An Act to amend the Customs Tariff and the Canadian International Trade Tribunal Act

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment provides for the repeal of subsections 55(5) and (6) of the Customs Tariff and their subsequent re-enactment two years later. It also makes consequential amendments to the Canadian International Trade Tribunal Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 10, 2019 Failed 2nd reading of Bill C-101, An Act to amend the Customs Tariff and the Canadian International Trade Tribunal Act (reasoned amendment)
June 10, 2019 Passed Motion for closure

Customs TariffGovernment Orders

June 6th, 2019 / 11:50 a.m.
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Honoré-Mercier Québec

Liberal

Pablo Rodriguez Liberalfor the Minister of Finance

moved that Bill C-101, An Act to amend the Customs Tariff and the Canadian International Trade Tribunal Act, be read the second time and referred to a committee.

Customs TariffGovernment Orders

June 6th, 2019 / 11:50 a.m.
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Louis-Hébert Québec

Liberal

Joël Lightbound LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, I am pleased to rise in the House today to speak to the legislative changes made by Bill C-101.

To understand this bill, it is important to understand our government's values. Indeed, it is a good reflection of what we have been doing since our first day in office. Since day one, our government has been firmly on the side of Canadian workers. We have made investments in Canadians and in the economy, investments that have helped create over one million jobs across the country over the past three years. We are helping more workers access skills training so they can get and keep those jobs.

Furthermore, faced with global uncertainty, we have negotiated new trade agreements that will give Canadian workers and businesses access to two-thirds of the global economy. This represents billions of customers around the world. When the United States imposed unfair tariffs on Canadian steel and aluminum, we stood up for our workers. We refused to turn a blind eye or take a hands-off approach, as the Conservative members suggested. At the end of the day, the fact is that our plan worked. We managed to get the tariffs lifted, and we did so because we were thinking about our workers and Canada's interests.

That was a victory for workers and for the country, but we know we are not out of the woods yet. Despite everything we have done to help Canadian workers succeed, global forces beyond our control may continue to threaten that growth, so we must remain very vigilant. We have a duty to ensure that trade practices do not negatively impact the Canadian market by undermining our steel industry and jeopardizing thousands of good middle-class jobs. That is at the core of this bill, which builds on our previous work and strengthens our government's commitment to protecting Canadian workers and their jobs from potential threats like those.

We did not get to this point by accident. We have been listening closely to Canada's industries and workers, and they say that they want more reassurance. They want a government that is willing and able to act quickly when markets are distorted, so we are taking action.

The legislation we are debating today, Bill C-101, would amend the Customs Tariff and the Canadian International Trade Tribunal Act. Specifically, it would remove the two-year moratorium on the imposition of safeguard measures should provisional safeguards be found to be unwarranted.

Safeguards are actions taken by a government to restrict imports of a product temporarily to protect a specific domestic industry. Through this legislation, Canada would be able to respond quicky and appropriately to situations where a surge of imports harmed or could harm Canadian producers and workers.

I want to add that these amendments are intended to be temporary. Our government is proposing that the amendments be in effect only until June 2021. To take this action, further amendments to the Canadian International Trade Tribunal Act are necessary. They are included in this bill.

I want to assure hon. members that the conditions for the application of safeguards would remain unchanged. There are still bars to meet before any safeguard measures are put in place. This legislation would just help us evaluate and act on those standards faster.

I think that all honourable members can agree that these are very interesting and volatile times for international trade. The rules governing international trade and free trade are evolving, sometimes very quickly and often unpredictably. We cannot take anything for granted.

That is why our government has gone to great lengths to try to protect Canadian workers and ensure that Canada's businesses can compete on a level playing field. In fact, when things are unfair and the market distorted, Canadian jobs are at risk.

As the Prime Minister stated, Canada has always been a trading nation. However, we cannot allow this longstanding tradition of openness to threaten or harm Canadian businesses. In the case of the steel industry, we will not let Canada serve as a back door to other markets.

Canada already has the strictest enforcement regime to combat this practice, with 77 trade remedy measures in force for imports of steel and aluminum alone. Last year, we further strengthened the enforcement regime to prevent foreign exporters from avoiding tariffs.

Our enforcement framework includes Canada's trade remedy system, which helps preserve a fair and open trade climate for our producers. It protects Canadian businesses against the effects of foreign goods that are unfairly subsidized or that are sold in Canada at artificially low prices. We currently have trade remedies involving 13 steel products from 25 countries.

In budget 2017, our government went even further to strengthen and modernize our trade remedy system. In April 2018, we increased funding for the Canada Border Services Agency and Global Affairs Canada to keep trade enforcement working for Canadians. This bolstered our efforts to prevent the transshipment and diversion of unfairly priced foreign steel and aluminum into the North American market. The new funding started immediately and amounted to more than $30 million over five years and $6.8 million per year after that. It means more than 40 new officers to investigate trade-related complaints, including those related to steel and aluminum. It means more accurate data on imports so we can better monitor trade trends and better protect our industries and workers against unfair trade.

At the same time, our government made targeted and timely investments to support the Canadian steel and aluminum industry. This includes an investment of $2 billion to defend and protect the interests of the Canadian steel, aluminum and manufacturing industries and their workers. These investments will help companies expand into new markets, increase operational and environmental efficiencies or purchase new technology and equipment.

We know that strong, decisive trade action works, because we have seen it work. As I said earlier, when the United States imposed tariffs on Canadian steel and aluminum, we stood up for our country's steel and aluminum workers, industries and the communities that rely on their businesses. We imposed reciprocal dollar-for-dollar countermeasures to encourage the full removal of the U.S. tariffs. Canada stood firm and did not back down. As members know, on Friday, May 17, we were proud to announce that these tariffs and countermeasures would be eliminated by the following week.

Therefore, there should be no doubt in the minds of any members here today that our government has protected and will continue to protect Canada's steel and aluminum workers, and all Canadians.

Their success is well earned.

Despite global uncertainty, Canadians created more than one million jobs since fall 2015. Last year, all job gains were in full-time positions. The rate of unemployment and poverty is at its lowest in more than 40 years and salaries are rising faster than the cost of living.

Moreover, employment gains are broadly spread out among groups that are often under-represented in the labour market, such as new immigrants, single mothers, indigenous peoples living off reserve and young Canadians who do not have a high school diploma. This is the type of progress that makes a real difference in the lives of Canadians from one end of the country to the other.

Nevertheless, the reversals in global trends are not the only threat to Canadian jobs. New technologies present both obstacles and opportunities to Canadians seeking to build a career. We are making investments and introducing policies to help workers succeed in the economy of the future. By helping more people gain new skills today, we are creating the necessary conditions for long-term prosperity in every sector of the economy, especially for Canadian workers. In fact, that is the spirit of the bill currently before the House.

The nature of work is changing around the world, and Canada is no exception. The Organisation for Economic Co-operation and Development, or OECD, estimates that one in six jobs in Canada is at high risk of automation. This means that a number of workers could be forced to change jobs many times throughout their years in the workforce. Many others will have to learn new skills simply to keep their jobs in an ever-changing work environment.

The good news is that, through the new Canada training benefit in budget 2019, we are providing real support to the workers of today and tomorrow.

The Canada training benefit will provide a flexible option for Canadians to find the time and money needed to pursue training, improve their skills and build strong and lasting careers. It does that in a few ways.

First, budget 2019 proposes a new, non-taxable credit to help Canadians pay for a training course or program. Under this new Canada training credit, eligible workers between the ages of 25 and 64 will accumulate a credit balance of $250 each year, up to a lifetime limit of $5,000.

Second, a new employment insurance training support benefit would provide up to four weeks of income support to workers when they take time off to take a training course. It would replace regular earnings so that workers do not have to worry about taking some time off to upgrade their skills.

Third, in addition to these two aspects, the government is proposing that it consult the provinces and territories about amending the labour laws to ensure that workers can take time off work for training without worrying about losing their jobs. This would protect a worker's right to take leave for training and skills development.

Before I wrap up, I want to remind members that this bill is very much in keeping with what I consider to be the three main pillars of government policy.

When we took office in 2015, the Canadian economy was sluggish, and Canada was in a technical recession. In my opinion, Canadians elected us based on three main economic pillars, on which we have founded our achievements these last three years in office.

These pillars kick-started economic growth in Canada. I would define them in the following manner. First, we made major investments in infrastructure to ensure that people and goods can travel efficiently across the country; reduce greenhouse gas emissions; look after our waste water systems; protect the environment; and build modern and effective infrastructure from coast to coast. It goes without saying that these investments also stimulated growth. We are talking about a very ambitious, $180-billion plan over 12 years.

The second pillar was reducing inequality by giving more to those who need it most and giving the middle class some breathing room. The first thing we did was lower taxes for the middle class and raise taxes on the wealthiest one per cent. Simultaneously, we introduced the Canada child benefit, a social policy unlike any other in recent Canadian history. The CCB reduced poverty in this country by 20% in just three years and reduced child poverty dramatically.

Those are just two of a suite of measures targeting the middle class and the most vulnerable Canadians. Seniors, for example, are getting more because we increased the guaranteed income supplement by 10% when we took office. The goal is to reduce inequality. We on this side of the House believe that the more inclusive our prosperity, the stronger our growth and the better off Canada's economy will be. We know we are right about that because in 2017, Canada's growth was the strongest in the G7 and we are still at the head of the pack.

The second pillar was about reducing inequality through measures like taxation and the Canada child benefit. There is also social housing, which the federal government has been withdrawing from for years. Now this government is getting back into it. I could also mention how we helped seniors by rolling back the retirement age from 67 to 65. The Conservatives had raised it, plunging hundreds of thousands of seniors into poverty. Then there is the Canada child benefit, which is putting a lot more money back in families' pockets.

According to available data, which, incidentally, are from the OECD, not from partisan think tanks, the average Canadian family has $2,000 more in its pockets in 2019 than it did in 2015.

Furthermore, according to Statistics Canada, a renowned and completely impartial institution that everyone can be proud of, we have succeeded in reducing poverty in Canada by 20%. We achieved that in just three short years. We are not planning to stop there. As I said, one of the key pillars of our government's efforts and our economic strategy is to reduce inequality.

