Bill C-30 (Historical)

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures

This enactment implements the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States, done at Brussels on October 30, 2016.
The general provisions of the enactment set out rules of interpretation and specify that no recourse may be taken on the basis of sections 9 to 14 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Agreement and provides for the payment by Canada of its share of the expenses associated with the operation of the institutional and administrative aspects of the Agreement and for the power of the Governor in Council to make orders in accordance with the Agreement.
Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement and to make other modifications. In addition to making the customary amendments that are made to certain Acts when implementing such agreements, Part 2 amends
(a) the Export and Import Permits Act to, among other things,
(i) authorize the Minister designated for the purposes of that Act to issue export permits for goods added to the Export Control List and subject to origin quotas in a country or territory to which the Agreement applies,
(ii) authorize that Minister, with respect to goods subject to origin quotas in another country that are added to the Export Control List for certain purposes, to determine the quantities of goods subject to such quotas and to issue export allocations for such goods, and
(iii) require that Minister to issue an export permit to any person who has been issued such an export allocation;
(b) the Patent Act to, among other things,
(i) create a framework for the issuance and administration of certificates of supplementary protection, for which patentees with patents relating to pharmaceutical products will be eligible, and
(ii) provide further regulation-making authority in subsection 55.‍2(4) to permit the replacement of the current summary proceedings in patent litigation arising under regulations made under that subsection with full actions that will result in final determinations of patent infringement and validity;
(c) the Trade-marks Act to, among other things,
(i) protect EU geographical indications found in Annex 20-A of the Agreement,
(ii) provide a mechanism to protect other geographical indications with respect to agricultural products and foods,
(iii) provide for new grounds of opposition, a process for cancellation, exceptions for prior use for certain indications, for acquired rights and for certain terms considered to be generic, and
(iv) transfer the protection of the Korean geographical indications listed in the Canada–Korea Economic Growth and Prosperity Act into the Trade-marks Act;
(d) the Investment Canada Act to raise, for investors that are non-state-owned enterprises from countries that are parties to the Agreement or to other trade agreements, the threshold as of which investments are reviewable under Part IV of the Act; and
(e) the Coasting Trade Act to
(i) provide that the requirement in that Act to obtain a licence is not applicable for certain activities carried out by certain non-duty paid or foreign ships that are owned by a Canadian entity, EU entity or third party entity under Canadian or European control, and
(ii) provide, with respect to certain applications for a licence for dredging made on behalf of certain of those ships, for exemptions from requirements that are applicable to the issuance of a licence.
Part 3 contains consequential amendments and Part 4 contains coordinating amendments and the coming-into-force provision.

Business of the House

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

Mr. Speaker, this afternoon we will continue second reading debate of Bill C-18, the Rouge National Urban Park legislation. The other bills on the agenda for today and tomorrow will be Bill C-25, the business framework legislation, and Bill C-30 regarding CETA. It is my hope that we can complete second reading debate on all these important bills by tomorrow afternoon if at all possible.

Next week, we will commence debate at report stage and third reading of Bill C-26 concerning the Canada pension plan. We will call this bill on Monday, Tuesday, and Wednesday.

Finally, next Thursday, December 1 shall be the last allotted day for this supply cycle.

[Tracey Ramsey, NDP, Essex, ON]

Thank you, Mr. Chair.

Thank you to everyone for presenting today. There are a lot of familiar faces in the room today.

Mr. Sinclair, I would like to thank you for your comments. Unlike my colleague, something that I'm hearing continually is the concern for the cost of pharmaceutical drugs in Canada. Canadians overwhelmingly are suffering under the high cost of drugs. Twenty-five percent of Bill C-30 is patent changes. This will have an overarching cost impact on things like Canadians' retail purchasing power. It will be taken out of their hands, because they will have to pay higher costs for pharmaceuticals.

We've asked for an analysis from the lead negotiator, and we don't have one. The Liberals in previous Parliaments also pushed for a comprehensive analysis on the impacts to provinces and to Canadians for the loss.

Can you tell me if you know of any such analysis that exists at the government level, and then can you speak to the analysis that the CCPA has done on this issue?

[Yves Leduc]

I'll start by highlighting the fact that I am accompanied by Thérèse Beaulieu. She is the assistant director for policy communications at Dairy Farmers of Canada.

I'd like to thank you for the invitation to appear before the committee today in view of its study of the subject matter of Bill C-30. Before I begin, I would like to stress that DFC's preoccupations are not necessarily related to Bill C-30, per se, but rather to the impacts of the CETA agreement itself on the dairy sector. Our presentation, therefore, will focus primarily on mitigating those negative impacts.

I want to point out that the Canadian dairy sector is a huge contributor to the Canadian economy. According to the latest economic impact study that has been performed by ÉcoRessources, in 2015 the dairy sector, both at the producer and processing level, contributed $19.9 billion to the Canadian GDP, provided $3.8 billion in tax revenues, and sustained 221,000 jobs in this country. Compared to 2013, that represents a 5% increase in the contribution to the GDP, a 5% increase in tax revenues, and a 3% increase in the number of jobs that are being sustained in Canada. In addition, dairy is either the top or the second largest agricultural sector in seven out of ten provinces across the country.

It's important also to point out that unlike other jurisdictions where farmers' incomes are heavily subsidized, Canadian dairy farmers receive no direct subsidies and derive their income from the marketplace. In comparison, for example, in the European Union the common agricultural policy budget amounts to 58 billion euros, and on top of that the dairy sector alone received an extra billion in the last year to compensate farmers for the very low prices that confronted them.

In regard to the government's announcement of a transition assistance package for CETA on November 10, DFC was pleased to see that the government decided to invest $250 million in dairy farms as well as $100 million in funding to help spur investment into updating Canada's dairy processing infrastructure. This represents a recognition on behalf of the government that the dairy sector is being negatively impacted by the CETA agreement. While we would, of course, prefer that any future trade deal has no negative impact on the dairy sector, this package does set a precedent for future trade negotiations in the event that they do negatively impact the dairy sector in Canada.

