Bill C-30 (Historical)

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

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

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

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

[David Tilson, Conservative, Dufferin—Caledon, ON]

Madam Speaker, the matter has gone through the trade commissioners. It has been approved. I support the government's position on CETA. I support the government's position on supply management, which is different from my colleague, of course.

The Belgium issue took us by surprise. It took everybody by surprise. However, the next issue is that it has to go through the European Parliament for a vote, and then it has to go to the individual member states for a vote.

Does the member have any recommendations to the government in case there are more surprises where the vote might be defeated in the European Parliament or in one of the member states? Does the member have any recommendation as to what the government could do to ensure that there would be swift passage through the European Parliament and the 28 individual member states?

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, the Belgium issue gave a lot of people a surprise, Liberals and Conservatives especially, because they were not paying attention.

People have been criticizing the invest-state dispute settlement clauses in these types of agreements for a long time, and so it was not a surprise to New Democrats when we found out that people in Europe were looking at those same issues and saying that they had a problem with them. It is not a surprise if we look at the model of the European Union, which is very integrated, but it does not have the same kind of investor-state dispute settlement clauses that are governed by the corporate elite. Therefore, if we have been watching and paying attention to the way these deals have been playing out, it was not a big surprise.

The best way to try and head off further surprises is to take our time, that is not rush it through Parliament here; to start listening instead of dismissing these concerns as being unreasonable; and then to change the agreement to get rid of those problematic provisions. We could then get people onside in Europe.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Madam Speaker, it is my pleasure today to speak to the CETA bill.

Canada is a trading nation. We all know that. One in five jobs is directly related to the export of goods, products and services. I am immensely proud to belong to a political party that has long fought for the elimination of trade barriers, and is focused on the opening of new markets around the world.

The Conservatives understand that free trade agreements increase economic activity. They drive prosperity, create new jobs, and foster greater co-operation between our democratic allies.

It is important to point out that the party opposite does not always share the same passion and commitment to free trade. It was less than 30 years ago when the Liberal Party decried the historic free trade agreement with the United States. We all remember that the 1988 election was almost fought solely over the issue of this agreement. It took the second election of Brian Mulroney's government, which won a resounding majority, for the Liberals to do an about-face and see the benefits of free trade.

Today, I for one applaud the Liberals for seeing the light and to have supported NAFTA, the Canada–South Korea Free Trade Agreement, the Canadian-Ukrainian free trade agreement, the pan-Canadian free trade agreement, among others.

Now, due to the tireless efforts of previous Conservative ministers, such as the members for Abbotsford, Battlefords—Lloydminster, Durham, York—Simcoe, and I cannot say enough about the leadership of the Right Hon. Stephen Harper, we were able to sign free trade agreements around the world.

To speak briefly on the domestic front, I would like to congratulate Manitoba's new premier, Brian Pallister and his Progressive Conservative government on recently signing on to the new west partnership trading agreement.

It is becoming evident that political parties from across the country are now openly advocating for the removal of trade barriers, either monetary or regulatory. I will relish the day when products from one Canadian province can be sold in another with no strings attached.

Members of the House should applaud my hon. colleague from Central Okanagan—Similkameen—Nicola for his private member's bill that allowed Canadian wine to be shipped across the country, and for his recent leadership on freeing the beer. No Canadian should ever go to jail or be charged for carrying a case of beer across a provincial border.

With these thoughts in mind, it is why I am pleased to speak in favour of the Canada-EU comprehensive economic trade agreement. This landmark agreement is our country's biggest bilateral trade initiative since NAFTA. With 28 member states, the EU represents the world's largest single market for an investor and trader, with over 500 million people and an annual economic activity of almost $20 trillion.

When CETA comes into force, Canada will be one of the few countries in the world to have guaranteed preferential access to the world's two largest economies, both the EU and the United States.

CETA was not accomplished overnight. It literally took years of hard work, as did NAFTA, especially by our world-class trade negotiators who poured their hearts and souls into this endeavour. I applaud their efforts immensely.