The last pillar is about maintaining Canada's competitive edge by investing in science, research and innovation. Budget 2018 contained some of the largest investments in science in Canada's history. We are also opening up access to international markets, as we did with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Comprehensive and Economic Trade Agreement, or CETA, and with the renegotiated NAFTA. Thanks to these kinds of measures, we are making sure we are here to protect our industries from the threats of today's interconnected economy.

I believe that Bill C-101 is entirely consistent with the government's ambition and action. It will promote growth and prosperity, while protecting our industries and workers to ensure that Canada succeeds.

To conclude, I want to reiterate our government's commitment to Canadian workers and to our industry. We will continue to carefully monitor the situation, with great vigilance, for distortions in global markets. Make no mistake, if it is determined that a surge of imports is harming or could harm our workers and producers, we want to be able to respond.

It is the right thing to do for our workers, and the right thing to do for our economy. That is why I urge all members to support this legislation so that it can pass without delay.

On that note, I would like to thank the NDP, the Bloc Québécois and the independent members who voted in favour of this ways and means motion. The Conservatives, on the other hand, will have to explain their position on this.

Customs TariffGovernment Orders

June 6th, 2019 / 12:05 p.m.
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Conservative

Colin Carrie Conservative Oshawa, ON

Mr. Speaker, I am happy that the government is moving on this.

We in the Conservative Party wanted the government to take action over two years ago. As a matter of fact, when we had the minister in committee, we found out that a year before the Americans put tariffs on our steel and aluminum sector, the Americans asked Canada to come on board and help out. Basically, because of dithering and incompetence, Canadian companies have been suffering with these steel and aluminum tariffs since that time.

The bill is extremely important, especially in my community, where we build automobiles and have Gerdau Ameristeel.

The government has collected over $2 billion in tariffs, and because of the way it is enacting the bill, some companies may be affected negatively. What is the government going to do to dispense, perhaps regionally, this $2 billion, this massive amount of money? The government has collected it and has promised to get it out to the affected companies, but it has really done absolutely nothing. What is the government going to do to address any inadvertent harm from the bill and get money out to the producers and manufacturers that require that support?

Customs TariffGovernment Orders

June 6th, 2019 / 12:10 p.m.
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Liberal

Joël Lightbound Liberal Louis-Hébert, QC

Mr. Speaker, I thank my colleague for his question. I also thank him for his support for this bill, which is so important for the steel industry in particular. It gives the Government of Canada the ability to respond, should the need arise, by taking a very flexible and agile approach.

However, I am a bit puzzled by my colleague's view of the past two years, given this government's unwavering support for the steel and aluminum industry and its workers as we passed through some very stormy waters last year and over the past few months.

Industry representatives and workers have reiterated, in news release after news release, how satisfied they are with the government's strong response to the American tariffs. We have always considered those tariffs to be completely unacceptable and illegal. We responded very decisively, even though the Conservatives were suggesting, from the very beginning of the NAFTA renegotiation, that we cave in to the Americans and give them everything they wanted.

We stood firm and everyone knows how it all turned out. We managed to have those tariffs lifted, while supporting steel and aluminum workers through this difficult time.

I can attest that, on this side of the House, the government will continue to strongly support steel and aluminum workers across the country.

Customs TariffGovernment Orders

June 6th, 2019 / 12:10 p.m.
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NDP

Gord Johns NDP Courtenay—Alberni, BC

Mr. Speaker, I want to give a shout-out to my colleagues from Hamilton Mountain, Essex and Windsor West for standing up for the workers, manufacturers and producers suffering through this debacle.

I also want to reiterate what my colleague said about the government dithering. On this side of the House, we wonder why the government did not put permanent safeguards on all seven steel products that were investigated by the Canadian International Trade Tribunal this spring. However, I will move on.

In the 2018 budget, the government allocated $40 million to the Canada Border Services Agency to supposedly provide more boots on the ground to assist in investigations and stop foreign steel dumping. However, by October, the agency had managed to hire only 10 people to get this work started.

How many additional officers are in place now so that we can stop this from happening?

Customs TariffGovernment Orders

June 6th, 2019 / 12:10 p.m.
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Liberal

Joël Lightbound Liberal Louis-Hébert, QC

Mr. Speaker, to answer the hon. member's specific question, I can come back to him with an exact number. As this is not under the purview of the Department of Finance, I do not have all the information about the exact number.

I appreciate the member's acknowledgement of the fact that this government decided to make substantial investments to give the Canada Border Services Agency and Global Affairs Canada the resources they need to conduct assessments and obtain the data as quickly as possible. As a result they will be able to make informed decisions to protect our industries and workers in Canada.

I would also like to acknowledge the work of members on all sides of the House and their efforts during this difficult period in our trade relations with the United States, which imposed tariffs, for example.

I can assure my colleague that our government will always stand behind steel and aluminum workers. That was made clear when we gave them the $2 billion that I mentioned in my speech. This was very well received by the workers in the steel and aluminum sector. Our government also took safeguards that are a testament to our unwavering support for the steel and aluminum industry.

We know that the past few months were not easy. However, these industries have no doubt whatsoever about this government's firm commitment to always support them and to support the workers who are the pride of this country.

Customs TariffGovernment Orders

June 6th, 2019 / 12:10 p.m.
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Conservative

Mark Strahl Conservative Chilliwack—Hope, BC

Mr. Speaker, I want to talk about the regional disparities in this country when it comes to steel and aluminum producers. In the central part of Canada, safeguards are welcomed as a way to protect the big, central Canadian steel mills and those jobs. As a member of Parliament from British Columbia, I have heard from steel and aluminum producers there who have never sourced their steel from central Canada, because that is not the way the supply chain is set up to work. They have always sourced their steel from the offshore markets. They do not transship. This is what they use to produce the goods that employ people all across western Canada.

Are the jobs in manufacturing facilities in British Columbia being sacrificed? Are there any regional considerations at play? What is being done to protect the jobs of companies that have always used offshore steel and are now going to be put at a competitive disadvantage in not being able to get the supply? I am really worried about the jobs in British Columbia, and I want to hear what the government is doing specifically for western Canadian jobs.

Customs TariffGovernment Orders

June 6th, 2019 / 12:15 p.m.
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Liberal

Joël Lightbound Liberal Louis-Hébert, QC

Mr. Speaker, I thank my colleague for his question.

Bill C-101 provides the government with another tool and greater flexibility to respond to a market distortion or an increase in the amount of steel entering the North American market. However, the bill does not impose any safeguards, per se. It is important to remind our opposition colleagues of this.

Everyone knows how trade relationships work today. Things can change very quickly and we need to respond quickly. It is important that the government have greater flexibility to be able to act, as needed. This is a measure that is generally supported by the House.

As for my colleague's specific question, I would like to remind him of the investments made in budget 2018 and budget 2017 to give Global Affairs Canada and the Canada Border Services Agency sufficient resources to obtain more information and better understand the market and how it is changing in real time, with a view to making decisions that take into account Canada's different regional realities. My goodness, there are so many, and they all operate differently and have a different reality. It is important we have this information and to obtain it, we need to make these investments. That is what the government has done in the past to be able to support each region of the country in the most appropriate way.

Customs TariffGovernment Orders

June 6th, 2019 / 12:15 p.m.
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NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I thank my colleague for his speech.

I would like to ask him a simple question because the steel sector has been a priority for the NDP for a long time. We are supportive of this step forward, but we are under the impression that it is a temporary measure.

Why did the Liberal government not follow the European Union's lead and implement permanent safeguard measures for seven steel products subject to dumping on the international market?

Customs TariffGovernment Orders

June 6th, 2019 / 12:15 p.m.
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Liberal

Joël Lightbound Liberal Louis-Hébert, QC

Mr. Speaker, I thank the NDP for supporting this important bill, which gives the government the ability to act quickly when necessary. I believe that is why it is an indispensable legislative tool that will protect the steel and aluminum industry.

Customs TariffGovernment Orders

June 6th, 2019 / 12:15 p.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I need to start my remarks by recognizing that today is the 75th anniversary of D-Day. I have the ability to stand in this House, in our parliamentary democracy, because of the sacrifice of the 359 Canadians who died on D-Day, the 14,000 who landed on Juno Beach, and the 25,000 involved in the operation with our allies. I would be remiss if I did not start my remarks with this, because we are fortunate to have democracy based on that.

The parliamentary secretary said that this bill is a reflection of the Liberal government's values when it comes to trade. He is either reading a speech that was provided for him, or he does not realize it is actually a very high-profile abandonment of the values that Liberals projected on trade for several years. The parliamentary secretary has heard the foreign minister talk countless times about the international rules-based order. With the trading order and security order, the international rules-based order has probably been one of the foreign minister's most common refrains. In fact, in her famous speech in Washington, in June 2018, she said:

One answer is to give up on the rules-based international order, to give up on the Western alliance and to seek to survive in a Metternichian world defined not by common values, mutually agreed-upon rules and shared prosperity, but rather by a ruthless struggle between great powers governed solely by the narrow, short-term and mercantilist pursuit of self-interest.

“The ruthless, short-term, mercantilist pursuit of self-interest” should be the preamble to Bill C-101. It is an abandonment of WTO rules with respect to international trade, the rules on which the minister would like to lecture not only us but also the Americans in Washington.

It is not just my opinion that it is a WTO violation. As noted trade lawyer Mark Warner tweeted about Bill C-101, the Canadian government has been proclaiming its adherence to the rule of law at every turn, and now is suspending parts of the WTO safeguards agreement for two years.

This is an example of an abandonment of a rules-based approach to trade, and our trading partners and friends around the world notice that.

Now, there is a real politic to trade that the government avoided and ignored for its first several years. That is why Canadians should be shocked that in the final weeks of this Parliament and with no collaboration from the opposition, Liberals have tabled a ways and means motion on the new NAFTA, on safeguard provisions. In fact, they are changing the law, not to allow safeguards not to have their two-year suspension after being applied, but to have the ability to have permanent safeguards. The Liberals are doing this in the final days of the House and will likely use time allocation to rush it through.