The announced package is a step that will foster the continued growth of the sector for the benefit of all Canadians. However, it only partially addresses the damage that will be caused by the CETA agreement. For dairy farmers, CETA will result in an expropriation of up to 2% of Canadian milk production, representing 17,700 tonnes of cheese that will no longer be produced in Canada. This is equivalent to the production of the province of Nova Scotia alone. It will cost Canadian dairy farmers up to $116 million in perpetual lost revenues.

I will now continue my presentation in French.

While Canadian dairy farmers appreciate seeing the government deliver in these two key areas, we remain concerned that several of our other issues remain outstanding. In particular, Canada's domestic regulations and border measures were not addressed in the transition assistance package, as we were led to believe they would be.

It should be noted that on November 18, our government announced that they are launching a consultation regarding potential changes to the duties relief program and the import for re-export program. This is a step in the right direction, and we remain hopeful that the government will take concrete actions to stop further damage to Canadian dairy farmers, and show they fully support the supply management system.

As Minister MacAulay noted himself during question period on November 14, the government is just starting what they are going to do to address the issues impacting dairy; Canadian dairy farmers are eager to see how the government delivers on that promise.

As mentioned by our friend Jacques Lefebvre from the Dairy Processors Association of Canada, Dairy Farmers of Canada was also disappointed that the government did not utilize the opportunity given on November 10 to announce how the new CETA TRQs will be delegated.

When it comes to the delegation of new TRQs, DFC urges the government to ensure that only those who are negatively affected by the opening of the Canadian market—namely, cheese makers, first, and indirectly the dairy producers that supply milk to the cheese makers—should be eligible to receive a share of the new quota. Therefore, DFC strongly recommends that the new cheese TRQ only be allocated to cheese makers.

From that perspective, cheese makers who are being affected by it, big or small, whether individually or collectively—and I would like to mention here that some small and medium cheese makers are trying to band together to position themselves as acceptable importers—need to be treated fairly and should be eligible to apply for a share of the new quota. Allocating the TRQ to cheese makers will not only help to maintain the stability of the Canadian market; it will allow imported cheeses to have access to established distribution networks, therefore maximizing fill rates and avoiding speculation and disruptive marketing practices. Canadian cheese makers are best positioned to import cheeses into Canada in a way that minimizes speculation because they have no interest in negatively affecting or disrupting their own business.

Furthermore, while we believe it is important to allocate the TRQ in a manner that will assist cheese makers in developing long-term relationships with their customers and ensuring that their share of the TRQ is sufficient to develop a sustainable business, DFC is opposed to allocating the new TRQ to retailers or distributors. Notwithstanding the economic contribution of retailers to the Canadian economy, allocating any share of the CETA TRQ to them will only result in a substitution between domestically and imported cheeses, and will not generate added benefits.

In conclusion, Dairy Farmers of Canada want to continue to be strong contributors to Canada's economy, and DFC wants to continue to work in partnership with the government to ensure the sustainability of the supply managed dairy sector. We have been on record many times as not opposing the CETA deal, or any other trade agreements, provided that Canada's dairy sector is not negatively impacted. Canada's dairy sector will be negatively impacted by CETA, and as much as DFC appreciates the package that was announced, there is still work to be done; the government recognizes as much.

Thank you.

[Corinne Pohlmann, Senior Vice-President, National Affairs and Partnerships, Canadian Federation of Independent Business]

Thank you.

Thank you for the opportunity to be here today to share CFIB's perspective on Bill C-30, an act to implement the CETA agreement.

You should have a presentation in front of you that I'd like to walk you through over the next few minutes.

First, CFIB is a not-for-profit, non-partisan organization that represents more than 109,000 small and medium-sized businesses across Canada. Our members represent all sectors of the economy, and they're found in every region of the country.

It's also important to remember that Canada's small and medium-sized enterprises employ about 70% of Canadians working in the private sector, they're responsible for the bulk of new job creation, and they represent about half of Canada's GDP. Addressing issues that will benefit them can have a widespread impact on job creation and the economy.

CFIB takes it direction solely from our members through a variety of surveys throughout the year, and we have found that a strong majority of members support free and fair trade. This is because most of them understand that trade is good for Canadian small business, for our economy, and for jobs. We also know that many of our members appear to be in a position to benefit from trade deals such as CETA.

For example, as you can see on slide 3, almost two-thirds of our members in a very recent survey are supportive of international trade agreements. However, nearly one in five small business owners felt they didn't have enough information to answer this question, suggesting that perhaps more needs to be done to inform them about the opportunities trade agreements can bring to their business.

A few others, including supply-managed producers, for example, may have strong concerns. We continue to carefully listen to our members who have those concerns and communicate them to the government. One concern we have expressed is the importance of ensuring that any economic harm to dairy producers, for example, as a result of the CETA trade deal be compensated.

Though there are some small but important exceptions, there is broad support for trade agreements even among those not involved in trade. But how many are actually involved in trade? As you can see on slide 4, about one in five have sold goods or services to other countries, while about half have purchased from other countries, with another 6% planning to get more involved in trade in the future.

What countries do they trade with? As you can see on slide 5, the U.S.A.—not a surprise—remains by far the most likely place that Canadian small businesses will trade, but second to that is the EU, and 9% of our members say they have purchased from the EU and about 6.5% have sold into the EU.

On slide 6 you can get a sense of which countries within the EU smaller firms tend to trade with. Germany and the U.K. lead the pack, with Netherlands, Italy, and France also being important for more than one third of small businesses that do trade into Europe.

We also explored what small business owners would like to see in a CETA agreement that would most benefit their business. Ultimately, as you can see on slide 7, what smaller businesses want to see is more consistency, fewer regulations, standards that are simple to comply with, simpler border processes, less paperwork, and lower costs. The good news is that CETA tries to address each of these areas, as it not only lowers tariffs, which are important, but it also starts to look at ways to reduce non-tariff barriers, which are very important, by finding ways to better align European-Canadian regulations and standards as well as look at ways to simplify border processes.

