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

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, one thing my friend and colleague did not talk about much was that CETA will lead to increased costs of prescription drugs for Canadians.

In fact, Jim Keon, president of the Canadian Generic Pharmaceutical Association 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 annually, based on generic prices in 2010.

When the Liberals were in opposition, they agreed with the NDP that greater analysis was needed, as well as compensation to the provinces.

Will the member opposite explain why the Liberals are comfortable signing-off on CETA without any further analysis of how these increased drug costs will impact the people in their riding?

[TJ Harvey, Liberal, Tobique—Mactaquac, NB]

Madam Speaker, I know the member is very passionate about the subject.

I know it is really hard for members opposite, especially directly across from me, to recognize the benefits of a trade agreement. This is an agreement that we have seen, and not only ourselves but I believe the members opposite farther up the row. They would agree, if we look at the overall, broad concept of the agreement, it is a 100% win for Canadian companies, not only within agriculture but across the board.

When the dust settles and the agreement is completely ratified, everybody in this House will be 100%, completely confident, that we have done our due diligence on this side of the House to ensure that we have signed-off on a very progressive trade agreement with one of the largest, fastest growing populations in the world, and that Canadian consumers and Canadian citizens are going to be able to see the benefits of this agreement for years to come.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, the member knows very well where the NDP stands with respect to the paltry compensation that the Liberals gave the dairy industry, particularly in Quebec.

Another affected agricultural industry seeking compensation from Canada is the vintners’ association. The European Union exports 180 million litres of wine to Canada, while Canada exports only 123,000 litres to the European Union. This openness has our wine producers fearing the worst.

In order to protect wine producers, are the Liberals planning to properly compensate this industry?

[TJ Harvey, Liberal, Tobique—Mactaquac, NB]

Madam Speaker, when we talk about the wine sector in Canada, it has actually flourished under an open market system in which free trade has abounded for a long period of time.

I respect the hon. member's opinions about the dairy sector. I come from a family, where my wife and her parents are dairy farmers. They are very excited about the opportunities that could come from CETA.

If we look at it from a progressive stance of being within the dairy industry, there are going to be challenges as we transition from where we are today to where we are going to go through this open, progressive agreement. However, there are also going to be major opportunities for Canadian business and, specifically, there will be major opportunities for Canada's cheese and milk producers. Not only that, there will also be amazing opportunities for Canada's wine producers.

We are a trading nation. We have openly said that. Canadians are well aware that, given our small population and large land base, we have to be a trading nation. That is something we have done quite progressively over the years. We have used our large land mass, and our ability to innovate and use new technology to grow our businesses in a progressive manner that allows us to be competitive, not only in Canada or North America but on a global scale.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, it is a pleasure to rise in the House today to talk about a very important trade agreement for Huron—Bruce, the riding I represent.

Huron—Bruce is a large rural riding in southwestern Ontario, and to the west of it is Lake Huron, which creates a unique opportunity for agriculture with regards to climate and precipitation. We are also blessed to have some of the most fertile soil in North America. Therefore, when we look at the opportunities for markets for our crops, which have tremendously high yields, this is a great opportunity for us and one that will continue to grow for many years.

Obviously, everyone in the House by now understands the size of the European market, with 500 million people and $17 trillion to $18 trillion in economic activity. CETA will have about a $1.5 billion impact on the agriculture industry here. It will reduce or eliminate 94% of the tariff lines for agriculture, which is an important point to note. We saw this with the Canada-Korea trade deal and other trade deals as well.

When these tariff lines are looked at in a broad spectrum, we may not think they are so bad with 10% here and maybe 14% there. However, some tariffs are quite punitive, with some at 114%. Our farmers cannot then be competitive when other countries have direct access. Therefore, eliminating 94% of the tariff lines for agriculture will be tremendously important. It will really give producers in my riding and across the country an opportunity to really grow this market and to be able to serve the 500 million consumers in the EU.

