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

[Bradley Trost, Conservative, Saskatoon—University, SK]

Mr. Speaker, it is my privilege to rise, and according to the clock, I will be taking us to question period.

I have to admit, I always enjoy talking about subjects involving trade. Frequently when we talk about issues in the House, they tend to be fairly specialized. Ironically Bill C-13 that we are talking about today is very specialized.

However, trade is one of those aspects, one of those things, that affect all of us in Canada. For a country approaching 40 million, it seems a bit odd to characterize it this way, but Canada is a small, open economy. We do a lot of trading. If we look at our history, this is how Canada really started and got going as a geographic, national entity with the fur trade pushing out, starting in New France, Quebec, and pushing through Rupert's Land through all of western Canada.

One thing that has been observed throughout the years is that people sometimes forget the obvious about trade. The same principles that involve individuals, one person to one person, actually apply to nations.

Trade works. I trade with the Government of Canada. It gives me a salary. I do a certain amount of work as a member of Parliament. I then go out and trade. I go to the grocery store. I give people at the grocery store a piece of paper, known as a $20 bill, and they give me some products back, perhaps milk, bread, pizza, or whatever. Those obvious interactions that we see in our day-to-day lives are the same basic principles that need to be applied as we go forward, as we look out to the entire world. The idea that I have something of which I have too much or that is not useful to me, pieces of paper, for example, dollar bills, money, and someone else has some food, etc., that idea works in both directions.

Trade is good. Economists have long recognized that free trade in an idealized state is the absolute best. Although for reasons of national security and other reasons like that, we may not always have pure and perfect free trade. We know that as far as economic conditions are concerned, the freer the trade, the better the conditions.

This brings us today to a bill known as Bill C-13. It has a fairly long name, talking about the various amendments it is bringing forward to a variety of acts. What it is really doing is helping us fulfill some of our agreements that we have as far as the trade facilitation agreement goes. It is a bit of a technical issue.

What it basically says and what we know is that, in the modern world, trade needs to have some sort of rules. For countries like Canada that operate under the rule of law, not just in theory but in practice, this is a good thing because there is so much information, so many different standards, and so many different products and ways to measure things, that it is difficult to understand. In the old days when we had a considerably less sophisticated economy, considerably fewer products, less product depreciation, and not quite international trade, rules were not so much necessary. However, now if we are going to trade something, be it electronics, be it herbicides, be it certain forms of foods, we need to understand what we are getting on both sides.

That is ultimately what the purpose of the legislation is. It is to help bring Canadian standards, in the few ways that they do not conform, into a way that other countries can understand, that we can work with, and that we can mutually benefit from.

It is interesting reading the background literature, and no other members have brought this forward. These technical standards, these technical issues, some exist just because different countries do things in different ways. Some, however, are used to deliberately discriminate and favour local businesses for political purposes. However, these technical issues, these matters of interpretation and understanding of how to trade across borders are actually more costly than the standard tariff barriers that we often think about. These are often they key issues when it comes to trade negotiations between countries, so it is very important that we get these right. Again, this benefits Canadians.

When we have these debates and when we talk about free trade, I admire and I listen to the good stories of my colleagues who talk about the small businesses, the medium-sized enterprises who are held up by these barriers. However, the one thing I always listen for and I do not usually hear it, sometimes I do, is how this benefits consumers, because each and every Canadian is a consumer, every day. We do not always know where our products come from, but of course, we are happy and proud when a product is made somewhere close to home.

I love to buy things made in Saskatchewan. I am from Saskatoon, so that is quite natural. However, if we can get better quality products by trading something we have that is superior to something they have that is superior, this is a win-win. We need to remember this whenever we engage in a trade negotiation.

The more efficient we can make the system, the better we can make the trade rules, the more the consumers win. This needs to be emphasized over and over again. Canadians need to export but when we export, we will import more. If we import more, that will help our consumers. Therefore, both exports are a win and imports are a win for Canadian consumers.

This also brings me now to the next thing which has been talked about today. This legislation does not deal directly with the trans-Pacific partnership trade deal, but is somewhat viewed as a—

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am honoured to rise in the House today to discuss Bill C-13, which would enable Canada to ratify the World Trade Organization's agreement on trade facilitation, the TFA.

The main purpose of the TFA is to update and simplify customs procedures, primarily as regards non-compliant goods and goods in transit. I think it is very important to talk about this issue, which will also be good for small and medium-sized exporters in the greater Drummond area.

People tend to see political parties in terms of stereotypes. Many people think the NDP is against all international agreements, which is not at all the case. We are in favour of fair international agreements that respect workers' health and rights as well as social aspects, the environment and the health of the planet, all of which are extremely important.

That is why we encourage trade that can be conducted through WTO agreements, for instance, but also why we are totally against the trans-Pacific partnership, or TPP. It is not a free trade agreement per se. Rather, it is an agreement on the rights of investors disguised as a trade agreement. I will come back to that point a little later. It is really troubling. It is worth noting that this agreement could cost us up to 60,000 good Canadian jobs, with only a negligible impact on economic growth.

The NDP has long been the champion of small business. During the 2006 and 2008 election campaigns, I helped the NDP candidate. I came back in 2011 and 2015, and every time, the main economic theme was small business. Small and medium-sized businesses are the largest job creators in the country. They are really important. We must support them, encourage them, and do everything in our power to improve their situation. Facilitating international trade and exports is very beneficial to the small businesses in my region, greater Drummond.

On that subject, I have here an article from La Presse Affaires of May 4, 2015, explaining the importance of SMEs in the greater Drummond area. The article is called “Drummondville, the industrial oasis along the 20”. The 20 refers to highway 20. In it, the economic power of SMEs in the beautiful Drummond region is described as an industrial oasis. In our region, we are very proud of the economic diversification that we have managed to achieve over the years.

I would like to read the first paragraph of the article.

Drummondville definitely continues to amaze us. Last year, the most vibrant region in Quebec had a record $220 million in new industrial investments, which led to the creation of 1,069 jobs, which is also a record.

When we pool our resources to encourage SMEs and to promote economic diversification, we can succeed, just like Drummondville. We really have to commend the work of the Société de développement économique de Drummondville, the SDED, and successive municipal councils, which did an excellent job. Martin Dupont, SDED's executive director, said, “Almost 30 years ago we took a chance on SMEs and diversification, and it paid off.”

I could give several examples of why Drummondville is an industrial oasis in Quebec and Canada. It is home to the biggest business incubator in Canada, which is quite something. In fact, that business incubator expanded again recently. That is a testament to the strength of entrepreneurship in our region. It is extremely important.

We are going to support Bill C-13, despite our concerns regarding goods in transit that are hazardous or prohibited in Canada. They may be accepted, but they will have to be checked. If the bill is passed at second reading, we will have to do everything in our power in committee to protect the health and safety of those working in proximity to these goods in transit.

The NDP wants to facilitate economic trade for our SMEs, foster economic diversification, and promote the entrepreneurship and competitiveness of the small and medium-sized businesses in the greater Drummond area that we are so proud of. There is a reason why a journalist referred to us as an industrial oasis. However, we also want to ensure that we do this through agreements that are good for Canada and that will not be harmful to Canadians.

