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

[Majid Jowhari, Liberal, Richmond Hill, ON]

Mr. Speaker, I will be splitting my time with the member for Laurentides—Labelle.

Mr. Speaker, I am pleased to have the opportunity to speak today about Bill C-13, the legislation that would allow Canada to implement the World Trade Organization agreement on trade facilitation, otherwise known as TFA.

As members may know, the TFA is the first multilateral trade agreement finalized since the establishment of the World Trade Organization, in 1995. It is truly a landmark achievement. The TFA focuses on streamlining, harmonizing, and modernizing customs procedures. It has enormous potential for reducing trade costs and time, particularly in developing and the least-developed countries. In fact, the WTO estimates that full TFA implementation has the potential to increase global merchandise exports by up to $1 trillion, and it could reduce global trade costs by an average of over 14%. In the event that not all WTO members fully implement the TFA, the real-world impact will be significant.

Domestically, implementation of the TFA will provide Canada with the unique opportunity to promote inclusive growth. It will do this by making cross-border trade easier for businesses of all sizes, particularly SMEs.

I would like to speak today about some of the legislative amendments that are required for Canada to join the ranks of 92 other World Trade Organization members, including the EU, the U.S., and China, which have already ratified the TFA.

While Canada's customs regime is compliant with the vast majority of the provisions in the TFA, certain statutes require amendments for Canada to fully implement the TFA and to maintain safeguards for the health and safety of Canadians and our environment. These amendments relate to two provisions of the TFA: article 10.8.1, rejected goods, and article 11.8, goods in transit.

Today I would like to talk about amendments related to article 11.8 on goods in transit.

Article 11.8 prohibits the application of technical regulations to goods moving through a WTO member's territory from a point outside its territory to another foreign point, which are known as “goods in transit”. This provision will allow foreign goods to move through Canada—for example, from Europe to the United States—without complying with our technical regulations.

The transit through Canada of some goods, such as pharmaceutical drugs, cleaning products, and pesticides, which do not comply with the technical regulations, is currently prohibited by certain federal statutes: the Food and Drugs Act, the Pest Control Products Act, the Radiation Emitting Devices Act, and the Canadian Environmental Protection Act, 1999.

While most importers are aware of the prohibitions on the transit of unregistered or unauthorized products, from time to time companies request one-off permission to transit such products through Canada. Such activities are expressly prohibited by legislative or regulatory requirements and are routinely denied.

Preventing products that do not comply with technical regulations from transiting through Canada can be considered a trade barrier. This is because the health and safety of Canadians and the environment can, in fact, be protected in an equally effective, less trade-restrictive manner.

The legislative amendments proposed in the bill would specify that Canada's technical regulations would not apply to goods in transit through Canada as long as certain requirements for protecting health, safety, and the environment were met.

More specifically, Bill C-13 includes requirements designated to mitigate the risk that certain goods in transit could be diverted in the Canadian market or compromise the health and safety of Canadians, or the environment as a result of accidents or spills. For example, labelling requirements for certain goods in transit will enable inspectors, border officers, handlers, and sellers to distinguish between goods destined for import and those just passing through. Such labelling could denote the origin, intended destination, and product safety and handling procedure for goods in transit.

By implementing the proposed amendments to the Food and Drugs Act, the Pest Control Products Act, the Radiation Emitting Device Act, and the Canadian Environmental Protection Act, 1999, Canada would improve the flow of goods and services to its border.

The world is more connected than ever before, yet all too often outdated and uncoordinated customs procedures slow down the movement of goods and raise trade costs. Bill C-13 would enable Canada to facilitate custom procedures at home. The TFA will do the same around the world and bring considerable economic benefits to Canada and other World Trade Organization members.

I support Bill C-13 and all the benefits it would bring to Canadians. More specifically, I support it because it would benefit the many small and medium enterprises in my riding of Richmond Hill, such as those in the construction industry, manufacturing, pharmaceuticals, service delivery, agriculture, transport, and others.

Although it is a small suburban town, Richmond Hill has huge export and import potential and the residents of Richmond Hill can stand to benefit significantly from the removal of these trade barriers.

I urge hon. members to support this legislation, which would enable Canada to do its part to bring the agreement into force and ensure the health and safety of Canadians and the continued protection of the environment.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, as the member knows, members of the Conservative Party support this legislation as well. It is important and we need to move forward on it.

