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

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

Elsewhere

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

Votes

Feb. 14, 2017 Passed That the Bill be now read a third time and do pass.
Feb. 7, 2017 Passed 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, {as amended}, be concurred in at report stage [with a further amendment/with further amendments].
Feb. 7, 2017 Failed
Dec. 13, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
Dec. 13, 2016 Passed That this question be now put.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 22nd, 2016 / 12:20 p.m.


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Conservative

Rachael Thomas Conservative Lethbridge, AB

Mr. Speaker, it is a privilege to stand in the House today to speak on behalf of CETA and Bill C-30, the Canada-European Union comprehensive economic and trade agreement implementation bill.

Canada is an exporting nation. From the voyagers to the Hudson's Bay Company to the cod fisheries of our east coast, Canada has been a place of abundant natural resources that have been harvested for exports.

As a grand nation that spans the Atlantic and the Pacific Oceans, that was united by bands of steel through our national railway, our identity as Canadians has been shaped by our export economy.

Whether it is beaver pelts, cod, grain, beef, minerals, oil and gas, or cars and trucks, all these products helped build our great nation into the prosperous land we call home today.

For those who might be hesitant to support CETA, here are some contextual facts about the importance of exports to Canada, the country we love and serve.

International trade represents more than 60% of Canada's gross domestic product. One in five Canadian jobs is linked to exports. This means there would be three million fewer jobs without international trade, and that is a big deal. This then would drive up Canada's unemployment rate to more than 25% if we were to all of a sudden stop exporting tomorrow.

Clearly our shared prosperity as a nation is very dependent on opportunities to get our goods to international markets, which is why it is so important for us to enter into free trade agreements.

This is why the Canada-EU free trade agreement will give Canada unprecedented access to 500 million EU customers. The size of the European Union's combined economy is $18 trillion, an economy that Canada's businesses will now have barrier-free access to. The European Union is the world's largest importing market for goods, with annual imports that are worth more than Canada's total GDP. The European Union is already the fourth-largest export market for Alberta agriculture after the United States, China and Japan.

A joint Canada-EU study that supported the launch of negotiations concluded that a trade agreement with the EU could bring a 20% boost in bilateral trade, and a $12 billion annual increase to Canada's economy. This represents the economic equivalent of adding $1,000 to every family's income or almost 80,000 new jobs to the Canadian economy.

CETA is in fact good news for our country.

The Canadian Agri-Food Trade Alliance estimates that when fully implemented, this trade agreement could result in $1.5 billion in new Canadian agrifood exports to the EU. When this trade agreement comes into force, 98% of EU tariffs on Canadian goods will be entirely eliminated.

Every region of Canada stands to benefit from the opportunities contained in this agreement. Of course I am very interested in my riding of Lethbridge.

Lethbridge is a hub for agricultural exports, from grains and oilseeds, to poultry and beef, the fertile soil of southern Alberta provides an abundance of food that is available to be sold around the world. In conversations with many of my local agricultural processors, I have heard overwhelming optimism and support for the CETA agreement. Traditionally, EU tariffs on agriculture and processed food products have been quite high, particularly on products such as beef, pork and wheat.

Canada has also faced many non-tariff barriers in the European market. This is why the elimination of tariffs and non-tariff barriers creates fantastic opportunities for Canadian agricultural producers, again, particularly affects my riding.

This agreement establishes a joint committee that will ensure that sanitary and phytosanitary measures to protect human, animal, and plant life do not unnecessarily harm trade. This is very important. This body will determine which certifications and standards should be deemed as equivalent. These non-tariff barriers have been the primary obstacles that in the past have stopped Canadian agricultural exports.

Our Conservative caucus will be paying close attention to the non-tariff barriers and will be holding the present government to account with regard to advocating on behalf of our Canadian producers.

For the grains and oilseeds producers in Lethbridge, this agreement would completely open up a market that was previously blocked by very high tariffs. Here are some examples of the EU tariffs that would be eliminated for grains and oilseeds producers once the agreement is fully implemented: the $114-per-tonne tariff on grains, including oats; the $122-per-tonne tariff on low to medium-quality common wheat, a product that currently sells for only $225 in the EU; the $120-per-tonne tariff on barley and rye; the tariff of up $190 per tonne on durum; and the tariff of 9.6% on oils, including canola oil, a crop that currently sells for $540 a tonne in the EU. All of these tariffs would be eliminated by the CETA agreement. Alberta Barley estimates that an additional $100 million in grains and oilseeds exports would result from signing CETA.

Lethbridge also has a sugar beet industry and the Rogers Sugar refinery plant is very nearby. The Canadian Agri-Food Trade Alliance estimates that this agreement would boost exports of sugar-containing products, such as sugar beets, by $100 million per year. Again, that is excellent news for the producers in my riding.

Canada is also a major meat exporting country, a significant amount of which is produced and processed in southern Alberta. The Canadian Meat Council reports that Canada currently exports $1.3 billion worth of beef, $3.2 billion worth of pork, and $5.7 million worth of bison. Sixty-five thousand Canadians depend on this industry for their job each and every.

For the agricultural producers in my riding, 94% of goods would be tariff-free once CETA is signed, sealed, and delivered.

Lethbridge is also a hub for the Maple Leaf Foods processing plant, which, of course, is processing pork, to a great extent. The Canadian Pork Council has projected that for specific cuts of pork, this deal could create sales of $400 million per year. This is excellent for the pork producers in Lethbridge.

Lethbridge is also home to a large number of beef producers in Canada. In fact, we are known by the nickname “Feedlot Alley”.

Canada has some of the greatest beef genetics in the world and our breeds are known for their excellent quality of meat. Canada has world-leading safety systems, including complete traceability of each and every animal.

Once CETA is fully implemented in three to seven years from now, 65,000 tonnes of beef would be allowed to flow into the European markets duty-free, which would represent more than $600 million in new exports.

That said, reaching an agreement on the equivalency of phytosanitary measures is absolutely critical for this agreement to benefit the producers in my riding and the producers across this country. Phytosanitary measures is simply a fancy way of saying “measures to protect human and animal health in the farming process”. Because of our different climates and the different scale of industry, Canada uses different methods from the EU to ensure the safety of meat. These methods are backed by the latest science and technology. The challenge for the government in negotiating this agreement would be to ensure that science-based equivalencies are negotiated before this agreement comes into full effect.

In summary, this trade deal is excellent news for Canadian exporters. It would create jobs, it would help to grow our economy, and it would increase Canada's standing on the world stage.

I am thankful for former Prime Minister Harper and the members for Abbotsford and Battlefords—Lloydminster for all the work they did in the previous government to negotiate and seal this deal through to it signature.

The farmers, agricultural businesses, and exporters in my riding of would enjoy a more prosperous future because of CETA.Lethbridge

November 22nd, 2016 / 11:55 a.m.


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Fellow and Chartered Arbitrator, Chartered Institute of Arbitrators, As an Individual

Louise Barrington

First of all, I just wanted to mention to you that there is a code of conduct for arbitrators and mediators. It's set out in the papers that go along with Bill C-30. I have it here. It's annex 29-B. You can look at that. That code of conduct is very similar to other codes of conduct that you'll find for arbitration and mediation specialists in the industry.

As to why not use the domestic courts, traditionally there has been a certain distrust of courts that are not our own. That's one of the reasons that arbitration grew up. It's to give a level playing field, so that if there were—

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 22nd, 2016 / 11 a.m.


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Conservative

Alice Wong Conservative Richmond Centre, BC

Madam Speaker, I rise today to speak to Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada and the European Union, CETA.

I would like to first acknowledge my Conservative colleagues, the Right Hon. Steven Harper, the hon. member for Abbotsford, and the hon. member for Battlefords—Lloydminster. Thanks to their dedication and hard work over the past few years, this agreement has now been made possible.

CETA will give Canadian firms new and secure opportunities to supply both goods and services to all 28 member states of the European Union. While this trade agreement has many different components, all of which provide immense opportunities for the Canadian economy, I will be focusing my speech on the implications this agreement has on the business and private sectors in Canada.

An early study of this agreement, when it was in the negotiating stage in the last government, indicated that a trade agreement with the European Union would likely result in almost 80,000 new jobs for Canadians. This is exactly what the Canadian economy needs now: jobs. One of the reoccurring aspects of CETA is the agreement to eliminate almost all trade tariffs for Canadian goods and services. It is expected that 99% of tariff lines to the EU will be duty-free once the agreement is fully implemented. By eliminating this type of trade barrier, Canadian producers will have increased access to the EU market and a competitive edge over other global producers who do not have the same kind of trade agreement.

As the critic for small business, I hear this conversation frequently. Business owners want to have better access to global markets. This agreement will help answer that call. What smaller companies will now need to know from the government is how SMEs can become important partners in the supply chain.

To ensure that Canadian businesses are able to effectively operate in the EU market, CETA also includes a regulatory co-operation component. The regulatory co-operation forum will provide Canadian and EU regulators with information to ensure that regulatory measures in both markets are compatible and of mutual interest. This will dramatically diminish the barriers often experienced by businesses entering a new market.

In addition to Canadian-made goods, services such as management, financial, and engineering will have better access to the EU markets. Once CETA has been fully implemented, Canadian service exporters will have the same level of access and be bound by the same regulations as those service providers in the EU.

One of the most important aspects of CETA is the investment provisions. Investment is a critical way to engage with the global economy and stimulate economic growth and job creation. CETA will allow both Canadian and EU investors to capitalize on new opportunities while also ensuring stability and transparency in the market as a means of protecting their investments. There are many reasons why the EU market should wish to invest in Canada, and CETA will encourage such investment.

Although there are many positive and exciting aspects to this agreement, there are also some missing pieces. There have been several unilateral declarations made between member states that have not been agreed to by either Canada or the EU.

Additionally, while there are many positive aspects of the investment chapter of this agreement, there is still some uncertainty. As it becomes clear which provisions in the protection and investment dispute resolution aspect of the agreement will be implemented and which will be removed, I ask that the government be forthcoming on these decisions. It is important that any implications these declarations may have on our industries are explained to Canadian exporters and it is important that the Canadian best interests are maintained.