Unfortunately, the agreement that is going to hurt Canadians is the TPP. Nobel Prize winning economist Joseph Stiglitz called the TPP “the worst trade agreement ever”. Obviously, neither the Conservative government nor the new Liberal government did their homework. This agreement will be disastrous for supply management, which Quebec is fighting tooth and nail for.

This summer, I visited all of the rural municipalities in my riding, and I saw the members for Berthier—Maskinongé, Rimouski-Neigette—Témiscouata—Les Basques, and Saint-Hyacinthe—Bagot. We talked to hundreds of farmers from all over central Quebec to find out which issues are important to them. They told us that protecting supply management is extremely important, as is staying away from agreements like the TPP, which will hurt our economy and the agri-food industry in Quebec and Canada. People told us that we all have to work very hard on this.

Another problem farmers brought up was diafiltered milk. The Liberal government has to get moving on this issue. It has not yet dealt with the situation, and that is horrible. Hundreds of the people we met while visiting the 18 municipalities in my riding told us they are worried about the price of milk, which is determined to a significant extent by diafiltered milk entering the country illegally. Unfortunately, the Liberal government has so far failed to step up on this issue, and that is really disappointing.

In conclusion, we are in favour of free trade agreements when they benefit Canadians, promote a healthy environment and protect workers' rights. That is what really matters, and that is why I will continue to fight for greater Drummond's local economy and its SMEs.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, again, I will bring up the example of a medium-sized company in my riding.

The company was actually purchased from California and moved to Calgary, Canada, despite the economic downturn, specifically because the purchasers wanted to produce the product in Canada and export to different countries. They wanted that made-in-Canada Maple Leaf showing on the side of their products, because it is a sign of reliability, durability, and of a group of people who will stand up for their product. There is a warranty when one buys from a Canadian company.

In every single free trade agreement that we sign, there will be companies that will suffer and workers who may lose their jobs, because they are at a competitive disadvantage. However, every time we sign one of these agreements and ratify it, we gain from it. We gain new markets, new companies come about, and companies move around.

If we do not do this, if we do not sign onto agreements, specifically multilateral agreements, then we will be cut out of other countries' markets. This would affect our automotive industry, and especially industries that are integrated across the border, because they will have difficulties moving Canadian product to be part of the final product exported to another country.

The international scene moves. We cannot just be at a standstill and simply ignore the fact that free trade agreements, bilateral and multilateral agreements, are being signed all the time by other countries. We need to keep up, and this is a great way to do it. Bill C-13 is a great bill, and we should be supporting it.

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

Mr. Speaker, the member started by commenting on the Stephen Harper government and how the Conservatives were great at trade. I believe he said there were 46 trade agreements, to give the impression they have done a fantastic job in signing trade agreements.

However, we need to recognize that while the European Union agreement is with over 26 countries, it is just one agreement. Yes, it does affect many countries, but it is somewhat misleading. This deal has been off the tracks. If we check with some of the European countries, we will find out to what degree the current government is trying to resolve outstanding issues because the previous Conservative government did not get the job done.

The current Minister of International Trade and the Prime Minister got the job done in a trade deal with Ukraine. It was the president of Ukraine who stood in the House and challenged us to bring forward a trade agreement. I was there, as were other members. This is an initiative, and trade is important.

However, when the member looks at Bill C-13, the trade facilitation agreement was signed off on in 2013. The United States signed it and ratified it in January 2015. Why does the member believe that the Conservatives did not ratify it in a more timely fashion?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I am very pleased to join this debate on Bill C-13, the trade facilitation agreement. Of course it comes as no surprise that I am going to be supporting this piece of legislation, as technical as it as and as difficult as it was to read through it.

I think it gives us an opportunity to celebrate the good work of the previous minister of international trade, the member for Abbotsford, a friend on this side of the House, whose hard work on behalf of Canadians has borne fruit.

It was at the ninth WTO ministerial conference, as the previous member mentioned, in Bali in September 2013, that ministers adopted the Bali package, which included allowing developing countries more options for providing food security, boosting least-developed countries' (LDC) trade, and helping development more generally. The largest deliverable was streamlining customs procedures through the trade facilitation agreement, which is now before us, which we have a chance to debate, implement, and ratify.

The previous government not only made free trade a centrepiece of its economic agenda but also demonstrated that Canada can be ambitious and bold when it seeks to expand access to new markets for Canadians. Over a 10-year period, the Conservative government was able to negotiate free trade agreements with 46 different countries, bringing the total number of countries with which Canada has trade agreements to 51. That is 4.6 agreements per year.

The Liberal government, on the other hand, is coming close to one year in office, next month, and it has exactly zero. It has zero new agreements ratified and consented to by Her Majesty. I think that is quite the record for the first year of government. It has no record on free trade to call its own. In fact, a previous treaty that we implemented and that this House passed, Bill C-11, the Marrakesh treaty, was passed last session and was, again, the work of the previous government and is now implemented in legislation.

I am not complaining. I would like to see the government implement more legislation based on the good work of the previous government, especially on the free trade agenda. There are lots of legacy pieces there that should be implemented. Again, when the Parliamentary Secretary to the Minister of International Trade spoke on this bill originally, he said this would reinforce the government's strong record on trade; except there is no record of which to speak. It is the record of the previous Conservative government, and in fact, all the good ideas and all the hard work of the member for Abbotsford, who contributed more to Canada in terms of free trade agreements signed, negotiated, and ratified than any other member in maybe the last 50 years.

There is no record for the Liberal government to promote, reinforce, or strengthen here. This bill, though, does lay the foundation for the potential of a record. There is an opportunity. There are two more free trade agreements that the government could bring before the House so we could ratify them properly.

Like many good ideas, they started with the Conservatives and, I want to again mention, the member for Abbotsford who deserves high praise. Many of these agreements, many of these successes, are thanks to him and the work he did when he was a member of the government.

Bill C-13 is good news. We know that trade accounts for 60% of Canada's annual GDP and represents one in five Canadian jobs that are tied to export. Members of the WTO have ratified the TFA, like those mentioned before: the United States, the European Union, China, and Japan. They expect Canada to do the same without delay.

We know that 108 countries, two-thirds, have to complete the domestic ratification process. The sooner we do it, the better for Canadian investors, importers, and exporters of goods, including small and medium-sized businesses, which will benefit from the implementation of the TFA.

I want to highlight one business in my riding that would benefit from this agreement. This business is called Tundra Process Solutions. We know that in Alberta right now times are tough in the oil patch. Easily more than 100,000 jobs have been lost. That is direct jobs and does not even count the indirect jobs.

I was pleased today to join the member for Lakeland, when she was doing a press conference on her e-petition. It was very successful. She had an oil worker there from Grande Prairie, talking about the job losses he is seeing.

Tundra Process Solutions is one of those companies in the oil patch that is diversifying. It is a great Canadian story. It is in my riding. It has purchased a manufacturing company that builds equipment, from California, and actually moved it to Calgary. It is a manufacturing oil and gas company producing equipment that it is selling to the world today.

With this type of agreement today, it could export to new countries, bypassing some of these very complicated customs rules and tariff rules, as well as the paperwork, the red tape required for it to move its product to a willing buyer in another country. This is how it is going to make money. Its 25-plus workers who depend on export will be quite happy when the TFA is passed, because their jobs depend on finding new markets for the product they produce.