We also know it's important to communicate the benefits of CETA to more small business owners, and encourage them to consider the EU if they're looking to expand to new markets. Understanding how small businesses learn of trade opportunities in Europe might be helpful in how governments, organizations, and others might be able to support them with those opportunities. As you can see on slide 8, most learn of opportunities through business contacts, one in five conducted their own research and found their own contacts, about 15% were contacted by an EU buyer or seller, and another 15% participated in trade shows.

It's important to note that none, in this survey at least, went on a trade mission. I think there may be some lessons here for policy-makers to consider when they look at how to potentially promote the EU agreement in the future.

The good news, as you can see on slide 9, is that more than half of those already trading with Europe plan to increase their activities. This was before the CETA agreement was signed, so hopefully even more will follow as opportunities increase after the agreement is ratified.

You can see on slide 10 the reasons they wanted to increase their trade into Europe—to expand their business, which is what we ultimately want them to do, and to pursue more opportunities as the economy recovers—because they do see it as an alternative to the U.S. market. This latter issue may become even more important as a motivator for small firms in the next few years, depending on how the new U.S. administration will deal with NAFTA.

Thinking about how to encourage more small firms to consider trading with Europe, it might help to provide advice on how to overcome some of the challenges others have faced when they have tried to trade into Europe. As you can see on slide 11, providing them with guidance on how to deal with things like a fluctuating Canadian dollar, costs associated with shipping, and that type of advice would be useful. Many of the rest of the challenges they face, like high tariffs, different rules or standards, and the complexity will be somewhat addressed by CETA, so communicating how CETA addresses those issues will also be very important.

In summary, a strong majority of our members in CFIB are supportive of free and fair trade. Many of our members appear to be in a position to benefit from CETA, but a few may have some strong concerns. We have communicated these concerns, as I mentioned, to government, and have stressed the importance of finding ways to mitigate any economic harm to sectors that may be adversely affected as a result of the trade deal.

Finally, it's important that the benefits and advantages of CETA be well communicated to smaller firms so that more of them will feel confident about expanding their trade opportunities into the EU.

Thank you for the opportunity to present, and I'm happy to try to answer any questions.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

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

Madam Speaker, it is a pleasure to speak today on Bill C-30, the legislation that will bring about the activation of the comprehensive economic and trade agreement between Canada and the European Union.

First and foremost, I want to thank the former minister of agriculture, the member for Battlefords—Lloydminster, and the former minister of trade, the member for Abbotsford, for their great hard work in making sure that this deal came to fruition.

I will give kudos to the government for not screwing it up at the end and for getting the CETA deal finally before us. However, I can tell members that every clause we are looking at, the way the bill is structured, and the way CETA has been negotiated and signed is because of the hard work of the previous Conservative government.

I will just say that it is indeed a momentous occasion. We are agreeing to this great agreement that will bring 28 other countries into free trade with Canada and give Canadian agricultural producers, manufacturers, and service companies access to 500 million consumers in the European Union in those 28 member states.

I can tell members that in my riding of Selkirk—Interlake—Eastman, this is very important. We have a huge agriculture base, with grains, oilseeds, pulse crops, cattle, and hogs, which will all benefit from the preferential access we are going to garner in having free markets in Europe. We are talking about 94% of EU tariff lines against agricultural products being eliminated.

However, there are still some challenges, for our beef products in particular. As a rancher myself and a former member of the Manitoba Cattle Producers Association, we have dealt extensively with all the phytosanitary and non-phytosanitary standards and actions the European Union has taken against Canadian beef over the past 30 years.

This agreement gives us a resolution mechanism for removing those artificial trade barriers, ensuring that we get back to science-based decisions rather than political decisions, which we all too often see in certain countries that like to put up barriers to trade while they try to protect certain segments of their industry. Over the next seven years, Canadian agricultural food, products, grains, and oilseeds that meet those standards will be able to access that marketplace, which is very important.

It is also important in my riding of Selkirk—Interlake—Eastman, because we produce steel. We have Gerdau in Selkirk, which is a very strong company. It produces steel that it sells around the world, especially its elevator rail steel. This, again, is now going to go to a zero-line tariff over the next seven years as this agreement comes into force. Some commodities are going to see line items move even more quickly than that.

Of course, in Selkirk—Interlake—Eastman we produce the best whisky in the world at the Crown Royal Diageo plant. The world champion whisky right now is Northern Harvest whiskey. It beat out all the other whiskies from Scotland, Ireland, the United States, and other places.

[Kelly McCauley, Conservative, Edmonton West, AB]

Madam Speaker, I am very pleased to rise in the House today to speak to Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada, the European Union, and its member states.

A trade agreement of this nature is long overdue and has long been fought for.

Before I speak to the merits of this agreement, I want to join my colleagues in thanking the members for Abbotsford and Battlefords—Lloydminster for their long years of work to negotiate this agreement, as well as all of the members of the previous and current governments who had a hand in establishing, negotiating, and concluding this agreement.

I also want to thank the Right Honourable Stephen Harper for his leadership on this and many other trade files. Under his leadership, we signed more trade agreements than any other Canadian government.

Members could probably take it as a given, by virtue of my membership in this party, that I am a strong proponent of free trade. With the recent waves of protectionist sentiment sweeping the globe, it is important to once again reiterate the benefits of freer trade, and why a country like Canada must continue to reach new markets for our products, investment, and labour.

I want to talk about four points today: the objective benefits of free trade; the benefits of free trade to Canada, and the specific components of CETA that benefit Canada; the specific benefits of CETA to my home province of Alberta; and the benefits of CETA for accessing EU government procurement business.

Trade is good for Canada. We have an enormous amount of products, resources, and skills that require access to other markets in order to reach a meaningful potential. The EU represents roughly 500 million people and almost $20 trillion in economic activity. The EU's annual imports alone are worth more than our entire GDP. These are customers and businesses that Canada needs to access in order to maximize our economic growth.

We strongly support international trade initiatives which strengthen the bonds with friendly countries, increase economic productivity, and drive prosperity and job creation. When we complete trade deals, Canadian job prospects increase substantially as we access larger markets. Prices for goods decrease as we eliminate tariffs on goods entering our country. The benefits to Canadian consumers, Canadian workers, and Canadian businesses are enormous, and CETA helps us realize these benefits on a bigger, global scale.

