Bill C-13 (Historical)

An Act to amend the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act, 1999, the Pest Control Products Act and the Canada Consumer Product Safety Act and to make related amendments to another Act

This enactment enables Canada to implement the Agreement on Trade Facilitation, which was done at Geneva by members of the World Trade Organization, including Canada, on November 27, 2014, as an amendment to Annex 1A of the Marrakesh Agreement Establishing the World Trade Organization.
It amends the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act, 1999, the Pest Control Products Act and the Canada Consumer Product Safety Act, to bring them into conformity with Canada’s obligations under the Agreement on Trade Facilitation.
It also makes related amendments to another Act.

Food and Drugs Act

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, the riding of Sarnia—Lambton is a border community, so we have seen benefits from the North American Free Trade Agreement. About 40% of the trade in Canada is there. I guess we are also a port city. We are really looking forward to seeing the TPP and the agreement with the European countries signed. It seems to be taking a long time.

I am happy this bill is coming forward at this time, and I would like to see the pace picked up on the ratification.

With all of his years of experience in the House, could the member say what he thinks Canada should be doing to encourage a faster signing of all these deals?

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

Mr. Speaker, when I first came to Parliament, I went to Doha for a WTO meeting, called the Doha Round. There was a huge number of countries in the WTO. This was going to be the agreement that would open up trade around the world. Unfortunately, all of that optimism slowly dissipated as more and more protectionism came from these countries.

The member has very rightly pointed out that the opening up of the markets and of free trade routes is one of the ways that not only Canada prospers, but everybody in the world prospers. If we look back at history, when there was free trade all around the world, there was a massive income increase. When the protectionism comes, then the whole world economy goes down and everybody suffers.

Taking that into account, it is a good thing to ratify this.

[The Deputy Speaker, Conservative, Bruce Stanton]

Order. It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Calgary Shepard, Taxation; the hon. member for Vancouver Kingsway, Health; the hon. member for Timmins—James Bay, Indigenous Affairs.

Resuming debate, the hon. member for Selkirk—Interlake—Eastman.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, it is a pleasure to speak to Bill C-13. I will not read the entire name of the act because it would amend a number of different acts, but we are referring to it as a trade facilitation agreement.

This is an agreement that was concluded by the previous Conservative government, and one that really would go a long way to helping out our small and medium-sized enterprises, those business where the owners have always been apprehensive about engaging in exports because of all the hassles they experience dealing with customs officers, brokerage agencies, and trying to get their goods across the border.

However, this TFA, the trade facilitation agreement, would greatly simplify all customs procedures. It would cut through the red tape that so many businesses experience at the border. It would expedite the release and clearance of goods. Often we see goods get caught up in storage. If they are dealing with food products that have an expiration date, we have to ensure that these goods, especially fresh meats and fresh vegetables and fruits, get over those borders quicker. As well, we want to ensure that those imports that so many of our businesses rely on are not getting tied up in that bureaucratic red tape at the border. Essentially, this whole process would make international trade for all Canadians, specifically for our small and medium-sized enterprises, much more predictable.

We have to always remember that when the Conservatives were a government, we worked very strenuously to reduce red tape for all businesses right across the board. Bill C-13, which was negotiated by the previous Conservative government, really would go a long way in cutting back that red tape that is unfairly burdening our businesses and small enterprises, often the family-run operations, with extra paperwork and processes. Business owners do not have the time, energy, or staff to make that happen.

It is interesting to note that this was a WTO commitment. As any of us who have been involved in trade know, negotiations and dealings at the World Trade Organization are extremely slow. We often think about the wheels turning very slowly on things in Ottawa, but nothing moves slower than what we see at the WTO.

This negotiation started back in 2004, and only concluded in December 2013. It took nine years to negotiate. Those of us who were around when the Doha Round started to try to advance the WTO and expand the number of products that were going to be covered through trade under WTO, the number of countries that were going to be in the WTO, and how much tariff rate barriers were going to be reduced are glad to see that this is one part of the WTO that has successfully reached a conclusion. It is imperative upon all member states of the WTO to ratify these agreements.

