion people.

This is a continuation of what is happening in this great country right now. Our unemployment rate has changed from the time we took power. When the Conservatives left four years ago, we had a 7.2% unemployment rate. Today, as I stand before the House, the unemployment rate is 5.2%. It is outstanding.

There has been job creation. Who has created those jobs? Canadians. How many jobs have they created since 2015? Over one million jobs. How many Canadians were lifted out of poverty during that time? Over 825,000. It is very impressive.

What else have we done? We are investing in Canadians to create a strong Canada, ensuring we build a Canada that Canadians can be proud of and from which Canadians will be able to benefit. We brought forward a national housing strategy for Canadians. We brought forward the CPP. We brought forward a national early learning and child care framework. Canadians should just watch us now, though. We are bringing forward pharmacare for all Canadians. This is what we are doing.

It is important to share with members this victory. It is tremendous.

This is such an important victory for Canadians and I have to tell them how it turned out. President Trump was waking up in the middle of the night and tweeting about what he felt the Americans needed if a deal was to be had. He talked about three major areas.

The first one was the five-year sunset clause, or a shotgun clause, whatever we want to call it. If there was no renegotiation on that, the deal was dead. Canada said no. We cannot expect business communities, businessmen and women and business entrepreneurs to invest, upgrade and modernize when they only have five years of guaranteed potential. We know what the Conservatives were saying. From the start, they were saying we should sign any deal. It did not matter, we just had to get it done. However, that is not what we did. We got what we wanted.

The second thing Trump tweeted about in the middle of the night was that we had to end supply management. The Americans did not want that in the deal. Do we have supply management today? Absolutely. That is a very important. The Americans will not flood our markets with their cheap products. We will not have it. We are proud Canadians, and we will continue to defend supply management for all Canadians.

The third thing President Trump said was he could not sign a deal unless we changed the dispute management mechanism. It was important to the Americans that we changed that. Why? Because the Americans were losing 98% of the time when things went to the tribunal. He wanted to do away with the international tribunal and have American lawyers and judges determine what was right and what was wrong in the deal. The Tories wanted to sign. We said it would not happen and it never happened. That also is important.

I think back to when the Conservatives were criticizing us, saying “sign, sign”, but we stayed on the path. We were successful. The former prime minister of the country, Brian Mulroney, said that Canada did very well. He said it was a great deal. He was speaking, of course, for the Conservatives.

For the NDP, there is no such thing as an NDP deal. The New Democrats are anti-trade. We could not make it good enough for them. There will always be an issue or a problem.

There is one good, solid New Democrat when it comes to trade, and that is my colleague, the member for Rosemont—La Petite-Patrie. I think he wants to be a Liberal. I believe he is more Liberal than New Democratic. This is what he said:

I just want to congratulate everybody in this room for the fantastic job that you did, for the leadership of Unifor, to be sure, that we can get the best deal possible and protect workers all around this country.

That was pretty impressive for a New Democratic member who really understands the importance of trade deals.

Let us talk quickly about CUSMA. There are certain aspects that we were victorious on, over and above the fact that we told Trump those three were not going to happen, and that he should get over it. I guess he did get over it. He never showed up last week. He sent Pence here. He knows he did not get the best deal for the United States. He knows that Canada got the best deal. He knows the Liberal Government of Canada got the deal done.

Another very important piece we were successful on was labour. We were able to bring a more ambitious and robust piece to the labour portion of the agreement. The new auto rule of origin that we were successful in getting for the auto industry allows auto workers guaranteed work over time. The auto industry is very proud of that.

The environmental changes we brought forward are very important and are incorporated in the agreement. We are talking about air quality, water and marine. They are all very important aspects.

Of course, who can forget the very important gender lens? We are a party that will work to ensure all genders have opportunities. We put in place a mechanism to protect women's rights. It is very important to recognize gender identity and sexual orientation.