With the lowering of tariffs across the globe, the cost of complying with customs formalities has been reported to exceed, in many instances, the cost of duties to be paid. Trade costs are among the most fundamental factors shaping the evolution of trade.

We have to remember that we do not live in a static world. If Canada does not move forward with more free trade agreements, others will, and that, by definition, will start cutting us out of those markets. Therefore, we have no choice but to pursue a free trade agenda.

The TFA is critical for many parts of its legislative measures, and there are two of them specifically. I will mention one of them, but there are two important ones. Article 11.8, which the member for Louis-Saint-Laurent mentioned before in debate, 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 as a good in transit. This would affect Tundra Process Solutions Ltd., because it is moving equipment from country to country, some of which is being purchased and some of which is being leased. Oil and gas is an international business. Many companies are horizontally and vertically integrated and can move equipment around, so this is good news for them. This is measure is an excellent one to introduce.

I think of the government's financial agenda and the budget it proposed. This would have no financial implications for the Government of Canada. This would be paid for with current dollars.

To support the TFA's implementation, Canada, Germany, the U.K., and the U.S. provided support in December 2015 for the launch of the Global Alliance for Trade Facilitation. It is a fantastic idea. It is more good news from the previous government and more good work by the member for Abbotsford. This initiative was designed to assist developing countries to implement the TFA.

The UN Conference on Trade and Development estimates that the average customs transaction involves 20 to 30 different parties; 40 documents; 200 data elements, 30 of which are repeated at least 30 times, and the re-keying of 60% to 70% of all data at least once. In my previous life working for a chamber of commerce, I know that specific point is when errors begin to happen and costs begin to rise, because the errors have to be fixed but oftentimes can start to compound. Then there are regulatory problems and delays in the business. If this agreement could help to at least reduce these by 50%, it would be a huge change for Canadian businesses. Again, there are many technical and legislative benefits to the TFA.

I want to finish on the principle of the matter. Free trade at its core is about a willing buyer and a willing seller meeting and making a voluntary transaction. Its core is about freedom. As former Prime Minister Sir Wilfrid Laurier said, "Canada is free and freedom is its nationality."

The great debates in Canada were about reciprocity, reciprocity between provinces, and reciprocity with our closest trading partner the United States. That has been the fundamental part of what it means to be a Canadian. We have had a lot of trouble with internal trade between our provinces. We can all agree that we want new markets to send our products to, so they can see the maple leaf and the words, “Made in Canada”. I am proud of that when I see it overseas when I travel. Trade between people regardless of nation they live in is the ultimate proof of the nationality of freedom that Sir Wilfrid Laurier spoke about.

The economy does not need more stimulation or subsidies. What it needs is us to get out of the way and get rid of these laborious customs rules and the paperwork involved. That would provide more freedom for businesses owned and operated by Canadians. It is for Canadians. We can recapture that spirit of freedom that Sir Wilfrid Laurier encouraged.

Let us pass the TFA and move on to the true record of the government. It could ratify the Canada-European Union free trade agreement. It could ratify the trans-Pacific partnership agreement. It would have a record to speak about. It would have a legacy to speak of in 10 years. It would have something to look back on. It could say it was a government that promoted free trade.

Free trade has always been a part of this country. It was about reciprocity in a different generation. Today we talk about free trade. Sometimes we talk about fair trade, equitable trade, but it is about choice. It is about giving Canadians the choice on whom they choose to trade with, and with the least rules possible. Let us give Canadians the freedom to trade as they wish. Let us live up to Sir Wilfrid Laurier's call that “Canada is free and freedom is its nationality”. That quote appears in our new passport. It is in each so that every single Canadian can turn to the middle of the page and look at it right there. That encapsulates what Canada is all about. It is about the freedom to trade, the freedom to associate, the freedom to speak one's mind.

I cannot see anything better than ratifying this agreement and proceeding to ratifying the next agreements.

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

Mr. Speaker, I appreciate the member's comments. I do not necessarily agree with him. When I think of the World Trade Organization, I see it as a body of 160-plus countries around the world that came together in recognition of the value of trade. It is something on which our government has been fairly aggressive in following suit and making sure deals get done. We just signed off on a Ukraine trade deal. We can cite the many efforts of our Minister of International Trade. She has spent a great deal of time in the EU area trying to get that deal back on track.

The Conservatives continually make reference to the TPP. The Prime Minister made a commitment that we will be looking at it and consulting, and at some point in time there will be a debate on it.

When we think of the World Trade Organization, and Bill C-13 today, this is probably one of its greatest achievements. We need 108 countries to ratify, and I understand 91 have actually signed it. I wonder if the member could provide his thoughts on why this is important. Ratifying this would send a very strong message to the World Trade Organization for the efforts it put into the agreement.

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

Mr. Speaker, I would like to begin by welcoming all my colleagues on all sides of the House back from their summer. I hope they enjoyed it as much as I did. Like many of them, we attended fairs, we did farmers markets, we did parades, we met with constituents, and championed causes. I was very happy to visit all communities in my riding from Dorset and Cardiff in the north and northeast to Seagrave and Millbrook to the south, and many other towns in between. Like every other summer, I ate way too much Kawartha Dairy ice cream. I am looking forward to Thanksgiving when only the gravy and pie can make me feel less guilty about my summer indulgences.

However, today I am pleased to be back to speak to Bill C-13. The bill would implement the trade facilitation agreement concluded by our previous Conservative government at the World Trade Organization's ninth ministerial conference in Bali in December 2013. I hope the Liberal government will continue to build on this record of international trade.

Bill C-13 would create jobs and opportunities for Canadians. It would simplify customs procedures, reduce red tape, expedite the release and clearance of goods, reduce costs associated with processing, and make international trade more predictable for Canadians. It would help protect jobs, not only for Canadians but also in jurisdictions right around the world.

As we all know, Canada is a trading nation. We have a rich history in the development of trade. From the Hudson's Bay Company to our oil fields in Alberta, it has all contributed to the Canada that we know and love today.

The TFA will be the first multilateral trade agreement concluded since the WTO was established over 20 years ago. Once it enters into force, global merchandise exports are estimated to increase by $750 billion to $1 trillion per year. The exports of developed economies are estimated to increase by $310 billion to $580 billion per year. The overall boost to the world export growth is estimated to be up to 2.7% and 21 million jobs created. That is just shy of the population of Ontario and Quebec. However, these jobs will not just be in developed nations like Canada; they will be spread right across the globe. It is important that Canada act quickly on trade matters to show the world that Canada is open to the world for business.

The TFA will enter into force once two-thirds of WTO members have completed their domestic ratification process. Currently we sit at 81. We need 108 of those members. So far, those include EU, United States, and Japan. Since June 2016, the following nations have ratified the agreement: Madagascar, Senegal, Moldova, Saudi Arabia, Saint Kitts and Nevis, El Salvador, Honduras, Peru, Uruguay, and Mexico. That is just since June of this year. Many other nations have already ratified the agreement: India, China, Turkey, and New Zealand just to name a few.