The Conservatives are going to use this time to try to suggest some ways to mitigate the impacts of Bill C-101 with regard to issues that the government should have thought of and should have brought for debate. We are going to stand up for the interests of the wider group of employers and employees in the fabrication of steel products, particularly the western steel and construction industries, and recommend ways to help them through the disruption this bill will cause.

Hopefully, the government will address some of our concerns and make this better. Hopefully, it will deal with the companies and employees in western Canada, in Quebec and in Newfoundland and Labrador who will be impacted. In my remarks, I am going to use some time to recommend that. We want to, and may, support this bill, but it is up to the government, rushing it through in the last few days, to address the real issues that will affect small and medium-sized businesses, and to allocate some of the $2 billion it has already collected in retaliatory tariffs. The government promised this would help small and medium-sized enterprises, but it has not.

We want to hear a plan. The government has lurched from crisis to crisis on trade, tariffs, NAFTA, canola with China and pork with China. Enough with the crises. We want a plan. As an effective opposition, that is what we will do.

I have already said that this violates WTO safeguard regulation, but it also violates the ruling of the Canadian International Trade Tribunal from April, our own rules-based order. I would refer to the Minister of Finance and the Minister of Foreign Affairs. The trade tribunal did say that there was “serious injury” with respect to the dumping or import of heavy plate and stainless steel wire. However, it clearly said that on rebar, energy tubular products, hot-rolled sheet, pre-painted steel and wire rod, there was no serious injury and therefore no need for safeguards.

These may seem like obscure terms to Canadians, but our recommendations today will actually show how we can go with the spirit of the safeguards and also safeguard the jobs and economic activity that depend on these steel products.

I will bring it home for Canadians. Energy tubular products are used in our oil sands, the energy industry in western Canada. There is steel plate that, if we do not have specific imports, will raise the cost of the Champlain Bridge in Quebec by $1 billion, putting at risk critical public infrastructure. There is also the Muskrat Falls project in Newfoundland and Labrador. I would like to shake out of their slumber the Maritimes and Atlantic members of the Liberal caucus. Do they realize that this project, which is already in huge cost overruns, will potentially be made worse unless there are geographic or steel-specific exemptions? The LNG Canada project, which I believe the Prime Minister took some photos at the launch of, is at risk unless some exemptions or specific regional quota is provided. There is also the Site C dam in British Columbia.

Therefore, critical jobs, economic development and public infrastructure, like the Champlain Bridge, are all potentially at risk economically because of steel that needs to be imported.

We do not make enough of these types of products, such as rebar. We already know of the affordability crisis in Vancouver, the Lower Mainland and Toronto. The construction industry needs rebar for commercial and residential building, and 40% of it in western Canada has been imported from Asia, Taiwan mainly. It will be cut off, and the producers, construction companies and fabricators that use a lot of these types of steel will see their prices go up by more than one quarter. There are real impacts here.

The government cannot rush in all of these bills at the end of Parliament because it messed up its trade strategy for four years. Therefore, we are going to have some recommendations that we want the government to take seriously, because there are thousands of jobs. Let us have a win for the steel producers, fabricators and construction companies by being smart with safeguards and having regional provisions, regional protections and quota allocations.

Let us review the history. The Liberal government came in knowing that the U.S. had issues with the Chinese oversupply and transshipment of steel. In fact, the Obama administration, in 2016, applied tariffs when it introduced the Trade Facilitation and Trade Enforcement Act and brought up steel duties by 500% on some steel products. We know that the Prime Minister got together with President Obama for another photo-op the other day. We know that bromance. Why did they not start coordinating concerns about transshipment then? In fact, they did not. Some of the members are waking up now, and I am happy to see that.

In 2017, the U.S. president expressed a direct concern about oversupply and transshipment, and said he would use section 232 tariffs on steel and aluminum. What was our response? Absolutely nothing. We know that because of the admission of failure from the finance minister that came on May 30, 2018, when he quietly introduced country-of-origin labelling rules for Chinese steel tracing, which is part of transshipment investigation, hours before section 232 tariffs were applied on Canada. I would remind the member for Malpeque of that.

The U.S. had been asking for this. In fact, the Commerce Secretary has acknowledged that Canada did not work with the U.S. on transshipment concerns; therefore, section 232 tariffs were applied.

Despite the fact that, in 2018, the Prime Minister went to Sault Ste. Marie and a number of other communities and said he had their back because he had a one-month exemption, the Conservatives who were going down to Washington knew that Canada had not made the moves. It had not put in tracing measures, country-of-origin labelling, to take American concerns on transshipments seriously. Therefore, the tariffs were applied. We could have avoided that.

I laugh at the friends who used to call the current Prime Minister the “Trump whisperer”. We have been in a one-sided, bad-outcome relationship with the United States under the Prime Minister, going back to Obama, because transshipment concerns could have taken place back in the Obama administration. I will remind the members that, in June of last year, over a year ago, I asked the minister about this at the trade committee. I referred to the section 232 tariffs and the need for country-of-origin marking and transshipment concerns. The minister dodged my questions for six minutes.

Customs TariffGovernment Orders

June 6th, 2019 / 12:30 p.m.
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Liberal

Adam Vaughan Liberal Spadina—Fort York, ON

Mr. Speaker, I rise on a point of order. The member opposite is clearly using a prop. He is waving a white flag. The Conservatives are prepared to surrender and he seems to be trying to surrender again. Captain Capitulation can have the floor back.

Customs TariffGovernment Orders

June 6th, 2019 / 12:30 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I did not see a white flag. I am not sure what the hon. member is referring to.

We will go back to the hon. member for Durham.

Customs TariffGovernment Orders

June 6th, 2019 / 12:30 p.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, there is a transcript from a year ago, when I questioned the minister on Liberal delays on safeguards. I will send this package to the member from Toronto and to the rest of the Liberal caucus, because they have been asleep. How do I know that? None of them showed up to their own government's briefing on this bill last night. In fact, I found out about it when the Minister of Finance asked me and said there was a briefing. The Liberals did not invite the opposition to the briefing. That is how they have played this from day one.

The minister avoided all my questions on why Canada waited over a year to take U.S. concerns over transshipments seriously. We could have avoided section 232 tariffs. We could have been having this debate on safeguards a year and a half ago, when the Conservatives asked for it, at a time when we could have mitigated some of the impacts of safeguards.

I am going to go through those impacts now, because they are real. They affect jobs in Winnipeg, Sault Ste. Marie, Hamilton, Toronto, Prince Edward Island and wherever that guy is from. They are real because there are fabricators in all communities.

I toured a great fabrication plant, one of the largest employers on Prince Edward Island. It works with Quebec steel companies to bid on and build stairways and parts of construction in Manhattan high-rises. I know the member for Malpeque is proud of those jobs, as am I. These are all affected by poor Liberal decisions on trade policy and will be impacted by Bill C-101.

What the Conservatives want to see is mitigating the impact. We want to see western Canadian fabricators and critical public infrastructure projects like Muskrat Falls, Site C, LNG Canada and the Champlain Bridge protected by regional allocation of quota. We want to make sure that the Champlain Bridge does not cost $1 billion or $2 billion more as a result of this bill. That can be done, and it can be WTO-compliant through TRQs, regional allocation of quota for critical industry, because western Canada cannot get steel from Hamilton to Sault Ste-Marie. It is uneconomical to ship it there. We do not make enough rebar and other critical elements of plate that we need. They need to import, so let us give tariff allocation where it is needed, for example in Newfoundland and Quebec. We are going to recommend that.

We also have recommendations about the $2 billion the Liberals have collected through tariff-like taxes, through retaliatory tariffs. They said it would go as relief to small and medium-sized businesses impacted by trade disruptions, by section 232. They have not given the money. They have given some loan guarantees to the large steel players. We want to see a commitment to allocate some of those funds to the small and medium players and to address geographic concerns. If so, they will see the Conservatives work with them on Bill C-101, work with them on NAFTA, even though we are not happy with the fact that we are seeing these in the final weeks of Parliament, when the Conservatives have been asking for this for over a year.

Let us review. President Trump was not even inaugurated when the Prime Minister volunteered to renegotiate NAFTA. That was a risk we did not need to take, but when it was taken, the Conservatives put forward suggestions to the government. Let us remember that 98% of Canada's trade access was negotiated by Conservative governments, including NAFTA, including U.S. free trade. We said, let us put auto forward. Let us put softwood and key agricultural sectors forward as our priorities, because the U.S. trade representative Ambassador Lighthizer and his team had already prepared a list of priorities where the U.S. wanted to go.

The minister's speech at the University of Ottawa addressed none of the issues the U.S. wanted to talk about. The Liberals launched their much-vaunted progressive agenda and they talked about issues related to the Prime Minister's brand, but that had no relation to trade whatsoever. In fact, they did not mention auto and auto part calculation for six months. When they did, we praised them for that and there was progress finally made in the NAFTA discussions.

Mexico took the talks seriously and had 80-plus meetings with White House officials. It had a deal done before Canada did. That should trouble Canadians. The government virtue-signalled, as I call it, and put its own electoral ambitions ahead of the national interest. That should trouble Canadians.

That is why, in the final days of Parliament, we have the two most substantive economic pieces of this Parliament being rushed through in ways and means motions. It is because of incompetence. The section 232 tariffs were completely avoidable if, going back to President Obama, we had taken concerns about Chinese transshipments seriously. They were avoidable if we had taken NAFTA seriously and had put forward the auto sector, which was always going to be critical, and if we had put in softwood lumber and tried to deal with that constant generational issue that is now hurting our western producers, and if we had put in agriculture and started punching back at the administration's claims about subsidies through our supply management system. The U.S. spends more on agricultural subsidies than we do on our military. I did not hear the government pushing back on that.

The Liberals were talking about the progressive agenda with a president who they know was not quite progressive. They totally misaligned our interests. That is why Mexico, which had a weaker position going in, got a deal before Canada did. We had to scramble to try to be an add-on to that deal.