It was nice to hear the current Minister of International Trade pay tribute to my colleagues on this side of the House who spearheaded this initiative. However, I would be remiss if I did not say that I was a little discouraged to see her only hours later change her tone during question period and play down the efforts of previous Conservative ministers.

While it is true that sometimes over-the-top rhetoric is used during fiery debates, I would like the hon. minister to know that Canadians, and in particular the good people of Brandon—Souris, are not too enamoured when the minister pats herself on the back, while forgetting the amazing contributions of others before she assumed her role.

I would also like to commend the members who have sat on the Standing Committee on International Trade. They completed two economic studies on the benefit of CETA. During these comprehensive studies, the committee found that CETA would be of net benefit to Canada, and had the support of a majority of Canadian stakeholders. In fact, in total transparency, all provinces had input and signed on before it was taken internationally.

Furthermore, the joint Canada-EU study concluded that this free trade agreement would bring a 20% boost in bilateral trade and a $12 billion annual increase in Canada's economy.

What does this agreement mean for hard-working Canadians? It is an economic equivalent of adding $1,000 to the average Canadian family income or almost 80,000 worth of new jobs to our economy.

I cannot stress enough how important it is for the federal government to implement policies that will lead to private sector growth, as its current path has only resulted in billions of dollars of new debt and the elimination of jobs.

CETA is a beacon of hope for many who have struggled for these past 12 months. It is an example that when government is on the same side as job creators, it can lead to the creation of new, high-paying jobs. We have learned many lessons after the great economic recession of 2008-09.

First and foremost, Canada must expand and diversify the countries to which we export our goods and services. We can no longer rely on selling the vast majority of our goods and services to the United States. To put it succinctly, we cannot have all our eggs in one basket. The importance of diversification is even more important now with the change of leadership in the United States.

While our Prime Minister seems to be willing to open negotiations on NAFTA, it sends shivers down the spines of those whose livelihood is directly tied to exporting into the American market.

As the Liberal government figures out how to work with the new administration, Canadians can rest assured that our Conservative caucus will continue to stand up for our bilateral initiatives that are directly tied to millions of Canadian jobs and, presently, $2 billion of trade a day across our friendly border.

We will also press the government to pursue a strong free trade agenda with the new U.S. administration. We expect the Liberals to work with the new U.S. administration to ensure Canadians and Canadian businesses continue to reap the benefits of NAFTA, and to advocate for the ultimate ratification and implementation of the trans-Pacific partnership agreement, which seeks to boost trade in the Asia-Pacific region.

Our Conservative caucus supported the diversification of our trading partners well before the recent American election results. The reasons why I support CETA are many, but in particular, Manitobans stand to benefit significantly from the preferential access we will get through this deal.

On day one of CETA's entry into force, 98% of EU tariff lines on Canadian goods would be duty-free, including those on key Manitoba exports, such as manufactured goods, metals, and mineral products. When this agreement is fully in place, 99% of the EU tariff lines will be eliminated.

In Manitoba, especially in my consistency of Brandon—Souris, farm families are chomping at the bit to have this opportunity to sell their livestock, grain, and oilseeds to EU countries.

Almost 94% of EU tariffs for agrifood products will be duty-free once CETA enters into force. This rises to 95% once all phase-outs are complete, seven years after entry into force. This would mean Westman farmers and beef, pork, and bison producers will have preferential access to the EU market.

It is also good to highlight there are beef producers who are already building their herd, specifically, for the EU market.

To put a face on the importance of this deal, I would like to share the story of the True North Foods, located outside of Carman, Manitoba.

Owner Calvin Vaags has been planning their entry in the EU for months. Just recently, his plant received federal approval and can now ship meat products anywhere across Canada and has been designed to meet all criteria for European, Chinese, and American markets. Operating at full capacity, the plant would process approximately 1,000 head of cattle a week.

Not only will this plant help Manitoba beef producers get into new markets, it also means that it no longer has to haul its cattle to Alberta or Ontario for slaughter. The plant will also provide the capacity to slaughter cattle, bison, elk, sheep, and goats, as well as offer heavy carcass capability, accommodating even the largest bulls.