We cannot forget this. The Conservatives, NDP, Bloc and the Greens asked us how we could sign a deal that did not remove steel and aluminum tariffs. We knew what we were doing. Not only were we working on ratifying and ensuring we had a the deal, but we did not ratify this deal before the tariffs were removed. The tariffs on steel and aluminum are gone. They are history. We were able to do that successfully.

I want all members in the House of Commons not to forget that Canadians have a victory with this deal. The people from Nova Scotia have a big victory with this deal. This is very important for people from Sackville—Preston—Chezzetcook as well. This bill will create good middle-class jobs for all Canadians.

We have strong deals because we believe in industry. Our products, when we have a level playing field, are the best in the world. We are proving that by implementing these trade deals. Canadians have created over a million jobs. Those jobs have been created before seeing the success of these trade deals.

This is a very good deal for Canadians. I am very proud of this deal and I know all Canadians are proud of it.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I am honoured to rise during this last week of the 42nd Parliament to represent my riding of Windsor—Tecumseh and voice our concerns and issues with free trade agreements in general, and specifically with Bill C-100, an act to implement the free trade agreement between Canada, the United States of America and Mexico.

New Democrats understand the importance of our trading relationship with the U.S., our largest trading partner, and we believe that a better NAFTA can improve the welfare of all North Americans. New Democrats are in favour of international trade agreements that respect human rights, the rights of workers, the environment and all of our international obligations. In fact, we supported the bill at second reading and proposed some excellent amendments that would have made for a truly progressive free trade agreement, the very sort of agreement that the current government pretends to support but never actually seems to sign.

The other parties like to take simplistic jabs at the NDP, as happened earlier tonight with the parliamentary secretary saying that the NDP has never supported a free trade agreement, ever. Well, I would ask the other parties to name just one trade agreement that actually respects human rights, the rights of workers, the environment and all of our international obligations, including to indigenous people. The other parties cannot answer that, because it has not happened yet. However, we had the opportunity to improve this key trade deal and make it about improving the lives of Canadians, forging ties for sustainable jobs and really leveraging our relationship.

In my role as vice-chair of the subcommittee on international human rights, one important issue related to trade agreements is supply chain transparency, or supply chain due diligence. How exactly does a nation ensure that no product finds its way into its borders that was not made by utilizing child labour or forced labour? This issue surrounding modern slavery is complex and includes multi-faceted problems.

According to recent figures released by the International Labour Organization, a total of 152 million children, 64 million girls and 88 million boys, are all in child labour globally, accounting for almost one in 10 of all children worldwide. Nearly half of those in child labour, 73 million children in absolute terms, are in hazardous work that directly endangers their health, safety and development. Children in employment, a broader measure comprising both child labour and permitted forms of employment involving children of legal working age, number 218 million. Widely reported instances of child labour and forced labour in the global supply chains of everyday goods, such as coffee, seafood, apparel, palm oil and the metals used in our electronics, have linked multinational companies with some of these human rights abuses.

Canadian companies are not immune from these risks. According to World Vision's research, 1,200 companies operating in Canada imported goods at risk of being produced by child labour or forced labour in 2015, worth a total of approximately $34 billion. The majority of companies in Canada disclose very little meaningful information about the policies, practices and due diligence they have in place to prevent child labour and forced labour in their global supply chains. Obviously, this makes it hard for our friends in civil society, not to mention consumers, investors and trade unions, to constructively engage with these companies. It is even more difficult to hold them accountable to their human rights responsibilities.

This is not for want of proposals out there that might bring an end to forced labour in these supply chains. First and foremost, we must get children into schools. As enrolment rates increase, child labour declines. Since 2000, governments have increased the number of children in school by 110 million, making it much less likely that those children will end up in the labour market.

Next, a strong legal framework must be enacted. When governments enforce child labour laws through effective inspections and penalties for employers who exploit children, child labour is less likely to flourish.

Without targeted legislation requiring more information on corporate supply chains, we can only guess whether abuses perpetrated by Canadian corporations overseas, as alleged in several civil lawsuits in Canadian courts, are common occurrences or isolated incidents.