We are at a critical time internationally, when there are many voices criticizing the idea of open trade and an open economy. Now would be a good time for the government to make up its mind on critical trade deals like the trans-Pacific partnership. We have no leadership from the government on that. People know where the Conservatives stand. People know where New Democrats stand on this trade deal. The Liberals have been in office for close to a year and have continually been punting on this important deal. They refuse to take a position and show any leadership.

Consultations have gone on. It has been a long time. The government has had plenty of time to become familiar with the deal. What is that member's position on the trans-Pacific partnership? When will the government finally decide whether it is going to speak for the idea of open trade or not?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Mr. Speaker, I am glad that he and his party are supporting Bill C-13.

On the matter of the TPP, as our government has stated and clearly demonstrated, we continually conduct consultations, and a report on those consultations will be provided. We have clearly stated that this bill or agreement needs to be shared, discussed, analyzed, and its impact on all sectors made clear. We made a commitment to do that and we continue to do that.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

Before moving on to the next question, I would remind hon. members not to address one another directly, but to do so through the chair.

The hon. member for Essex.

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, something the member brought up in his speech this afternoon is of particular interest to me, that being the CBSA. Amazing women and men work for the Canada Border Services Agency. They protect our borders and are on the front lines of facilitating trade while enforcing regulations and keeping our country safe. They have an incredibly difficult and challenging job and I thank them for the job they do.

That said, it is clear that they bear the majority of responsibility for imports and exports, as they should, but the agency is severely under-staffed. The agency needs more men and women at the border to be able to prevent the importation of things like diafiltered milk, and the issue we are having around that in particular. When we are talking about expanding the dangerous goods that will be travelling through our country, we need to ensure that the CBSA has all of the tools it needs to be able to do so safely, as the member mentioned in his speech.

Do you believe that the CBSA requires additional support to make our borders more efficient and secure?

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

Before the hon. member for Richmond Hill answers, I am sure the hon. member for Essex did not mean the Speaker, because she was speaking through the Speaker. She did not mean “you”, meaning me. She meant the hon. member for Richmond Hill. I want him to take that into account when he answers that question.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Mr. Speaker, as we know, the budget cut by the Conservative government put us in the position we are in. Having said that, our commitment to Bill C-13 is to bring the visibility and oversight that is needed. Actually, we are dealing with the process first. Once the legislation is in place and there is an alignment with the other 92 members, we will take it into consideration for the 2017 budget to ensure that those legislative amendments are supported with the proper resources.

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, I am pleased to have the opportunity to speak today about Bill C-13, legislation that would allow Canada to implement the WTO agreement on trade facilitation, otherwise known as the TFA.

As members may know, Canada played a key role in the negotiation of the TFA at the WTO.

The TFA would enhance the predictability and transparency of customs decisions for traders; expedite the release of goods through the use of modern technologies, such as electronic payment; and increase the efficiency of customs procedures through improved coordination between border agencies. Canada ensured that the TFA would provide a full range of trade facilitation measures while preserving our ability to protect the health and safety of Canadians and the environment.

Today I would like to speak about some of the legislative amendments that are required for Canada to join the ranks of 92 other WTO members, including the EU, the U.S., and China, that have ratified the TFA. The TFA will enter into force once two-thirds of WTO members, or 110 out of 164 WTO members, have ratified it. Canada needs to do its part to make this happen.

While Canada's customs regime is compliant with the vast majority of provisions in the TFA, certain statutes require amendments in order for Canada to fully implement the TFA and maintain safeguards for the health and safety of Canadians and the environment. These amendments relate to two provisions of the TFA: article 10.8.1, on rejected goods; and article 11.8, on goods in transit, which my colleague addressed.

Today I would like to talk about the amendments required to implement article 10.8.1 on rejected goods. Article 10.8.1 requires WTO members to allow importers to return to the exporter goods that were rejected on account of their failure to meet certain health and other technical requirements unless another means of dealing with the rejected goods is provided for in that country's laws, such as seizure and disposal.

Governments that wish to retain the ability to treat goods other than by allowing their return will need to be able to point to specific provisions in their laws or regulations that provide the authority to do so.