The same thing happened with tariffs. Mexico was ahead. That is why I am happy that the Conservatives collaborated. We told the ambassador that we were going down. The member for Prince Albert and I, in one day, were invited to a caucus meeting and met more members of Congress than the government did in the previous year to talk about section 232 relief.

I have talked about some of the ways we can work with the government on Bill C-101. To fix the issues that are missed, to mitigate, we are proposing an amendment to make this bill better.

I move, seconded by the member for Oshawa:

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-101, An Act to amend the Customs Tariff and the Canadian International Trade Tribunal Act, because it fails to:

a. take into consideration regional disparities in industry needs, specifically, that domestic producers only minimally supply certain steel products to British Columbia, Quebec, and Newfoundland and Labrador;

b. add a geographic exclusion, either exempting British Columbia, Quebec, and Newfoundland and Labrador from the proposed safeguards or allocating a dedicated share of the regional quota to British Columbia, Quebec, and Newfoundland and Labrador;

c. stipulate specific tariff and trade disruption relief to steel fabricators;

d. mandate that the funds collected through retaliatory tariffs on the United States go to support small and medium-sized Canadian steel and aluminum fabricators and retailers impacted by the application of the retaliatory tariffs; and

e. grant specific product exclusions for certain steel products that are not produced in commercial quantities in Canada to avoid the negative economic impact of safeguards on critical public infrastructure projects like the Champlain Bridge, the Muskrat Falls Hydroelectric Dam, the Site C Dam, and projects of national economic importance like LNG Canada.

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June 6th, 2019 / 12:35 p.m.
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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, on a point of order, I wonder if you could direct the Sergeant-at-Arms to have whoever is having conversations outside the chamber to quiet down, because they are extremely loud at this point. We cannot hear anything on the floor.

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June 6th, 2019 / 12:40 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I thank the member for bringing that up. That is exactly where I was going before the point of order came up. We will have to have some discussions about banning all traffic in the back unless the people are with an MP who can control the people or the volume of the people he or she is with.

Questions and comments, the hon. member for Winnipeg North.

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June 6th, 2019 / 12:40 p.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, first I too would like to acknowledge the significance of the 75th anniversary of D-Day and pay tribute to those 14,000-plus soldiers who contributed so we would have the types of freedoms we have in Canada. I appreciate the member making reference to that at the beginning of his remarks and want to echo those comments. We will make sure we never forget and continue to pay tribute to the women and men who serve us day in, day out in our forces.

Having said that, I am a bit taken aback by the Conservative Party's approach in regard to this tariff. At the end of the day, with the support of Canadians and industry, the Government of Canada was successful at bringing this thing to a conclusion. It will be protecting literally thousands of jobs in different regions of our country. This is a good-news piece of legislation.

I ask the member across the way to recognize good legislation when he sees it and to support it. Recognizing the importance of the jobs that would be protected within this legislation, does he agree that it is time to attempt to pass this legislation before the session winds up? Does he support that?

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June 6th, 2019 / 12:40 p.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I am glad we can recognize this special day today.

We have said from the outset of the NAFTA negotiations and the risks to tariffs that we want to work with the government. In fact, our amendments would mitigate against some of the negative impacts of this legislation. The reason we are putting it in an amendment is that when we asked for this safeguard debate over a year ago, the government did not comply. In fact, as I said, a day before tariffs were applied, the finance minister finally put tracing mechanisms in place in response to U.S. concerns about transshipment.

The government has been lurching from crisis to crisis. We are now at the final weeks of Parliament, and now it has a proposed solution to the latest crisis. What we are suggesting is some improvements to recognize critical regional infrastructure projects and jobs in western Canada. We can mitigate against the impacts with some modest amendments.

That member knows that the Liberals have collected in the range of $2 billion in tariffs from Canadian companies, such as retailers and steel producers that needed to fabricate U.S. steel to re-export it. They have had to absorb the costs of the trade disruption the government has handed them. We want a commitment that this $2 billion will go to small and medium-sized enterprises. That is what the Liberals said at the beginning.

The Prime Minister is very good at going to Algoma and putting on a jacket or a hat and making promises. Most of the time he has not come through.

We want to support the Liberals, but we want to see some mitigation aspects. We want to see them recognize the impact this would cause to western Canada, in particular on construction costs for key projects such as Site C, Muskrat Falls, the new Champlain Bridge and LNG Canada. In fact, the fabricators in those projects provide five times or more the number of jobs of the steel producers, so let us try for a win-win.

They are not used to a single win in this Parliament. Let us try for a win-win.

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June 6th, 2019 / 12:40 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, the member for Durham made some very good points. I think he would agree with me that the government has made a real mess of this file. It is putting jobs at risk right across our country.

Does the member agree that it is imperative for the government to impose safeguards immediately following the passage of this legislation? This is something the steel workers and the steel producers are united in asking the government to do.

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June 6th, 2019 / 12:45 p.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, the member for Hamilton Mountain and I are in full agreement on his definition of the Liberals' handling of this. He used the term “mess”. I agree wholeheartedly. We in the Conservative caucus want to stand up for the members of that union, and not just workers in and around Hamilton, but also others.

I am not sure if the member is on the trade committee, but he might know that a year ago Conservatives asked the minister about safeguards. We knew that it was critical to have this debate to find out how we could apply safeguards but mitigate against some of the real impacts on fabricators, on critical infrastructure projects and on western Canada in particular. The member would know, because the union members in his riding are akin to some of the pipeline workers and union members in western Canada, that those industries are suffering. We do not need to pile yet another economic challenge on top of that.

Our modest proposals to the government should be a way of constructively addressing some of the impacts of this big, quick trade action. As I have said, the government knows that it violates the WTO rules. It formed a little Ottawa group to modernize the WTO, and it has lost a lot of credibility on this issue.

Let us try to blunt some of the negative impacts of this legislation. Conservatives have been wanting to have the debate on safeguards for over a year. Let us get it right. I hope the NDP and the Conservatives can both push the Liberals to finally do the right thing.

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June 6th, 2019 / 12:45 p.m.
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Conservative

Larry Maguire Conservative Brandon—Souris, MB

Mr. Speaker, I would ask my colleague to go back to the mitigation that he was speaking about. I have a situation in which small businesses in the recreation area have had to purchase inventory for the coming season because winter is over, but the steel tariffs have increased the cost of carrying an inventory of recreation vehicles, boats, campers and that sort of thing. In this one case that I am looking at, it may not be as much as the greater steel industry, but $35,000 to one small business is a lot of money. I would like the member to expand on what he thinks we could do.

In his speech and in answers to questions, he mentioned the $2 billion that the government has obtained from the tariffs that it imposed, but I want to follow up on it again with regard to mitigation and how we could best convince the government to make it part of an amendment and move it forward before we pass this legislation.

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June 6th, 2019 / 12:45 p.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I have had the fortune of being in the riding of the member for Brandon—Souris and know he has a great relationship with the chamber and a lot of businesses, and those are real concerns. The aluminum recreational boat industry has been hammered, and Conservatives have raised this issue in the House.

I have talked about the Junkin family in my riding at LakeView Marine in Port Perry. It now has stranded inventory. It has some inventory for which it had to absorb the cost of the tariffs, but consumers now know the tariffs are off, so how is it going to deal with this stranded inventory that it paid tariffs on? Some of that $2-billion fund that the government has collected could be put toward that. That is all Conservatives are asking on that front.

That would help in Brandon, that would help in Port Perry and that would also help fabricators like Mielke Industries in the Fraser Valley and in areas like Abbotsford and Chilliwack. There are a lot of fabricators in western Canada that have imported steel to fabricate into world-leading products. They are some of our best exporters, but they are now becoming uncompetitive because of the trade disruption that happened because we could not avoid the section 232 tariffs the way Australia and South Korea did.

The government has put them in a place where they are uncompetitive. Let us use the $2 billion the government has collected to provide some relief, to make sure they do not lose international contracts and to make sure small businesses—family-owned, in many cases—in Brandon and Durham do not have a loss this year and next.

The government promised that small and medium-sized enterprises would be helped by this relief, but we have seen none of it. Time is running out.

The government will see Conservatives co-operate if it addresses these geographic and small and medium-sized business issues. We have given it some ways to do that. It could also help provinces like Newfoundland and Labrador or Quebec with the Champlain Bridge. Our recommendations are not only effective but modest. We can make this bill better. Let us all get on the same page by addressing the shortcomings of this bill quickly so we can pass it and remain competitive.

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June 6th, 2019 / 12:50 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, I am pleased to have the opportunity to speak today to Bill C-101, an act to amend the Customs Tariff and the Canadian International Trade Tribunal Act.

The bill looks to repeal subsections 55(5) and 55(6), thereby eliminating the two-year waiting period on the imposition of provisional safeguards. I am somewhat pleased to see the government finally taking this good first step to protecting Canadian steel producers and the hard-working people employed in the industry.

The NDP will support the bill as it will temporarily help the steel industry, but the government should never have let the deadline go by without imposing permanent safeguard measures, which the NDP has been calling on for years. When the finance minister allowed the safeguard deadline to pass in April, he placed workers and business at great risk. Now he is temporarily changing the timeline through legislation.

However, let me be very clear. The NDP is adamant that we see this measure as only a small step and it absolutely must be followed by the imposition of, at the very least, provisional safeguards over the five remaining unprotected product categories of the seven listed by the Canadian International Trade Tribunal, also known as the CITT.

These measures must also protect and stabilize the Canadian steel industry over the long term. Having worked in the steel industry for 35 years and representing a community in which the steel industry plays a large part in the economy, I have a very personal interest in this issue along with other workers.

For the past three and a half years, we have tried to deal with this and many other issues facing the steel industry through the ineffective and Liberal-dominated all-parliamentary steel caucus. The commitment of the government to the work of that committee has been disappointing and half-hearted at best.

The measures in the bill also seem half hearted. While these provisional safeguards are satisfactory, we in the NDP have been calling on the government and the Minister of Finance to put permanent safeguard measures in place for well over a year. This would, of course, provide more stability to this already shaken and targeted industry.

Like so many things the government does, this bill, it reaction to the tariffs imposed by the Americans on the Canadian steel and aluminum industry and the issue of the dumping of foreign steel into the Canadian market, has half measures at best.