Human Rights Watch calls for the beginning of a process for the adoption of new, international, legally binding standards that oblige governments to require businesses to conduct human rights due diligence in global supply chains. UNICEF has made similar recommendations.

Free trade agreements are international treaties that should put human rights at the forefront, not as side agreements. These are the issues that should be focused on first and foremost and form the basis when we are renegotiating trade agreements. NAFTA 2.0 is a perfect example of that.

The original NAFTA was negotiated by Conservatives and signed by Liberals in 1994. People were promised jobs, rising productivity and access to the largest market in the world. Instead, Canada lost over 400,000 manufacturing jobs and its textile industry. In addition, Canada paid millions of dollars in court fees and penalties when sued by corporations under investor state dispute resolution mechanisms.

The Democrats in the U.S. are working hard to achieve a better NAFTA. They want improved labour provisions that will protect jobs; they want to fight big pharma on the extension of drug patents, which will result in higher costs; they want to ensure that the environment is protected, and they want to ensure clear, meaningful enforceability.

Canadians expect the Liberal government to push for these progressive changes. The new NAFTA, or CUSMA, resulted in illegal tariffs on aluminum and steel for over a year and the devastation of Canadian businesses and workers. The tariffs were lifted on May 20, 2019, and the cost has been incredibly high. Canada has lost over 1,000 well-paying, community-building jobs while watching these businesses close.

In my riding of Windsor—Tecumseh and the rest of Windsor-Essex County, we know the devastating effects of poorly negotiated trade agreements like the first version of NAFTA: the race to the bottom. The Liberals scoffed at our warnings then, and now they are presenting today's version, which is CUSMA.

At its core, the new NAFTA is about giving more power to corporations, as it gives enforceable rights to investors and limits the powers of current and future governments and the citizens who elect them. For New Democrats to support this agreement, CUSMA must not set the stage for exploitation, and it must protect the poorest and most marginalized people. For that reason, I move an amendment at this time.

I move, seconded by the member for Windsor West:

That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-100, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, because it:

a) fails to improve labour provisions that are necessary to protect good jobs;

b) allows for an extension of drug patents that will significantly increase the cost of medicine for Canadians;

c) leaves the environment vulnerable due to the absence of clear, enforceable protection provisions;

d) is being rushed through the legislative process, without adequate time and attention for such a crucial trade agreement;

e) will shift the levers of power within the economy away from governments and workers, in favour of corporations, by weakening public regulations on public health and the environment; and

f) puts the poorest and most marginalized Canadians at further risk by failing to ensure the protection of human rights, gender equality and inclusive economic growth.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I am pleased to be able to rise today and speak to Bill C-100. I will be splitting my time with the member for Windsor—Tecumseh from our region, which I am quite glad to do. It is important. I know that this has been portrayed as a Canada-U.S.-Mexico agreement with regard to some of the discussion with the government that has been taking place. However, really this is a USMCA and that needs to be told, because this is a concession-based deal.

I was in Washington at the time of the decision-making, meeting with trade lawyers as part of the Canada-U.S. parliamentary association. Trade lawyers going through the documents from the first day to this day know that this is a concession-based deal for Canada. That is why it is a U.S.-Mexico-Canada agreement. The government got out-negotiated and out-foxed by Mexico with regard to its position on the negotiations and, more important, also with the concession-based agreement that we have to this day.

We have to live with a number of provisions in this agreement. At the same time, there are Democrats who are looking to improve the deal right now in Washington, in particular on labour and also on environmental improvements that will increase our competitiveness, not only domestically but also within our trading bloc for the future. The current government is undermining those efforts by ramming this through now and doing it in a way that is consistently undermining even the Democratic Speaker of the House, Nancy Pelosi, Congresswoman Dingell from Michigan and others who have been advocating for the improvement of those issues.

I would say that no matter what we do with regard to the situation right now, we should be focusing on the best decision for our future. Giving ourselves at least an opportunity for the Democrats to enhance our capabilities would be the smart and wise thing to do. In fact, it would fix some of the damage with this agreement.