To ensure that the Government of Canada's statutes and regulations comply with this provision while not increasing risk to the health and safety of Canadians and the environment, amendments to five statutes administered by Health Canada are required. Those statutes are the Canada Consumer Product Safety Act, the Food and Drugs Act, the Hazardous Products Act, the Pest Control Products Act, and the Radiation Emitting Devices Act. Specifically, Bill C-13 identifies criteria under which non-compliant goods could be either returned to the exporter, re-consigned, or seized, detained, forfeited, and/or disposed of by customs.

Bill C-13 would enable Health Canada to deal with seized goods more effectively and in a more harmonized way. What exactly does this mean? It means that non-compliant goods arriving at the border, goods such as drugs, medical devices, cosmetics, food, tanning equipment, children's toys, hazardous products, and pesticides, could be seized and not returned in certain cases. For example, when products pose unacceptable health and safety risks, they could be seized and not returned. In other cases, products could be returned or reconsigned.

These amendments would enhance predictability and transparency in how rejected goods were treated at the border and would help ensure that the health and safety of Canadians and the environment continued to be protected.

By making the proposed amendments, Canada will meet its international obligations under the TFA in respect of article 10.8.1 in dealing with the treatment of rejected non-compliant goods. Bill C-13 would also enable Canada to avoid having to maintain indefinite care and control of non-compliant goods. It would enable Canada to take action to recover costs and to avoid having to maintain indefinite control of non-compliant goods.

I support Bill C-13 and all the benefits it would bring to Canadians. I urge all hon. members to support this bill, which would enable Canada to do its part in bringing this agreement into force and in ensuring that the health and safety of Canadians and the environment remains protected.

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, I would like to touch a bit on what the member across the way talked about in terms of hazardous products and pest control products. It is important for us to understand that it is not just that these products travel safely; it is that communities are protected from any potential damage during transport. It is also that the people who work to transport these products across our country are protected and that their health and safety is ensured.

Because Bill C-13 would make some changes in how we would deal with goods in transit and with non-compliant goods, is the member confident that the changes in Bill C-13 would maintain existing health and safety standards for workers who might come into contact with these products?

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, that is a good question. I honestly do not know that detail. The member mentioned in her speech the importance of looking at this in committee. I expect that any concerns will be brought to light in that environment. Overall, the bill is well worthwhile and will protect the environment in the ways we need to do so.

[Alice Wong, Conservative, Richmond Centre, BC]

Mr. Speaker, I would like to thank the member opposite for this bill. We will probably support this, mainly because we all know that one in five jobs is created by trade. The Asia–Pacific gateway is in my riding of Richmond Centre in British Columbia, so trade is very important to my riding and also to British Columbia.

We support the bill because it would enable Canada to implement the trade facilitation agreement, the TFA, which was concluded under the previous Conservative government. Canadian investors, importers, and exporters of goods, including small and medium-sized businesses, the SMEs, which I have listened to, would benefit from the implementation of the TFA. Also the inactivity of many SMEs as players in international trade has more to do with red tape than with tariff barriers.

Will the Liberals adhere to the recent G7 leaders' declaration and the economic impact report by the Office of the Chief Economist and commit to ratifying the trans-Pacific partnership, independent of the United States?

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, I am always happy to hear that the Conservatives support one of our bills. The TPP is an issue that is still under consultation. My riding is certainly affected. There are a lot of exports coming from my riding, even though we are not anywhere near the border, and I will be following this very closely.

I appreciate the question. There is more to come.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, it is encouraging to hear that opposition parties seem to be in support and maybe we could even see it passed, given the comments we have heard. There are 162 countries in the World Trade Organization. Two-thirds need to pass the agreement for it to be ratified. We are getting closer to 108, which then would put it into place. I think just over 80 countries have already ratified it.

Could the member comment on how important it is that Canada ratify it as soon as it is most appropriate for the House to pass it?

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, it is obviously very important to pass this bill and ratify the agreement. We need 140 out of 184 countries to agree to it before it can move forward. Until it is ratified, it is up in the air. It is important that we pass this bill and get on with it.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

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 Nanaimo—Ladysmith, the Environment; the hon. member for Regina—Lewvan, Employment; the hon. member for Edmonton Strathcona, Rail Transportation.