Speaking of half measures, by taking away the two-year waiting period, the bill would only allow the government to put into place temporary and somewhat superficial protections for unprotected steel product categories listed by the CITT. We will be watching and fighting to ensure the government follows the legislation up with real action. Our steel industry and workers deserve real solutions to the predatory pricing efforts of steel importers worldwide.

For years, the NDP has urged the government to address the very real problem of cheap steel imports directly and/or indirectly entering the North American market, including the provision of increased resources to the CBSA to allow them to investigate and respond to the increased dumping of steel products. In our view, Canada cannot be a dumping ground for foreign steel or be a back door to the American market.

It must also be recognized that, while the U.S. has dropped section 232 tariffs on Canadian steel, tariffs remain on other steel producing countries. That leaves Canada vulnerable to surges of foreign steel heading through Canada to the U.S. market. This is a dangerous position that must not be tolerated.

However, please allow me to take a step back and provide some context for why this is such an important issue.

Canadian steel producers generate over $14 billion in annual sales, while supporting over 22,000 direct jobs and over 100,000 indirect jobs. All of this is done through 19 facilities across five different provinces. The production of steel acts as an anchor for a much larger supply chain of secondary manufacturing companies in fabrication, construction, automotive and many other sectors throughout the Canadian economy.

I know that in the greater Hamilton area, the steel industry provides over 10,000 direct jobs and supports an estimated 30,000 secondary jobs.

In Sault Ste. Marie, the steel industry is anchored by Algoma Steel and Tenaris Algoma Tubes. These two companies alone directly account for over 41% of the community's gross domestic product. About 30% of their workforce are directly and secondarily employed in the steel sector. That is over 9,000 jobs.

In the Windsor-Essex region, Atlas Tube, which is located in Harrow, Ontario, employs 220 workers and exports over $250 million of product each year. It is interesting to point out that Atlas Tube is the most efficient producer of structural steel in the world.

EVRAZ is another steel company and it employs over 1,800 people in western Canada, including in the pipe mill in Regina.

It is also interesting to note that the Canadian steel industry is a world leader in labour and environment standards, something of which we should all be proud.

Dumping is a form of predatory pricing when a country exports its product below the market price, driving out competition and creating a global monopoly. Many of these foreign companies are able to offer lower prices precisely because of their lack of environmental or labour regulations.

We have been after the government for years to provide protection against the dumping of foreign steel. The Canadian Steel Producers Association has repeatedly asked the government to be proactive in finding solutions to the dumping steel issue, which has hurt the steel industry across the board. The government only took action, and temporary action at that, in reaction to the tariffs imposed by Donald Trump on the Canadian steel and aluminum industries.

We were given a heads-up almost the first year of this session. The government kept saying it knew what it was doing. However, it all comes down this. What the government did unilaterally became a real mess. It kept having to fix its mistakes, as more and more were made. Now we are debating the bill today.

That is clearly not good enough. The Liberals should have put permanent safeguards in place as soon as they came into power. They knew then that the illegal dumping of dirty steel into Canada was a major concern for our steel industry.

In April, the government decided to allow the safeguards in place to expire on imports of five types of steel products. Because of current legislation, those safeguards cannot be restored for two years, regardless of potential threats to Canada's steel sector. The legislation we are considering today would allow the government to waive the two-year waiting period and impose the safeguards again. That is a good thing, but it is not nearly enough.

It is always interesting to gauge the response to government legislation through those who will be affected.

Ken Neumann, national director of the United Steelworkers, had this to say:

We hope the legislation announced today will be passed swiftly in Parliament, before the summer recess. In the meantime, Canadian workers and producers need an unequivocal commitment from the federal government that it will implement safeguards or other strong measures to defend our industry....The government must signal that it is prepared to retroactively apply safeguards or other measures to protect Canada's steel sector from potential surges in imports....These safeguards or other measures must be reintroduced to stabilize Canada's steel sector and defend Canadian workers and producers from surges in foreign imports.

With respect to surges, one thing was very concerning for many producers across Canada. Although they wanted the tariffs lifted, they did not want them traded off for a quota system that would stop the growth of the steel industry in Canada. The government said that it listened to this and said it did not have quotas. However, it has what are called “surges”, to offset concerns. The government believed that since it did not use the word quota, it could fool producers by saying it had surges. However, I think surges is just another name for quotas. We are not sure what surges actually means.

Recently, the United Steelworkers asked the government to use sections 53 and 55 of the Customs Tariff, which gives the federal cabinet the authority to respond to tariffs as well as act against countries participating in dumping. For example, the government can apply a surtax to any goods that are being imported under such conditions as to cause or threaten serious injury to domestic producers. The Liberal government declined.

Interestingly, the United Steelworkers also recently sent a letter to the government, detailing its concerns about the new North American free trade deal. In that letter, it addresses concerns about the steel industry. It says,“The USMCA should never have been signed absent the removal of steel and aluminum tariffs. While we are happy that the tariffs have finally been removed, we are concerned with some of the details in the agreement to remove the tariffs: The ability of the U.S. to legally apply new tariffs if there is a surge of imports about the historical average.” Is that quotas or is that all of a sudden a bigger supply? “The lack of measures to protect and stabilize the Canadian steel market leaves us vulnerable to import surges. This threatens not only the domestic Canadian industry, but also leaves us vulnerable to the reimposition of tariffs; Our ability to respond to tariffs if they are imposed. Canada will be limited in its response and only able to impose counter tariffs on the same products; this limits our ability to impose counter tariffs that are proportional but based on products that are actually produced in the U.S.” It says, “We believe that the USMCA should not be ratified until the details of the tariff agreement are finalized. We must ensure that we do not agree to provisions that allow for the re-impositions of tariffs or that are, in effect, a quota.”

Catherine Cobden, president of the Canadian Steel Producers Association, also commented on the legislation, saying:

Today’s announcement by [the finance minister] represents an important step to ensuring Canada can respond swiftly to changes in global steel markets caused by overcapacity and trade actions taken by other jurisdictions. Safeguard measures are an important trade tool for preventing diversion of foreign imports into Canada’s domestic steel market. The Canadian steel producers believe these trade measures continue to be necessary in today’s global context.

Roger Paiva, general manager of Gerdau steel in Whitby, had this to say,"We seek your support to extend the Government of Canada's provisional steel safeguards. The safeguards have stabilized the Canadian rebar market. They are securing middle-class jobs in your riding and beyond. They are growing the economy while protecting the environment. Please show your support for good steel jobs, and please encourage [the finance minister] to extend the safeguards."

Finally, Francis Miner from lvaco near Hawksbury, says

The European Union and a number of other jurisdictions have recently implemented safeguards on steel products following restrictions to the US market caused by the section 232 tariffs. Without safeguards Canada will stand alone, and the domestic steel industry will be heavily exposed to large volumes of low-priced imports being diverted into the country. This places Canadian producers at a significant competitive disadvantage and thousands of jobs at risk....Without the extension of a safeguard measure on wire rod, market conditions for producers in Canada will deteriorate further.

I totally agree with him on the wire rod. That was my business for 35 years. We took wire rods and made wire anywhere from as thin as a hair to an inch and a half. It would used for ball joints or car parts, such as steering wheel rods. They made it into fencing. They made it into all kinds of different thing. We were a big market, but with the tariffs and the safeguards, there was nothing. It really hurt our competitive edge in Hamilton.

It is clear that Canada's steel sector still faces daunting challenges. Canada cannot continue as one of the few countries in the world that allows foreign steel to flood into its markets. The federal government must protect our producers and our workers.

I have spoken with many workers from the steel industry, from across the country and many in my own community. They are all feeling some sense of insecurity. While they are all happy the tariffs on Canadian steel and aluminum were finally dropped, many of them do not trust the government on this issue.

When the Prime Minister visited Stelco to make the announcement the tariffs were being dropped, one of the workers asked him what he had to give up to get the tariffs lifted. He did not answer the question. As we have heard in recent reports, this could have been more than what the government first let on.

I am told that the mood among the workers at Stelco is that while they are happy the tariffs have been lifted, they still have a healthy dose of skepticism. Like many workers across the country, they are concerned the government is not tough enough to stand up for them and the steel industry against the U.S. and other countries.

As the president of USW Local 8782 in Nanticoke pointed out recently, one would think the government in Ottawa would have the interest and common sense to protect Canadian interests and the industry, but that is apparently not the case.

In closing, I would like to say that I listened to the comments from the member for Durham and I agree with the suggestion that we should all work together on this. All parties should work together. We have found that the government cannot do this unilaterally. It has made too many mistakes. We have to make sure we get this right, to protect not only the Canadian industry but our Canadian workers. We can only do that by working together. Therefore, I encourage all members to join the same team and work as hard as we can.

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June 6th, 2019 / 1:05 p.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, I agree with the member's very last comment with respect to a team. There has been a team effort by this government from day one in trying to address the very important issue of steel and aluminum tariffs. It is something that has had a profound impact on workers in different regions of our country. That is one of the reasons we have members of Parliament from within our caucus, led by our Prime Minister and ministers, working with the many different stakeholders, going out and visiting some of these plants first-hand and talking to the workers to look at the industry and continue to have the dialogue, which was absolutely critical.

Canada is not alone with respect to what has been taking place with these tariffs. I am pleased we have been able to take it to the point we have, where we now have this legislation. I hope that over the next period of time we will see the legislation pass, because it will provide some additional certainty. We owe it to the workers to do what we can.

Does the member across the way not agree that one of the ways we can jointly support our thousands of workers in Canada, who are so dependent on providing those quality steel and aluminum products, is by recognizing it and ensuring that this legislation passes before we rise in the next week or so?

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June 6th, 2019 / 1:05 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, that is a very important question, because I believe we should all work together. I can only tell the member that I am not on the trade committee; I am on the all-party committee for the steel caucus. However, I know of some of the problems that came up on the trade committee with listening to people's amendments and trying to get stuff going. It seems the government took the unilateral approach of listening but not doing anything. It took it its own way, and that is why we are where we are today.