It would come into force as soon as two-thirds of all the member states of WTO have signed on to the FTA. Currently, my understanding is that about 81 have signed on. It means that Canada and so many other countries need to get this ratified as quickly as possible. Back in May 2015, as a government, the member for Abbotsford, when he was minister of trade, tabled this document in the House to start this process.

Two main issues are addressed in this trade facilitation agreement: article 10.8, which deals with the treatment of goods rejected on account of their failure to meet certain health and other technical requirements; and article 11.8, which would prohibit the application of technical regulations to goods moving through a WTO member's territory from a point outside its territory to another foreign point. Therefore, these are goods in transit.

This would not impact on Canada's ability to protect the health and safety of our consumers. The goods that Canadians receive, especially food products, would still live up to our high phytosanitary and health standards. It would also not impact on how any of these goods have any impact on our environment.

As I said, this is the first time we have actually seen the WTO agreement reach any ratification level in 20 years. What we are seeing is that this would increase global merchandise anywhere from $750 billion to $1 trillion. Developed economies would see a growth of $310 billion to $580 billion per year. World export growth would increase 2.7%; that is 21 million jobs that could be produced around the world. We would like to see some of those jobs created in Canada.

We talk about trying to get through some very difficult times in our economy. As we see the energy sector continue to struggle in western Canada, as we continue to experience a sluggish economy across the country and jobs continually being shed, from one end of this country to the other, under the current government, we need to have something that gives clear direction and stimulus to the economy. One way we can do that is by approving the TFA. The other thing we can do is approve the trans-Pacific partnership, the TPP.

I am so proud of our record as the previous Conservative government. We signed trade deals with more than 46 countries. Compare that to the Liberal record, which is three countries. Now the Liberals are signing on to the Canada-Ukraine free trade agreement. Of course, that was negotiated by our previous government. They have an opportunity to finalize the regulatory and legislative processes to put the trans-Pacific partnership in place.

I am concerned, from what we are hearing in the opposition benches, that the government has a wait-and-see attitude when it comes to the TPP. All members of the trans-Pacific partnership are part of the WTO and are part of the TFA we are talking about, the trade facilitation agreement. The key point on TPP is that rather than wait and see what happens in the U.S. elections, we need to be more aggressive and move forward.

We are talking about major gains. The Chief Economist of Canada released a report just last week that said that if we are part of it, Canada's gains in GDP will be $4.3 billion a year. If we are not part of the TPP, our losses will be $5.3 billion a year. These are big numbers.

Again, we want to grow the economy. As Conservatives, we want to see more Canadians employed. If the United States, because both candidates for president seem to be anti-trade in their rhetoric at this moment in the election cycle, does not sign on to the TPP, it actually presents a greater opportunity for Canadian farmers, Canadian manufacturers, and Canadian exporters to grab a greater share. The potential to grow would be beyond $4.3 billion.

In my riding of Selkirk—Interlake—Eastman, beef production is by far the main economic stimulator. Hog production is as well. If we do not have access to those trans-Pacific partnership countries, we will see a major decline. Estimates by the Chief Economist himself are that beef exports could drop by two-thirds. That will be a real stab in the back for all Canadian farmers, from one end of this country to the other, but especially in western Canada. We need an opportunity, and this is the opportunity, to grow jobs and expand our economy.

If the United States becomes more protectionist because of the current nominees for president, it presents a greater opportunity for Canada in the TPP, the WTO, and other trade agreements.

I urge the Liberals to ratify the Conservative- negotiated trans-Pacific partnership. I urge them to make sure that we get Bill C-13 passed and that we continue to stand up for all of our export-based industries. If we truly believe that we are a trading nation, we have to support them by reducing tariffs and red tape. Bill C-13 does that, and so does the trans-Pacific partnership. The Liberals should get on side and get the TPP passed immediately.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Speaker, it is clear that we agree on many things in this debate. Obviously, every party is agreeing on Bill C-13. I also think we agree that free trade is good, but it has to be fair trade.

I appreciate the hon. member's comments in regard to the TPP.