As a member of Parliament from British Columbia, I would like to also comment briefly on the many opportunities CETA will provide to my home province. Services that are critical to B.C., such as environmental services, communication technology services, and energy services, will have new and unprecedented access to the EU markets and economy.

Just last week I met with a business representative from the aerospace industry and he explained the types of growth CETA will be able to provide to his line of work. B.C. companies understand how important this agreement is and I look forward to hearing of the success they will find in the EU market. As the entire service sector is a critical component of B.C.'s GDP and employs a majority of British Columbians, this sort of competitive edge will greatly benefit the province and my riding of Richmond Centre.

B.C. also represents diverse agricultural and agrifood products from seafood to produce and is known for its high food safety standards. Opening up the market to these producers will encourage further growth and world-class excellence.

I am very pleased that, after all of the hard work done by many over the past few years, an agreement has been made. Although I have noted a few of my concerns on the agreement, I look forward to the many benefits CETA will provide to our Canadian businesses and our country on a national level. Canada will be one of a few countries that has been able to secure such access to the world's two largest economies, the United States and the European Union, and that is something to be extremely proud of.

My next question for the current government is how we are going to deal with the trans-Pacific partnership, which the president-elect of the U.S. has openly declared that he is going to withdraw from. I have had the opportunity of joining our former prime minister, the trade minister, and the minister of agriculture to explore business opportunities in Asia in a good number of years. I certainly hope that even without the U.S., our government is able to go forward with the TPP and open up an even larger market for all Canadians.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 22nd, 2016 / 10:30 a.m.


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Liberal

Julie Dzerowicz Liberal Davenport, ON

Madam Speaker, as the member of Parliament for Davenport, I am pleased to have the opportunity today to speak in support of Bill C-30, Canada's ratification of the Canada-European Union comprehensive economic and trade agreement, more commonly known as CETA.

I know that in my riding of Davenport, a wonderfully diverse riding with the majority of resident families coming from European countries like Portugal, Italy, Spain, and even Greece and France, they are excited at the prospect of this agreement and bill coming into force.

I should note that not all trade agreements are seen equally in my riding. There are many concerns about the TPP, but for CETA there is large support and people are very excited about it. They are excited at the prospect of stronger economic ties with their home countries and the chance to help their home businesses succeed, in addition to all the benefits this agreement will have for Canadians.

The residents of Davenport know that the EU is the second-largest market in the world for Canadians. CETA means more growth, more jobs, a more robust economy, and a stronger economic future for all Canadians. Through CETA, the government is demonstrating its commitment to growing our economy and strengthening the middle class by increasing and expanding Canada's trade.

As a medium-sized economy competing in the global marketplace, Canada has long recognized free and open trade as critical for our economic prosperity. CETA will offer new export opportunities and new consumers for our products. People around the world are hungry for the goods, skills, and services that Canada has to offer. Partners around the world want to do business with Canadians. We are seen as being reliable and committed to providing quality services and products.

The European Union and its 28 member states is an important market for Canada, and CETA will continue to expand the opportunities for Canadian companies in this market. In 2015, our bilateral trade in merchandise with the EU was worth $99 billion, and trade in services was $38 billion, making the EU our second-largest trading partner.

Trade has long been a powerful engine for Canada's economy. Canadian jobs and prosperity depend heavily on trade flows with other countries. In fact, one out of every six Canadian jobs is related to exports, and Canadian exports amount to more than 30% of Canada's GDP. It is because trade is so vital to our economy that our government has undertaken to advance a progressive trade agenda.

The concept of progressive trade is what helped us to conclude CETA with our EU partners. I will pause for one minute to say how very pleased I am that at the EU-Canada summit where CETA was signed by the president of the European Council, the president of the European Commission, and our Prime Minister, a joint statement was also issued that outlined our mutual shared values and interests beyond trade.

They signed a statement that included agreement on shared values and goals, like peace and democracy, prosperity, protection of human rights, the rule of law, the environment, and inclusion and cultural diversity. The commitment to and promotion of these values and goals is not only important to me, but I know is also really important to the residents of Davenport.

Canada engages in CETA because we believe that it will lift up all Canadians. We believe that CETA will open up new markets, and it has the potential to significantly increase Canadian wealth. Small and medium-sized enterprises, in particular, are looking to our government to open up new markets for potential exports, and our government is committed to this goal.

We have heard directly from Canadian businesses, many of them within ethnic communities, like the Portuguese, Italian, and Spanish communities, which are found in ridings across Canada, like Davenport. They have asked us to do more to help them grow. They want us to increase sales, increase profits, reduce risk, lower costs, and reach beyond saturated domestic markets.

For trade in goods, CETA will help foster such opportunities by eliminating virtually all tariffs, and establishing mechanisms to address non-tariff barriers to create more predictable trading conditions. These are some of the things businesses want, and we will help achieve these goals by standing against the protectionist ideology that is unfortunately emerging across the globe.

Stakeholders from across the country in a wide range of economic sectors continue to tell us how trade has positively impacted their business. With our government's continued commitment to trade, we will keep this positive trend alive.

CETA would also provide Canadian companies with a first-mover advantage in the EU market over competitors from markets like the U.S. that do not have a trade agreement in place with the EU. It would allow Canada to establish customer relationships and networks and to join projects first. CETA would offer Canada the opportunity to be part of a broader global supply chain anchored in the EU. Opening up new markets for our manufactured and processed products means that our country would be at an advantage in exporting more automobiles, medical devices, agriculture and agrifood products, machinery, fish, and everything in-between. Opening up new markets in our agriculture and agrifood products would mean more opportunities for abundant and delicious blueberries from Nova Scotia; potatoes from P.E.I.; processed products and pet food from Ontario; prairie grains; ciders, cranberries, and maple syrup from Quebec; and the best pork and beef in the world, just to name a few.

Preferential access to the EU under CETA means that almost all Canadian products would be free from EU tariffs. In some cases, tariffs account for more than 50% of the product price, such as the current EU tariff on Canadian oats.

I have mentioned a few of our vibrant sectors, and there are many more sectors whose exporters would benefit from CETA. But now I would like to highlight another important opportunity that CETA would open up for Canadian exporters of goods and services. CETA would expand access to EU's $3.3-trillion government procurement market, in many cases for the first time to any trading partner. Thanks to CETA, Canadian firms would now have access to all levels of government procurement. This would especially benefit Canada's producers of world-leading technologies, who would have guaranteed access to European public utilities in the areas of water treatment, electricity, gas, and heat; and to the EU's mass-transit authorities.

Members will note that when discussing procurement, I have mentioned exporters of not only goods, but also services. The EU services market is worth an astounding $12 trillion. It is in fact the world's single largest importer of services, accounting for 20% of the world's total imports. CETA would give Canadian service suppliers the best market access the EU has ever granted to a free trade agreement partner. Through mechanisms such as national treatment, most-favoured nation provisions, along with the automatic ratchet mechanism, Canada's access to the EU services market would improve over time. This means that not only would CETA open up new markets for Canadian service exporters upon implementation, but it would also guarantee that Canada's access would improve in the future.

In conclusion, I believe it is now evident that CETA is a big deal for Canadian companies. It is a big deal for Canadians, including the businesses and residents of my riding of Davenport. We are making good on our promise to create opportunities for small and medium-sized companies and to generate jobs and economic growth that will benefit all Canadians. This agreement would tear down barriers and create a bridge across the Atlantic for Canadian exporters of goods and services. Through CETA, Canada would receive unprecedented access to the EU and its 28 member states. With CETA, Canada would send a clear signal to the world that not only does it support progressive trade for its own economic well-being, but that it is also a leader in countering the rising protectionist sentiments in Europe and south of the border. The ratification of CETA would be seen as evidence that our nation never gives up on supporting our economic well-being and continues to lead by example in pursuit of prosperity for its citizens.

I support this bill and all the benefits that it would bring to Canadians and to EU citizens. I urge all hon. members to support this bill. It was a pleasure to have the opportunity to speak today.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 22nd, 2016 / 10:05 a.m.


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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Mr. Speaker, I had three minutes in my speech yesterday so I will be continuing along today. The point I want to underline is that we in the NDP will be here to provide reasoned and progressive elements to debate in this implementation act for CETA.

As I was saying in my speech on the bill yesterday, it remains a mystery as to why the government is trying to ram the bill through without letting parliamentarians conduct their proper research and oversight. I want to refer all members of this House to the open and accountable government publication from the Prime Minister that ministers were to treat Parliament with respect and provide the necessary information for parliamentarians to do their job. I quote from that document:

Clear ministerial accountability to Parliament is fundamental to responsible government, and requires that Ministers provide Parliament with the information it needs to fulfill its roles of legislating, approving the appropriation of funds and holding the government to account.

The Prime Minister expects ministers to demonstrate respect and support for the parliamentary process. However, if we look at the facts surrounding the introduction of the bill, on October 30 the Prime Minister signed CETA at the EU-Canada Leaders' Summit, and it was only two days later that the implementing legislation, Bill C-30, was introduced in Parliament.

This rushed process violated the government's own policy on the tabling of treaties in Parliament, which requires the government to table a copy of the treaty, along with an explanatory memorandum that outlines the key components of the treaty, at least 21 sitting days before we debate. That was violated, and I would argue that the spirit of open and accountable government was clearly violated by ignoring that process.

Furthermore, we know that the international trade committee has already passed a motion that will restrict written submissions to only those witnesses who are selected to appear. Let me make that clear. No Canadians who do not appear before the committee will be allowed to provide written submissions, and only those who have the means to travel to Ottawa and the time to do so will be allowed to do so. We are in effect closing down exactly from whom we will hear on this.

If we compare that with the government's process on the trans-Pacific partnership, where the committee heard from over 400 witnesses and received written submissions from approximately 60,000 Canadians, there really is no comparison.

The underlying point here is that Parliament is essentially being asked to write a blank cheque with this implementation bill, despite the fact that each of the 28 EU member states will have to ratify CETA for all of the provisions to apply, and it is a process that is expected to take between two to five years.

I ask again, what is the rush? What is the government trying to ram through here? Why is it not letting parliamentarians do due oversight when there is obviously enough time for us to examine the bill?

The next part I want to look at is on the investor-state dispute mechanism. New Democrats support trade deals that reduce tariffs and boost exports, but we will always remain firm that components like investor-state provisions that threaten our sovereignty have no place in trade deals.

