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 is from 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. The Library of Parliament has also written a full legislative summary of the 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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-30s:

C-30 (2022) Law Cost of Living Relief Act, No. 1 (Targeted Tax Relief)
C-30 (2021) Law Budget Implementation Act, 2021, No. 1
C-30 (2014) Law Fair Rail for Grain Farmers Act
C-30 (2012) Protecting Children from Internet Predators Act
C-30 (2010) Law Response to the Supreme Court of Canada Decision in R. v. Shoker Act
C-30 (2009) Senate Ethics Act

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.

Tracey Ramsey NDP Essex, ON

Mr. Speaker, my colleague from London—Fanshawe has asked an excellent question, a question I posed for the trade minister and for many Liberals in the House. No one seems to want to address it. No one wants to talk about the fact that 25% of the implementing legislation we are talking about today consists of patent changes that will cost Canadians more money.

The minister has said that it will be eight to 10 years off. Eight to 10 years is not a long span of time. Many drugs will be coming forward to be patented, such as the biosimilar drugs. These drugs could be the future. They could cure cancer and diabetes. When those drugs are patented, Canadians will have to pay more. The government has absolutely no plan to deal with that cost to the provinces. There was mention of that under the previous Conservative government, but absolutely nothing under the Liberals. I have yet to receive an answer to that question.

We would be hard pressed to find one Canadian outside of the chamber who thinks that signing a trade deal that increases the cost of drugs for them, their neighbours and loved ones is a good idea. No one thinks this is a good idea.

The other issue is pharmacare. Canadian nurses have told us quite clearly that we will likely never see pharmacare in our country, that we will be sued for trying to bring such a plan into Canada. Many countries in the EU already have—

The Deputy Speaker Bruce Stanton

Order, please. The time has expired for the hon. member.

Resuming debate, the hon. member for Drummond.

François Choquette NDP Drummond, QC

Mr. Speaker, I have the honour to rise today to speak to Bill C-30, the Canada-European Union comprehensive economic and trade agreement implementation act.

This is not the first international agreement that we have considered. In the past, we examined NAFTA, an agreement between Canada, the United States, and Mexico. One part of NAFTA still sticks in our memories today, years later, and that is the infamous chapter 11, which allows companies to sue a government.

Governments that want to legislate on environmental, health, and worker safety issues can be taken to court by companies that are unhappy with these laws, even though every government has the responsibility of protecting its citizens.

When NAFTA was signed, I was still a university student, and I clearly remember talk of the free trade area of the Americas, or FTAA, which resulted in many protests. I remember that, at that time, there was a protest in Montreal. People there even tore down fences because they were so opposed to an even broader free trade agreement that did not respect the right of governments to legislate.

What is happening with the Canada-European union comprehensive economic and trade agreement is unbelievable. This should be an easy deal to reach since Canada and Europe are so similar. It should not be so hard to reach a deal. We should not be having so many problems.

However, once again, this deal is being negotiated behind closed doors with very little public consultation. Once again, there are also many flawed provisions, including those that will allow companies to sue governments that are seeking to protect the environment, health, and worker safety.

If we tried to explain this to people who are unfamiliar with these types of provisions, they would not believe us, and yet it is true. As a result, as I was saying, it is unbelievable because Canada and Europe should be able to easily reach agreements. We should be able to reach a deal without too much difficulty, and yet we are being faced with these types of problems.

Another problem is the fact that Canada has what is called the supply management system. It is extremely important for producers in my region and other areas of Quebec and Canada, particularly dairy, cheese, poultry, and egg producers. These sectors have a supply management system that does not rely on government subsidies.

People sometimes say that supply management is expensive. That is absolutely not the case, because it does not cost people a cent. The government does not subsidize either producers or processors. The supply managements system ensures a balance. Unfortunately, this agreement opens up the market to cheese. Basically, 17,000 more tonnes of cheese will come into the country, and that will have a direct impact on citizens as well as dairy and cheese producers. I will say more about this shortly.