Specifically, CETA is projected to lead to a $12 billion annual increase to Canada's economy, which is equivalent to adding $1,000 dollars to the average family income every year, or almost 80,000 new jobs. Nearly 100% of all EU tariffs on non-agricultural products will be duty-free, and nearly 94% of EU tariffs on agricultural products will be duty-free. This is an offer we cannot refuse.

More importantly, for my constituents in Edmonton West, and those of my colleagues across Alberta, CETA will increase Alberta's economic potential to a substantial extent. The European Union is already Alberta's fourth-largest export destination, and is our third-largest trading partner. For the past five years, on average Alberta has had exports of $1.4 billion to the European Union, driven by the agricultural, metals and minerals, and advanced manufacturing sectors.

Once in force, CETA will eliminate tariffs on almost all of Alberta's exports, and provide access to new market opportunities in the EU. CETA includes provisions that ease regulatory barriers, reinforce intellectual property rights, and ensure more transparent rules for market access. CETA will provide Alberta exporters with a competitive advantage over exporters from other countries that do not have a free trade agreement with the EU.

On the day CETA's provisions enter into force, 98% of EU tariffs on Canadian goods will be duty-free, including those on key Alberta exports, such as metals and mineral products, manufactured goods, and chemicals and plastics. For agricultural and agri-food products, almost 94% of EU tariffs on Canadian goods will be duty-free, which rises up to 95% once all phase-outs are complete, seven years after CETA enters into force. This duty-free access will give Canadian agricultural goods, such as beef, pork, and bison, preferential access to the EU market.

I do not think I need to tell the House how important beef is to the Alberta economy, but I do want to mention some specific potential benefits to industries affected by the tariff reductions listed in CETA.

According to the CBC, with CETA, Canada is poised to supply about 1% of the European Union's beef needs under the new pact, which could mean almost $600 million in revenue.

In addition to beef and agriculture products, CETA would also provide for increases in eligible trade for products with high sugar content. I want to talk about a small business in Edmonton that started in a basement in Sherwood Park. It is a much-renowned startup company called Jacek Chocolate Couture. It has expanded from Sherwood Park to downtown Edmonton and now to Canmore, Alberta. The company sells its famous chocolates across our entire country, and now could reach a massive new customer base, growing its revenues and creating new jobs.

We know how things are tough in Alberta right now. Therefore, it makes perfect sense that we approve this trade agreement which would have demonstrable benefits to Alberta's industries. This agreement would create jobs by opening the European Union's market to more Alberta goods and would lower prices for importing EU products. Lower prices and more customers for business are exactly what Alberta needs right now.

Specific to oil and gas, CETA would increase market access for Alberta products. This comes at an ideal time, as supplier diversification is one of EU's top energy priorities. Currently, Russia holds over 30% of the EU's oil and gas market share, placing it first. Canada comes in 26th, with just 1%.

It is well known that Russian President Putin uses his country's oil and gas reserves as a weapon and, given that Russia supplies almost a third of the European Union's oil and gas, his position is strong. The EU needs to diversify and wants to diversify, and Alberta has plenty to offer. As CETA would eliminate tariffs on oil and gas products, Canada and Alberta are well poised to fill this gap and become a crucial energy ally. This is an opportunity that we should not and, frankly, cannot pass up.

The elimination of tariffs and barriers would also have advantages to procurement opportunities. Under CETA, Canadian firms could bid on contracts to supply their goods and services to the three main EU-level institutions: the European Commission, the European Parliament, and the European Council. Canadian firms would also be able to bid on EU member-state government contracts and those of thousands of regional and local government entities.

The EU procurement market is worth $3.3 trillion annually, and holds significant potential for Canadian suppliers. This kind of preferential market access would benefit Alberta-based multinational firms such as PCL and Stantec, who both have their headquarters in Edmonton. Indeed, by virtue of the fact that Alberta has long been the entrepreneurial province, there are hundreds if not thousands of businesses in Edmonton, Calgary, and throughout Alberta that would benefit from access to this $3.3 trillion procurement market.

Trade is good. Trade lowers prices and enables competitive and valued Canadian businesses to expand, hire new employees, and prosper in a globalized world. Free trade would allow billions of dollars in Canadian exports to reach new markets, and ensure that European goods flow in at competitive prices for Canadian consumers. Free trade would help Alberta's businesses grow and prosper at a time when Alberta needs it most.

I am proud to support this agreement that would help Alberta's small and large businesses, Albertan consumers, Canadian industry, and Canadian producers, and that would also deepen the long-standing ties between Canada and Europe.

The House resumed from November 22 consideration of the motion that Bill C-30, An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures, be read the second time and referred to a committee.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, I rise today, as the member of Parliament for Surrey—Newton and also a member of the Standing Committee on International Trade, in support of Bill C-30. The comprehensive economic and trade agreement signed between Canada and the European Union's member states represents a new model for the world on what is possible through a well-thought-out comprehensive trading relationship.

It is amazing to think of the scope of opportunity available to Canada as a result of this agreement. The numbers cannot lie: 28 European Union member states with more than 500 million people and GDP of more than $19 trillion. This is the world's largest single marketplace and, according to a joint report released by Canada and the European Union, this kind of partnership is estimated to increase the value of bilateral trade by 22.9% and increase annual growth of our GDP by approximately $13 billion. In fact, the CETA would establish Canada as the only G8 country and one of the only countries in the world to have preferential access to the world's two largest markets, the U.S. and the European Union.

Numbers are often thrown around without context, so while they are very impressive, they are often unable to translate their impact into communities like my riding of Surrey—Newton. I want to spend a few minutes speaking about exactly that aspect of this historic bill, because ultimately it is just another piece of this government's focus to strengthen Canada's middle class and to provide more opportunities for those wishing to join it. The elimination of trade barriers means lower prices on everything from food to cars that are imported from Europe. However, it is bigger than that because, for Surrey—Newton and other communities across British Columbia, our new preferential market access would represent great opportunity.