The new investor court system still allows foreign investors to seek compensation from any level of government over policy decisions they feel impact their profits. Furthermore, the Liberals still have not explained how they will ensure that environmental and health and safety regulations would be protected from foreign challenges. Even the joint interpretive statement about the investor court system falls outside the text of the treaty, and therefore does not have full legal weight.

If we look at the quote from the Canadian Environmental Law Association, it states that CETA “will significantly impact environmental protection and sustainable development in Canada. In particular, the inclusion of an investor-state dispute settlement mechanism....” It goes on to say that it will really “impact the federal and provincial governments' authority to protect the environment, promote resource conservation, or use green procurement as a means of advancing environmental policies and objectives.”

The other part I want to examine is particularly important to me, both as the NDP seniors critic and the member of Parliament for Cowichan—Malahat—Langford. It is the impact this deal would have on the cost of pharmaceutical drugs. I take the issue of pharmaceutical costs very seriously, because I have helped enough seniors over the last eight years to know that the high cost of these drugs can have a real impact on the quality of life of our seniors.

The chapter on intellectual property rights goes well beyond Canada's existing obligations. The increased patent protections granted to brand-name pharmaceuticals will have the effect of delaying the arrival of cheaper generics and will increase the cost of prescription drugs to Canadians by between $850 million and $2.8 billion per year.

This is a cost that I do not think seniors are prepared to take on. Furthermore, I would argue it would hamper any efforts of bringing in a national pharmaceutical strategy both at the federal level and in what individual provinces are trying to do with their already ballooning health care costs.

I also want to quote Jim Keon, the president of the Canadian Generic Pharmaceutical Association, who said:

A study prepared for the CGPA by two leading Canadian health economists in early 2011 estimated that, if adopted, the proposals would delay the introduction of new generic medicines in Canada by an average of three and a half years. The cost to pharmaceutical payers of this delay was estimated at $2.8 billion...

Therefore, we do have validators of this opinion, we do have the research to back it up, and it is certainly a very real concern that we should be bringing up.

In conclusion, we are in favour of a trade deal with Europe. As I have stated previously, we have deep historical and cultural ties, and they are some of the most progressive democracies. However, we are concerned with specific measures in CETA as it is negotiated, and it is our job on this side of the House to uphold the interests of Canadians in the process.

The Liberals have missed key opportunities to fix this agreement, but the deal is still not done. We will continue to urge them to fix it. Furthermore, if Liberal members of Parliament are not prepared to stand up for the progressive interests of their constituents, we in the NDP are always ready to take on that rein, and we will do so proudly.

The House resumed from November 21 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.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 6:25 p.m.


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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Madam Speaker, I realize I have one of those lucky spots, where I get about a four-minute speech, seeing as we are getting close to 6:30 p.m.

I want to start by thanking my colleague, the member of Parliament for Essex, for the incredible work she has been doing in raising these issues.

I have been quite sorry to hear some of the condescending tones emanating from the Liberals. I would like to be there when their constituents start raising issues, asking the Liberals where they were when we talked about dairy compensation, or about the high cost of pharmaceuticals, or about the application of sovereignty, the ability of local and provincial governments to make laws for their own citizens and not have some super-national body overrule them. I would very much like to be there when their constituents ask them where they were when we were bringing up these very real concerns with this agreement.

I will unapologetically stand here and bring these concerns, as is the job of a progressive opposition, to signal that we are in favour of trade, but the agreement is so much more than just simple trade. It goes far above and beyond simple trade, and we have to bring forward these important points.

Trade with Europe is too important to get wrong. We support the deepening of Canada-EU relationships. These are member countries to which we have significant historical and cultural ties. We have received many waves of immigration from European countries, which represent some of the most progressive democracies in the world. However, this is such an important agreement that we must ensure the scope of it remains in Canada's interests.

The Liberals are essentially asking Parliament to sign-off on CETA, despite the fact that European states have made it clear that the investor-state provisions would have to be removed before they ratify it.

I want to reference how quickly the Liberal government is trying to ram this through.

On October 30, the Prime Minister signed CETA at the EU-Canada leaders' summit. Two days later Bill C-30 was put forward as the implementing legislation. This process violated the government's own policy on tabling treaties in Parliament, which requires the government to table a copy of the treaty, along with an explanatory memorandum outlining key components of the treaty, at least 21 sitting days before the legislation is presented. The Liberals also neglected to table a mandatory environmental assessment of the free trade agreement, as per a 1999 cabinet directive on environmental policy plans and program proposals.

Seeing that my time is short, tomorrow I will continue my speech and go over some of the costs to our drug provisions, as the seniors critic, and some of the investor-state provisions. I look forward to continuing that conversation tomorrow.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 6:10 p.m.


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NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Madam Speaker, I will be sharing my time with the member for Cowichan—Malahat—Langford.

First, I would like to thank the member for Essex, our international trade critic. In my opinion, she and her team do an extraordinary job. She exhibited great strength during today's debate. I would like to congratulate her on the work she did in committee and commend her for her dedication.

Today, I have the pleasure of speaking 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. I am also pleased to rise to represent the people of Berthier—Maskinongé.

It is important for me to mention in the House that the NDP is in favour of international trade agreements as long as they are fair. The word “fair” is important. It is not simply a matter of engaging in free trade. We need to ensure that we are engaging in fair trade. The problem with the current government and the previous government is that they are quick to sign any agreement just so that they can brag about signing free trade agreements.

We had a fine example of this in fall 2013. During question period, the leader of the second opposition party, the current Prime Minister, congratulated the Conservative government for concluding an agreement in principle with the European Union without ever having read the agreement, which was not yet available. That is the Liberal Party in a nutshell.

Now that it is in government, not much has changed. The Liberals had several good opportunities to improve the agreement, but they chose instead to sign something that is not fair to Canadians. They were in such a hurry to see CETA come into force that they botched their own process. They are asking us, the members of the House, to give them carte blanche by voting in favour of a flawed document that will be end up being changed, especially with respect to the investor-state provisions. I think it makes no sense that hon. members are not voting on the final document.

This agreement and trade with the European Union are too important for us to take this lightly or rush through it.

A number of problems need fixing before we move forward. First, for the people of Berthier—Maskinongé, changes to intellectual property rules will cause drug prices to skyrocket. Considering our aging population and household incomes below the Canadian average, rising drug prices make me fear the worst for my fellow citizens. The government should address this before moving forward.

Second, there are a number of problems related to the agriculture and agri-food sector. I should point out that the government allowed an additional 17,700 tonnes of cheese from Europe over and above the 13,500 tonnes it already exports. In total, Europe will be allowed to export 31,200 tonnes of cheese to Canada, most of it fine cheese.

This problem provision will increase the percentage of dairy product imports from 4% to 9%, and dairy producers will lose between $116 million and $150 million. We must not forget fine cheese producers; this will cost them too. Of the additional 17,700 tonnes of cheese, 16,000 tonnes will be fine cheese. The impact of this will be felt most keenly in Quebec, which produces 60% of the country's fine cheese. Many cheese makers have said that allowing fine cheeses in will cause businesses to close.

Our manufacturing standards combined with generous subsidies for European producers make it almost impossible for our cheese makers to compete.

For a few years now, dairy and cheese producers have been investing and working hard to grow the fine cheese market. Because of this problem provision, however, their efforts will only benefit the Europeans.

Here is an example of how this agreement will affect a fine cheese producer in my riding, the Fromagerie Domaine Féodal. Last Friday I had the honour of attending a wine and cheese tasting to mark that business' 15th anniversary. The owners, Guy and Lise, just invested over $1 million to modernize their facilities, and they did so without any Canadian subsidies. I would also like to point out that they won a silver medal just last week for a cheese called Cendré des prés. I want to thank everyone who works with Guy and Lise and their family: Charles, Pierrette, Chantale, Annie, Mélanie, Justine, and Marie.

The arrival of fine cheeses from Europe will just eat into the profits they would have made on their investments. This cheese factory from the Lanaudière region will be able to absorb the blow from CETA, but that is not the case for all cheese makers in Quebec. They believe that many of the artisanal cheese factories from Quebec will close up. It is very hard for our cheese makers to compete with European cheese makers who are highly subsidized and have lower food safety standards than we do. Once again it will be our rural communities that will end up paying for this flawed trade agreement.

The government is absolving itself of the problems the agreement is causing the dairy industry with its transition plan. The government promised dairy farmers a $100-million investment fund over four years to help them modernize their operations and increase their productivity and efficiency, as well as diversify their range of products in order to capitalize on new European markets.

Clearly this program will be reserved for the largest processors and our artisanal cheese makers will be left out. The amount budgeted for the processors is far from adequate, as it does not even cover the $150-million losses the producers of fine cheeses will suffer.

The investment fund for dairy producers is even more appalling. The amount of $250 million over five years in light of annual recurring losses that could reach $150 million is not just inadequate but is an insult to dairy producers, who work very hard to make very high-quality milk.

Like artisanal cheese makers, several producers will never see this money because they have already modernized their facilities. However, above all, it simply makes no sense that our producers have to pay to access this money. How utterly deplorable of the Liberals to want to go forward with this agreement before examining its impact on the dairy industry. There is too much uncertainty for producers.

CETA will be problematic not just for the dairy sector, but also for the pork and beef industries. The previous government and the current one repeatedly boasted about the share of the European beef and pork market they gained. However, there is much to do before producers can really benefit from this market share. In fact, due to current European regulatory obstacles, none of our beef and pork producers will benefit.

I do not understand why the government is willing to move forward without resolving these issues. Stakeholders in other areas of the agriculture and agri-food sector welcome the export opportunities offered by this agreement. However, there is always a big “but” or a “maybe”. Compared to Europe and other industrialized countries, Canada provides its agriculture and agri-food sector with very few subsidies. The same goes for technical support and funding for research and innovation.

I repeat: I understand that the government wants to move forward with this agreement. However, we need to ensure that all of the programs are in place. What is more, in order to prevent unfair competition, the government needs to stand up for producers and ensure that this agreement is in the best interests of all Canadians.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 5:40 p.m.


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Liberal

Yasmin Ratansi Liberal Don Valley East, ON

Madam Speaker, I will be sharing my time with the member for Laurentides—Labelle.