I consider Huron—Bruce the breadbasket of Canadian agriculture. Just to give members an idea of the size of it, the farm gate receipts of just that part of Bruce County I represent are more than those of all the Atlantic provinces combined. My two colleagues who preceded me talked about the huge opportunity for them in Atlantic Canada and how important it is for that economy, which puts into perspective just how significant it is for the riding I represent of Huron—Bruce.

Before I go into some of the details, I would like to talk about the quality of farm producers that we have in Huron—Bruce. As I said, we border Lake Huron, and we all appreciate the fresh water and the great opportunities it presents. However, the farmers in Huron—Bruce are innovative, aggressive, and they represent the environment. They take the environment into consideration in all they do, and they have great respect for it. Rivers, creeks, and streams flow into Lake Huron. Some of the farmers in Huron County were innovators over 30 years ago with no-till drilling, which has since been proven in terms of soil quality. There are many different workshops and collaborations between the conservation authorities and farm groups to make Huron—Bruce unique in terms of the yields farmers get and their respect for the environment and Lake Huron.

There are also some tremendously successful companies in Huron—Bruce, which will obviously be dealing with the European Union, and already do. I will mention a few of them.

Gay Lea in Teeswater just made a huge announcement a couple of weeks ago of a $60 million expansion at a time when a lot of jobs are leaving Ontario. It is a co-operative, which I think means a lot. It has hard-working men and women who come to work every day and do a great job.

Also in Teeswaster, we have the Dairy Goat Co-operative. This is a very innovative and relatively new organization, which has really grown.

We have some of the most productive greenhouses in Ontario, and likely in Canada, in Exeter, Ontario.

The Hensall District Co-Operative Inc., whose headquarters is out of Hensall, has grown across the province. It is one of the leading co-ops in North America and continues to innovate and work with farm producers, as well as machinery builders and manufacturers, to really allow the farmers to do what they like and need to do to maximize profits, such as P-N-H Innovations, Thomsons Ltd., Dupont Pioneer, Hayter's Turkey Products Inc., and many pork, beef, and cash crop farmers.

I would be remiss if I did not mention all of the companies in Huron—Bruce that build barns and provide cement foundations and footings. Everything from excavation to building can be done in my riding of Huron—Bruce, which is quite impressive.

I will also mention the farm machinery dealers. Often our farm machinery dealers are not mentioned, but I think they should be. Huron Tractor is a great example, as is Delta Power Equipment, McGavin Farm Equipment Ltd., Hyde Brothers Farm Equipment, and Robert's Farm Equipment, which are located up and down the shoreline. The farm machinery dealers are important because they provide great service and sales to our farm producers, so that when there is a breakdown at 2 a.m. when a farmer is harvesting his or her crop, they are there to make the repairs so the farmer can continue.

With respect to the beef sector, obviously there is beef grown in both Huron County and Bruce County. However, Bruce County is certainly one of the capitals of beef production in Canada. I know that the member for Bruce—Grey—Owen Sound is a former beef producer. There is 64,950 tonnes of Canadian beef there that will have full access to the EU market. It is a huge opportunity. Beef producers will have to make some changes to to really meet the demands of the European market, but over time it will be a great opportunity for farmers to take another look at that specialty market.

With respect to the pork sector, some of the most modern pork facilities in the world are located in Huron—Bruce, as well as some of the most innovative farmers we could meet. I have had a great opportunity through the years to meet with many of them to see how they have grown and innovated in their farm operations. The European pork market is, and was, really the last frontier for Canadian pork farmers. It represents a market of 80,000 tonnes without tariffs. The European Union pork market is a big market, and Canadian pork farmers are going to have a great opportunity. Two-thirds of the pork grown in Canada is exported around the world. This will be a great opportunity. Again, reducing and eliminating these tariffs is what will allow these farmers to finally break through and service these markets, which will have a meaningful impact. We know that across the spectrum, but specifically with respect to pork and beef, the genetics, the quality of our feed, the health and safety, and the treatment of animals is second to none in the world. We have a great Canadian agriculture story to tell, and our farm producers will be able to do that.