I am going to go through a couple of things, but first and foremost we have to look at a Prime Minister here who set upon this himself, who actually initiated the fact that he wanted a new deal. The deal comes because of the Prime Minister's negotiating it. We would think that when he started with something he would want to come out better and further ahead. However, as we have heard, softwood lumber was not even part of the equation here. One of the cankerous elements with regard to our trading agreement with the United States, softwood lumber was left off the table to begin with.

We go into negotiations and we get steel tariffs that are put on our auto and other manufacturers. To this day, the government has collected a billion dollars from steelmakers across Canada. It has been an increased tax on them, and the government has not rebated it back to the actual companies. In fact, very little has gotten back when the Liberals promised it would be a dollar-for-dollar exchange. It has made it more difficult to compete. In fact, some have given up competing because they know they could not actually carry the debt load. The government was taking their money from them and never returning it. It is over a billion dollars.

At that time when we were looking for a new deal, coming from a number of perspectives, we had lumber left off the table. We still have unresolved professions and qualifications that go back to the previous deal. With regard to this today, if this deal does not pass right now, we go back to NAFTA to a better deal. That is what happens. It is clear that our path forward, if this does not happen right now, is that nothing changes. We continue without the concessions on dairy, copyright, auto and intellectual property. That is what is going to take place.

Regarding the current steel issue, first, it did not start until this Prime Minister tried to negotiate something, so he created that himself. Second, it has so many escape holes through it that it could be easily undermined right from the get-go. It is really a Pyrrhic victory. Let us be clear. If Trump wanted to get out of the NAFTA that we have right now, we would then have to have a process that involves Congress, the Senate and legal aspects that would be involved to pull us back to the free trade agreement. Past that, we would go back to the World Trade Organization agreement.

We have a long, storied road to go down before we would have a series of things that would undermine our current competitiveness.

It was argued that we should do a deal with the United States because we can develop certainty, but certainty has not been created in this deal. In fact, some of the implementation processes that are in place give more conditions to cabinet to change regulations in the future. We could change those regulations unilaterally, without this Parliament and without the other House looking at it. Again, that would leave more uncertainty. It would not create the conditions that we want because the president creates uncertainty because that is what he wants. He wants to destabilize things, so that they have relocation back in the U.S. This agreement would not achieve those objectives.

What is important is that we saw some efforts taking place in the U.S. House of Representatives. We saw improvements to create more specifics, for example, on the environment and labour.

I come from the Windsor-Detroit region. Thirty-five per cent of economic trade activity in my riding crosses over the U.S. border every day. That is about $1 billion. Thirty-five per cent of our daily trade with the United States takes place along two kilometres of border. We have been fighting for a new border crossing for some time and we are finally going to get a new one.

Interestingly enough, we are seeing the rollout of community benefits, something New Democrats proposed from the get-go. We are the only party that has consistently fought for a publicly owned border crossing, while the Conservatives often dallied with the DRTP, a private entity group from OMERS that was a complete and utter disaster.

At times, the Liberals backed out of the process with comments and positions proposed by former transport people and representatives like Joe Volpe and others. New Democrats have consistently been trying to get a new border crossing built. We are proud to be the ones who continue to advocate for local supports for the community that will make things better.

With regards to the auto industry, as I said earlier, the auto pact was dismantled because of Brian Mulroney's free trade agreement. The Conservatives at that time left an escape hatch open for the WTO challenge by the Japanese and other automakers, which led to us going from a revelled state to where, under the Liberals, our footprint has shrunk quite dramatically when it comes to the auto industry.

The Liberals often brag about the $6 billion they say they have invested during their four years in office. Detroit alone is upwards of $12 billion to $14 billion in investment and most of it being in the innovative sector with regards to electrification and automation, so we have potential access to those markets, but the government has not worked on that plan.

The labour and environmental standards that the democrats are successfully trying to negotiate right now are related to ensuring there are measurables. Measurables make sure Mexican wages are not going to be used to undermine. There is no enforcement on that. There is also no enforcement on the environment.