It is with pride that I rise today to speak in favour of Bill C-30, an act to implement the comprehensive, economic and trade agreement between Canada and the European Union, or CETA.

I will frame my remarks by reminding the members of the House that our government has chosen an ambitious agenda to strengthen the middle class and those trying to join it. Job creation for Canadians depends on our domestic as well as our foreign trade policies.

Our government promised to review the trade agreements that were in process when we took office one year ago. We reviewed the provisions for CETA and through the extremely hard work of our Prime Minister and our very capable Minister of International Trade, we were able to get it done.

Based on recent statistics, almost 1.7 million highly skilled Canadians are employed full time in Canada's manufacturing sector. By eliminating all tariffs on manufactured goods and creating a mechanism to address non-tariff barriers to trade, this agreement will unlock opportunities for Canadian businesses and advance our government's commitment to grow our economy and strengthen the middle class.

Bill C-30 would cover a wide breadth of economic sectors and issues. Under CETA, certain skilled professionals will find it easier to work temporarily in the EU. This aspect of CETA is welcome in my riding of Don Valley East, which is home to skilled professionals from all around the globe. Working in the EU for these skilled professionals will not only boost their skill sets, but will provide cultural opportunities that they may have never considered possible.

We live in a world which is increasingly interconnected and where the free movement of people, goods, services and ideas happens at rapid speed. Progress and availability of opportunities for Canadians cannot increase unless we look beyond our borders. In 2014, Canada was the 12th-largest trading partner of the EU-28. The EU is Canada's second-largest partner after the United States.

From 2013-2015, Canada exported an annual average of almost $33 billion worth of manufactured goods to the EU. On average, these exports currently face tariffs of between 4% to 22%.

Under CETA, 99% of Canadian manufactured goods will enter the EU market tariff free. Within seven years, 100% of Canada's manufactured goods, including autos, will benefit from the duty free access.

Canada stands to gain even more by way of investment, opening new markets for our goods and services, and creating more stable jobs for our workforce. Workers in Canada's multi-billion dollar chemical and plastic industry will also benefit directly from CETA.

Canadians are world leaders in research, innovation and production in advanced manufacturing sub-sector, for example, scientific instruments, construction equipment and aerospace products to name a few. These goods, including robotics, are in high demand. In this area, Canadian exports to the EU totalled $9.2 billion. Current tariffs are as high as 22%. Under CETA these tariffs will be eliminated.

In the agriculture field, we will be well positioned to reap benefits to the new market. This is a win-win for our agri industry across Canada.

CETA will not only open new markets for Canadian businesses and employees, but CETA is also the first trade agreement which has a stand-alone chapter on regulatory co-operation.

This very important provision will promote good regulatory practices and level the playing field. Our government is committed to creating opportunities for our businesses and our citizens. We want to expand the horizon, think outside the box, and ensure that Canadians are not disadvantaged by non-action.

It is with this in mind that CETA also contains provisions under which dispute settlement will be more open, transparent, and institutionalized. Our government will always protect the interests of Canadians and Canadian businesses. My riding contains some of the most innovative and forward-looking technological small and medium-sized companies. Under CETA, companies such as Neuronic Works, Thales, Pearson Printing, Jansen, etc., will have access to European markets on a fair and even basis. Europeans and Canadians will benefit from a shared knowledge base and mutual higher standards of living.

In the area of safety and environmental protections, CETA builds on previous trade agreements that have explicitly safeguarded provided health, safety, and environmental protections. These protections are critical for our government and we will not abandon our principles. Under CETA, any EU producer interested in exporting goods to Canada will have to abide fully with the Canadian regulations on environmental protection.

Canadian culture will continue to thrive, as it will have new markets under CETA. I have spoken to many arts and cultural organizations who see this trade deal an opportunity to expand into the global markets.

CETA is a progressive way forward for Canada and the EU. This trade agreement will set a precedent for the way international agreements are negotiated and agreed upon. We are a country rich in technology and innovation. We know how to operate businesses, whether in pharmaceuticals or manufacturing or family farms. Canadians have always been forward-looking. In this increasingly connected world, we cannot afford to be insular. This trade agreement will provide opportunities for all Canadians and ensure real protection of our environment, our indigenous peoples, and the diversity of our cultures.

I hope all members of the House will support our collective effort in making Canada a highly competitive global player that wishes to see Canadians benefit from growth and opportunities.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 5 p.m.


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Liberal

Darshan Singh Kang Liberal Calgary Skyview, AB

Mr. Speaker, I am pleased to speak in support of the government implementation bill, Bill C-30, for the Canada-European Union comprehensive economic and trade agreement, CETA, and about the government's ongoing progressive trade agenda.

Canada is a trading nation and our government recognizes the importance of supporting free and open international trade for our collective prosperity. However, in many countries in the western industrialized world, there is a growing populist backlash against immigration, international trade, and globalization in general.

Beyond what we have seen in recent months from political campaigns in the U.S., the most recent report from the World Trade Organization and other international institutions on trade barriers, published in June, noted that G20 economies introduced 145 new trade restrictive measures between mid-October 2015 and mid-May 2016. That is 21 a month, the highest monthly average since 2009.

This is an issue of global concern, but it is particularly worrisome for a trade-dependent country such as Canada. As a medium-sized economy competing in the global marketplace, Canada has long recognized that free and open trade is critical for our economic prosperity. That is why CETA and the government's broader progressive trade agenda are so important for Canada's continued economic prosperity.

People around the world are feeling powerless and anxious in the face of unceasing change. Globalization and technological change have created wealth and opportunities for many. However, parts of the middle class and those working hard to join it feel they are falling behind. Their concerns are not entirely wrong.

Credit Suisse found that the top 1% of the world's population owns 50% of its wealth. The bottom 50% combined owns less than 1%. People with a net worth of less than $10,000 account for 71% of the world's adult population.

Trade, immigration and international openness are increasingly blamed for economic hardships and inequality. However, our government believes we cannot turn our backs on trade or turn back the clock on globalization. Done properly, increased trade can raise living standards, create more jobs, increase prosperity, and help to strengthen the middle class. Closing our borders will only lead us to a less prosperous and more closed-off, insular, and fearful world. This is one of the reasons that our government is pursuing a progressive trade agenda in concert with our like-minded partners around the world.

The progressive trade agenda advances higher standards of living and fosters sustainable and inclusive economic growth. It includes an emphasis on transparent and inclusive approaches. The government is committed to a consultative process on international trade that allows all segments of our society to contribute and be heard. It will ensure that governments can continue to pursue broad societal objectives.

The government firmly believes governments should defend the best interests of their people, particularly the most vulnerable. It ensures the government's continued right to regulate. It supports strong rules on food safety, consumer protection and the environment in addition to world-class publicly funded health care, and other public services.

Our trade agenda will continue to actively promote labour rights and strong environmental protections. It will also include a more progressive approach to an investment dispute resolution that is recognized as fair, open and impartial, including exploring the establishment of a multilateral approach.

We are still in the early stages of developing this new approach to trade for Canada, but we can already see some concrete results. The landmark example of the progressive trade agenda so far is CETA. CETA will create economic opportunities for Canadians across the country, and will do so in a progressive way that is in keeping with the inclusive values of Canada and the EU.

CETA's progressive provisions include stand-alone chapters dedicated to labour, the environment and sustainable development, a very clear recognition of the right of governments to regulate in the public interest, making the process of the resolution of investment disputes more independent and fair, and further increasing its transparency.

On that last point, Canada and the EU have truly innovated with the most progressive investment dispute resolution mechanism to date. In CETA, we have moved away from ad hoc arbitration and established permanent tribunals. CETA establishes a new process for the selection of permanent tribunal members, sets detailed commitments on ethics for all tribunal members, and introduces an appellate system, which, in sum, demonstrates Canada's leadership in promoting progressive 21st century investment protection provisions.

Beyond these progressive provisions, CETA will translate into real benefits for Canadians and contribute to Canada's long-term prosperity. CETA addresses the full range of conditions that shape modern international trade, including goods, services, investment, intellectual property, government procurement, non-tariff measures, regulatory co-operation, and more.

It also covers issues never before included in any of Canada's previous trade agreements, including NAFTA. For example, CETA is the first to include a stand-alone chapter on co-operation in regulatory matters. Another unique feature of CETA is its protocol on conformity assessment, which will allow Canadian producers in a number of sectors to have their products tested and certified for the EU market right in Canada.

In many areas, Canada and the EU have negotiated market access and improved conditions for trade that go beyond the NAFTA. For example, in the area of public procurement, CETA is the first to cover all levels of government in Canada and the EU. Once implemented, CETA will set the stage for progressive trade agreements fit for the 21st century. Our government is proud of signing that agreement.

This government has been proactive from day one in placing emphasis on the importance of supporting the middle class, transparency, and broadening consultations on trade agreements. In other words, Canada saw the need for change in this area early on and put things into motion before most others, and remains ahead of the pack.

Going forward, the government will continue to advance progressive approaches in other trade initiatives, including bilateral and regional trade agreements and at the World Trade Organization, and will be looking to co-operate on these issues with like-minded partners around the world.

We welcome the views of all citizens and parliamentarians on how Canada can advance this more progressive approach to trade for our collective prosperity.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 4:30 p.m.


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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I would first like to recognize the excellent work of my colleagues from Abbotsford and Battlefords—Lloydminster. In their speeches today, they gave a good overview of why we are all gathered here today to talk about C-30, which was introduced in the House by the Minister of International Trade. My colleagues talked about all the work that led up to this economic and trade agreement between Canada and the European Union. They spoke about the difficulties encountered and the work done under the leadership of former prime minister Stephen Harper. He was able to obtain the unanimous support of his troops and convince them that an agreement with our European Union neighbours was critical. This government had a vision that it shared with its team, and today we are seeing the fruits of that labour with the introduction of Bill C-30. We firmly believe that this is a good agreement that will be good for Canadians.

I will talk about two very interesting topics: the work that was done and the current situation, and what we can gain from this agreement or how it will benefit our regions and our ridings. Then I will talk about the small mistakes that sometimes happen when conducting negotiations and when we want to have our cake and eat it too, as it seems to be the case with the government, especially when it comes to dairy producers.