Another component I will mention, strictly from an Ontario basis, is access for barley, corn, oats, and soybeans. In Huron—Bruce, corn and soybeans are two of the three large staple crops. Most people would not believe how big the yields are in Huron—Bruce, but it is the climate and soil that contribute to that. Through the years, as this deal rolls out and producers and resellers are able to really get into Europe and meet the needs of all of those markets, it will be a huge opportunity.

I should also mention that in Goderich we have the deepest port on the eastern shores of Lake Huron. It allows a lot of grain and salt to be shipped, although salt is not something that we are talking about here. That port will be hugely important, as will be the rail lines that run in many different directions.

I look forward to any questions, as well as the continuing debate on CETA.

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

Madam Speaker, I was really encouraged by the member's comments, especially with regard to the pork industry. It is an industry that I have personally followed for the last number of years, and the assessment by the member is quite right that the industry as a whole stands to benefit a great deal.

When we talk about trade and the expansion potential of the pork industry, it is important to recognize that the ripple effect is quite tremendous. The Burns Meat Ltd. parking lot, for example, in Brandon is filled with vehicles. Those vehicles are bought in the community, as well as homes. The ripple effect is quite significant, and that is why trade and this agreement are so important.

On the whole issue of timing, would the member agree that it would be wonderful for a bill of this nature to pass before the end of the year, or does it really matter, from his perspective, when the bill passes?

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, we can mark on the calendar that December 7 might be the first time the member and I have ever agreed on anything.

There are many other countries that will need to ratify this through their own parliaments, so I will leave the timing alone. I would say the sooner, the better, as it would be great for all producers.

The economic impact on farms is huge. The processing side, the small abattoir side, the processing jobs that go along with that, the transport jobs, and even the servicing of the transport trucks, are hugely important. All contribute. It could be by a factor of 6:1 or 7:1. Whatever it is, it is huge. The farm gate receipts in Huron County alone are nearly $1 billion. If we multiply that out, it is huge for my area.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I have visited the member's riding many times and it is a beautiful spot in Ontario for sure.

I know there are a lot of small communities and working-class Canadians in the member's riding who would be very concerned about the changes that would take place with CETA in terms of the cost of pharmaceutical drugs. Every single Canadian would be impacted by these changes. Twenty-five per cent of the implementing legislation consists of changes to pharmaceutical drugs. We already have the highest pharmaceutical costs of all OECD countries and there is no compensation to be had for the provinces, as the previous government spoke about.

The economic impact would be $850 million annually in terms of additional spending by Canadians on pharmaceutical drugs. I am sure that in the member's riding, like in my own riding of Essex, there are many people who are already struggling day to day to afford the cost of medications.

Is the member concerned that CETA would lead to increased costs of prescription drugs for those in his riding given that Canadians already pay more for prescription drugs than nearly every other OECD country?

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, that is a fair question. I would say to the member, with all due respect, that the provinces and the federal minister need to get at this immediately. It has gone on for far too long. There is a lack of buying power. The federal government and all of the provinces combined have an opportunity to really get tough on the pharmaceutical companies. They play us for fools, as far as I am concerned, and I really hope the health minister steps up.

Here I will speak about the province of Ontario. It is a disgrace in the province that some drugs are not included, such as the shingles vaccine, and that some seniors are covered and others are not. I cannot even list how many letters I have written to the health minister to try to help seniors and people in vulnerable positions with the high cost of drugs.

I will also mention that in Parliament right now, there is a debate with the Liberals about taxing 13.5 million people's health benefits. It is ridiculous.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, Bill C-30 concerns the implementation of the Canada–European Union Comprehensive Economic and Trade Agreement, or CETA.

Trade with Europe is much too important to be taken lightly. It is Quebec’s second largest trading partner. We export about $9 billion in goods and services, and a number of European companies, such as OVH, have set up operations in my riding, Salaberry—Suroît.