I truly believe that if we all work together, listen to each other, accept those proposals and adopt them, because they are good amendments, we can all come up with a great agreement that would be far better than anyone could do alone.

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June 6th, 2019 / 1:05 p.m.
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Conservative

Colin Carrie Conservative Oshawa, ON

Mr. Speaker, I want to thank my colleague from Hamilton Mountain, the place where I was born. I have to say that I still have that steel guy inside me. In my community of Oshawa, steel is so important for the auto sector. He mentioned a friend of mine, Roger Paiva, from Gerdau Ameristeel Corporation, and how important the steel and aluminum sector is to my community.

Earlier on, the member mentioned the uncertainty and the mess the current government has created, and I am extremely concerned. I know both our communities are very happy this bill is being debated in the final days of the current government. It is a very important issue.

My colleague from Durham spoke about how this is something the bigger companies want to see moved forward as quickly as possible, but for regional suppliers, fabricators and different communities there needs to be something else done. We talked about this $2 billion the Liberals are sitting on and holding. That could be spread to the companies that are going to be so negatively affected, especially if we go forward and implement this bill as is.

In order to decrease the uncertainty out there, I was wondering if the NDP would be supporting our amendment, which my colleague from Durham read into the record. He said he agreed with my colleague from Durham. Because there is such a short period of time, we do not have the time to debate this as well as we could. Therefore, could he give us some certainty and let Canadians know if the NDP will be supporting our amendment, which would make this better by working together?

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June 6th, 2019 / 1:10 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, the amendment was just put on, and it is going so fast that I have not seen it on paper. I think there would be some great points in there, and I would like to have our party investigate that to make sure we are all on the same page, dotting the i's and crossing the t's, before we take a position on whether or not we are going to support it.

We need more time to look at it and study it.

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June 6th, 2019 / 1:10 p.m.
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NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I would like to thank my colleague from Hamilton Mountain for his speech and his tireless efforts to defend the steel sector and steel workers. I also want to mention the work done by our colleague from Essex on this file. This sector and the quality jobs involved are very important to the NDP.

After waiting for far too long, the government is taking a step in the right direction, but is taking only half measures and temporary measures. The federal government should follow the European Union's lead and establish permanent safeguards for, among others, seven steel products threatened by dumping, which could harm the stability of Canada's steel sector.

If Europe can do it, why can't we?

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June 6th, 2019 / 1:10 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, we too are trying to find out why we did not take that position.

I can only say that the all-party steel caucus was meeting at the beginning of this four-year term, and we have not met in over a year. No information was going back and forth. Many requests were made to meet and discuss certain issues, to see if we could come up with something and to see where we could make recommendations. However, those requests failed. The Liberals wanted to keep waiting and see what was going to happen.

The answer is that I do not know.

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June 6th, 2019 / 1:10 p.m.
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Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, I want to thank the hon. member for his intervention today and for bringing up the importance of steel to Sault Ste. Marie. We have Algoma, Tenaris and all the other ones. It is 41% of our GDP. It is absolutely massive and critical.

Would the member join us in calling on the Conservatives to move forward with what we are proposing today? After all, the leader of the opposition said on May 29 that he would put safeguards in place.

Would he agree that the question is, “What is the holdup?” Will he call on the opposition to join us in moving forward expeditiously?

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June 6th, 2019 / 1:10 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I want to remind the hon. members to place their questions through the Chair, not directly to the other side.

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June 6th, 2019 / 1:10 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, I know the hon. member is one of the co-chairs of the all-party steel caucus.

As I said previously, they made some good points. What they are offering is to work together and get into a room, even if we have to do it tonight, to understand what they are talking about and to see how we could work together to move forward, working as fast as we can to have this implemented.

There is a concern for all the parties in this House that the Canadian steel sector and its jobs are very important. It is too bad it has taken this long to figure this part out. I think progress is being made on what the government is proposing. I also think that maybe there is some additional stuff that could be put in there to make this even better.

My answer is working together, but I would still want to investigate what the actual amendments are before I take a position on that.

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June 6th, 2019 / 1:15 p.m.
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Independent

Erin Weir Independent Regina—Lewvan, SK

Mr. Speaker, I have the honour of serving on the all-party steel caucus with the member for Hamilton Mountain. I would just invite him to speak to the role of the all-party steel caucus in advocating for appropriate safeguards for our steel industry.

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June 6th, 2019 / 1:15 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, we have a very interesting committee. We listen to all the different views from all regions and share with other members what we know about the steel industry. I want to thank the member, because he has provided some valuable information to help us out.

It is very important that we sit and listen to each other. I thought we were doing very good work until the last year and a half, when we did not have any type of meeting at all, even though there were many requests. It was as if we were not an all-party caucus but just a government caucus.

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June 6th, 2019 / 1:15 p.m.
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Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, before I begin, I would like to join my colleagues in saying how honoured and privileged I am to stand here, particularly on D-Day, when those who went before us paid the ultimate sacrifice to protect our democracy so that we could have this important discussion today. There are a few vets left. One is tail gunner Dick Brown, from Sault Ste. Marie, whom I had the privilege and honour of speaking with on Friday, before he left on Sunday, to hear about his remarkable service. I want to thank him and all veterans, those who are living and those who paid the ultimate sacrifice for what they did.

Today I stand to talk about the important proposed legislative changes that would amend the Customs Tariff and the Canadian International Trade Tribunal Act. The goal of this legislation is simple. It would temporarily remove the two-year moratorium on the imposition of safeguard measures for products that were recently subject to safeguards.

Before I go on, I would like to indicate that I will be sharing my time with my esteemed colleague from Hamilton East—Stoney Creek.

The legislation would give the government the flexibility it needs to respond quickly and appropriately to situations where a substantial surge of imports could do harm to Canadian producers and workers. Together, these measures would give the government the tools it needs to stabilize Canada's steel market and, if needed, to further protect Canadian steelworkers and producers from global instability and surges in imports that could be harmful to Canada's economy.

Canada's steel and aluminum sector is an important part of our economy. It provides thousands of good middle-class jobs to people and communities across the country, including those in Sault Ste. Marie. Members have heard about its importance. It accounts for over 41% of Sault Ste. Marie's GDP. That is why, for those workers and those communities, our government has always taken strong action to stand up for these industries.

I remind people that in budget 2016, in black and white, we made changes to strengthen Canada's trade responses to dumped steel. Further, we consulted, and in 2017, we made more changes on market distortion, scoping, duty circumvention and union participation.

In 2018, we put more dollars into fighting dumped steel, and it is working. We put more money into our borders. We have specialized agents who work for the Canada Border Services Agency. They are forensic people who can fight and stop the dumping. We made changes that created one of the greatest strengthened trade regimes in the world.

During one of our meetings, either at the trade committee, the industry committee or the all-party steel caucus, I asked one of the people from the Canadian Steel Producers Association what would have happened if we had not put those in place, with what was happening with the section 232 tariffs. His remark was that, quite simply, the steel industry would have been devastated.

I am glad that from day one, just a couple of months after we were elected, we had the steelworkers' backs. Further strengthening happened when we stood firm and did not back down. I am proud to say that on May 17, when Canada and the U.S. announced that they would eliminate their tariffs and countermeasures within two days, it was the culmination of a lot of work we had undertaken over those years, in particular in the year before, when we announced dollar for dollar trade retaliation, not only on steel and aluminum but on a number of items.

I was in Washington recently with the trade committee. We took a team Canada approach. We had Conservatives, New Democrats and Liberals with us. We met with many people, and we could see in their body language how it was affecting them. Although we had a NAFTA in principle, we were not going to sign it until those tariffs were lifted. It worked quite well. Part of what we did to protect the steel market at the time, when the Americans announced their tariffs, was announce that we were imposing provisional steel safeguards for a period of 200 days to help stabilize the market and protect against surges of foreign steel into Canada.

On April 26, 2019, after the Canadian International Trade Tribunal found that final safeguards were warranted for heavy plate and stainless steel wire, the government announced its intent to enact safeguards on these products.

While we have been working hard, and continue to, to make our steel and aluminum industries even more successful, because they create good, well-paying middle-class jobs, we have also been focused on making sure that Canada has a solid system in place for addressing unfair trade. Therefore, we have effected a very important trade remedy system that provides recourse for Canadian producers harmed by unfair trade imports. Under this system, Canadian producers can request that duties be applied on dumped or subsidized goods sold in the Canadian marketplace.

I reiterate that since 2016, our government has taken several steps to modernize and strengthen Canada's trade remedy system to ensure that Canadian companies can compete on a level playing field with foreign exporters. This was informed by public consultation. Our government implemented a package of measures, which I have referred to, to strengthen the trade remedy system. It has been extremely effective.

Our government made legislative and regulatory changes to improve the trade remedy measures addressing the circumvention of duties, to better account for market and price distortions and to provide unions with the ability to participate in trade remedy proceedings. In fact, the president of Tenaris was here with Evraz steelworkers to provide testimony in a case. It was so effective that we won, and I thank the United Steelworkers for participating in that particular case.

We have been speaking today about the importance of the steel and aluminum industries. We have a very integrated market between the United States and Canada. It is perfect. We create steel and aluminum on both sides of the border that are put into the supply chain downstream for the auto, manufacturing and energy sectors. That is why we continue to look at how to diversify to new markets.

Last year, our government launched the export diversification strategy, which has the ambitious goal of growing Canada's overseas exports by 50% by 2025. We are investing more than $1 billion over the next six years to make this happen.

The strategy will focus on three components: investing in infrastructure to support trade; providing Canadian businesses with resources to execute their export plans; and enhancing trade services for Canadian exporters.

Let me very quickly touch on one component of the export diversification strategy: how we are helping Canadian businesses export and grow. While Canada has had success in gaining preferential access to key markets via trade deals, more needs to be done to ensure that Canadian firms take full advantage of international growth opportunities.

Last year, to put more resources directly in the hands of Canadian businesses seeking to develop export plans, build global partnerships or gain skills and training for global trade, the government announced investments of $198 million over six years. This includes $50 million over five years to support businesses, including in the steel, aluminum and manufacturing industries, in diversifying their exports, including with new export readiness grants. This funding is going to support CanExport and related funding programs. These are tools that are absolutely critical as we penetrate the new European and Asian markets. Our new agreements have created this opportunity.