This story may not sound like a lot in the big scheme of things, but for a constituency such as mine, it will offer Westman cattle producers opportunities that they would never have had previously.

With the very possibility that Americans might try to resurrect country of origin labelling, it is paramount we secure new markets for Canadian beef. Canadian products are considered high quality. When something is stamped “made in Canada”, consumers and customers know they are getting superior products and can trust the safety and food security of our food processing facilities.

When it comes to our agricultural sector, it goes without saying that Canadian farmers produce the best agrifood products anywhere in the world.

I know Canadian businesses would thrive in the EU marketplace. I know jobs will be created and incomes would go up due to this trade initiative. I know diversifying Canada's markets is necessary. Most of all, I know that when trade barriers are eliminated, consumers on both sides would have the choice of lower prices.

Free trade is not a theoretical concept. Free trade is a way of doing business that would grow the Canadian economy. Our preferential—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Unfortunately the time is up for the member's speech, but I am sure he could finish it in a few minutes during questions and comments.

Questions and comments, the hon. member for Essex.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I heard a lot of points in the member's speech, especially around beef. There are still some non-tariff issues that exist in CETA. There still are some concerns by cattlemen on being able to get that product in. It is often non-tariff that actually prevents them from seeing the benefits of that tariff reduction. There are still some issues that need to be fixed around beef and exports, and that comes straight from their presentation to us at the committee level.

My question for the member is something about which he did not speak, and that is the cost of drugs for Canadians. Twenty-five per cent of the agreement speaks to patent changes that will impact every Canadian, all Canadians who are already experiencing the high cost of drugs. I have people in my riding every day in my office. They are struggling to pay the costs of medication. Affordable medication in our country is a serious issue, and I would hope it would be a serious issue for the member as well.

Could the member speak to how it will impact his riding to have seniors and people who will struggle with the cost of medication because of the changes in CETA?

[Larry Maguire, Conservative, Brandon—Souris, MB]

Madam Speaker, it is a concern, but as I said in my presentation, every province had opportunities to make those issues known during the negotiations within Canada for CETA. It was done transparently, and every province bought into the process.

I am very aware, having come through the farming community, of the types of generic products that have come forward in the medical field as well. As these become more opportunities for trading, perhaps we will even end up with more pharmaceutical opportunities in the marketplace. It is yet to be determined whether the price of these drugs will go up, as the member has indicated.

[Matthew Dubé, NDP, Beloeil—Chambly, QC]

Madam Speaker, I thank my colleague for his speech.

Let us look at the Brexit fallout. Some 42% of Canada's exports to the European Union go to the United Kingdom.

I will not get into Great Britain's internal politics because that is all kind of up in the air right now. That is actually a good reason to take a step back and consider the impact of Great Britain's possible exit from the European Union on the deal.

My colleague rightly praised the Canadian negotiators. However, I feel certain that, when the agreement was negotiated, the negotiators took into account Great Britain's considerable share of Canadian exports to the European Union.

What impact does the member see that having on the agreement? Has the government truly taken that impact into account?

[Larry Maguire, Conservative, Brandon—Souris, MB]

Madam Speaker, I am not as pessimistic as my colleague is about the opportunities that lie before us. I still believe they will be great. That is like saying we should not continue to negotiate the TPP because the United States says that it may not want to be a part of it.

We have a great opportunity here to continue with the growth. I had an opportunity to be on a trade mission to England with our former trade minister. We looked at the amount of seafood products the British wanted to have from Canada. They wanted more shrimp, lobster, Arctic char, and just about every type of seafood we could offer.

The Brexit agreement has made a change. Whether England continues to negotiate those concerns within the European Union is something that it, as my colleague indicated, will have to do within its own legislative forum.

However, I believe we will continue to have those opportunities. If we do not, that is why we need to continue to have the diversification of markets I referred to earlier.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Madam Speaker, there are a mere handful of protections between average citizens and the predatory nature of global capitalism. The most important of these is a strong sovereign state with the regulatory power to champion the needs of its citizens over those of the non-human entities of global finance and multinational corporations.