I have the good fortune of sitting on the international trade committee. What we are doing is listening to Canadians. We have listened to a lot of Canadians, and there are a lot of Canadians who really want this ratified quickly, but there are just as many Canadians who have some concerns about it. We are trying to find that balance. However that plays out, it will play out, but I think we all know that if the U.S. does not ratify it, the deal will not be there.

I spoke with many food processors and hog producers from the hon. member's province, and they are excited, actually. One of the markets they are very excited about is Vietnam, because there is a growing middle class there, and they enjoy pork products, especially Canadian pork products.

I am wondering if the hon. member would be willing to work with our government, in light of the TPP not happening, in perhaps getting some unilateral trade agreements with countries like Vietnam and Japan to get those great goods to markets and create jobs here in Canada.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, as we just heard the member say, the TPP may not be signed. The Americans may not sign it, but that does not kill the deal. I do not think the Americans will sit on the sidelines forever after the election, if all the other member states move forward.

It is important to note that if the United States decides to become more protectionist and does not sign the TPP, it is highly likely that it will also try to renegotiate NAFTA. If that is the case, if it is going to turn into a protectionist, navel-gazing country, as we have seen from the two presidential nominees, we need to find alternative markets. That is why the TPP is so important.

The member mentioned Vietnam. Hog producers and cattle producers see the opportunities that exist in Malaysia, Vietnam, Korea, and especially Japan, which has some of the highest tariff rate quotas in the world. If we are going to reduce those tariffs and all those costs, we have to get on side and sign the TPP.

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, there are a few things I would like to correct in the member's speech. When he mentioned the chief economist and the report that came out about a week and a half ago, he said that there would be $4.3 billion over one year. The $4.3 billion that was mentioned would be over 24 years, and $4.3 billion is the amount the previous Conservative government, which included the member, actually negotiated as compensation for our supply management sector. Essentially, it is a wash. We would see no benefit at all, according to our chief economist and these numbers, from the trans-Pacific partnership.

While we know that beef and pork would see the benefits of trade with Japan, would the member not agree that we should pursue the bilateral agreements we were previously doing before we entered into the trans-Pacific partnership so that those sectors could see the benefits of that trade?

Ultimately, I want to speak to his piece about our getting in. He said that it is important that we get in so that we have preferential market access. That is absolutely not true. There is a certification process that takes place after ratification by our Parliament, and all the cards are held by the U.S. The U.S. is not going to enter into an agreement where Canada has preferential access to those markets before it does.

Was the member aware of the certification process and the fact that ultimately, whether we ratify it or not, the U.S. holds all the cards in this deal?

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, she is partially correct about the $4.3 billion. It is an annual increase by 2040, because we have to slowly reduce those tariffs. There is a timed phase-in as tariffs are reduced and eliminated. However, it does result in a huge increase.

We can sit here and argue about the small print, but the reality is that if we are not at the table, if we are not signing this deal, we are not going to have the opportunity to access all those markets.

The U.S. does not hold every card in its pocket. It may decide to walk away. If it walks away, the certification process changes. The member states that are there will still have the opportunity to move ahead with this deal.

Because it would vacate its opportunity to have preferential access to those markets, the U.S. will ultimately want to stay in when reason sets in for the presidential nominees as the selection cycle matures and Americans make their choice in November.

We need to understand that we should be leading on this, not following the United States. Right now we are distracted by politics and very ramped up, torqued rhetoric.

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

Mr. Speaker, thank you for the opportunity to address the House of Commons today to discuss Bill C-13, an act that would allow Canada to implement the trade facilitation agreement.

Trade is an incredibly important tool for growing the Canadian economy and economies throughout the world. Its benefits to our economy are vast. It has helped put Canada on the strong economic footing we have enjoyed for the last few years.

Trade deals are designed to enhance businesses to allow them to be competitive and productive and to deliver goods around the world in an environment that is less encumbered by trade barriers. A trade deal is a tool by which governments can deliver new hope and opportunity to Canadians. Trade provides businesses with new clients, people with new products, consumers with cheaper goods through more competition, governments with closer ties, developing countries with greater economic growth, and developed countries with greater economic security.