The European Union is already B.C.'s fifth-largest export destination and our fourth-largest trading partner. The elimination of the tariffs I just referred to would apply to almost all of the province's current exports and would provide B.C. a competitive advantage when compared to some of our major competitors who do not have the benefit of such an agreement. For our forest products, our metal and mineral resources, our aquaculture exports, and our information and communication technologies, the possibilities for growth are endless. For B.C.'s service suppliers, who represent 76% of the province's total GDP and comprise a sector that employs 1.7 million British Columbians, the CETA would represent greater security and predictability to the new opportunities that would now be available.

For small and medium-sized businesses, European Union procurement opportunities would now also be available with a new capability to supply goods and services to EU-level institutions like the European Commission and the European Parliament, but also to EU member state governments and thousands of regional and local government entities. This is a procurement market that is estimated to be worth about $3.3 trillion annually, which is a staggering figure.

I do not want to get caught up in just trumpeting the benefits of CETA without considering the work we have in front of us to make the agreement a reality.

This is what Bill C-30 is all about. In addition to formally approving the deal and outlining the ongoing administrative and operational costs that Canada is responsible for, it would also amend several pieces of legislation in order to ensure that our country is able to live up to the obligations to which we signed on. The numerous changes needed to the acts that govern import and export, patents, and investment, both from and to Canada, represent adjustments to our laws to ensure that Canadians and Canadian businesses are able to enjoy the maximum amount of benefit from this agreement.

These changes also present an opportunity for opponents of CETA, and indeed opponents of all multilateral trade agreements, to spread misinformation and create fear and confusion.

The reality is that it has taken more than seven years to ensure that we had a deal that protected public services for Canadians; that the government continued to have oversight on regulating environmental, labour, health care, and safety standards; that our public health care system and the quality of care that Canadians have come to expect are not threatened; that our water resources and the standards to which they must adhere are protected and maintained; that Canadian laws and regulations cannot be compelled to be changed by foreign investors or corporate interests; and most importantly, that Canadians continue to have access to information and complete transparency on the terms of this agreement.

These are the considerations that Canadian negotiators fought for, to ensure that Canadian sovereignty was not just given away.

Over the past year, I have listened to the testimony of many organizations that have presented their comments and concerns. I stand here today to state that the Minister of International Trade and all of our members of the Standing Committee on International Trade carefully considered each and every piece of testimony.

CETA is not a threat to the public interest. In fact, it is always with the best interests of Canadians that the government has engaged in negotiations over the past year. This means that compromises were always balanced with benefits and that, once again, the powers of the Canadian government and of our provincial and municipal counterparts are not at risk.

I want to conclude by stating that our sovereignty is more valuable than any trade figure, and CETA is not a threat to it, as many of the fearmongers would have Canadians believe. Canada remains as strong as ever and, as a result of this agreement, we are poised to enter a new era of prosperity and opportunity that would bring benefits to all British Columbians and to all Canadians.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, it is my pleasure to rise in the House to join in the debate on Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states and to provide for certain other measures.

I must admit that, at first, I was worried for certain sectors of the economy in my riding, dairy production in particular. I want to congratulate the Minister of International Trade and the Minister of Agriculture and Agri-Food for their work in responding to the concerns stemming from this agreement. It is only a start, but I will get back to that a little later in my speech.

For the past year, I have met with multiple stakeholders from the agricultural sector and heard various points of view. One consistent point is that food production must increase by at least 50% by 2050. Canada has a unique opportunity to position itself as the go-to supplier for world demand for food. But in order to do that, we will need to provide our farmers, our processors, and the agrifood supply chain a competitive advantage. That is where CETA comes in. While not perfect, it would provide a greater opportunity for our farmers and the agrifood sector to position themselves as key players in the European market. The EU is among the world's largest markets for food. Removing barriers for our agricultural sector would be part of this agreement.

We need to consider these important facts: almost half of the value of Canada's agricultural production is exported; and two-thirds of our pork, 80% of our canola and canola products, and 90% of our pulse crops are exported.

Let us consider this, then: tariff barriers currently stand at approximately 14%, on average. That means that Canadian agricultural businesses are at a competitive disadvantage compared with those in the European Union. CETA will allow them to be as competitive as European farm operations. When the agreement comes into force, nearly 94% of tariff barriers will be eliminated. This is good news.

However, I would encourage my colleagues not to take my word for it, but rather that of the experts at Cereals Canada, which includes the Producteurs de grains du Québec and the Grain Farmers of Ontario, the Canadian Cattlemen's Association and the Canadian Pork Council, to name a few. They all support this agreement. This is good news for agriculture.

What is more, we intend to stay the course. We will continue to fight so that Canadian agriculture can thrive and the supply management system is maintained. It is true that the agreement is not perfect, but the Prime Minister, the Minister of Agriculture and Agri-Food, my colleagues and I have worked relentlessly to ensure that our dairy sector can continue to prosper.

Several meetings were held with Canadian dairy farmers, processors, provincial associations, and many young farmers. Discussions focused on the best way to strengthen the sector so that it can face the national and international challenges that lie ahead, and on the transition assistance in light of new market access under CETA.

Our government has been clear from the beginning regarding the need to help dairy farmers and processors make the transition with respect to CETA. That is why we announced a $350-million investment in two new programs aimed at enhancing the competitiveness of our dairy industry in anticipation of CETA's implementation. The government is committed to preserving the vitality of the dairy industry by contributing to farmers' and processors' continued ability to innovate and increase productivity.

The first program is the dairy farm investment program. This five-year, $250-million program will provide targeted contributions to help Canadian dairy farmers update farm technologies and systems and improve productivity by upgrading their equipment.

The second program is the dairy processing investment fund. This four-year, $100-million program aims to help dairy processors modernize their operations and thereby increase their productivity and efficiency, and also diversify their product lines so as to profit from new market opportunities.

These programs will complement the dairy sector's ongoing investment efforts, helping both current and future generations of dairy farmers and processors to remain competitive for the long term within a strong supply management system.