In a 2012 dissenting opinion to a CETA-related trade committee report, the Liberals called for further consultation with Canadians on CETA. Now, the trade committee has already passed a motion in camera that will restrict written submissions to only the witnesses selected to appear.

On the other hand, the committee held dozens of meetings on the TPP. It 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.

The sheer determination of the current Liberal government to get CETA ratified despite the genuine concerns and protestations of citizens groups across the European Union and Canada demonstrates to the world what its true priorities are. These priorities are the extension of global corporate rule into every remaining space in the Canadian economy.

For Liberals, it is as if they have had no lessons to learn from Brexit or the Trump phenomenon. Rather, as I suspect, it is as if they wish to get these deals done before we in this country reap the Canadian variants of these whirlwinds.

Let me be clear. The NDP supports deepening the Canada-EU trading relationship to diversify our markets, but there remain significant concerns and unanswered questions about this proposed deal.

As I mentioned before, when the Liberals themselves were in opposition, they agreed with the New Democrats that more consultation and analysis were needed on CETA. However, the minister has ignored calls for the removal of investor-state rules, refused to address the rising costs of prescription drugs, and neglected to consult Canadians.

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

I ask, as others here have, what is the hurry? What is the government trying to ram through here? Why is it not letting parliamentarians undertake due oversight when there is obviously enough time for us to examine the bill?

Indeed, there is plenty of time to engage with other signatory members, the EU countries, who are also alarmed by the investor-state dispute mechanism. New Democrats support trade deals that reduce trade 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.

In February of this year, during CETA's legal scrubbing phase, the minister announced changes to the ISDS provisions that are supposed to improve transparency and strengthen measures to combat possible conflicts of interest of arbitrators. However, the new investor court system, the ICS, still allows foreign investors to seek compensation from any level of government over policy decisions they feel impact their profits. Foreign companies will have access to a special court system to challenge Canadian laws without going through the domestic courts.

This is deeply concerning, as Canada is already one of the most sued countries in the world as a result of the dispute mechanisms we have already agreed to. Canadian companies have won only three of 39 cases against foreign governments, and the Canadian government has lost many NAFTA cases while continuing to be subject to ongoing complaints seeking billions of dollars in damages.

Existing ISDS measures have also contributed to a regulatory chill in which governments fail to take actions in the public interest that they fear may trigger an investor claim. One thing we have learned very quickly from reading trade agreements over the years is that the priorities of global finance and global corporations are always front and centre in these deals and are always binding. It is environmental, labour, and general human rights concerns that are always relegated to side agreements, where they are non-binding and voluntary. It is strange how that happens.

Witness the so-called joint interpretive statement concerning the investor court system I mentioned earlier. This statement was negotiated as a way to placate the concerns of ordinary citizens who worried that these courts cede far too much of their nation's sovereignty to bodies that are not subject to domestic democratic oversight. Was CETA amended so that these concerns could be included? No, it was not, oddly enough. The joint interpretive statement falls outside the text of the treaty, and therefore would not have full legal weight. We can be absolutely sure this is no accident.

Likewise, the chapter in CETA on intellectual property rights goes well beyond Canada's existing obligations. The increased patent protections granted to brand-name pharmaceuticals would have the effect of delaying the arrival of cheaper generics and would 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 that it would hamper any efforts to bring 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.

In opposition, the Liberals demanded that the Conservatives present a study of the financial impacts on provincial and territorial health care systems and prescription drug costs. In government, the Liberals are telling provinces that they will cut health care transfers while pursuing agreements that risk increasing drug costs for the provinces.

Most distressing for me, as someone from municipal politics, is the minimum local content policies that could be compromised, even outlawed, above a certain threshold, even in municipal and provincial government procurement. I ask members to think about that and about the initiatives they have worked on when representing people at the municipal level of government, as I know many members have done.