By introducing this bill, the government is taking a lot of credit for finalizing this agreement with the European Union. As we know, however, negotiations were well under way and the agreement was practically finalized in 2014. If not for the government's desire to reopen this agreement, we could have finalized it quite some time ago and this bill would have been introduced much earlier in the House of Commons. It almost did not materialize, but, fortunately, the Europeans discerned the imminent danger and were able to rally around a position that, although not quite as positive as in the previous agreement, is now acceptable and will open many markets for Canada.

The main goal of the Canada-European Union comprehensive economic and trade agreement is to promote trade by reducing tariffs between the European Union and Canada and harmonizing standards and regulations, which governments and businesses call non-tariff barriers.

The previous Conservative government worked on this agreement, which will provide privileged access to a market of 500 million consumers. This trade agreement will give Canadian service providers, which employ more than 13.8 million Canadians and account for 70% of Canada's GDP, the best market access that the European Union has ever given its free trade partners. This agreement will establish greater transparency in the European Union services market by ensuring more secure and predictable access.

It is worth mentioning that Canada and the European Union conducted a joint study that supported launching negotiations and concluded that a trade agreement between the European Union and Canada could stimulate and boost bilateral trade by 20% and inject $12 billion per year into the Canadian economy. That is the economic equivalent of adding $1,000 to the average Canadian family's income or creating 80,000 new jobs in our economy.

Conservatives are very proud of the fact that signing this agreement may help improve the Liberal government's economic performance. If the Liberal government's economic performance improves, Canadians' economic situation will improve too. It seems to me that they need a helping hand with that, and we are extremely pleased to have made such an invaluable contribution.

This is all about hard work and trade, so I would like to talk about a company in my riding that celebrated the grand opening of a $35-million investment project on March 21. The company is called Fruit d'Or, and its president is Martin Le Moine. We marked the grand opening of a new cranberry processing plant in Plessisville. I will read part of what La Tribune had to say about it:

We are producing 20% faster than before and we are producing better products. This investment will help us better position ourselves in the free trade agreement with Europe and help us maintain our position as a leader in organic cranberry production.

Now that is what a free trade agreement is about, and that is an example of a business with a vision, one that believed in the previous government and believed that the government would continue on that path. What will this mean? This will create jobs in my riding and in Canada, and jobs in an industry that is super important.

Having visited that business myself for the official opening, I can say that the president is incredibly and exceptionally dynamic. He is truly dedicated to and passionate about his business. I am convinced that all Canadians will benefit from this new passion. However, there is still work to be done. Like Fruit d'Or, everyone needs to invest, and the investments made today will benefit everyone in the future.

The mayor of Plessisville, Mario Fortin, mentioned that it was the largest investment anyone had made in Plessisville in recent years. This is the direct result of an agreement that had not yet been signed, one that we were certain would be signed. This will produce results. Why? Because people have a vision.

Some people in my riding are happy, but some are not, including dairy farmers. They think the Liberals want to have their cake and eat it too, in that the compensation program announced at the conclusion of the agreement with the European Union is not nearly good enough. It is rather ironic that our dairy producers, without whom we could not make cake, are being shortchanged by the changes made to the compensation program that we put in place to ensure that they could weather the difficult transition period as this large market, the European Union, opens.

I want to share some comments by a dairy farmer in my riding, Michel Couture, who says he is rather worried. He laments the small $250-million contribution for dairy farmers. By telling his story, I hope to paint a clearer picture of the reality of a dairy farmer.

In 2014, he made some improvements to his farm that helped him streamline his processes. How much did he invest? He had to make upgrades of $1.4 million to remain competitive. He made them because he believes in the future of his industry. Today he is being told that he will receive $4,500 a year over five years in compensation as an incentive to upgrade his equipment. I will read what he said because his words carry more weight than mine: “...what can you do with that amount of money?”

We are talking about $4,500 in the hope that farmers and dairy producers will invest $1.4 million to modernize and meet the new challenges arising from the free trade agreement. Farmers and dairy producers do not have it easy. They have a lot of work. It is a little bit like playing the lottery for them. They invest a lot of their own money, several thousands of dollars, to purchase equipment and remain competitive, without really knowing the outcome or financial return, and without being listened to by this government, which has not even been able to resolve the diafiltered milk issue after one year.

What can be done to restore our dairy farmers' confidence and really encourage them to invest and profit from this free trade agreement? What the government needs to do is send them a clear message that they will be properly compensated. I urge the government to draw inspiration from the compensation programs that we put in place for dairy producers, the same way it drew inspiration from the negotiations we held to enter into this free trade agreement with the European Union.

In closing, I must say that I am very pleased with the work that the previous government did to make this agreement a reality. I am very pleased to know that, today, Canadian companies and SMEs will have access to a market of 500 million consumers on one side and 300 million on the other, putting Canada in an enviable position compared to other countries in the world.

However, we will continue to be very vigilant and hold the government to account in order to ensure that Canadians reap the benefits of free trade, not only as a result of the agreement with the European Union, but also as a result of other free trade agreements that are currently being negotiated, such as the much talked-about trans-Pacific partnership, which is just as important.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 1:45 p.m.


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Liberal

John Oliver Liberal Oakville, ON

Mr. Speaker, it is a pleasure to rise today and speak in favour of Bill C-30 and the comprehensive economic and trade agreement between Canada and the European Union.

Canada is a trading nation. A trade agreement with the European Union is good business for Canada. The European Union market opens incredible opportunities for Canadian businesses. The EU is the world's second-largest economy and Canada's second-largest trading partner after the United States. It is also the world's second-largest importing market for goods.

CETA is a comprehensive trade agreement that would cover virtually all sectors and aspects of Canada-EU trade. Once implemented, approximately 98% of EU tariff lines on Canadian goods would be duty-free.

Canadian service providers would benefit from greater access to the EU, the world's largest importer of services.

CETA would also provide investors with greater stability, transparency, and protection for investments in the EU while significantly expanding Canadian access to EU government procurement contracts.

To make a specific case for CETA, I would like to reflect on the advantages of CETA to my community of Oakville. Oakville is home to many advanced manufacturing companies, which form a dynamic cluster of businesses supporting innovation and growth. Our manufacturing standouts include Ford Motor Company of Canada, UTC Aerospace Systems, GE Water & Process Technologies, and Dana Incorporated, an auto parts manufacturer.

With respect to the aerospace industry, CETA would offer tariff elimination, opening of government contracts, and regulatory co-operation.

With respect to automotive parts, given the integrated nature of Canada's automotive supply chain, it is important that there are rules of origin that accommodate significant levels of foreign value-added. CETA would allow Canadian passenger vehicles that meet a minimum percentage of domestic content to qualify for duty-free exchange.

For other manufacturers, the EU represents an unprecedented opportunity for Canadian businesses. Pre-Brexit, with its $22-trillion economy and more than 500 million consumers, the EU is the world's largest integrated market. The potential value of access to the EU is quantified in a 2008 study, which estimated that CETA could lead to a $12-billion increase to Canadian GDP and an increase in bilateral trade of over 20%.

A growing cluster of financial and professional service companies are taking advantage of Oakville's workforce capabilities to drive innovation and build sector leadership. In Oakville, there are 13,000 highly skilled and experienced knowledge workers. Also, Oakville is home to Sheridan College, one of the world's leading animation centres.

Oakville has the people, the partners, and the business knowledge to bring new technology to the world. For ICT workers, professionals, and businesses, CETA allows for tariff elimination, regulatory co-operation, temporary entry permits, and access to government procurement contracts.

CETA also has provisions for recognition of professional certifications, including legal, accounting, and architectural designations.

Ford Canada, located in my riding of Oakville, is very supportive of CETA. The EU market represents a significant global market for vehicles. In 2015, total vehicle sales in the EU countries were 15.5 million vehicles, ranking the EU as the third-largest vehicle market in the world behind, number one, China, with over 24 million units sold, and number two, the U.S., with over 17 million sales.

Access to this large new vehicle market for Canadian-produced vehicles would help diversity and grow Canadian exports of vehicles and our auto parts. Dianne Craig the president and CEO of Ford Motor Company of Canada, states that, “Ford is a global company built on free trade.... Ford has supported trade deals with trading partners that result in the opportunity to increase the two-way flow of trade.” That is what CETA does.

In 2016, Ford of Canada began exporting the Ford Edge, built in Oakville, to the EU. This includes building vehicles in Canada with right-hand drive and diesel engines designed for that market. Canada's decision to sign CETA contributed to Ford's decision to expand production of the Ford Edge in Oakville for export to the EU market.

Caroline Hughes, director of government relations at Ford states, “[W]e support a manufacturing-driven trade strategy that starts with the belief that Canadian manufacturing truly matters and that Canadian manufacturing can compete on a level playing field against the best competition from around the world.”

The Canadian Chamber of Commerce has spoken out quite clearly in favour of this agreement.

Locally, the Oakville Chamber of Commerce has supported the ratification of CETA. John Sawyer, president of the Oakville Chamber of Commerce recently stated that:

CETA is an important agreement that would benefit Oakville businesses by reducing trade barriers with the world's large economy. It will offer more opportunities for exporters and lower prices for consumers.

I do need to say that several people and groups in Oakville have raised concerns with me. They say that some of our recent free trade agreements have surrendered the state's ability to regulate and to act in public interest in favour of multinational corporations' interests. This has been the result of complex investor-state conflict resolution processes.

I want to reassure residents of Oakville that CETA represents a significant break with the past, at two different levels.

First, it would include an explicit reference to the right of governments to regulate in the public interest. CETA makes clear from the outset that the EU and Canada preserve their right to regulate and to achieve legitimate policy objectives, such as public health, safety, environment, public morals, social or consumer protection, and the promotion and protection of cultural diversity.

There is a clear instruction to the tribunal for the interpretation of investment provisions.

Second, CETA would create an independent investment court system, consisting of a permanent tribunal. Dispute settlement proceedings would be conducted in a transparent and impartial manner.

Contrary to the traditional investment dispute settlement agreements, the tribunal would be composed of 15 members nominated by the European Union and Canada, and not by the arbitrators nominated by the investor and the defending state.