As members can see, this would not benefit just one or two nations. Bill C-13 would benefit countries and people right across the globe, including people in our hometowns, and my hometowns of Bobcaygeon and Fenelon Falls. In fact, this agreement would reduce total trade costs by more than 14% for low-income countries, more than 15% for middle-income countries, and more than 13% for upper middle-income countries.

To quote the World Trade Report 2015:

The TFA is groundbreaking because it provides for assistance to developing and least-developed countries to help them implement the Agreement. The Trade Facilitation Agreement Facility, launched by the WTO in July 2014, is designed to help deliver this support to them.... WTO work on trade facilitation culminated in the adoption of the Trade Facilitation Agreement...at the WTO’s Ninth Ministerial Conference in Bali in December 2013. It is the first multilateral agreement since the establishment of the WTO in 1995.

We all know that Canada is a trading nation. We cannot afford to allow ourselves to be alienated. We cannot afford to exclude ourselves from these multinational agreements. Our refusal to be involved would put Canadians at a distinct disadvantage in international trade when compared to nations with bilateral or multilateral agreements. Our previous government knew this, which was why we were responsible for signing agreements across the globe. We understood the importance of trade, which was why we worked so hard to ensure that Canadians had access to large and growing markets. The TFA will introduce further rules and regulations that will level the playing field for Canadian businesses.

I want to take a minute to relate this back to my riding. My home riding, like many members' ridings, is filled with small and medium-sized businesses. There are many local businesses across Haliburton—Kawartha Lakes—Brock that would benefit from the TFA and other trade deals. These deals would allow farmers in Cannington, Kirkfield, and Bethany to export their products abroad and would give businesses like Kawartha Dairy a level playing field to expand and create opportunities for Canadians. We as parliamentarians need to ensure that Canadians are given the opportunity and ability. Agreements like the TFA and TPP would do just that.

I am pleased to see that the Liberal government introduced this bill. I hope to have that signed, and once it is done I hope the Liberals continue on other agreements, like the TPP, which I mention many times. As we all know, the TPP is an international trade agreement. It represents a market of almost 800 million potential customers, with a combined GDP of $29 trillion. It is projected that the TPP would boost Canada's GDP by $4.3 billion by 2040. Staying out of the TPP would likely lead to a reported $5.3 billion in GDP losses, according to the Global Affairs Canada website.

There is a very strong case to be made for ratification. The government needs to take action and ratify the TPP to ensure that hard-working Canadians have not only the opportunity but the ability to prosper as well. In Canada, one in five jobs are directly linked to exports. Canadians cannot afford to be left out of this deal. Trade can grow our economy without spending billions of dollars that we do not have.

I do not normally find myself in agreement with the members opposite, but I am happy to see the Liberals are continuing to build on our previous government's accomplishments, of course regarding trade. I hope that this deal is signed and that our colleagues across the floor will ratify the TPP as soon as possible.

If the Liberal government were serious about trade, it would adhere to the recent G7 leaders' declaration and commit to ratifying the TPP, independent of the United States. That would ensure that Canadians are given a strong position to grow and expand their businesses in the future, putting something into place that would lower trade barriers and increase market access, which will be critical for the success of Canadian businesses and the protection of Canadian jobs.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I thank my colleague, who pointed out that I was guilty of something I criticized in the House: people not talking about Bill C-13.

Basically, Bill C-13 will make changes to Canadian law affecting the goods in transit through Canada that are not destined for the Canadian market. In many cases, such goods will go through airports, for example. Products that are subject to specific regulations in Canada will touch down on Canadian soil on their way to somewhere else.

Under this legislation, Canadian regulations will not apply to such products, which raises concerns about Canadian workers handling these goods in transit. I do not think that has really been analyzed.

We do not feel that the government has paid enough attention to worker health and safety concerns. I hope the committee will take a good long look at this issue if this bill passes at second reading, which it probably will, to ensure that it will not chip away at worker protection.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I am very pleased to rise in the House to discuss and debate Bill C-13.

Oddly, since this morning, except for a few interventions, very few people have spoken to the content of Bill C-13. This bill seeks to enact legislative amendments to comply with a World Trade Organization treaty or agreement that was signed to facilitate trade. I would say it is not an extremely controversial bill. We are supporting the bill at second reading simply because there are very few changes in it, since Canada is already largely compliant with the terms of the trade facilitation agreement. Very few legislative changes will be needed.

However, given that one of the arguments put forward by the government and those supporting the agreement's ratification is that this will truly help small and medium-sized business, we would also like to see, not just in the bill, but in the government's actions, concerted efforts to promote the economic activity of SMEs. Unfortunately, the government's efforts in that regard have been rather lacklustre from the start of its term. We hope this will change.

I very much enjoyed hearing the various debates from both sides of the House. They did not necessarily pertain to the bill itself, about which little has been said, but focused on who is the staunchest supporter of free trade in the House. I find that very amusing because arguments are being bandied back and forth, and members are accusing other members of not supporting free trade as much as they do. What we should note is that very little is being said about the content. Not much was said about the impact of this bill, except for the impact according to major economic theories and concepts, which we do not disagree with when it comes to trade. Canada is a nation that exports and imports. Its economy is open and benefits from the opportunity to develop through exports.

No one objects to that, and that is why the NDP will be voting in favour of this bill at second reading, just like we voted in favour of various other initiatives, such as the Agreement on Internal Trade. The NDP has also supported various trade agreements that have been signed, including those with Jordan and South Korea. That explains why, in some situations, we are still waiting to see what decisions the government will make, particularly with regard to the Canada-European Union comprehensive economic and trade agreement, for which the previous Conservative government promised specific compensation for dairy farmers and fish processors, as well as for the provinces, for drug expenses. We do not really know what the Liberal government is going to do about that.

With regard to the agreement with the European Union, we are not opposed to it at first glance, but we need to carefully analyze the compensation that will granted by the government, if any. This may seem surprising because I often hear my Conservative colleagues and, to some extent, my Liberal colleagues saying that the NDP is against trade agreements and free trade. That is not the case. Unlike the other parties in the House, the NDP is more focused on the content of these trade deals.

This is extremely important because we need a lens we can use to evaluate our support for these agreements. I have not really heard these arguments from the Conservatives in the past. I have not heard them from the Liberals, either.

I would like to tell you a story. After the trade agreement between Canada and the European Union was signed, about two or two and a half years ago, Prime Minister Harper returned, and we discussed that trade agreement in the House. The day after the signing, the first statement in the House by the Liberal leader, now the Prime Minister, was to extend congratulations on signing the agreement. He said that the Liberals supported it, and he asked when we might have it. This seems quite absurd to me, since a trade agreement is a contract. In a contract, there is content to be reviewed to ensure that it is appropriate for Canada’s needs and what Canada is seeking.

That is why we need a lens, an evaluation grid or a set of principles for assessing the content of these agreements.

The NDP always evaluates three particular factors before deciding whether to support an agreement or not. First of all, any trade agreement between Canada and its partners must bring definite economic benefits for Canada. We are not talking about a zero-sum game. We fully realize that both parties may gain something. What should concern us is whether Canada gains something in the end.

It is important to realize that, in any trade agreement, some industries benefit more than others. Some of them may even lose in the deal. It is necessary to assess the overall economic impact of the agreements.