As noted by the Canadian Centre for Policy Alternatives, these provisions would likely threaten very popular buy local food programs at provincial hospitals, school boards, and other public institutions. They would almost certainly outlaw programs such as the Green Energy Act in Ontario, which requires significant local content in solar and wind projects in order for private energy producers to benefit from generous feed-in tariff rates designed to encourage more renewable power generation. The Canadian Environmental Law Association states the following about CETA:

It will significantly impact environmental protection and sustainable development in Canada. In particular, the inclusion of an investor-state dispute settlement mechanism...will 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.

Companies will also have an expanded ability to use temporary foreign workers without studying the impacts of that on Canadians. This is a matter of great concern in the Windsor—Tecumseh riding that I represent and the Essex County area at large, where there is a high unemployment rate.

To conclude, the NDP supports trade with Europe. As I have stated previously, we have deep historical and cultural ties with Europe, and within the EU are some of the world's most progressive democracies. However, we are concerned about specific measures in CETA that were negotiated, and it is our job to uphold the interests of Canadians and the global citizens we are. The Liberals have missed key opportunities to fix this agreement, but the deal is not done—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Unfortunately, your time is up for this speech. I am sure you will be able to use some of it for questions and comments.

The hon. member for Beloeil—Chambly.

[Matthew Dubé, NDP, Beloeil—Chambly, QC]

Madam Speaker, I thank my colleague for her speech.

I heard two important points there, because they illustrate the Liberal approach. The Liberals had a certain attitude when they were in opposition, but now that they are in power, their attitude is the exact opposite, and one that I have to say is disappointing.

This comes down to two specific points. The first is the higher drug prices that will result from this agreement. During the previous Parliament, those same Liberals asked for studies on the impact this agreement would have on drug prices. Now they seem to have forgotten all about that and want to move quickly without really examining the impact the agreement will have on people and what they will have to pay for their medication.

The second point has to do with compensation for dairy farmers. The Conservatives had promised $41 billion to compensate the farmers. Now farmers are being offered peanuts, just $300 million. That is a lot less than what the previous government had promised.

I wonder whether the member could talk about the Liberals' broken promises and how their attitude has changed since they came to power.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Madam Speaker, I am glad the member brought up these two very profound issues that I could speak to at length.

I will start with pharmaceuticals. This is a real challenge for Canadians today. In the House, when we talk about the threat to universal health care and our conviction on this side to defend it, one of the key things the governing party keeps bringing up is that it is going to reduce costs by looking at some ways to come up with a pharmaceutical plan and that it is working on that.

CETA will cripple that initiative. We will not be allowed to do that. Anyone can read this in the document. The myths with regard to this are really frustrating. Every single day in every constituency, members have people who are suffering because of the cost of pharmaceuticals and health care.

Another thing I want to bring up, which we have not talked about at all, is innovation and research in pharmaceuticals. Government-sponsored research and innovation for particular types of cures for certain diseases is also going to be undermined by this deal. Intellectual property will be undermined by this deal.

When it comes to issues like dairy farmers being compensated, I do not understand how we can have the government, on one hand, championing the cause and making these kinds of promises, and then—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

We have to allow time for more questions. Questions and comments.

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

Madam Speaker, I am wondering about the part of the member's speech that she did not get to. Is there a point that she wants to make?

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Madam Speaker, the member was very clever. I am going to remember that in the future.

As a matter of fact, as I was being closed down by Madam Speaker, I was just saying that we urge the Liberals to reconsider. That was pretty much the closing.

Of all the points I was making, and they did culminate with that, that is a very important one. We are rushing this through. There is no need for us to be rushing this through. There is a way we could be doing it. As parliamentarians, we take pride in the place we have here in the House of Commons. We all embrace our due diligence. Whether we agree or not, we all do want to delve in and explore things further.

If there is a way to arrive at consensus, we should find it. I have been inspired by members from every party in the House in doing that and being responsive to real concerns. I thank the member for the opening to talk about how it is not too late for us to make these significant changes and be the vanguard leaders we are expected to be.