It is also explicitly foreseen that governments could change their laws, including in a way that would affect investors' expectations of profit and that the application of law would not constitute a breach of investment protection standards.

It is worth repeating that CETA would explicitly safeguard health, safety, and environmental protections and that nothing in CETA would prevent governments from providing preferences to aboriginal peoples or from adopting measures to protect or promote Canadian culture.

As vice-president of the Canada-European Parliamentary Association, I have recently had the opportunity to speak about the advantages of CETA to our European parliamentary counterparts at meetings in Canada and in Europe.

There was general agreement that there were advantages for European countries to participate in this trade agreement, just as there are advantages for Canada.

I was part of panel that met with business owners in Bratislava, Slovakia, who were very excited about the opportunities opened up by the trade agreement with Canada.

I also have had the opportunity to tour auto parts manufacturing plants in Europe and to see a Volkswagen assembly plant creating VW Touaregs, Porsche Cayennes, and other luxury SUVs, many of which are destined for my community of Oakville. Just as Oakville currently exports the Ford Edge to Europe, we are importing European automobiles to Canada. This trade already exists. CETA would simplify the rules and make the products more affordable to consumers in both jurisdictions.

Like many communities across Canada, Oakville depends upon free trade and open global trade to maintain our high standard of living. This is a modern agreement, and an extremely positive one for the Canadian economy, which relies upon open markets and trade.

I have relatives in Germany, Poland, and Sweden. Many Canadians, like me, have family and friends who live in the European Union. This is a good trade relationship for people; this is a good trade agreement for Oakville and my town's businesses; and this is a good trade deal for Canada.

I hope every member of Parliament gets behind CETA and supports Bill C-30.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 1 p.m.


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NDP

Tracey Ramsey NDP Essex, ON

Mr. Speaker, I am pleased to rise today as we debate Bill C-30, the Canada-European Union comprehensive economic and trade agreement implementation act.

This agreement, which we refer to as CETA, is indeed comprehensive. It includes 33 chapters, ranging from traditional trade topics, such as trade remedies, tariffs, and trade facilitation, to less traditional areas, such as investor court provisions, intellectual property, financial services, and government procurement.

I will begin my remarks by discussing the deal and how Canada got to this point. Next, I will discuss some of the outstanding concerns with the agreement and how the Liberal government has neglected to listen to these concerns. Finally, I will conclude by talking about how the New Democratic Party thinks that the government should proceed.

CETA faces a long road ahead before its full ratification, with likely opportunities for improvement. Trade with Europe is deeply important to Canada's economic prosperity. By addressing outstanding concerns with this comprehensive agreement, Canada can forge deeper trading relations with our friends in the European Union, while ensuring Canada's interests and sovereignty are protected.

Canada and the European Union first entered into negotiations back in 2009 under Stephen Harper's Conservative government. In 2010, Canada signalled that the negotiations could soon be finished but concerns persisted. In 2013, Canada and the EU announced a deal in principle, and the then prime minister, Stephen Harper, flew to Brussels for a signing ceremony. In 2014, another signing ceremony took place, this time in Ottawa.

However, behind the pomp and circumstance, concerns over CETA's controversial investor-court dispute settlement mechanism, or ISDS, continued to simmer both in Europe and in Canada. Investor-state provisions empower companies to sue governments for regulating in the public interest. Under NAFTA, chapter 11, Canada is the most sued country.

Critics point out that both Canada and the EU have sophisticated legal systems that are fully equipped to handle complaints from companies. Thus, it is not necessary to grant special privileges to foreign companies beyond those that exist for domestic companies. Despite continued opposition to ISDS, Canada insisted on the inclusion of ISDS in CETA.

As CETA's legal scrubbing phase continued into 2016, the newly elected Liberal government announced that the controversial investor-state dispute settlement mechanism would be revamped as an investor court system, or ICS. However, critics of ISDS, including the Canadian Centre for Policy Alternatives, the Council of Canadians, and Canadian labour unions clearly stated that replacing the ISDS arbitration system with a new court system failed to address their concerns.

In October, we saw more changes around CETA, but not to the actual text itself. Canada and the EU signed a joint interpretative declaration, now called a joint interpretative instrument, which was intended to allay concerns that investor-court provisions empowered foreign companies to sue government for regulating in the public interest. However, the declaration is outside of the CETA agreement and therefore does not carry full legal weight.

Canada's Trade Justice Network issued a strong rebuttal stating, “in a display of arrogant condescension, the Declaration simply reiterates and clarifies what is already in the agreement, as if the various legitimate concerns that it purports to respond to have neither merit nor substance.”

Later in October, the Belgian regional government of Wallonia blocked Belgium and therefore the EU Parliament from signing onto CETA. Eventually, Wallonia agreed to sign the treaty if it could maintain its right to refuse to give its consent to Belgium to ratify CETA unless controversial investor-state provisions were significantly changed or removed from the agreement, exactly what many Canadians are calling for.

On October 30, the Prime Minister signed CETA at an EU-Canada leader summit. Two days earlier, the Liberal government put implementing legislation, Bill C-30, on the Notice Paper, and the Liberals introduced the legislation on October 31.

This rushed process violated the government's own policy on the tabling of treaties in Parliament, which requires the government to table a copy of the treaty, along with an explanatory memorandum, outlining key components of the treaty at least 21 sitting days before legislation is presented. The Liberals also neglected to table a mandatory final environmental assessment of the FTA, as per the 1999 cabinet directive on the environmental assessment policy plan and program proposals.

Where is the commitment to protecting the environment?

I stood in this place on a question of privilege, challenging the government on its own omissions and failures to adhere to its policies. I questioned the necessity of the government granting itself an exemption on the explanatory memorandum, given that CETA was first signed back in 2013. Between the Liberals and the Conservatives, they had three years to draft this memorandum, which is intended to assist parliamentarians in analyzing the treaty.

Furthermore, given CETA's significant potential environmental impacts, the government must follow though on its requirement to complete a final environmental assessment.

CETA is not yet a done deal. Parliament should take its time in carefully considering the legislation before us today. We know that Canada and the EU intend to provisionally apply approximately 98% of the treaty in early 2017. The European Council decided that provisional application would not include investor-state dispute settlement, portfolio investment, and criminal sanctions for intellectual property crimes. These are the areas of member state jurisdiction.

Before CETA can be ratified, each of the 28 EU member states will have to vote on the deal in their respective legislatures. This process could take between two to five years. If just one of the 28 EU countries decides against ratifying CETA, as we saw with Belgium last month, the entire agreement could fall apart.

Bill C-30 would enable the government to fully ratify CETA, including investor-state provisions that Wallonia has already stated it will refuse to accept. Bill C-30 would provide the strokes for an investor-court system, but would leave out key pieces of information, such as details on an appellate mechanism or how panellists would be selected.

Going through the intellectual property provisions, we see that much of the patent law changes would be done through regulations. These changes would have significant impacts upon the availability of generic drugs to Canadians and therefore the overall cost of prescription drugs.

Greater parliamentary oversight is needed. The Liberal government is essentially asking parliamentarians to sign a blank cheque that it will fill in after.

Over the past year, we have seen a series of actions intended to address the concerns of Europeans with CETA. At every turn, I have risen in this place, as the New Democratic critic for international trade, and have called on the government to truly improve this deal. Yet, every time the government dismissed the concerns of Canadians and focused on making CETA palatable to Europeans.

I would like to now discuss in greater detail outstanding concerns of Canadians with CETA.

We discussed the investor-court system. The changes to ISDS provisions were supposed to improve transparency and strengthen measures to combat conflicts of interest of arbitrators. However, the new system will still allow foreign investors to seek compensation from any level of government over policy decisions they feel impact their profits.

At the end of the day, foreign companies will have to access a special court system to challenge Canadian laws, without going through domestic courts.

As I have mentioned, Canada is already one of the most sued countries in the world under ISDS. Canadian companies have won only three of 39 cases against foreign governments. The Canadian government has lost many NAFTA cases, while continuing to be the subject of ongoing complaints seeking billions of dollars in damages.

Existing ISDS measures have also contributed to a regulatory chill where governments fail to take actions in the public interest that they fear may trigger an investor claim.

The Liberals have not explained how they would ensure environmental and health and safety regulations would be protected from foreign challenges. It is now clear that the deal will not pass in Europe without the removal of or significant changes to investor-state provisions.

In trade deals, there are always winners and losers. With CETA, there is no doubt that some Canadian sectors will be negatively impacted by this agreement, including supply managed sectors and Newfoundland and Labrador's fish processors.

When the Conservatives were still in office, they acknowledged the significant losses dairy farmers would incur in both CETA and TPP. They promised a $4.3-billion compensation package, intended to offset the long-term perpetual losses.

For one year, the Liberal government refused to comment on whether it too would compensate dairy farmers. It required an extraordinary level of patience from Canadian dairy farmers. On diafiltered milk, the government continues to drag its heels. It is promising a solution, but refusing to provide any sense of timeline. The trade committee heard from the Minister of Agriculture on this file. His lackadaisical attitude was incredibly frustrating to listen to.

Dairy farmers are also frustrated with the government's inaction on tightening on the duty deferral program. These are serious trade issues that the government must address.

In this context, let us look at the government's recent announcement to invest in Canadian dairy farms and producers. It never admits the funds are compensation, only an investment package. The Liberals announced a $350 million package for Canada's dairy sector, which indeed is a welcome investment. However, the sector anticipates CETA will cost it $116 million per year in perpetual lost profits. The Liberals' funding announcement is for $350 million over five years. This falls far short of compensating dairy for the losses it will incur under CETA.

The Liberals also have not explained whether and how they will compensate Newfoundland and Labrador for giving up its minimum processing requirements. In 2013, the Conservatives included a $400 million fisheries renewal fund, with the federal government contributing $280 million and the provincial government contributing $120 million. However, in 2014, Newfoundland and Labrador believed the Conservative government was signalling its intention to renege on the deal. The leader of the Liberal Party made clear commitments that he would follow through on compensating Newfoundland and Labrador. How can the government consider CETA a done deal without addressing its commitment to Newfoundland and Labrador?

I am also deeply concerned under CETA about changes to intellectual property rules for pharmaceuticals, which will increase drug costs by more than $850 million every year. The Canadian Federation of Nurses Unions has also warned that CETA could make it more difficult to bring down prices through a national pharmacare program.