I would also like to talk about the notorious investor-state provision that makes it possible for an investor to take legal action against a state. I can already picture how surprised people will be about that; I can hear them tell me that there is no way and it is just not possible. It is, though. In recent years, there have been 39 cases, and Canada came out on top in just three of them. In the rest of the cases, Canada had to pay billions in damages and interest to foreign investors. Why? Because we, as a government, decided to protect health and the environment and ensure better working conditions.

We should be proud of that, but instead we are taken to court. It costs us billions of dollars that we can no longer invest in the shift towards green energy or give to our dairy and cheese producers who are going to suffer during this transition. Indeed, some 17,000 tonnes of cheese is going to enter Canadian markets.

Let me give a concrete example. The people of Drummond know very well what I am talking about. I want to talk about shale gas. I have been working very hard on the shale gas file for many years now. Something terrible happened. An American company, Lone Pine Resources, sued the Government of Canada. That company wants to do hydraulic fracking. Without going into too much detail, I can say that that practice is extremely polluting, dangerous, worrisome, and unsafe, and the science has not yet shown that Canada can afford it.

There is a moratorium on the practice in Quebec, specifically for the St. Lawrence Valley. In the Drummond region, we are very happy about that moratorium, since permits had been granted for fracking in my region, Drummond. Tens of thousands of citizens spoke out to prevent it from happening.

Under NAFTA's famous chapter 11, this company sued the Government of Canada for $250 million. Unfortunately, if we look at how other suits against the Government of Canada played out, we are going to lose this one too. That is money that could have been invested in health, in protecting the environment, or in supporting our dairy farmers and cheese makers, for example, during a transition period like the one we are about to enter into.

One of the reasons I am extremely upset is that the negotiations have resulted in this kind of thing, which we see in so many international agreements. It is embarrassing and shameful that governments can be sued for wanting to protect their citizens.

The other problem affects our dairy farmers and cheese makers. For a little over a year now, I have been touring the dairy farms back home in Drummond. In fact, I had the opportunity to see my colleague from Saint-Hyacinthe—Bagot, who came to meet our dairy farmers and cheese makers. They told her that they are quite concerned about the agreement between Canada and Europe. They were concerned even before the arrival of the Liberal government, when the Conservatives were in power.

At least the Conservative government promised $4.3 billion in compensation. Right now, all the Liberals are promising is $350 million. This is just another embarrassing moment for the Liberals on top of the diafiltered milk issue. It is shameful because they could have resolved that problem in no time at all.

It is really quite simple. It is a matter of applying the same definition at the border and the processing facilities. What is considered milk at the border should be considered milk at the processing plant. What is not considered milk at the border, the issue we are currently dealing with, should not be considered milk at the processing plant either. This issue could have been resolved during the government's first 100 days in office. Dairy producers in the greater Drummond area and across Quebec and Canada are suffering as a result of this situation. It is extremely serious because they are losing millions of dollars a year. A dairy producer in Drummond can lose between $10,000 and $15,000 a year because this situation has not been resolved, even though it would have been a relatively easy fix.

I began visiting the cheese factories in my riding: Fromagerie St-Guillaume, Fromagerie Lemaire, and Agropur's Fromagerie de Notre-Dame-du-Bon-Conseil. They are saying that, right now, the government is not doing enough to compensate dairy and cheese producers. They are extremely concerned. They want something to be done to improve the situation. That is why we cannot give the government carte blanche on this agreement. We want an agreement with Europe, but we want a good agreement.

Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I would like to thank my colleague from Drummond for his speech.

Members may know that my colleague from Drummond and I are neighbours not just here in the House, but also in our ridings. When he speaks about dairy production in his riding, he is referring to what is happening in both our ridings, because the two are adjacent.