Mexican labour representatives have been here in Ottawa advocating for those enforcement measures as well, and that is important. They know that with enforcement, they will see better terms and conditions for themselves and their families.

It is important to recognize that if this agreement does not go forward in its current form right now, our trade relations remain constant and steady under our current position. We do not get concessions on labour, the environment, digital property, intellectual property and supply management. We do not get concessions on a whole host of things in this agreement. That is why we believe in giving the democrats a chance to fix some of these enforcements so we can get those benefits. That would be better in the long term.

[Julie Dzerowicz, Liberal, Davenport, ON]

Madam Speaker, while we are figuring that out, I will speak to the bill.

It is an absolute pleasure for me to be speaking, on behalf of the residents of my riding of Davenport, to Bill C-100, an act to implement the agreement between Canada, the United States of America and the United Mexican States. Indeed, this will be my last speech in this 42nd Parliament, and I am delighted to be speaking on such an important topic.

Before I speak to Bill C-100, I want to marvel at the accomplishments of our federal government over the last few years. We signed not one, not two, but three trade agreements since we came into office in late 2015. I am very proud that we signed the Canada-Europe trade agreement, the CPTPP and the USMCA, which we are now debating. These three agreements give Canada tariff-free access to 1.5 billion customers around the world. It is absolutely amazing. I would also like to point out that Canada is the only country to have a free trade agreement with each of the G7 countries.

I think both of these things are remarkable to note. We should be very congratulatory about the fact that we have been able to accomplish them over the last few years. I think it will truly be beneficial for Canada's economy moving forward.

As members know, we are a trading nation. Geographically, we are a massive country, but we are small in terms of people. Indeed, for our economy to be strong, both now and moving forward, we need these trade agreements.

I want to point out two other trade agreements that I follow in particular, because they have a direct impact on key groups in my riding. The first relates to the Hispanic and Brazilian communities.

In March 2018, our Minister of International Trade Diversification launched negotiations on Mercosur, which is a trading bloc that includes Argentina, Brazil, Paraguay and Uruguay. These are really important markets for us and are very important for many members of my particular community. I am delighted that we have embarked on this. I hope to hear about its conclusions by the end of this year or early next year.

The other agreement I want to mention, as it is important to a group I am very proud to be a part of, relates to the Turkish community. Very recently, on June 8, the JETCO was signed between the hon. Ruhsar Pekcan, Turkey's Minister of Trade, and our Minister of International Trade Diversification at the G20 summit in Japan. We signed this JETCO because we want to further trade and investment between our two countries. We want to put a specific emphasis on small and medium-sized enterprises, strategic venture initiatives and technical and scientific co-operation. I am delighted with this. I currently serve as the chair of the Canada-Turkey Friendship Group, and I know this is exciting for both countries. I think it will be a benefit for both of us as well.

In my downtown west riding of Davenport, people are very supportive of trade agreements. This is partly because over 52% of them were born outside of Canada. For them, increasing trade between countries not only is beneficial for Canada overall but is also a way for many of the diasporas in my community to build closer relationships with their home countries or the home countries of their parents or grandparents. I find this particularly endearing. They are very positive toward trade agreements and are absolutely delighted with the CUSMA.

I will provide a few facts and figures. I do not think I will say anything that members have not heard many times before, but it is important for me to reiterate them.

The North American free trade zone is the biggest economic region in the world, worth $22 trillion U.S. in our regional market, and it encompasses more than 480 million consumers. This new updated agreement preserves Canada's market access to the United States and Mexico, securing our most important trading relationship.

I am delighted that this deal would increase trade between all three countries. I also like that it strengthens relations between Canada and the U.S. and between Canada and Mexico. Canada's preferential access to these markets is vital to the continued prosperity of Canadian workers, whose livelihoods rely on trade.

We did have some concerns after we signed the original agreement, which I believe was on November 30, 2018. The reason we had some concern is that the U.S. had imposed some steel and aluminum tariffs.