We have already seen the positive impact of this announcement. Already, Gay Lea Foods in Ontario has announced an investment of $140 million to create an ingredient plant.

However, that is not all. We have heard loud and clear about the ongoing problems that negatively impact our supply-managed sectors, particularly our dairy and chicken farmers. We need to address the duties relief program and spent fowl. Consultations will be launched with industry stakeholders regarding potential changes to the duty relief program and the import for re-export program.

We are exploring measures regarding inventory reporting in an effort to improve the predictability of these imports. Our government will also look at specific options regarding certification requirements for imports of spent fowl while ensuring that any such requirements would be fully consistent with Canada's international trade obligations. These are key concerns for our supply-managed industry, and our government is taking action to support these sectors.

With regard to the allocation of CETA cheese quotas, the government is currently reviewing the results of the public engagement process that concluded at the end of August. The Minister of International Trade's decision will take stakeholders' views and interests into consideration in determining how to allocate the new CETA cheese quotas. The allocation policy for cheese tariff rate quotas will be finalized following the passage of the CETA implementation legislation and before the agreement's entry into force.

These are the actions of a government that is committed to the people it represents. Some will say we are taking too much time, but as my mother used to say, “better late than never”. One is better off making the right decision than the wrong one.

Although there are challenges, the Canadian dairy sector continues to be progressive and innovative. Canadian dairy producers are doing an excellent job meeting the needs of consumers, whether in terms of food quality, animal welfare, the environment, or good products with high nutritional value.

Consumers like Canadian dairy products. Production continues to grow every year. Butter consumption increased by 10% over the last decade. Yogurt consumption increased by over 60% during the same period, and should continue to rise.

Canada’s dairy producers are among the industry’s world leaders with respect to the environment.

Canada’s dairy industry has a smaller ecological footprint for carbon, water and earth than most of the other big dairy producers worldwide. This is good news.

Today’s dairy producers are able to produce 14% more milk than 20 years ago, thanks to better genetics, better nutrition and better farming practices. They are able to do this with 24% fewer cows, while generating 20% less greenhouse gas. This is reason to be proud of our dairy producers.

The announcement of November 10 contributes to the industry’s success by further modernizing our dairy sector. Much progress has been made, but we must always continue to innovate.

The Prime Minister and the Minister of Agriculture and Agri-Food have heard our dairy producers loud and clear, and they will continue to listen to them, while the government will continue to consult other industry players to get their advice and thereby orient the program’s design and help to ensure that these programs meet the needs of producers and processors in tangible ways.

I undertake to do the same, continuing to work closely with producers and processors in Glengarry—Prescott—Russell, the riding I represent.

Supply management is a system that works, and it is through collaboration that we will ensure its sustainability. When I was little, it was “Never without my milk”. I will never forget those who produce that milk.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, earlier I said that, in 2008, we pretty much only had NAFTA, with the United States. All our eggs were in the same basket. Now we want to open up markets and diversify the places where we can export our products by removing tariffs.

This trade agreement is an opportunity from which Canada will be able to benefit. It will offer new opportunities for our small and medium-sized businesses, including those in my riding. Bill C-30 will implement this agreement, and will bring growth for our middle class. I am very happy that our government signed this agreement on October 30.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for the speech on Bill C-30 that she gave before question period. She had good things to say about free trade agreements but offered no concrete examples of economic and trade agreements having a direct impact on job creation in her riding, in Quebec, or in Canada.

Can the member give an example? Can she do more than just speculate and actually provide some concrete evidence of how this economic and trade agreement with Europe will create jobs? Has the ratification of trade and free trade agreements every really resulted directly in job creation?

The House resumed consideration of the motion that Bill C-30, An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures, be read the second time and referred to a committee.

Minister of International Trade—Speaker's Ruling

[The Speaker, Geoff Regan]

I am now prepared to rule on the question of privilege raised on November 3, 2016, by the hon. member for Essex regarding the tabling of treaties in Parliament.

I would like to thank the member for Essex for having raised the question, as well as the Leader of the Government in the House of Commons and the Parliamentary Secretary to the Leader of the Government in the House of Commons for their comments.

In raising the question of privilege, the member for Essex contended that the government violated its own 2008 policy on the tabling of treaties in Parliament when, on Monday, October 31, 2016, the Minister of International Trade tabled in the House of Commons a copy of the comprehensive economic and trade agreement between Canada and the European Union and its member states without an explanatory memorandum and, immediately after, introduced implementing legislation for that treaty, Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states and to provide for certain other measures.

In particular, the member indicated that the government's policy in this regard stipulates that a waiting period of at least 21 days be observed before introducing implementing legislation in Parliament and that treaties be accompanied by an explanatory memorandum. In her view, the government's negligence in fulfilling the obligations of its own policy infringed on members' privileges, as it left them unable to scrutinize the voluminous agreement and its implementing legislation.

The Leader of the Government in the House of Commons replied that the process governing the tabling of treaties is in fact a government policy and, thus, not a matter of parliamentary procedure.

For his part, the Parliamentary Secretary to the Leader of the Government in the House of Commons argued that departmental activities do not fall under the purview of the House or the Speaker and that, in any case, CETA had been granted an exception to the 21-day waiting period pursuant to section 6.3 of the government’s policy.

Members may recall, as was mentioned by the Parliamentary Secretary to the government House leader, that the Chair was faced with a very similar point of order regarding the same policy on treaties in the last Parliament. In response, my predecessor concluded on May 12, 2014, on page 5220 of the Debates, that:

It is clear to me that the policy in question belongs to the government and not the House. It is equally clear that it is not within the Speaker's authority to adjudicate on government policies or processes, and this includes determining whether the government is in compliance with its own policies.

He went on to say:

...the distinction between governmental procedures and House procedures remains and must be acknowledged.

In fact, the member for Essex acknowledged this very distinction when she stated on page 6557 of the Debates:

I am aware that the minister's own policy on the tabling of treaties in Parliament is not governed by the Standing Orders of the House.