That is where the problem lies in the case of the trans-Pacific partnership. In the House, the Liberals and the Conservatives are ready to support it without first studying its economic impact on the country. This is pure carelessness, dogmatism, and irresponsible behaviour.

As parliamentarians, our duty is not to rubber-stamp a trade agreement simply because it is a trade agreement. We first have to clearly determine what the specific and overall pros and cons are for Canada. That has not been done in the case of the trans-Pacific partnership.

In fact, it is very rarely done for most trade agreements. It is rare for a specific study by the Department of Finance or Foreign Affairs, Trade and Development Canada on how a trade agreement will affect the Canadian economy to be tabled in the House.

The first prerequisite is therefore that the trade agreement must have a positive effect on the Canadian economy with regard to growth and industry.

Second, such an agreement must be reciprocal. A trade agreement between Canada and a trading partner must afford Canada the same access and conditions that Canada gives its partner within its own borders. That would seem obvious, but it was not the case when we concluded certain agreements in the past.

For example, in the foreign investment promotion and protection agreement we signed with China, a number of elements did not ensure reciprocity between Canada and China. Nevertheless, the two parties in the House were fully prepared to sign the agreement. It is worth noting that the agreement has not been ratified since it was signed four years ago.

This makes me smile, because people gripe about why the Liberal government still has not brought the trans-Pacific partnership to the House for ratification, when the Conservative government signed agreements such as the one with the European Union and the foreign investment promotion and protection agreement with China that were never put before the House for ratification.

The third condition is that a trade agreement with any partner must comply with conditions regarding environmental protection and the protection of workers’ rights. In general, it must respect and promote the protection of human rights in the countries concerned. Once again, despite the claims made on both sides, this point does not seem to be of particular interest to the House or the committees studying the matter.

Since 2011, my first year in the House of Commons, we have been extremely consistent about supporting or rejecting trade agreements discussed in the House. We rejected agreements with Honduras, Panama, and Colombia, because those countries do absolutely nothing to protect human rights.

In committee, the two parties told us that signing a trade agreement would automatically promote the development of human rights and that there was no need to include provisions in the trade agreement.

They said that reviews would be carried out year after year regarding the human rights situation and how the treaty affected human rights. Systematically, there is never any follow-up on this issue. As a result, agreements are signed with countries that consistently violate human rights. We still sign agreements without bothering to try to insert provisions that will safeguard human rights and the environment.

That is why the agreements with Panama, Colombia, and Honduras were rejected by the NDP. That is why the NDP supported the Canada-Jordan Free Trade Agreement and the Canada-Korea Free Trade Agreement. Since the free trade agreement between Canada and the European Union seems to pass this test at this time, we are quite willing to study it further.

That is a long way from the picture of the NDP that the Conservatives and the Liberals are trying to paint. When all is said and done, we are the only party that is truly responsible with regard to international trade, because we are the only party that does not automatically support everything that is put before the House and everything that is signed by successive governments. We pay attention to details and content.

In progressive circles, more and more people find that in fact, a trade agreement is not a bad thing in itself. It is an agreement that establishes the rules of the game between the two trading partners. However, it will be extremely important to amend this content in the future, because it is not just a matter of free trade.

These treaties generally say very little about the barriers to be eliminated; they have more to say about protecting investors. Indeed, that was the case for the trans-Pacific partnership. The bulk of the TPP, and of the agreements tabled in the House, is not about eliminating tariff or non-tariff barriers; it is about protecting investors in the various countries.

If we could stop talking about free trade, since the issue is not free trade, and start thinking about what could be called fair trade, Canada would be in a position to alter its negotiating stance with the various countries and include elements that would add a significant component of fairness to its trading. This would ensure that the benefits underlying international trade would go to everyone, not just to the privileged few. That is the basis of the NDP’s argument on international trade.

Let’s return to the issue of the TPP. We should ask ourselves whether it will be beneficial or not and whether there will be benefits for Canada or not, once again, beyond the usual elements—clichés, I would call them—concerning international trade. Let us ask the question. About 80% of our exports to the countries that already trade with Canada, namely all of the 12 countries in the TPP, are raw and semi-processed materials. If we look at what we import from those countries, 80% of those imports are high value-added products.

We are therefore in a situation where, economically, many experts complain about or lament the deindustrialization of Canada, Canada’s shift toward an economy that used to be industrially diversified, an economy that relies increasingly on raw or barely processed materials.

I think we would do well to have a debate and think seriously about how the Canadian economy has evolved in that direction, particularly since the 1980s.

The economic impact I mentioned includes another factor. Tufts University estimated that the trans-Pacific partnership would cost up to 60,000 jobs in Canada. However, the Conservative government, on whose watch we negotiated that agreement, did not present any economic analyses about job gains or job losses. What will the economic impact be with respect to growth?

In the United States, that analysis was done, and it was estimated that the trans-Pacific partnership could increase the gross domestic product by nearly 0.20% by 2025. We are going to make major structural changes in the American economy and all of the signatories’ economies for a 0.20% gain. At some point, we have to be critical of these agreements, not with regard to the principle of trade, but with regard to what our goals are when we negotiate and ratify these agreements.

There are very few analyses and debates in the House, only platitudes. That is a real shame, and also the reason I am proud to be part of the NDP. Since at least 2011, the year I was first elected, that party has taken a consistently procedural approach to analyzing these agreements. We want to continue doing so. An agreement such as the trans-Pacific partnership will have repercussions for supply management and the cost of prescription drugs, since there will be a big impact on intellectual property. These are repercussions of unprecedented scope. Let us not forget that Canada is currently the country with the second-highest cost of prescription drugs in the world. The agreement also gives enhanced protection and profits to makers of brand-name products rather than makers of generic products, which will drive up the cost of prescription drugs significantly. In the end, not only will the people have to foot the bill, but the provinces as well, since many of them have drug insurance plans, like the hospital sector, which is managed by the provinces.

So I want to reiterate the NDP’s support for this bill, which, in the end, does not have a big impact on the Canadian economy, but I also want to remind members that our primary role is not just to say yes or no to a trade agreement, when we have to decide on one, but to analyze it in depth to see how it will affect the Canadian economy and the people we are supposed to represent in the House.

I urge members to take a much more rigorous approach in this regard. We are already doing so. We are giving the other parties an opportunity to step up.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, I am pleased to address the House today, to be back in the House of Commons, to see all my colleagues again, and to know that we are all sitting in the House together at the same level, men and women alike. We do not need to look up to the gallery to see whether women or other people are sitting there.

I am very pleased to speak to this bill. Extraordinarily, we strongly support this bill introduced by the current government, as it is about the economy. It is about developing our economy here in Canada, and about free trade. Anything that promotes free trade, economic prosperity, anything that helps our businesses produce more and export more freely, and brings foreign investment to Canada, is a good thing, a good idea, which must be developed and supported. That is exactly what we are doing today by showing our support for Bill C-13 currently on the table.

I would like to begin by saying that, basically, the purpose of this bill is to implement the agreement to facilitate trade between various countries that was concluded by our Conservative government, that of the Right Hon. Stephen Harper, at a meeting held in Bali a few years ago. We were not the only ones involved. Over one hundred countries concluded this agreement. However, every legislature in each of those countries must also implement the agreement, and that is what we are doing right now.