I am very glad to say that, after months of hard work and effort from our government, particularly our Minister of Foreign Affairs, our Minister of Finance and our Prime Minister, Canadians are now in a very different situation. We have secured a full lifting of the steel and aluminum tariffs and, despite the Conservatives' call to drop our retaliatory measures, we held firm. We have stuck to our principles and there are no longer tariffs on our steel and aluminum, about which I am absolutely delighted.

In terms of benefits, the new agreement preserves NAFTA's chapter 19, which is the binational panel that will settle disputes between our countries on any trade issues. Chapter 19 provides Canada with recourse to an independent and impartial process to challenge U.S. or Mexican anti-dumping and countervailing duties. This is particularly important for our country's softwood lumber industry, which exported product worth billions of dollars to the United States in 2017.

Another benefit is the ease of trade going across our borders. We all know what it is like to wait in a lineup to cross the Canada-U.S. border, and the new NAFTA has new customs and trade facilitation measures that will make it easier for companies to move goods across the border. It will also eliminate paper processes and provide a single portal for traders to submit documentation electronically. Then, of course, there is enhanced regulatory transparency and predictability, which will provide additional assurance for exporters that their goods will make it to new markets.

The other benefit of the agreement is that there is a new chapter on small and medium-sized enterprises, which I believe is going to foster greater co-operation among all three countries in terms of small businesses. It is also going to increase trade investment opportunities. Small businesses are the backbone of our economy here in Canada, and I think they are delighted at this particular addition.

We have talked quite a bit today about the progressive elements of the deal. In particular, I want to mention a couple of them. The first is the agreement's labour chapter. Its key aim is to level the playing field on labour standards and working conditions in North America. It also contains commitments to ensure that national laws and policies provide protections for fundamental principles and rights at work.

The chapter also includes unprecedented protections against gender-based discrimination that are subject to dispute settlement, and there are also specific provisions around sexual orientation, sexual harassment, gender identity, caregiving responsibilities and wage discrimination. Gender equality and women's economic empowerment are important priorities for our government. They are also important priorities in spurring economic development and in making sure that trade works for everyone.

This new agreement is also very strong on the environment. I think that is top of mind for all Canadians right now, particularly since we have now officially declared a national climate emergency. The environment will be top of mind for not only our government but for all governments right around the world. The new and comprehensive environment chapter includes ambitious environmental provisions with core obligations for countries to maintain high levels of environmental protection and robust environmental governance.

Since I have 11 minutes, I will continue with all the benefits of the new NAFTA. I am delighted to be speaking longer on this, and I will continue with the benefits to the environment.

In terms of additional benefits, the updated NAFTA, or the USMCA, also introduces its new commitments to address global environmental challenges such as illegal wildlife trade, illegal fishing and the depletion of fish stocks, species at risk, conservation of biological diversity, ozone-depleting substances and marine pollution. Canadians care about the environment and are delighted that we have these additional provisions.

I always like hearing from third parties in terms of what they think about the agreement, so I want to highlight some of the key third parties and what they have said about the benefits of this agreement. Then I am going to go on as to its benefits for the cultural industry, which is really also very important for my riding of Davenport.

The Business Council of Canada stated:

We applaud your government’s success in negotiating a comprehensive and high-standard agreement on North American trade. The [new NAFTA] maintains our country’s preferential access to the United States and Mexico—Canada’s largest and third-largest trading partners respectively—while modernizing long-outdated elements of the North American Free Trade Agreement.

Also, I have a wonderful quote from one of our former prime ministers, the Right Honourable Brian Mulroney, who was the chief negotiator of the original NAFTA. He said that NAFTA got what it wanted and that it was a good deal. Therefore, he wholeheartedly endorsed this as well.

Because we talked a bit about labour provisions, I also have a wonderful quote from Hassan Yussuff, who is head of the Canadian Labour Congress, who said this new agreement, “gets it right on labour provisions, including provisions to protect workers against employment discrimination on the basis of gender.”