In conclusion, the measures I have been speaking about clearly show that our government has been listening closely to the industries and unions most affected by trade disputes and global market distortions. It is clear that we need the flexibility to take necessary actions to protect Canadian industries and workers. Today's amendments would help do just that. Canadian workers and industries deserve a level playing field, and we have an opportunity before us today to make sure it gets done.

We will continue to stand up for our workers and our industries and do what is needed to preserve the fair and open trading environment they depend on. I urge all members to support this important legislation expeditiously. The steelworkers are counting on us.

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June 6th, 2019 / 1:25 p.m.
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Independent

Erin Weir Independent Regina—Lewvan, SK

Mr. Speaker, I have had the honour of serving with the member for Sault Ste. Marie on the all-party steel caucus.

As I think we all understand in this House, the legislation we are debating today would remove the moratorium, which would allow the government to bring in safeguard measures. I am wondering if he could provide some reassurance that the government's intention is to actually bring in those safeguards to protect Canada's steel industry and steelworkers from unfair competition from offshore steel, often produced in violation of internationally recognized labour and environmental standards.

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June 6th, 2019 / 1:25 p.m.
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Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, I appreciate the member's contributions to the all-party steel caucus. We have had a number of face-to-face meetings and teleconferences over the last year as we have been updating various actions this government has been taking in relation to protecting steelworkers.

Part of what the member was talking about was the environment. We know that Canadian steel is better for the environment. This is something the member made a point of in the all-party steel caucus. When Canadian steel is used in our infrastructure, there is less of a carbon footprint. It is better in fighting against climate change when we use Canadian steel in our own infrastructure programs.

Quite frankly, we were quick to act in putting safeguards on seven products last year. The CITT came out with a ruling supporting two of them. There are five left. If there were surges that the CITT did not indicate were there, this legislation would allow the government to move expeditiously to stop any surge that may occur. That is why it is critical. It is a tool in the toolbox we have to have just in case.

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June 6th, 2019 / 1:25 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, if what the government is proposing were implemented, would there be a time when those safeguards would expire? Would there be an automatic expiry date, or could we leave them on for as long as we wanted?

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June 6th, 2019 / 1:25 p.m.
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Liberal

Terry Sheehan Liberal Sault Ste. Marie, ON

Mr. Speaker, I want to thank the member for his earlier intervention pointing out the importance of the steel industry to not only Hamilton but to Sault Ste. Marie and Canada, with 123,000 direct and indirect jobs that support not only the workers but the pensioners who rely on the viability of the steel industry.

The proposed legislative amendments would create a timeframe in which if the surge happened, we would be able to utilize it over the next couple of years. One of the things I have found in my role representing the good people of Sault Ste. Marie is that we have to be nimble, we have to be quick and we have to be constantly looking at the industry.

One of the people presenting at the all-party steel caucus said that these are not our grandparents' steel mills. They are new and modern. There are a lot of changes. What is happening in the world, with so many market changes and shifts, is that we have to keep our ability to be nimble and to constantly review.

I am proud of this government, because it continues to consult and consult broadly. It is not done here in Ottawa. The government reaches out from coast to coast to coast to the steelworkers, the aluminum workers and the industries in B.C., Ontario, out east and in Quebec.

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June 6th, 2019 / 1:30 p.m.
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Liberal

Bob Bratina Liberal Hamilton East—Stoney Creek, ON

Mr. Speaker, I am pleased to rise today in the House.

As has been mentioned, we are commemorating D-Day events today. Many of us regret that we are not able to be in our communities. There were events held last night in Hamilton, and today as well, but the second-best place to be is here in Parliament, where it has been said that the men and women who made those sacrifices so many years ago have allowed us to be here to debate and discuss the issues of the day.

I would point out that in 1944, the honorary flagship of the Canadian Navy, HMCS Haida, which is now in Hamilton, was part of the 10th Destroyer Flotilla, which had the job of clearing the English Channel of German ships ahead of D-Day. The Haida also participated in testing radar-jamming technology to confuse the Germans when D-Day was unfolding.

On the topic of steel, there was no armour plate made in Canada until 1941, when Dofasco, which is now ArcelorMittal Dofasco, created the armour plate division. That armour plate division made 100% of all the armour plate used by the Canadian military in preparing its vehicles and vessels for wartime, so the steel industry has a proud history of supporting the military. Also, many of those steelworkers actually enlisted, and there are many monuments in our Hamilton steel mills, such as Stelco, National Steel Car, Dofasco and so on, for those former employees who gave their lives in the service of their country.

I am pleased to now move on to the topic of the day, which is the legislation before us.

Our government has a proven record, I would say, of broadening and deepening Canada's global trading relationships. The new connections that we are forging with the world are helping Canadian business to succeed and grow and create more well-paying jobs, delivering the strong economic growth that benefits all Canadians. It is an important part of our plan to strengthen and grow the middle class, and I can say with confidence that this plan is working.

With the successful conclusion of the Canada-United States-Mexico agreement as well as the Canada-European Union Comprehensive Economic and Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Canada is now the only G7 country to have free trade agreements with all other G7 nations. Canada now has comprehensive free trade agreements with countries representing two-thirds of the world's total GDP, and that is over one billion potential new customers.

Our government's commitment to free trade with economies around the world, including those in emerging markets, will help to further strengthen and grow the middle class and deliver long-term economic growth that benefits all Canadians. Canadian businesses are ideally positioned to benefit from the advantages that we have secured through trade, being located next to the world's largest economy to the south, as well as having close historic and economic ties to Europe to the east and deepening connections to the fast-growing Asia-Pacific nations in the west.

To make the most of these opportunities, our government is working tirelessly to support open, fair and rules-based trade arrangements with the world, but that does not mean that we can turn a blind eye to the reality that there are very real challenges to fair and open trade that are playing out around the world, including here at home. Canadian workers, communities and industries have seen the negative effects that come about when there are significant disruptions in global trade, including those that affect our steel and aluminum industries.

As the son of a steelworker and the grandson of steelworker, and as a former full-time steelworker myself, I can attest to the impact of steel on the lives of Canadians. In my city, steel helped build our universities, hospitals, art galleries and concert halls. It paid tuition fees for thousands of students, and it continues to pay retirees' pensions. Steel pays our city millions of dollars in taxes and more millions in charitable donations.

For Canada, steel provides thousands of good, well-paying jobs and serves as an important source of products used by other major industries, including energy, advanced manufacturing, construction and auto manufacturing, so when steel markets are disrupted and steel is diverted into the Canadian market, the damage ripples right through our economy. It hurts businesses and it hurts people.

In the face of this threat, it is critical for the government to have the tools and resources it needs to protect Canadians while continuing to encourage foreign investment, trade and economic growth. The legislation we are discussing today would provide this protection. By removing the two-year moratorium on the imposition of safeguard measures on steel, these proposed amendments would provide additional flexibility for the government to respond quickly and appropriately to a substantiated surge of imports harming, or potentially harming, Canadian producers and workers.

With today's legislation, the government is proposing that the amendments only be in effect for two years. They are intended to be temporary, as we hope the current global environment of trade distortions will be. Moreover, the conditions for the application of safeguards under the Canadian International Trade Tribunal Act and the Customs Tariff would remain unchanged and would still need to be met in order for any new safeguard measures to be put in place.

Today's legislation would build on the actions our government has already taken to defend the competitiveness of Canadian business and the strength of our economy, pushing back against market-distorting practices that originate beyond our borders.

We recently announced an intensive 30-day consultation period with industry and workers to determine further protections that may be required. These include actions in a number of key areas, such as conducting timely and targeted reviews of dumping cases to boost protections through higher duties to ensure Canadian companies are not at an unfair disadvantage with foreign competitors.

We are looking to introduce a more robust steel import regime with a view to strengthening import data, including product quantity, type and origin information. This will improve our ability to monitor import surges, assess evidence of transshipment and be more responsive to sudden changes in trading patterns.

We are looking to introduce greater flexibility for the Canada Border Services Agency to address price and cost distortions in foreign markets when determining whether dumping has occurred. Our government is also ensuring flexible and responsive support for domestic producers through Innovation, Science and Economic Development Canada and its agencies. These actions are all part of a broad and sustained effort to help our steel and aluminum producers in light of global challenges. This includes $2 billion to defend and protect the interests of Canadian steel, aluminum and manufacturing industries and their workers, with up to $250 million in new funding through the strategic innovation fund.

The challenges that these industries face are real and significant. They must be met with strong and decisive action on the part of our government, and that is exactly what we have done and continue to do with the legislation before us today.

Our government's plan to strengthen and grow the middle class is working. The result of our investments in people speak for themselves. Hard-working Canadians have created over one million new jobs, most of them full time. That is the equivalent of almost nine million jobs for an economy the size of the United States or 14 million for an economy the size of the European Union.

We know that there is more to be done so that people can feel secure and confident about their future. We need to make sure the economy works for everyone by finding new markets for Canadian products, making sure our businesses are competitive in the global economy and helping more people to find and keep good jobs. We also need to ensure that these gains are not undermined by surges in imports. The measures contained in today's legislation would give us an effective tool to safeguard Canadians against these challenges.

I will conclude by encouraging and urging all hon. members to support the bill's timely passage through the House accordingly.

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June 6th, 2019 / 1:40 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, unfortunately the cause of this legislation has to be placed right at the feet of the Liberal government. It appears that the American government, for over a year, has been pleading with the Canadian government to implement protections to ensure that foreign steel and aluminum is not dumped into Canada, that surges are addressed and that if foreign steel and aluminum enter Canada, they are not transshipped to the United States, undermining the competitiveness of their industry and ours in Canada. It has taken over a year for this legislation to come forward to address the concerns of our American cousins.

Is the member not concerned about that delay? As well, why did that delay happen? This legislation should have happened well over a year ago. Why did it not?