This bill serves as a reminder of the history of free trade in Canada, and I would like to talk a bit about that before getting into the substance of Bill C-13.

Canada is an exporting country because of its size and our extraordinary assets, including our natural resources and our universities, which year after year produce excellent people to work in our businesses and industries and conduct high-tech research. With a population of over 30 million people, we may be relatively small in number, but we are rich in character and proud of it. Clearly, all countries, but Canada in particular, must rely on exports to fully develop their economies.

In that respect, I am reminded of more recent free trade issues. I could go back as far as the last century, but let us talk instead about the issues encountered in more modern times. Canada signed a milestone free trade agreement with the United States in 1988. That was a momentous occasion and a turning point in Canada's economic development. We opened our doors wide to export our products. Where would Canada be today if we had not signed that free trade agreement? Let us remember that it too was signed only after a long political debate. To put it mildly, some people had concerns about free trade in the beginning. Fortunately, now that some time has passed, today we see that the free trade agreement has had a positive impact, thanks to people's goodwill and especially their open-mindedness. We are fortunate to have signed that agreement.

Perhaps some members understood what I meant when I said that people needed time to warm up to the idea. Some members may remember that during the 1988 election campaign the Liberal Party, which is currently in power, expressed serious reservations about the agreement, even opposed it outright. A few years later, the Liberals finally recognized that it was a good thing.

These are the facts. It is important to mention that the Right Hon. Brian Mulroney, who was behind the 1988 free trade agreement, had also expressed some reservations previously. In 1983, during the Conservative Party leadership race, leadership hopeful John Crosbie, former Newfoundland MP and minister, championed this revolutionary and extremely important idea of free trade between Canada and the United States. During that same leadership race another candidate, Brian Mulroney, expressed very serious concerns and said that it was like a mouse laying beside an elephant. We would be crushed and and nothing good would come of it.

We have to admit that, back then, Prime Minister Brian Mulroney's views had changed. Thank goodness we had this great leader in Canada, at a critical time for our economy, who made the agreement and its ratification possible. Members will recall how unusual the political landscape was back in 1988, particularly in my province of Quebec.

There were people who were sovereignists through and through. I will not call them separatists because that can have a pejorative connotation. Social democrats including Jacques Parizeau, Bernard Landry, former leaders of the Parti Québécois, and former premiers of Quebec came out in favour of free trade. They were strongly in favour of the free trade agreement. They spent their entire lives as social democrats and sovereignists and even they saw the economic benefits in the agreement that were essential for developing our country and Quebec.

That is why we sometimes saw a surprising alliance between right wing federalists, Conservatives, and so-called left wing sovereignists, like Jacques Parizeau. They worked side by side for the free trade agreement. I do not want to get into too much regionalism, since we are all Canadians, but some might say that the whole thing succeeded because of Quebec. It was Quebec's support for the Conservative Party that allowed the free trade agreement to be ratified in 1988.

Events and history proved the Mulroney government right, so that was good. When the government of the Right Hon. Jean Chrétien came to power, there was good reason to have some concerns about the development of free trade in Canada. Fortunately, those who in the past had said that the agreement was no good and they would tear it up instead maintained it and even expanded it, with the famous agreement between the three amigos, namely Mexico, the United States, and Canada. As a result, what had begun as the cornerstone of Canada's economic development, in a more contemporary setting, in 1988, was expanded into an agreement between Mexico, the United States, and Canada.

Without going into too much detail, it was about a year ago that negotiations were concluded for the trans-Pacific partnership. Once again, Canada is lucky to be part of that agreement because it represents an extraordinary opportunity for our economy. It should be noted that when we talk about free trade, we are really talking about exports. We are talking about goods that are manufactured here in Canada, by Canadians, and sold in other countries. It is about money from other countries invested here in Canada to pay our workers' wages. There is nothing more lucrative and more profitable for our economy than exports. In fact, one in five jobs in Canada depends on exports.

That is why we are so proud to see how important, how very essential this is for our economy, particularly in light of the following figures: $54 billion for exports of materials for transportation; $48 billion for exports of mineral products; $26 billion for exports of electrical machinery and equipment and parts thereof; $19 billion for exports of base metals; and $18 billion for exports of products of the chemical industries. That is what export, free trade, and economic development are all about. That is what creates wealth in Canada, and that is why Canada is an exporting nation. It must continue to be an exporting nation, and we must do everything we can to open even more doors around the world so that everybody everywhere can enjoy the quality of Canadian products made by us, by Canadians.

I also want to say that circumstances can shift, people's thinking can change, and some who were once against free trade may now be in favour of it. So much the better. What really matters is the end result, and that is why we strongly support this government's Bill C-13.

I would like to talk about this bill, which would see Canada ratify the agreement on trade facilitation. I will start with some background. In August 2004, the World Trade Organization opened negotiations to hammer out three essential facets of free trade. The first was to improve developing countries' access to today's competitive markets. That is essential. It is fine to say all the right things about helping our friends, about how we are all citizens of this planet, about how we have to help people in developing countries.

However, they should have access to our products and vice versa. As of 2004, the intention was to open markets to developing countries, cut red tape related to trade, and reduce tariffs. In some cases, the cost of the paperwork exceeded the savings that could be realized with trade agreements between different countries. That does not work.

Fortunately, the WTO began examining the issue in 2004. Finally, in December 2013, the Bali package, incorrectly named the “paquet de Bali” in French, was agreed to. The Bali agreement covered the three aspects I just mentioned. They were committed to paper and then everyone was asked to enshrine them. This occurred on November 27, 2014, with the Protocol of Amendment.

Here, in Canada, a proposed trade facilitation agreement was introduced on May 13, 2015, by my colleague from Abbotsford, the former minister of international trade, whom I would like to salute. Not so long ago, he was seated on my right, here on this bench. It is always very pleasant to have neighbours on our right, even though I think I am not much to the left of my colleagues.

I would like to say, from my seat in the House of Commons, that the member for Abbotsford made a major and exemplary contribution to Canada's economic development. Canada should be grateful to the hon. member for Abbotsford, who signed historic agreements that are vital to Canada's economy. He is from British Columbia, a part of this country that I am discovering more and more. We are lucky to be MPs in Ottawa, because it gives us the opportunity to discover our beautiful, vast, and productive country.

On May 13, 2016, the member for Abbotsford, the former minister of international trade, introduced a sort of set of instructions for the agreement on trade facilitation. I am pleased to see that the current government is continuing that work by introducing this bill to implement the agreement on trade facilitation. It is a rather long bill.

The bill makes many technical changes. Amendments must be made to the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act of 1999, the Pest Control Products Act, the Canada Consumer Product Safety Act, and the Safe Food for Canadians Act.

The list of amendments is long, but they are necessary to allow Canada to reach its full economic development potential. More specifically, amendments must be made to two provisions of the trade facilitation agreement, namely article 10.8, which deals with the treatment of goods that are rejected at the border because they do not comply with certain health and other technical requirements, and article 11.8, which prohibits the application of technical regulations to goods moving through a WTO member's territory to a point outside its territory, or in other words, goods in transit.

I prefer reading, rather than speaking off the cuff, because these details are very technical. It is better to rely on good notes, to know what we are talking about.