Therefore, as members can tell, there is quite a bit of support for the new NAFTA, and there are a number of third-party groups who provided these wonderful quotes.

What I would like to spend a couple of minutes on now is the positive impacts of this new updated agreement on cultural industries in Canada. As members may know, Davenport is home to one of the largest communities of artists, creators and those working in the cultural industries. Therefore, whenever I see any new agreements or announcements, I am always looking to see how they are going to benefit artists not only in my community but right across this country. Indeed, there are many benefits.

The USMCA will help strengthen Canada's unique cultural identity, including the French language and the independent Canadian media. The agreement will preserve the Canadian cultural exception that was demanded by Canada, especially in the digital world. It protects our cultural industries and more than 650,000 jobs across Canada. The cultural exception is essential for preserving identity and continuing to showcase our vibrant francophone culture, which is unique in North America.

I want to point out, because I am always proud of it, that I have a really wonderful growing francophone community in my downtown west riding of Davenport. We have a wonderful group called CHOQ-FM, which promotes really wonderful radio programs and really promotes the French language and francophone culture not only across Toronto but beyond.

I want to talk about some additional benefits without a cultural exception, federal and provincial tax credits and program funds to support our newspapers and magazines.

The cultural exception also protects Canada's broadcasting system, ensuring sustained investment in content created and produced by fellow Canadians.

I have some quotes from various leaders within the cultural industry who support the new USMCA and say it is beneficial for the industry.

I will provide a quote from Eric Baptiste of SOCAN, who stated:

Today is a great day for Canadian creators. SOCAN would like to thank the Canadian government for its efforts to defend the interests of the Canadian cultural sector and to provide greater protection for our creators.

I have a great quote from the Canadian Media Producers Association, which stated:

Throughout the NAFTA negotiations, the federal government consistently identified cultural exemption as a key priority. In securing this exemption in the new agreement, [the Prime Minister, the Minister of Foreign Affairs], and the entire negotiating team have stood tall for Canada and defended our cultural sovereignty. We applaud their successful efforts, and congratulate the government on this new deal.

Then I also have a great quote from Margaret McGuffin, who is with the Canadian Music Publishers Association, who stated:

Canada's music publishers and their songwriting partners welcomed the trade agreement reached between the governments of the United States, Canada and Mexico.

Finally, I have a wonderful quote from Melanie Rutledge of Magazines Canada, who said, “Magazines Canada's nearly 400 members across the country congratulate” the Prime Minister, the Minister of Foreign Affairs, the Minister of Canadian Heritage and all the other players within the Canadian government who played a role in negotiating this updated free trade agreement. She also said:

We are especially pleased that the cultural exemption applies in both the analogue and digital spaces. This digital inclusion will be critical to Canadian magazines and other cultural industries in the years to come.

As we can see, there is lots of support from artists and those in the cultural industry.

I will also mention a couple of areas where I think it will be very supportive. Canadians are very proud of our health care system and see it as part of our identity. One of the key things we have done is that this agreement continues to support our health care system.

The new agreement is a renewed understanding among Canada, the United States and Mexico on the significance of our mutual trade agreement. It preserves key elements of our trading relationship and incorporates new and updated provisions that seek to address 21st century trade issues to the benefit of all of Canada's provinces and territories.

I did not expect to speak for more than 10 minutes and I have spoken for about 17 minutes now, but it has been a pleasure. This really is a key and fundamental agreement among Canada, the U.S. and Mexico. As I mentioned, our economy greatly depends on trade. Canadians were worried for a while whether or not we would finally have an updated agreement. I think they can now set aside that worry.

We now have that updated agreement in place. We have charted a course moving forward. It gives us a wonderful foundation from which to continue to build our businesses between Canada and the U.S.; Canada, the U.S. and Mexico; and Canada and Mexico. It will serve us well as we develop closer business relations and as we all seek to improve our economies moving forward.

With that, I am going to wrap up my comments. On behalf of the residents of Davenport, I am grateful for this wonderful opportunity to speak to this very important bill. I encourage everyone in the House to support it.