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June 6th, 2019 / 1:40 p.m.
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Liberal

Bob Bratina Liberal Hamilton East—Stoney Creek, ON

Mr. Speaker, what we were faced with was the sudden, illegal imposition of section 232 tariffs against the greatest ally the United States has. Here we are, celebrating D-Day and all those soldiers working together, and to this day companies in Canada are building parts for American Abrams tanks, so we were confronted with a situation that was unprecedented. We immediately began working to try to change the attitude among the American Congress decision-makers with regard to section 232.

Dumping has been going on for many years, and the question might be thrown back as to why there were no considerations given to the plight of Canadian steel by the previous government.

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June 6th, 2019 / 1:40 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, I have known the member for Hamilton East—Stoney Creek for years, and we have worked together in a previous government at city hall.

One of the things that concerns me with this piece of legislation, even though we believe it is a good step forward, is that it is a temporary solution. Is the government ready for a more permanent solution for our future? Is it willing to listen to steelworkers, to sit down and talk to them about finding a way of doing it permanently without throwing them out of the office?

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June 6th, 2019 / 1:40 p.m.
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Liberal

Bob Bratina Liberal Hamilton East—Stoney Creek, ON

Mr. Speaker, I can assure the member that when anybody comes to my office, the meetings are held in good faith, but if it comes to a point where I am being described in derogatory terms by those people, the meeting is ended. What I said at that meeting, after being called names, was “This meeting is over”.

To the more important point that my friend is making from across the way, I believe that what we have gone through with the Trump administration with the steel tariff issues and all that really demands that we pay stronger attention to the larger needs of Canadian heavy industry. I would agree that we should have a more robust framework to work together to ensure that the needs of our Canadian workers are met. I would commit to doing that.

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June 6th, 2019 / 1:40 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, it is my pleasure to engage in this debate.

This debate is really a story of failed Liberal foreign policy. It is a story of failed Liberal trade policy. It is also a story about the abandonment of Canada's western manufacturers who depend on competitively priced steel and aluminum products.

As with most Liberal ventures, there is always a backstory, a very ugly backstory. In an earlier question, I signalled what that story might be. It is a story of a government that thought it could bluff the Americans. It thought it could get away with not addressing the issue of steel and aluminum dumping, and the U.S. called its bluff. A year ago, the U.S. imposed steel and aluminum tariffs on Canada, its most trusted trading ally.

When has that ever happened? Never. This is a Liberal government that cannot even get its relationship with the United States right. I can speak from experience. I am the former trade minister of Canada. Under our Conservative government, we were able to negotiate free trade agreements with 46 different countries around the world, the most successful trade policy ever implemented in this country. We left the Liberal government with a trade environment that was as good as it gets. There was not a relationship around the world that we had where we could not go to our counterpart, whether it was the U.S. trade representative or the trade minister for China or Chile or Peru, and resolve important issues, trade irritants between our countries.

Now we have found ourselves in this situation for a whole year. Canada has faced punitive tariffs from the United States, because of the incompetence of the Liberal government. Let me explain.

The present Liberal government thought it could bluff Donald Trump by saying, “I know you are concerned about the dumping of aluminum and steel products into Canada, for example from China, one of the worst offenders when it comes to dumping. I know you are worried about it, Mr. President, but we are going to do nothing about it.” Donald Trump said, “I am not someone who does nothing. I am going to do something about it. I am going to impose tariffs on you, Canada, one of our most trusted allies. I am going to do it under section 232, the national security provisions.”

What an embarrassment that should be for the Liberal government, that this would happen under the Liberal watch. However, that is what happened. For a year, we had American tariffs on any exports that involved aluminum or steel. We can imagine how difficult that has been for our industries.

I am going to speak a little about Abbotsford, my home community, where we have a number of very significant manufacturers that use steel and aluminum to create products for Canadians and for export to the United States and elsewhere around the world. These companies, small to medium-sized businesses, had been expanding.

In fact, one company, Mayne Coatings, a favourite of mine, had chosen Abbotsford as the best place to invest, assuming that under a Liberal government the trade policy of this country would continue on, that it would be a healthy one, and that our relationship with the United States would continue to be healthy. They made those assumptions, quite falsely, of course. They assumed that would carry on, and they invested heavily in Abbotsford. In fact, they built a manufacturing facility worth $100 million in a small community of 150,000 people. They trusted the Liberal government, and what a mistake that was. No sooner had construction started on this building that Canada was slapped with aluminum and steel tariffs that have seriously undermined the business model for this company.

I feel very sorry for Mayne Coatings and other industries and companies in Abbotsford that trusted the Liberal government. What a misplaced trust that was.

Today we are seeing the tail end of that process. For a year, we suffered under those punitive tariffs, and now finally the Liberal government has woken up to the fact that the Americans expect Canada to address the illegal dumping of steel and aluminum in Canada and to address surges.

The government is finally introducing Bill C-101, which addresses this issue, except it has a number of failings. We have introduced an amendment that highlights the fact that this legislation fails to take into consideration regional disparity. In other words, what happens in British Columbia, where I am from, is quite different from what happens in Ontario and Quebec, where steel and aluminum are produced.

Shipping that aluminum and steel to the west coast does not make any financial sense, so those who manufacture products in my region of the country need to have different rules, which take into account the fact that they have to bring in their steel and aluminum from elsewhere because it is not competitive to do so from central and eastern Canada.

Second, this legislation fails to add a geographic exemption for industries like Mayne Coatings from Abbotsford that are far beyond the reach of our own homegrown Canadian steel and aluminum producers.

Third, this legislation fails to stipulate specific tariff and trade disruption relief for steel fabricators.

The fourth one is the most important one, in my mind, because it is a breach of trust, a breaking of failed promises by the Prime Minister. A promise was made by the Liberal government that it was going to impose retaliatory tariffs on the Americans, which is great. They do it to us; we do it to them. We collect tariffs coming in. What did the Prime Minister promise? He promised that those tariffs would be used to offset the impact of American tariffs on our Canadian manufacturers.

How much did the Liberal government collect? It collected $2 billion in tariffs. How much of that money has actually gone to the manufacturers across Canada that were impacted by the tariffs the Americans imposed upon us because we would not act on their concerns? How much of that money went to our manufacturers across Canada? Virtually zero. This is another broken promise on the part of the current Prime Minister.

Members may remember that he made a ton of promises. He knew very well from the start, even before the last election, that many of those promises he could not keep. He made them anyway, because he just wanted to get elected. That is disgraceful. We see it playing out now here in Canada with our manufacturers who are suffering the consequences of it.

Two billion dollars were supposed to be dispersed to support our small and medium-sized businesses across Canada, and larger ones, that were all being impacted by this failure of the Liberal government to take care of our bilateral relationship with the United States. The Liberals could not even deliver on that.

I do not hold any ill will toward my Liberal colleagues across the way. They are not disputing the fact that $2 billion was collected by the Prime Minister, with the understanding that the money would be dispersed among Canadian companies to make sure they did not suffer as a result of the Donald Trump steel and aluminum tariffs. Guess what. It was a broken promise. Every single one of those MPs on the Liberal side is going to be held accountable for that in October. A reckoning is coming on October 21, and that reckoning is going to hold the Liberals to account for their false promises, such as their promises on balanced budgets, their promises on small deficits—

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June 6th, 2019 / 1:50 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I am going to interrupt the hon. member for Abbotsford. I am having a hard time hearing him because the members from both sides are shouting at each other so I cannot hear. I am sure everyone wants to hear what the hon. member for Abbotsford has to say.

I will let the hon. member for Abbotsford continue.

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June 6th, 2019 / 1:55 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, this whole catastrophe, starting with the section 232 tariffs that Donald Trump imposed on Canada under the auspices of national security concerns and all that entailed, the casualties along the way and the companies that went under because of these tariffs, all of that has to be laid at the feet of the current Liberal government and our virtue-signalling Prime Minister, who cannot keep simple promises.

As members know, we are heading into election season, the silly season, and each one of these Liberals will be held to account. However, we can bet our boots the current Prime Minister is already—

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June 6th, 2019 / 1:55 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

Order. I want to remind the hon. members that there is a speech being given and shouting across the floor is not going to allow us to hear it. I want to point out that it is coming from both sides. One side is not being blamed over the other.

The hon. member for Abbotsford can continue, so we can hear what he has to say.

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June 6th, 2019 / 1:55 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, how much time do I have?

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June 6th, 2019 / 1:55 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

The hon. member has about four minutes left. Then he will have just over four minutes and 20 seconds left when we return to the debate, as well as 10 minutes of questions.

The hon. member for Abbotsford.

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June 6th, 2019 / 1:55 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, I am thankful that you reminded my Liberal colleagues across the way that they should not be heckling something that is a serious matter. I think you, Mr. Speaker, will acknowledge that most of the noise is coming from over there, because they do not want to hear the truth.

The Liberals moved forward with disastrous economic policies that are laying waste to many of our industries. Companies are going under, across Canada, because of tariffs that have been imposed by our largest trading partner.

I started off by talking about Canada's foreign policy, and I said that the story of these tariffs is about a failed Liberal foreign policy and a failed Liberal trade policy. I mentioned the fact that The Conservatives left our trade relationships around the world in excellent shape. I could call any of my counterparts around the world and say that we have a trade irritant, a trade problem we need to resolve, and, invariably, we could get those issues resolved. Today, no matter where we look, it is a disaster. It is a wasteland of broken trade relationships and burned bridges.

We talked about China earlier. Can the Prime Minister even pick up the phone and call the President of China to try to address the issue of the two Canadians who are held there? He cannot even get him on the phone. Our foreign affairs minister cannot get the Chinese on the phone.

If we look at the Philippines, can the Prime Minister travel to the Philippines today, after sending it garbage and not taking it back on time? If we look at India, do members remember the disaster with the India relationship because our Prime Minister travelled there? We have no diplomatic relationship with Saudi Arabia at all. It is a wasteland of trade relationships.

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June 6th, 2019 / 1:55 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I rise on a point of order. It was Stephen Harper's garbage that went to the Philippines. We are the government that cleaned it up.

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June 6th, 2019 / 1:55 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

Order. The debate will continue with the hon. member for Abbotsford, who will have five minutes and 34 seconds when we come back, and we can come back to a fresh Parliament.