Basically, the bottom line is that this will give Canada access to more countries, and it will make it easier for all countries to do business with one another. It will also help ensure the safety and security of the products traded, give developing countries greater access to trade, and give our exporters access to those emerging markets, which, in the past, were often overlooked, but now must be part of the equation.

We are glad that, in 1988, we concluded an agreement with our largest trading partner, the United States. We are also happy that those agreements have been expanded to include all of North America. Bravo.

We are pleased to see that, over time, whether it was under the leadership of the Right Hon. Jean Chrétien or the Right Hon. Stephen Harper, all governments came together to open our markets and help our businesses export their products.

While it is true that we have a fundamental difference of opinion and specific concerns about each other, one thing that unites us and brings us together is the issue of free trade. Free trade is synonymous with economic development.

This is why the legislation is very important and we deeply support the bill. We will study it, line by line, to ensure that everything is all right, but the purpose of the bill is to open our country to new markets and to create jobs.

Basically, this agreement will boost exports from developed economies from $310 billion to an estimated $580 billion per year. Global exports could rise by nearly 3%, and 21 million jobs could be created worldwide.

That is the kind of potential we need to cultivate and evaluate carefully. As we said earlier, we have to get used to this and recognize the need for an open-minded response to new challenges. While we may have had reservations about the quality of what developing countries are producing and how they produce their goods and services, there is no denying that the best way to help these countries achieve higher standards is to trade with them.

Furthermore, as many historians would agree, trade is the reason that we have not had a world war in nearly 75 years even though, unfortunately, wars do break out around the world from time to time. Countries are working together and trading with each other.

General de Gaulle, who was not against European countries working together, said that this was one of the fundamental factors for ensuring national security and peace in Europe. General de Gaulle certainly knew what he was talking about, having suffered the horrors of the First World War and led his country in a honourable fight during the Second World War. This man, who fought fiercely against the Nazi enemy, reached out to Germany and all the other countries, including Italy, in order to work with them. That was the first global move toward international trade. It was legendary and now countries can help each other advance their development.

I can assure hon. members that on this side of the House we are in favour of this bill. We will work very hard and conscientiously on it and carry on the excellent work done by the hon. member for Abbotsford, under whose guidance previous agreements were concluded, bringing us to the introduction of Bill C-13 today.

[Karine Trudel, NDP, Jonquière, QC]

Mr. Speaker, as we said earlier, we support Bill C-13 at second reading. It will be important to ask questions in committee, especially since this is a measure that could help small and medium sized enterprises.

I would have liked the government to do more, including lowering the tax rate. That is a broken election promise that is going to cost SMEs millions of dollars.

Does my colleague think that the government should do more to bring developing countries together, be it through trade or development assistance?

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

Mr. Speaker, I listened closely to what the member was saying. He spent a great deal of his time talking about the TPP and encouraging the government to break its word to Canadians by making some sort of a decision prematurely. The Prime Minister made a commitment to Canadians to review the TPP thoroughly. He asked members of Parliament on all sides, but particularly members within our caucus, to do our homework on this particular agreement and I look forward to the debate on that. The Prime Minister is encouraging us to speed up on it.

Bill C-13 is a ratification of an agreement with over 160 countries participating in it, and they are encouraging us to ratify it. The United States ratified it in January 2015. It was negotiated back in December 2013. Why does my colleague believe that the Conservative government was not able to do what the United States did? The member drew a comparison to the TPP. Why was the Harper government not able to bring it forward in January, February, or March of 2015? The member will correct me if I am wrong but I do not believe the United States has signed off on the TPP.

[Colin Carrie, Conservative, Oshawa, ON]

Madam Speaker, I appreciate having this opportunity to speak on Bill C-13.

This bill is an important piece of legislation, and I urge all of my colleagues to support the ratification power it possesses, because it brings Canada into the fold with the rest of our World Trade Organization partners, which is vital for Canada as we move forward in the new economy.

Bills of this nature simplify procedures, and as has been said in the House before, help cut red tape, expedite the release and clearance of goods, reduce costs associated with processing, which is extremely important for our competitiveness, and make international trade more predictable for Canadians and more predictable for Canadian businesses that want to make new investments and build our economy.

Most importantly, steps to ratify trade agreements need to be taken to avoid putting Canada on the outside of free trade agreements with our WTO partners. This is a very important point. Many countries, including our largest trading partners and fellow NAFTA members, Mexico and the U.S., have either done so or are actively working toward ratifying agreements, particularly agreements such as the TPP. I am happy that we are having this debate. It is important that we ratify the powers in Bill C-13.

I also want to talk about the overall picture. Right now, the Liberals have a very important agreement on the table. If we believe that today is an important step forward, and we want to believe what the Liberals are saying, we have to look at what they are saying but also at their actions, because actions speak louder than words. The reality is that, to date, the Liberals have made no attempt to ratify the TPP agreement. This lack of action by the government is a large risk for the Canadian economy.

The Liberals must realize that trade has the power to grow our economy without spending billions of dollars. That is the commitment we are seeing from the Liberal government. Instead of moving forward on agreements that are on the table in front of them, they seem to be focused on spending billions of dollars. When we look at the Conservatives' approach versus their approach, much of the work on the agreement we are talking about today was done by the previous government. I applaud and support it, but we are now moving forward at an accelerated pace. The government has to take a big picture view of what is going on with the different trade agreements, whether it is the European trade agreement or the TPP.

The Liberals are standing on the largest trade agreement in over 20 years. Stalling on the ratification of the TPP agreement will only put Canada further behind, when Canada should be moving ahead. It is clear that not signing this agreement will damage our economy and reduce the global supply chain, which will ultimately lead to job losses. We have seen the latest numbers. We cannot afford that.

Signing the TPP would send a clear message to Canadian businesses, and this is extremely important, because, first, it would give our exporters the opportunity to prepare and take advantage of preferential market access. Second, it would lower tariffs. I think everyone is in agreement that this is a good thing. Third, it would remove trade barriers. Fourth, and what is very important for the economy of Ontario, it would further integrate global supply chains.

I am the MP for Oshawa. Trade agreements have a lot of implications for my riding. It is the home of the General Motors assembly plant. Today we got some good news; it was able to get an agreement with Unifor. I applaud GM and Unifor for coming to an agreement, because the reality for the business world and labour is that the world will be doing business in a new way.

A really important point for me, as a local representative, is that our NAFTA partners are moving forward to ratify the TPP. The presidents of Mexico and the United States were here, and one of the things they talked about was how they are moving forward to ratify this agreement. If they ratify it and we do not, it is going to be devastating to manufacturing and our local economies. Consider that 80% of Canadian vehicles are made for export. Having access to new global markets, and over 800 million potential new customers, with the TPP is going to be significant.

To put that in context, the European free trade agreement would mean 400 million new customers. This would give Canada exclusive access to both markets.

It is important to take a moment to explain exactly what that means. It means that Canada will be unique in the world. Unique among our trading partners, it will have preferred access to Europe and preferred access to the Asia Pacific. That is 1.2 billion people. That is huge.

What we are seeing from the government is further dithering on the European free trade agreement, which was ready to go under our government. The TPP is ready to go. We see President Obama and the Mexican president moving forward, and what is happening with the Liberal government? It is dithering.