The NDP and I want to promote a stronger trade relationship between Canada and the European Union, although there are still major concerns and quite a few outstanding issues regarding this agreement. In Canada, like in Europe, this agreement has sparked a vigorous protest movement. In October, the regional government of Wallonia prevented Belgium from signing on to CETA; it believed that the investor-state provisions could adversely affect them, and several individuals, including some Canadians, also raised alarm bells and said that the matter needed another look. The Walloons agreed to sign on because they managed to retain their right to withhold consent to ratification if the investor-state provisions were not deleted or changed.

Our dairy producers expressed serious reservations about the impact of a massive amount of dairy products arriving on the Canadian market and on the Quebec market in particular. As well, a request for compensation was received this week from wine producers who fear losing their ability to produce here and their ability to sell on the Canadian market.

The Liberal government promised to compensate dairy producers, but this support falls far short of what they would find acceptable. Citizens groups have spoken up about how drug prices will be affected by changes to intellectual property and by generic drugs taking longer to get to market.

CETA is a source of concern for many. As the Dairy Farmers of Canada put it, CETA represents a 2% decline in dairy production, or Nova Scotia’s entire annual production. The dairy industry needs to be compensated for these losses.

The Conservatives had promised a $4.3 billion compensation package over 15 years to supply-managed farmers affected by CETA and the TPP. The current Liberal government decided to establish a fund of $350 million over five years for dairy producers.

The losses sustained by farmers will be permanent; they will not end five years from now. On top of that, the assistance being offered is paltry and not nearly enough to compensate this sector. According to the most conservative estimates, dairy farmers are going to lose $116 million a year.

The $50 million the Liberals are offering will therefore meet only 45% of the farmers' needs each year, which does not even cover the minimum losses that farmers are estimating. The Liberals have not appropriately compensated dairy farmers for the loss of market share.

In addition, the programs the Liberals have put in place are not meant to compensate farmers, but rather to modernize their production systems. The government is, in effect, denying that losses will occur under CETA.

The dairy farmers in my riding are already greatly affected by the diafiltered milk problem. American exporters are getting around Canadian laws by selling their diafiltered milk here. We need to enforce our cheese compositional standards immediately. The future of our dairy farmers, our family farms, and local jobs here in Canada is at stake. Across the country, the agrifood sector employs one in eight Canadians. We cannot ignore this sector when negotiating trade agreements with other countries.

It has been estimated that $200 million was lost in 2015. A farmer might lose $1,000 a week. The Liberals promised farmers that they would resolve the issue of diafiltered milk, but they have not lifted a finger so far. I am still waiting for news from the government, who is supposed to be helping farmers across Canada, as well as those in my riding, Salaberry—Suroît.

Trade relations also have to be based on equity between the partners and carried out in compliance with laws and regulations. CETA is worrisome in this regard as well. The investor-state provisions will allow foreign companies to challenge Canadian laws without going through our domestic courts.

There is so much uncertainty here that we have no idea how we can even appeal such claims or how members of the tribunal will be selected. We know full well that the companies will be able to hire foreign workers without a labour market impact assessment.

Municipal, provincial, or federal governments will no longer be able to require local employees be given priority without risking a trade challenge. Canada is already being sued and has won only three out of 39 cases against foreign investors in Canada. This is rather disconcerting.

In other words, any decision taken by any level of government could end in compensation for foreign companies. Canada is already one of the most sued countries under ISDS. This legal system has not been fully defined. We cannot give the Liberals carte blanche on this. There are many very important elements that could compromise our industries and our values.

The Liberals keep repeating that they cherish Canadian values. That is not evident in this bill. They are trying to ram it through. We even heard a member say that this bill must be passed before the end of the year. Knowing that 28 EU countries must ratify it and that this could take up to five years, why the urgency?

Why did the committee move a motion in camera to prevent those wanting to submit a brief from doing so? The committee is preventing everyone who will not appear as a witness from submitting a brief. In terms of transparency, accountability, and responsibility with respect to consultations, the Liberals are falling far short. Furthermore, they are not answering questions from farmers, wine producers, and producers from the east and the Maritimes who earn their living from the fishery. That is very troubling.