It bears repeating my predecessor’s explanation that, although many Standing Orders and statutes require that certain documents be tabled in the House, as described on pages 430 and 609 of House of Commons Procedure and Practice, second edition, there is no mention in our Standing Orders of a specific requirement regarding the tabling of treaties or accompanying explanatory memoranda, nor of any prescribed time limits with respect to the tabling of implementing legislation.

Thus, it is clear to the Chair that, as was the case in May 2014, this policy cannot be regarded as part of the current body of rules that govern the House's procedures and practices. It is equally clear that when members request redress with respect to rules external to the House, as Speaker I can neither interpret nor enforce them. It has long been the case that the Speaker's role is limited to ensuring that the body of rules and practices that the House has adopted are respected and upheld.

Therefore, the Chair cannot find evidence to support the member's contention that she was impeded in the fulfilment of her parliamentary functions. Accordingly, I cannot find that there is a prima facie question of privilege.

I thank all hon. members for their attention.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am proud to rise in the House today to speak to Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states and to provide for certain other measures.

Having had the unique opportunity of sitting on the Standing Committee on International Trade for almost a year now, I can attest that we have dealt with a number of priority issues, including the Canada-European Union comprehensive economic and trade agreement, or CETA.

Personally, I believe that implementing CETA and passing Bill C-30 is a real Canadian success. Many economies were hit hard by the 2008 world economic crisis, and even as we speak, some nations are still dealing with systemic social and economic challenges.

Fortunately, Canada has recovered, and so has the province where I was born, Quebec. During the economic crisis, our policies were applauded, and now we appreciate how lucky we all are to be Canadian.

When I was a member for the riding of Groulx in the National Assembly from 2007 to 2008, I can recall a number of conversations behind the scenes about the possibility of implementing an ambitious and exclusive trade deal between Canada and the European Union.

Back then, the idea was that, once CETA was implemented, Canada would have access to the two largest economic markets in the world: our natural ally, the United States; and Europe's major economies. At the time, the purpose of implementing such a massive trade agreement was to diversify our economy.

Now that it is really happening, I feel very privileged to participate in the debate on Bill C-30 as the member for Rivière-des-Mille-Îles. However, we must be clear-headed about this because we all saw what happened in 2008. The reeling U.S. economy had a major impact on Canada and its provinces and territories too.

The main purpose of the Canada-European Union comprehensive economic and trade agreement is to diversify our economy because it is never a good idea to put all our eggs in one basket. Greater access to European markets is the natural next step because we have similar values and we want to strengthen our ties to our allies.

I am especially proud to be part of a government that will go down in history for building stronger ties with Europe. Our inclusive values, our belief in innovation, our progressive philosophy, and our professionalism have not only charmed Europe but have also secured the implementation of a quality trade agreement that will benefit Canada in many ways. Trade leads to growth, and growth leads to more jobs here in Canada and in our communities.

It was a pleasure for me to see the government officially sign CETA at the Canada-European Union Summit on October 30. This historic signature represents one more step toward implementing CETA. It goes without saying that, behind this treaty, there are men and women who have been standing up for Canada's most profound interests at the negotiating table since 2009. It is vital that we recognize their important work and their passion for implementing an agreement that will demonstrate Canada's and Europe's leadership on an inclusive and progressive approach to international trade.

I know that this agreement will result in growth and real opportunities to strengthen the middle class. As the world's second-largest economy, the European Union market represents an unprecedented opportunity for Canadian businesses.

The implementation of CETA will have an unprecedented impact on a number of businesses in my riding. The aerospace industry, the parts manufacturing industry, and the innovative technology industry in Rivière-des-Mille-Îles, for instance, will be able to increase their production now that the European markets have opened to them.

As a result of this agreement, more Canadians will be working, the innovation chain will grow, and small and medium-sized businesses across the country in every sector will thrive.

The agreement has a number of chapters that are worth noting in the House.

First of all, CETA will provide privileged access not only to commodities and processed products, but also to the EU services sector, which is one of the most developed in the world. Conversely, it is our services sector that will benefit the most from the agreement, since the EU is the world's largest importer of services.

CETA also includes an important chapter on the environment and sustainable development, which are values that this government and European governments hold dear. With this trade arrangement, Canada continues to show environmental leadership on the international scene. The European Union understands, just as we do, that in order to leave a healthy planet for our children and future generations, we need to act now.

Furthermore, Canada can take advantage of an important opportunity presented by CETA, which includes a detailed framework for the mutual recognition of professional qualifications. This important provision will help guarantee labour mobility, as well as the mobility of brain power between Canada and Europe. This measure allows not only labour forces to move freely, but also ideas and best practices. Absolutely everyone wins.

As a member of the Standing Committee on International Trade, I would like to reiterate my support for Bill C-30 and for all of the provisions that bring into force one of the most progressive trade deals that has ever been on the table. Canada will benefit in many concrete ways from CETA, which will enable Canadian companies and small businesses to seize new business opportunities and diversify Europe.

Canada is a highly educated nation. We have an extremely skilled workforce, and the knowledge economy is the economy of the future. We can all be proud of signing this agreement and opening new markets with Europe thanks to the Canada-European Union comprehensive economic and trade agreement .

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I am very pleased to have the opportunity to address Bill C-30, the act to implement the comprehensive economic and trade agreement between the European Union and Canada.

It is my intention to focus on the investor-state provisions within CETA. I want the record to show that the Green Party shares the concerns of many that this will drive up pharmaceutical drug prices for Canadians. We really do need pharmacare and we do not need to give pharmaceutical companies more advantages than they now have in terms of patent protection. We do need to protect the rights of municipal governments to put out local bids for tender, and not take away their ability to have local procurement. There are impacts on various economic sectors in Canada, including the dairy industry, that need to be better examined.

I want to focus on why this agreement remains so controversial that it is not yet a done deal in Europe. I think Canadians have been somewhat bamboozled on this point.