It is no wonder that I will be supporting the trade facilitation agreement today, which seeks to reduce barriers to trade throughout the world.

Why is this so important for the Canadian economy? Let me describe the state of the economy today. Manufacturing has been consistently contracting this year. According to StatsCan, there are more than 40,000 fewer Canadians employed in manufacturing today than there were last year. That means that there are over 40,000 families that have lost economic means due to the sharp reduction in manufacturing employment, 40,000 families that are finding it difficult to send their children to post-secondary education, 40,000 families that are finding it difficult to pay a mortgage or rent, and 40,000 families that may even be finding it difficult to put food on the table.

What new hope or opportunity is the government offering? It is not a plan for economic growth, not a plan to create jobs, and not a plan for Canadians to be personally responsible. The only focus of the government is bigger government and more reliance on the government.

This brings me to the trade facilitation agreement that seeks to reduce barriers, increase the speed and ease at which goods can be moved through and to jurisdictions, and essentially to reduce government intervention and the size of government in the trade of goods between jurisdictions and through jurisdictions.

While the trade facilitation agreement is designed to increase competition and access to markets around the world, the current government is making our manufacturers and businesses less competitive.

When Canadian manufacturers are less competitive against businesses internationally, our economy sheds manufacturing jobs, and we end up with more unemployed folks right here in Canada. There is no strategy to create jobs in Canada from the Liberal government. In fact, I would argue that there is nothing but a Liberal unemployment strategy.

What is it that the government is doing to breed a less competitive Canada and to ensure increased unemployment?

I spent the summer travelling our country and conducting economic round tables, touring manufacturing plants, visiting new small businesses, finding out the state of the sharing economy, and determining how to create more jobs for those who are not working. Number one at every single round table was the need for freer and more free trade.

In no particular order, I would like to outline the concerns I heard about what is happening domestically here in Canada.

The Liberal government's failure to lower taxes on Canadian small business and entrepreneurs, after promising to lower them from 11% to 9%, is hurting.

The Liberal government would be carbon taxing the provincial carbon tax, without providing any concrete information so businesses can start planning for costs and people can budget these costs into their home budgets.

The Liberal government would be introducing payroll taxes and increasing the costs for employers and employees by as much as $2,000 a year.

Finally, Liberals have failed to waive EI contributions for one year with the hiring of young people between the ages of 18 and 24. To quote the Liberal platform, what was said was:

to encourage compa2nies to hire young Canadians for permanent positions, we will also offer a 12-month break on Employment Insurance premiums. We will waive employer premiums for all those between the ages of 18 and 24 who are hired into a permanent position in 2016, 2017, or 2018.

While it is understood that small businesses gain substantial benefits from trade, as we can see, small businesses and their opportunities are being damaged by Liberal government policies that are stifling our Canadian competitive advantage in the world.

In fact, the policies of the Liberal government are damaging businesses so much that last month alone 39,000 self-employed workers went home. To repeat: 39,000 small businesses closed their doors and are no longer in operation in the month of August alone.

I know from the riding I represent, Barrie—Springwater—Oro-Medonte, that we are feeling the pain. Our economy is built around manufacturing, agriculture, and small business jobs that will benefit from the trade facilitation agreement and greater trade opportunities overall. However, these self-employed workers are being negatively affected by the high tax practices of the current Liberal government. Since the Liberals assumed government, our unemployment rate in the greater Barrie area has soared from 6.1% to 8.7%. Specifically, the increase in payroll taxes, the proposed provincial carbon taxes, the removal of the hiring tax credit, and effectively increasing taxes on Canadian small businesses from 9% to 10.5% are all measures that are creating dismal job results to date and the the worst economic data since the great recession.

While manufacturing employees and self-employed workers have been so negatively impacted by Liberal government policies, the resource sector has and will feel the effects of these taxes as well. This is a sector that has lost over 100,000 jobs since the drop in the oil price. While the government is continuing with the former Conservative government's approach to the trade facilitation agreement, it is also adding pain to these through the high tax, no pipeline approval policies that we have witnessed to date.