We cannot make an informed decision, for there is still much we do not know about the investor-state provisions. The Liberals also have not explained how they will protect environmental, health, and security regulations from foreign challenges.

The European states clearly indicated that this agreement would not be ratified unless the investor-state provisions were removed. Once again, the Liberals have not provided any information on this. Will they change these regulations? Will they provide a bit more information? As I said, there is a lot of uncertainty here.

The government is leaving us open to a situation where the agreement cannot be ratified by some countries in the European Union.

Let us talk about health. The changes set out in CETA may increase the cost of drugs for Canadians. The agreement will change the intellectual property rules regarding drugs. This will increase the cost of drugs by over $850 million a year, because it will take longer for generic drugs to reach the market.

Since Canada's population is aging, we will need access to drugs. This is just one more hardship for our seniors. There is no guarantee that they will be able to make ends meet since they are already struggling to put food on the table and get access to health care. Now, they may have to pay more for their medication.

The Canadian Federation of Nurses Unions has also warned that these regulations could make it more difficult to bring down prices with a national pharmacare program.

For all these reasons and more, I cannot vote in favour of this bill.

I hope that the Liberals will do the responsible thing and consult experts, reconsider some of their positions, and make informed decisions so that we sign an agreement that is truly fair to all workers and all Canadians.

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

Madam Speaker, I always find it interesting whenever we engage in debate on the issue of trade with my New Democratic friends. I know it has been suggested in the past that the NDP will not be supporting this agreement. Could the member provide any clear explanation about why, outside of the pharmaceutical issue, the NDP members feel so passionately about voting against CETA?

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, let me say again that this is a super-important agreement because we know that they are Canada’s second largest export partner. However, we need to take an approach that involves as little risk as possible. We must be able to respect workers, health, anything concerning the environment and the rights of the public.

As for the investor-state mechanism, as I said, a lot of information is still missing. We do not know how certain decisions could be appealed or who will sit on arbitration panels. We do know that we were sued 39 times under NAFTA. This means that Canada is the country that has been taken to court the most and we have no way to defend ourselves. We cannot hand the Liberals a blank cheque.

In my riding, the Liberals offered dairy producers $250 million in compensation, while the Conservatives had offered $4.3 billion. How is it that, all of a sudden, this industry is not so important to the Liberals anymore, even though they claim to defend supply management? There is a lot that does not add up.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Madam Speaker, I want to acknowledge the work done by my colleague, especially concerning dairy farmers.

I am sure I will not be able to change her mind about the agreement with Europe. In fact, that party has some rather restrictive views when it comes to trade agreements with other countries. However, with respect to dairy producers, the member has indeed just raised a very important point, and I would certainly agree with her.

In my riding there is a dairy producer who has invested $1.5 million in his farm. The compensation provided by the government supposedly for innovation to help producers get through this crisis would mean he would get about $5,000 a year. This is not an amount of money one can leverage into investments of $1.5 million.

What does the member think that the government should have done to protect dairy producers under this agreement?

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, I want to point out that with regard to trade agreements, we supported Bill C-13, which was just introduced and which will move forward. This means we are capable of really thoroughly analyzing international trade proposals.

There are a lot of missed opportunities in Bill C-30 concerning the agreement with the European Union. As for anything related to dairy production, clearly, what the Liberals are offering is completely inadequate. They say they consulted those affected. Dairy producers were very vocal on several occasions to let them know that this was completely laughable. They are going to lose 2% of their production under this agreement. Dairy producers have been a real bargaining chip for a number of years now. There needs to be enough compensation to at least cover the $116 million per year loss. This is the bare minimum. We need to at least compensate them for that.

In the area of agriculture, wine producers are also seeking compensation because 180 million litres of wine will be coming in from the European Union. That is troubling as well. We have asked the Liberals to support the wine industry.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Nanaimo—Ladysmith, The Environment; the hon. member for Carlton Trail—Eagle Creek, Transportation; the hon. member for Calgary Confederation, Health.