Certainly, the Conservatives have made the case that all the Liberals had to do was open up a gift package and it was all ready to go. That is clearly not the case. Why is the comprehensive economic and trade agreement in the EU so very controversial to this day? It is because this is the first time, the first proposed agreement, in which the European Union will be accepting an investor-state clause. That is why it remains controversial. That is why it is still to be ruled on by the European Court of Justice. The provision within CETA that many European parliamentarians think is not legal is the investor-state provision. That is why the European Court of Justice will be ruling on it. If it rules that it is beyond the scope of the jurisdiction of the European Union to take away the rights of states and give foreign corporations superior rights, that will blow a hole through CETA.

The same thing will be true when this trade agreement goes to the whole European Parliament for a vote sometime between December and February. If it clears the European Parliament, it then goes to the various parliaments. There are 38 national and regional governments that will still have to vote on this, which is a process that could take two to five years.

Therefore, my first point is this. Why the rush to put through Bill C-30? Why are we not having proper consultations across Canada, and proper and lengthy efforts to hear witnesses, as the government of the day has done under the TPP? This is being rushed despite the deal not yet even existing on the European side. Certainly, the European commissioners have accepted it, but it is not a done deal, and that is because the next trade agreement Europe is looking at having is with the United States. If members can imagine the European governments at the local and national level having a problem with the idea that Canadian corporations can come and sue them in these phony courts, they can be sure they would be even more worried about that happening with U.S. corporations.

Therefore, the first reason, and the number one reason, this agreement is controversial in Europe is the investor-state provisions. I want to back up and explain what these are.

In debate today we heard them conflated with dispute resolutions systems. Everyone understands that when we have a trade deal, the two or three countries involved, in this case a large trading block like the EU, may end up having disputes on trade issues. We have had enough softwood lumber disputes between Canada and the U.S. to explain dispute resolution on the commercial aspects of trade quite well. This is not that. This is not a process to resolve disputes over trade.

What are investor-state provisions doing in a trade deal? That is a good question. They should not be there at all. They are provisions that initially came into the trade world, I would say, by stealth. In all of the national debate, in all of the concerns that Canadians expressed, no one talked about chapter 11 of NAFTA. It was basically hidden away. I have to say that I have spoken to the negotiators of NAFTA. Even they did not know how this provision would be used. Chapter 11 of NAFTA, they thought, merely said that if a foreign government expropriated the assets of a corporation, like a scenario in Cuba where Fidel Castro has the Government of Cuba nationalize all U.S. assets, it would then owe that corporation money for the expropriation of assets. Everyone understood that. It is common law internationally. What chapter 11 did was put in some language that appeared benign but turned out to be a disaster for domestic democratic governance. It put in the words “tantamount to...expropriation”.

Therefore, chapter 11 of NAFTA waltzed through without any controversy, and then very clever lawyers got hold of it. This has created a cadre, a term I will use later as well, of global ambulance chasers, lawyers who went out to find corporations.

The lawyers said that when our government passed the rule that we cannot use that toxic gasoline additive, they thought the corporation had a case against the government under this investor-state dispute. Therefore, Canada, under chapter 11 of NAFTA, was sued for getting rid of a gasoline additive. Under chapter 11, there was the Ethyl Corporation case, where we were sued for banning the export of PCB-contaminated waste. AbitibiBowater sued. However, Bilcon is the worst and most recent case. This is a U.S. corporation that opted not to go to Canadian courts to seek a domestic remedy, but went to the secret Chapter 11 tribunal to get a judgment against Canada to overturn a very strong, solid, defensible, reasonable assessment.

There are no trade aspects to any of these cases by the way. These are not trade disputes. These cases are saying that, as a foreign corporation, a domestic decision by democratic governance has cost it money and its expectation of profits, and so it is bringing a case.

Chapter 11 of NAFTA gave rise to a proliferation of bilateral investment treaties. Generally speaking, the larger economic power is doing business in a small developing country, like a Canadian mining company operating overseas, and the international collective of investment treaties has created real hardships on smaller developing countries. The pattern is clear, and it was put forward and documented by a European think tank. It put together a review called Profiting from Injustice. There is a pattern: the bigger economic power is going to win.

The arbitration process, in other words, is neither fair nor neutral. The global ambulance chasers are a small cadre of international lawyers who get paid $1,000 an hour to be an adjudicator or to be a lawyer for a foreign corporation that is suing a domestic government. The larger economic power is going to win. Therefore, if Canada is being sued by the U.S., we lose.

The worst of all of these agreements has to be the Canada-China investment treaty, which Harper brought in and pushed through with a cabinet vote. It was never debated in the House and never voted on in the House, but it will bind Canadian governments until the year 2045, and it is all completely in secret.

We can now look at chapter 11 secret tribunals and the Canada-China secret tribunals. If our yardstick is those regressive anti-democratic trade deals, and we compare them to the European Union's efforts here with Canada to create an investment court, they are doing everything they can to try to take an inherently anti-democratic system of corporate rule over governments and dress it up to look more democratic, but they have not done the job. It is still an anti-democratic notion at its essence that foreign corporations have the right to sue governments for decisions that have been made with no trade motivation whatsoever but to protect health, safety, and environment within a country.

Why should we agree to these at all?

Earlier in the debate today, I said that CETA creates an investment court. It has adjudicators who are semi-permanent. In other words, they are not being paid for one case and the next day they can go out and be an advocate within the CETA process. The hon. member with whom I was discussing this made that point. I was not able to come back and explain that they can be both a judge in the investment court in the EU and a global ambulance-chasing lawyer on a NAFTA case, or on a Canada-China investment treaty case. They can actually be in the pocket of someone who has hired them, because there are corrupt lawyers who work for companies like Bilcon. These lawyers can be in the pocket of a company like that and then sit as an adjudicator at the investment court between the EU and Canada without having to disclose that they have already been working and are already a lawyer for the very corporation that they would rule over in the case at the investment court in the EU.

These provisions are toxic. As Steven Schreibman, a leading Canadian trade lawyer, said, investor-state agreements are “fundamentally corrosive of democracy”. They have nothing to do with trade.

If Canada wants to get this deal approved in Europe, and if the Liberals want the support of the Green Party in this place, they have to take the investor-state provisions out.