Freer trade is designed to open up access to economic growth for the future. There is no group that better embodies our collective future than our young people and our youth. Unfortunately, these domestic policies are once again constricting our youth despite the many commitments made to us by the Prime Minister during the last election.

While the Prime Minister promised an increase in $300 million for youth employment, he also promised 40,000 jobs for youth each and every year for the next three years. Unfortunately, the reality of the government's domestic policies is again showing itself, but this time among the youth of our country. The August job numbers show that there were 48,000 fewer jobs for young people this summer, not the 40,000 job increase that was promised for youth.

While the Liberal government continues with our previous government's work on the trade facilitation agreement, its domestic policies are driving people out of work and to unemployment. Instead of following through with waiving EI contributions for the hiring of our young people, the government turned its back on youth and left them in the unemployment line with an unemployment rate of 13%.

When all is said and done on this topic, I do support freer trade, the reduction of tariffs and other barriers, and government interventions that stifle opportunity. I stand in support of this legislation because it would create greater opportunity not only for Canadians but also for many developing countries around the world. What I cannot do is pretend that this by itself would help unemployed Canadians find jobs. The government needs to stop raising tax after tax, running away from promise after promise, and finally develop a strategy for growing our economy and putting unemployed Canadians back to work.

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

Mr. Speaker, I am pleased to be back in the House, to see my colleagues again, to develop legislation, and to analyze various policies.

I found my colleague's speech interesting. He certainly told us all about what the Conservatives did. However, there were a lot of mistakes in his speech, particularly with regard to the investments the government has made since it took office.

The government has committed to investing a historic $120 billion in infrastructure, a very impressive figure. Investments in youth, families, and children are also quite impressive. People are still talking about them. He forgot to mention all of these points.

The question I would like to ask him is this: since his government was supposedly such a proponent of world trade, why was Canada one of only four G20 countries to ratify this agreement? Why did the new government move forward with this bill so quickly? The Conservatives were in power for 10 years and they did not do it.

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

Mr. Speaker, as Conservatives, we are happy that the government is continuing our work on this file. We are obviously supporting this moving forward. However, there are certainly many pieces of our economy that are hurting right now. We also believe that we should be focusing on our unemployed workers in western Canada who have felt the results of the drop in oil prices, and the unemployed workers in Ontario who have felt the results of a manufacturing sector that is being hurt badly. Quite frankly, our youth who bought into, believed, and invested in the promises that were made to them need to be taken care of as well.

Unfortunately, by the government's backing off of on its promised tax reductions for small business and its walking away from and breaking promises to our youth, in particular on providing benefits to businesses to hire youth, we are in a very bad job environment.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, the New Democrats are supporting this bill at this stage in principle and look forward to studying its impact in detail at committee. However, one of the things this bill does is facilitates the transit of goods through Canada that may or may not conform with Canadian law, such as health care products and pesticides.

I wonder if my hon. colleague has any comment to share. As far as the New Democrats are concerned, while we all want to facilitate trade, we want to ensure that we do not allow Canada to be used as a conduit to ship goods that may be environmentally dangerous or dangerous to the health and safety of workers, or products derived from endangered species. Does he have any concern with respect to that or will he join will the New Democrats in making sure that this bill does not have that unintended consequence?

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

Mr. Speaker, we will work with the government and the House to ensure that Canadians are protected. That is what this bill does. It provides for our regulations and standards to exist when goods are being shipped to Canadians. We will continue to support that going forward.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I thank my hon. colleague for a great speech and for highlighting the importance of trade agreements and the impact they can have on job creation.

I was just in Atlantic Canada and heard from my friends there the importance of these kinds of trade agreements. They told me that they could sell their lobster for $10 a pound here, but with the TPP could get $100 a pound from various other countries in the world. I want to encourage that and I wonder what the member has to say on it.

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

Mr. Speaker, as Conservatives, we are certainly for opening up new markets, finding new places to send our goods, and putting Canadians back to work. That is something that we need to have the government move on, and hopefully it will do so very soon.