I find this deeply disturbing. Canadians already pay some of the highest drug costs in the OECD. CETA's patent provisions are not a concern to the EU. It already grants brand name pharmaceutical companies longer patent protection, but Europeans also pay much less for their prescription drugs than we do in Canada.

People in my riding of Essex already struggle with the high costs of prescription medications. Yet the Liberal government is cutting health care transfers to the provinces and has given no indication that it will take action on a national pharmacare program.

Under CETA, Canadians will pay even higher drug costs, while the federal government shows no concern or even acknowledgement of this reality. When the Liberals were in opposition, they demanded that the Conservatives present a study on the financial impacts on provincial and territorial health care systems and prescription drug costs. In government, they are telling the provinces that they will cut health care transfers, while pursuing agreements that risk increasing drug costs for the provinces.

At every opportunity it would seem the Liberal government has refused to provide greater analysis of CETA. In June, the world watched as the United Kingdom voted in a referendum to leave the European Union. This raised immediate concerns about the impact of Brexit on CETA. In fact, the U.K. is Canada's biggest trading partner in the EU. Forty-two per cent of Canadian exports to the EU go to the U.K. Canadian concessions in CETA were based on the premise that the U.K. would be part of CETA. Yet the Liberal government has provided, again, no analysis re-evaluating the net benefits of CETA without the U.K.

In consultations with indigenous people, the Liberal government made a clear commitment to nation-to-nation relationships, which includes a commitment to consulting on international trade deals. The Liberals have given no indication that they have fulfilled their duty to consult. We know they have not fulfilled this duty with the TPP.

Also in CETA there are provisions stating that above a certain threshold, minimum local content policies will be outlawed, even in municipal and provincial government procurements. We also see provisions granting companies an expanded ability to use temporary workers without a study of impact on Canadians.

I have also heard significant concerns over the ability of all levels of Canadian governments to protect public services. These are all important issues that warrant greater study than what the government has offered.

Many of the concerns we are discussing today were consistently raised in two studies conducted by the Standing Committee on International Trade. The studies, undertaken in 2012 and 2014, were deemed by the Liberals and the New Democratic Party as interim or pre-studies, as both took place before the final text of CETA was made available to parliamentarians.

In the Liberals' 2012 dissenting report, they called for further consultation with Canadians on CETA. They highlighted that while the committee's work was a good start, further consultation was required. However, now that the Liberals are in government, they have completely changed their tune. They are no longer concerned by the lack of consultation, the inclusion of investor-state provisions, or the impact of increased drug prices for Canadians.

Today, the Liberal-dominated trade committee has made it clear that it only wants to hear from groups that will benefit from CETA. It has gone to extraordinary lengths to restrict its brief study of CETA from receiving input from Canadians, by passing a motion that restricts the committee from accepting written submissions except for those from the handful of witnesses who are selected to appear.

On the other hand, the committee held dozens of meetings on the TPP, travelling to every province in Canada, and holding video conferences with witnesses from the territories. We heard from over 400 witnesses, and received written submissions from approximately 60,000 Canadians. With 95% of submissions critical of the TPP, it is no wonder that the government does not want to hear from Canadians on CETA. After spending half a million dollars on this study, not to mention the time and money spent by the minister and her parliamentary secretary on their own consultations, the Liberal government still has no position on the TPP.

As a first-time MP, I find the Liberals' disregard for due process on CETA deeply disturbing. It makes me wonder what they are trying to hide by pushing through this comprehensive agreement without proper memorandums, consultations, compensation, or analysis. I reference the two previous committee studies. In both studies, the NDP made clear its concerns but also its hopes that these concerns would be addressed and CETA would be fixed. The NDP has long argued for better trade with Europe. This will help diversify our markets, particularly as we face the uncertainties raised by the election of Mr. Trump.

However, Canada should not ratify the biggest trade deal since NAFTA as merely a reactionary or symbolic gesture. As I have outlined, significant concerns and unanswered questions remain about the proposed deal for many Canadians. Trade with Europe is too important to get wrong. The government should work to fix problems with the current deal rather than settling for a flawed agreement.

New Democrats support trade deals that reduce tariffs and boost exports while remaining firm that components like investor-state provisions that threaten sovereignty have no place in a trade deal. In our view, the job of the government is to pursue better trade, trade that boosts human rights and labour standards, protects the environment, and protects Canadians jobs. I am deeply suspicious of the Liberal claim of having a progressive trade agenda. This is a party that supported free trade agreements with Honduras and the controversial FIPA with China.

A final trade deal must be judged on its net costs and benefits. New Democrats have always been clear on this, and we have opposed deals in the past that would have net negative impact on Canadians, including Honduras and the China FIPA. Furthermore, better trade must also involve a better process. Far too often, Canadians have been kept in the dark during backroom talks by successive Liberal and Conservative governments. We saw this with the TPP, and Canadians rejected this.

In 2014, the hon. Minister of International Trade made the following statement in this place:

Mr. Speaker, on CETA, we in the Liberal Party are adults and we understand and respect the fact that, if trade agreements are going to be done, they need to be done behind closed doors.

The Liberals promised greater transparency, but given the minister's own attitudes, it is clear they have no intention on delivering on this promise. New Democrats cannot accept this position. We will continue pushing for greater transparency in trade negotiations, and meaningful, honest discussions with Canadians on all the potential impacts of any trade deal.

Europe is an ideal trade partner, and deepening trade relations with the EU has always been an aim that New Democrats support. Today, we have an agreement before us, and there are specific measures that raise significant concerns. As the progressive opposition, it is the job of New Democrats to uphold Canada's interest in this process.

The Liberals have missed key opportunities to fix CETA, but the deal is still not done. It faces a lengthy complex ratification process in the European Union. Wallonia has said it will not accept a CETA that includes investor-court provisions. I call on the Liberal government to remove investor-court provisions from CETA and this legislation, address the increased drug costs, and give Bill C-30 due process at the committee.

Without these key elements, I cannot in good conscience advise my caucus colleagues to support this agreement. New Democrats will vote no to Bill C-30, and we will continue pushing the government for an agreement that provides a stronger net benefit for all Canadians.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

November 21st, 2016 / 12:35 p.m.


See context

Conservative

Gerry Ritz Conservative Battlefords—Lloydminster, SK

Mr. Speaker, it is an honour and a privilege to stand in the House today to speak to Bill C-30, the culmination of the comprehensive economic and trade agreement between Canada and the EU, or CETA as it has become well known.

This landmark and progressive trade agreement, as the minister commented, is the result of years of hard work from 2009 to 2014 when we signed the agreement in principle. I welcome the opportunity to bring this deal that we struck as a government into force here today.

I congratulate the current trade minister for taking the next steps with this agreement, but I do wish she would do the same for the TPP. It is as progressive as, if not more so than, CETA. We would like to see it on the agenda soon as well.

The trade minister commented that she had just gotten back from Lima at five this morning. I just got back from Russia a little before that, so I have had maybe an hour's more sleep than she has. I do wish I could tell her that it is going to get easier, that the time away from family and so on will be made up for in the deals that we strike and the work we do on behalf of Canadians. However, it does not. We are in opposition, but there are still those international functions that we have to attend to continue that work to benefit Canadians and make sure that our future is bright.

I would also be remiss if I did not mention her parliamentary secretary, the long-suffering gentleman that he is. Having said that, he is a tremendous resource for us on the committee. He does a great job there. He is very stable, calm, and collected. Although he does not take part in much in the day-to-day operations, he is there as a resource when we go in camera and so on. I have had the opportunity to sit on a number of media panels with him, as well. He is a gentleman. Having been a trade professor for a number of years on trade, he understands the importance of trade to Canada's economic prosperity.

CETA at the time was cutting edge and one of the most ambitious trade agendas we had ever seen. That is why the Liberals have begun calling it the “gold standard”, which of course is true for other agreements that we did, like the TPP.

In the previous government, under the leadership of the Right Hon. Stephen Harper, my colleague and friend, the minister, the member for Abbotsford, and I were able to negotiate, together with a number of our cabinet colleagues and a number of people from what is now called Global Affairs Canada, agreements with 46 different countries. That was unprecedented in this country's history. I am proud to have been a big part of those successes and for the role that my staff played in that as well.

None of that could have been possible without all of the people who work with and for us, right from front to back benches, side to side, people of all stripes. At the end of the day, I would be remiss if I did not mention someone like Steve Verheul . I got to know Steve some 10 years ago, when he was our long-suffering representative at the WTO, carrying that sort of schizophrenic trade agenda that we had, protecting these portions and putting them up for trade agreements. Steve did a fantastic job. He is one of those soft-spoken, quiet gentlemen who always had his finger on the pulse of what was going on.

I remember a number of instances in Geneva over the years at the WTO, when the leadership at that time loved to take five major countries, sort of the same ones that have a veto at the UN, into a little, dark room at midnight to try to hammer out a deal that the rest of us would then accept. None of that ever worked.

It was amazing to be with Steve during those clandestine meetings that the director general called at that time. His BlackBerry was always lighting up with messages, “China said this; Russia said that; or America said this, how should I handle it?” Steve always had the answer, always had the way forward. If anyone was the arbitrator or mediator of what kept the WTO alive for a lot of years, it was Steve Verheul with his hand on the lever. We cannot say enough good things about Steve. He's world class. I am not sure what he will do for an encore after CETA. It has cost him some personal time and a tremendous amount of energy. As I said, I am sure he will land on his feet and continue to be as well-respected as he is.

Even when the work is done, it is not complete. We saw this over this past year, as the minister stirred the pot and everyone told her not to do it. Our chamber of commerce told her not to renegotiate. I know that people from global affairs said do not do this. I will not say who they are because they could get fired. Also, the European business councils that I continue to be in touch with said not to do this.

We covered off all of these little warts and blemishes when we signed the agreement in principle some two years ago, and all of this was not swept under the rug but adjudicated and addressed at that point. With the minister going back in and sort of ripping the scab off, opening Pandora's box, it created the crisis we saw in Wallonia. At the end of the day, we have escaped with a deal that is more or less intact. It is pretty much, I would say 99.9%, exactly what we signed in principle over two years ago.