The numbers involved for GDP are $29 trillion. Access to these markets would give Oshawa a competitive advantage in the production of vehicles at our assembly plants. They would be destined for new and existing markets. We are going to have a unique opportunity to manufacture in Oshawa. We will have access to Europe and the Asia Pacific. Therefore, there is a need to connect Canada with the global supply chain. This would allow Oshawa and all of Canada to grow competitively and to continue to show investors that doing business in Canada is profitable.

With access to new markets, Canada would not only benefit from cost savings but would be on par with our fellow NAFTA countries, and this is extremely important. Ratification of the TPP would allow Canada to have the same preferential market access as other TPP countries. Not signing the TPP would make Canada suffer, as these markets would be accessible to our largest trading partners, the United States and Mexico, and we would be out of the deal. Both the U.S. and Mexico would be more competitive, and investment would be driven away from Canada.

The previous Conservative government laid the groundwork in a negotiation process to ensure that Canadians would prosper as a result of trade relations that were freshly established in these markets, because it is the new way of doing business.

A report released by the Office of the Chief Economist from Global Affairs Canada includes important observations on what the TPP would do to benefit Canada as well as on the consequences if Canada does not sign this important agreement. I would like to take a moment to go over some of the benefits.

First of all, there would be a boost to Canada's GDP of 0.127%, generating a GDP gain of $4.3 billion by 2040.

The TPP would liberalize barriers to trade and provide estimated tariffs savings of $428 million per year for Canadian exporters.

Auto companies, which currently do not have access to Japan on an equal playing field, would now have that access. This is something auto companies have been asking for for years.

The most significant benefit would be a $1.1 billion export increase to Japan, with exports of pork, beef, and wood products leading the way.

Canada cannot afford to remain on the outside. Not signing the TPP would lead to GDP losses of $5.3 billion. Canadian automotive production and investment would both decline by 4%, and the way it would affect our global supply chain would be catastrophic.

Canadian beef exports to Japan would fall by more than 66%, and pork exports to Japan would drop by 13%.

Canada's exports to TPP countries in 2014 accounted for 81.1% of the total value of Canadian exports, totalling $759.4 billion.

In conclusion, my message is simple. Today we are looking at Bill C-13, and that is a great opportunity, but we must also ratify the TPP. Canadians, especially businesses, deserve the advantages and opportunities the TPP can offer. The significance of trade cannot be ignored by the Liberals.

Canada cannot fall behind, especially now, and especially when trade has the power to significantly increase the total GDP of Canada without spending billions of dollars, which seems to be what the Liberals are obsessed with doing.

I want to take this opportunity to encourage my colleagues here in the House to support any of these agreements that facilitate trade.

I want to bring up an important point I have been trying to get the Liberals to address today. On one side, they seem to be talking about increasing business and increasing trade, which I think everyone agrees is a good thing, except maybe the NDP. On the other side, the Liberals are bringing in policies that are hurting our competitiveness internationally. I wanted to talk a little about that.

When we are talking about trade agreements, we are talking about the competitiveness of Canada versus other parts of the world. Recently the government brought in changes to the CPP. This is something I have been talking to my business community about.

What the Liberals are proposing to bring forward would cost Canadian businesses up to $2,000 per employee. Let us put that into perspective. General Motors has 3,000 employees in Oshawa. If we do the math, that is a significant increase in cost for doing business in Canada. It would also mean that individual Canadians would have to match that. Now we are talking about $2,000 for the employer and $2,000 extra that employees would have to put into this plan that many will not have access to.

We want to talk about the competitiveness of our energy policies. I have brought up the example of Ontario. We have seen what the Ontario policies are doing to our competitiveness in the manufacturing field. Right now, Ontario is so worried it has backtracked somewhat on its electricity policy, because it has realized how much of a concern it is.

We are looking at a policy that has basically contributed to the loss of 300,000 good-quality manufacturing jobs in Ontario. The federal Liberals are supporting these policies moving forward in Ontario and are parroting its policies and bringing them into the federal jurisdiction.

That leads to the next issue I need to talk about. I need to get clarification today from the Liberals. I want to talk about the carbon tax.

We know that the people we compete against the most, Michigan for example, do not have a state carbon tax. Texas does not have a state carbon tax. Texas has a cost of energy that is 75% less than it is in Ontario.

The Prime Minister and the Minister of Environment and Climate Change have been very clear that they are actually going to be bringing in a carbon tax federally. I do not think the uncertainty of this can be overemphasized. Companies, when they are making investments in our economy, are making investments over a 10-year or 15-year period. Instead of getting certainty from the government, all they are getting is uncertainty.

The only certainty companies are getting is that it is going to cost more to do business. We are talking about the CPP costs, energy costs, and carbon taxes. It would drive up the cost of everything. What we are talking about in our factories is increased costs for heating factories. We are talking about increased costs for food in our factories. We are talking about the electricity going into these factories. Individual Canadians will be paying more. Basically, this is a tax on everything.

It really affects our competitiveness. On one side, the Liberals are saying that they want to be competitive. As I said, Bill C-13 is a great step forward. However, we need to address the other side. What domestic policies are the Liberals putting in place that are killing our competitiveness? On this side of the House, we think we have to look at these policies in conjunction.

Moving forward, this whole idea of economic policy needs to be addressed. We cannot just farm one section out, and say for trade we are going to move forward on positive things in that regard. Other countries are doing that as well.

It is the domestic side of the equation that the Liberals seem to be ignoring, to the point where this is going to make manufacturers and businesses in our communities less competitive internationally. Even with the good work moving this forward, the Liberals need to take a step back and do some work at the other end on domestic policies.

One of the things I would like to see moving forward within the next couple of months is certainty coming out of the Liberal government. As I said, this debate we are having today is a good thing, but what about the TPP? What is the government going to do to move that important agenda forward? Companies that are making business decisions right now do not have any certainty. That is a major thing and they may not be choosing Canada.

[Raj Grewal, Liberal, Brampton East, ON]

Madam Speaker, I think we can all agree that there is a delicate balance between making sure goods flow easily, quickly, and efficiently, protecting the health and safety of Canadians, and fighting against organized crime. This is exactly what Bill C-13 would do.

The bill would empower the CBSA and the Government of Canada to fight back against organized crime and ensure that only the products get through that need to get through. This would help legitimate businesses that are participating in the transit of goods in Canada to succeed, and would make it more efficient and easier, so that we help small and medium-sized enterprises benefit from a world market.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I would like to congratulate the member for Brampton East for a very good intervention, which also touched on several complicated issues related to this agreement.

I was also pleased to hear the discussion around CBSA. What I have raised on Bill C-13 is the question of organized crime, and particularly the goods that get into our country. The ports only check 4% of goods that come into our country, and they will be mixed, including now, with new types of materials and other things that are going to other countries.

Organized crime is one of the things that I have been pushing against with a number of different things, including my bill that will be voted on this Wednesday, Bill C-221. The bill would help eliminate $10 billion in organized crime from single-event sports wagering. We have British Columbia, Ontario, and other provinces onside to diminish organized crime in this country.

I ask the member if, in his opinion, CBSA would get enough resources to tackle the potential of organized crime, basically using Trojan horse trade coming in to allow other goods and services of contraband, which should not be coming into Canada, to go to other countries.