Since that time, it was not a stalled deal, as the Liberals like to say, but it was moving forward with a legal scrub and translation into a myriad of different languages and texts. Members know how important that is to do.

We see that here. A lot of times when we scrutinize our regs, one word in French will not correlate with a word in English, and we go back and change something that has been written incorrectly for years. A lot of work goes into the legal scrub with that many languages and different legal systems in the EU, the same as we have in Canada with civil law and common law. The European Union has a myriad of different legal options as well.

It is so important that we get this deal right. It was done right. We have 99.9% of it going forward. We do have a vacuum when it comes to the adjudication of future ISDS claims, and there is no doubt in my mind that there will be some. The NDP and some of its cohorts who came before committee, mostly on the TPP, love to say that Canada is the most sued country in the world. While that might be technically true, the reality is that out of several trillion dollars worth of economic activity, we have paid out $170 million in legal costs, and well over two-thirds of that is due to one little misstep by former premier Danny Williams when he took back an American company, saying that he did not like what it was doing and that he would nationalize it, which he did. Under NAFTA, WTO standards and so on, we paid out some $130 million for that. Canada is sued like every other country, but very few claims come to fruition and get paid out. As I said, that is out of more than several trillion dollars worth of economic activity. CETA is a little different from that, in that we have written guidelines.

We will see the elimination of some 94% of the agricultural tariff lines, and that will allow us to export our goods into a $20 trillion economy.

The European Union is a mature market, unlike the TPP, which is an advancing market. We need both. I often call the CETA agreement the “family reunification trade agreement” because a lot of areas in Canada were settled by Europeans almost a century ago.

I see my friend, the chair of the committee, nodding his head. His family came across and took advantage of the Canadian opportunity. CETA will enable us to work with our cousins at home to bring in different products and facilitate that. I am sure we will be able to get a lot more Scottish, Irish, and English products, all of that good stuff that my colleague's family grew up on. We look forward to that.

We have done an economic agenda. The minister made a nod toward that some years ago. That agenda showed that this agreement would return about $1,000 per middle class family and 80,000 new jobs. That is almost enough to make up for what the Liberals lost this past year. The sooner we get this done the sooner we will be back to zero and can move forward with TPP and start to recoup what we lost and gain what is available in that regard.

It is a unique investment. It is a unique opportunity, in that the European Union has a number of trade agreements with countries around the world, but this is the first one that addresses some subsets of labour standards and environmental standards. It provides the EU with a proper way to negotiate new access to some of our GM products. It is a regulatory package that will allow our beef and pork producers to export their produce using different types of wash facilities and so on. There are still some details to be worked out with respect to that, but at least there are guidelines to move forward with the European Union in a timely way so things are not tied up for months and years.

We will see immediate results once CETA is implemented. Our process here is a bit more arcane than some of the Europeans' processes. They will have to work through all of their 28 member states, as we will with the provinces. The minister also pointed out that when we were negotiating this agreement, my friend and colleague from Abbotsford, and of course Steve Verheul, sat down every time it was required with the provinces and territories that were there, along with industry, which had signed non-disclosure agreements. We had some of the biggest fan clubs. The number of those fan clubs for the CETA deal almost measured up to the number of people the Liberals take along with them on environmental deals. These people were there to get the work done and to make sure that the provinces were looked after. I do not see any type of push-back. Some negotiations are still going on with Newfoundland and Labrador on the payments that will be required. That province has stipulated that a certain amount of fish caught in our waters has to be processed in Canada. There will be some changes in that regard.

Kathy Dunderdale, who was the premier at the time, said that all of the $250 million belongs to her province, which was never true. It is for all of Atlantic Canada to drive efficiency and effectiveness in our fish processing system. The Liberals have that one to work out yet before they will get Newfoundland and Labrador onside, but it is certainly in the works.

It is important that we look at trade writ large. We are fully in favour of CETA. In our view, we could not have done any better. A few steps at the end had our heart in our mouths, but in the end it has all worked out, other than for the vacuum we are going to see in the adjudication of any ISDS claims. There is still work to be done in that regard.

The important part of all these trade agreements is that we take more and more eggs out of that American basket. We rely on the Americans for 75% of our overall trade, 98% when we talk about energy products and, depending on what the issue is, we are very much tied to their economic value. As they pull back on the TPP, there is no reason to believe that we cannot join the other six countries that are gung-ho guaranteed to move forward on it, that we cannot join them and rewrite TPP without the Americans. Let us get it done.

Why would we wait for President Obama to decide whether his legacy will be bad or not? He has gone from being in a lame duck session to a dead duck session, so we have to start moving forward, get this done, join Mexico, Japan, Chile, New Zealand, and Australia. All of them have got it working through their parliaments right now. We have to look at trade writ large. We need that diversity to move away from those holdings in the American market.

We see that when the Americans arbitrarily bring forward things like country-of-origin labelling. There are whispers down there right now again that they will reinvent that. They cannot. We won that fight at the WTO. They would have to change it considerably to bring back anything that looked like Buy America or country-of-origin labelling. As much as that raises red flags, they are only at half-mast, because we did win that particular fight, and we would certainly take up that fight again. We would from the opposition side, I can guarantee that.

At the end of the day it was a good win, but it takes time and there is trade hurt when that is done, so having regulatory packages built in to things like CETA and TPP that really nip those types of negative movements in the bud are very important to take advantage of, and we intend to make sure those are there.

Having both CETA and the TPP in our park would give us access to 80% of the world's GDP, almost a billion consumers who are willing to buy. The difference between CETA and the TPP is that CETA is a mature market. It has been around for a long time. It has trillions of dollars in market potential for us. All we have to do is double or triple a couple of things that we have the capacity to do and we are talking a huge win on both sectors.

The thing with the TPP is it is an emerging market. We are talking middle classes that are growing, their palate is changing, and they are asking for more types of westernized cuisine. In some cases, God help them, but in other cases, it is good for our exports. We will ship them all the burgers and beer they can handle and make money doing it.

It is in our best interests to have that diversity in our trade portfolio, having both the mature markets that take certain cuts of the beef and having the opening markets to take other cuts. We have countries in that Pacific Rim that will make use of a lot of products that we do not when it comes to a livestock animal or when it comes to grain products and pork products and so on. It then adds to the value of that product here in Canada. It changes our processing somewhat. We have to learn to sell what they want, not what we have, but that is just an educational thing that the market will take care of.

It is one of consistency. Canada has been a trading nation since beaver pelts were currency. We are going back a long time. Having said that, trade is still currency. It is still what drives our economy. The little discussion that the minister and I had was on moving forward on trade, setting the standard, and the social side of it that we have to talk to people about. There is a lot of angst out there on media websites and so on about what could go wrong, but there is very little on what goes right in these types of agreements, driving our economic agenda.

We have seen in the last few days our Prime Minister roll over and say, “Sure, we will sit down and renegotiate NAFTA, why wouldn't we?” but at the end of the day we do not start with a position of surrender to having any kind of positive drive on that. Certainly, NAFTA is 20-some years old. There are things in there that need to be modernized. There are things happening now that were not even discussed 20-some years ago, the digital age and all of those things that need to be addressed.

Yes, there are certain things that we need to look at, certain things we need to get on top of, and if we can roll in irritants like the softwood lumber agreement into a new, improved, long-term NAFTA agreement, everybody would benefit. We would not have these legal fights that cost billions of dollars and hurt our industry overall.

Before the Prime Minister sidelines our economic activity by saying we will take whatever the Americans give us, we should be negotiating from a power position. We have resources the Americans are envious of and require. Keystone XL is a case in point. We saw the president of the day in the U.S. veto it, not based on science or on his economic standards, because it has passed all of that, but based on the fact that his major fundraisers were against it.

Hopefully with the new president, who really does not require the same fundraising, we will see some movement on that. He has already been very positive in that regard, but if the Americans are to take that sector of our energy and our resources, then they have to take our energy and our resource sector writ large. What is very important in renegotiating things like NAFTA is to set the standards of what it is we will not take less than, rather than just saying, “Hey, let us do this” and leave it open-ended.

We are seeing a lot of the TPP countries questioning what the Americans have up their sleeve when it comes to trade and when they start talking about renegotiating NAFTA. It is one thing to do it during a political cycle when one is campaigning hard. At that time, we saw Prime Minister Jean Chrétien and president wannabe Bill Clinton both decry NAFTA. They said they would never sign it, they would tear it up, that it would never be in their best interests. Within months, both of them signed it and never looked back. However, they all took credit for it stating, “Look at what wonderful things we did.”

NAFTA was a negotiation by the Conservative government of the day, which faced the wrath of Canadians at the election at one point. That was one of many issues that led to its downfall. However, to be progressive and to have an open society we have to do what we are good at. We are good at trade. We are good at producing grapple grommets. The one thing we have never come to grips with is doing some value-added to the grapple grommets before we ship them out of the country and get that side agreement on labour standards, and so on.

We have already seen major changes in our automotive sector. As a political neophyte, I remember during the NAFTA discussions thinking that our wine industry would be decimated before it even got up and running, and yet it has become an international success story. We cannot go anywhere in the world without seeing some Canadian wines on display. We take international awards every year for the great quality products that we ship out. Therefore, there is from trade that underlying driver of efficiencies and innovation, which make us even stronger and better. Certainly, there are transition times required. We have seen that with our dairy industry and the compensation package that has been offered for the 17,000 tonnes of cheese that will be coming in on an annual basis. However, that will not grow. It is a static number. At the same time, we have unlimited access back into the European market once our guys figure out how to do that with a global cost-pricing structure. They have done it for pizza kits here in Canada, so we know they can do it moving forward.

At the last Paris show that I was involved in, there were 30-something Canadian groups there marketing their products. That was a tremendous opportunity. Although maple syrup is well known, many of them were winning awards for their fine cheeses. Therefore, we know we are world class. We know we can step up and provide whatever is required by the world. We know we can grow our trade. However, we need a government that is ready, willing, and able to take those steps. We are seeing some final steps here, such as getting to the podium to accept the medal after the relay race is done. I was happy to be part of that relay race. However, at the end of the day, there is a lot more trade that needs to be looked at and moved on expeditiously, including the trans-Pacific partnership. We hope we will see these types of actions moving forward on the TPP soon.