The member quite rightly spoke about the fact that the previous Conservative government had earmarked and promised $4.3 billion in compensation. That was the estimated loss of dairy producers caused by the entry into Canada of 17,000 tonnes of European cheeses. The $350 million program, which includes $250 million for producers and $100 million for processors, cannot be called a compensation program. It is a new modernization subsidy program.

My colleague from Drummond spoke about it. Last year he invited me to visit a dairy farm in his riding. Producers in our ridings have already modernized their operations. They are ahead of the curve, and a $350 million spread over a few years will barely pay for the electricity that powers the milking machines they already have.

I would like our colleague to comment on the fact that the current government is not acknowledging the losses caused by 17,000 tonnes of imported European cheeses. It is not acknowledging the detrimental impact on the industry and our regions' economies.

François Choquette NDP Drummond, QC

Mr. Speaker, I thank my hon. colleague from Saint-Hyacinthe—Bagot, who has the good fortune of representing a constituency whose reputation for agrifood technology is well deserved. When it comes to agriculture, she knows what she is talking about. Her riding has a lot going on in terms of agriculture.

The Liberal government's handling of the dairy products file is an epic failure. It started with diafiltered milk. How is it that diafiltered milk is still an issue? The government was supposed to keep that promise in its first 100 days. If the NDP were in power, we would have dealt with the issue because it is really not that hard. All it takes is harmonizing the definition at the border with the definition for the processing industry.

Adding another 17,000 tonnes of fine cheese to what we already import is a major concern. I have talked about cheese makers in my riding: Saint-Guillame, Lemaire, Agropur. These three cheese makers may go out of business. The equivalent of their combined output is what could be coming into Canada.

Of course, these three medium-sized cheese makers employ not two or three people, but hundreds of the people who live in my region. There are regional economies. This is about the regions. Saint-Guillaume and Notre-Dame-du-Bon-Conseil are great little municipalities. Their economies are diversified and bustling thanks to these great, prize-winning businesses. Given the time, I would list all of the prizes that Saint-Guillaume and Notre-Dame-du-Bon-Conseil cheeses have won. It is incredible.

The point is that the government said it would deal with this in its first 100 days. It did not, and now it is making things even worse. Of course we will not stand for that. We have to make things better. We need a good agreement with Europe, one that the NDP can back too.

Erin Weir NDP Regina—Lewvan, SK

Mr. Speaker, trade between Canada and Europe is already free. There are very few tariffs between Canada and the members of the European Union, which raises the question of why we need a comprehensive economic and trade agreement. However, if we are to evaluate this agreement as a trade deal, a logical starting point is to examine the current pattern of trade between Canada and the European Union.

In 2015, Canada exported $38 billion of merchandise to the European Union and imported $61 billion of merchandise from the EU. This imbalance meant a trade deficit of $23 billion.

An implication of this is that if CETA functioned as advertised and boosted bilateral trade flows, it would increase our trade deficit with the European Union. For example, a 10% increase in bilateral trade would boost exports by $4 billion and imports by $6 billion. That would raise our trade deficit with the EU by $2 billion, which is a subtraction from Canadian output and employment.

The economic models that were used to argue for CETA simply assumed balanced trade and full employment, but of course we know those assumptions are not realistic in the real world. Furthermore, these models take no account of Brexit. The United Kingdom has voted to leave the European Union, which is of course very consequential for CETA. The United Kingdom is the only major European economy with whom Canada is running a trade surplus.

In 2015, Canada exported $16 billion of merchandise to Britain and imported $9 billion. If we looked at the remaining European Union countries, Canada exported only $22 billion of merchandise and imported $52 billion. In other words, Canada imported more than twice as much as we exported to the European Union, excluding the United Kingdom, and that means a trade deficit of $30 billion with what remains of the EU.

In that scenario, a 10% increase in bilateral trade would boost our exports by just $2 billion and would increase our imports by $5 billion. That would raise Canada's trade deficit with what remains of the European Union by $3 billion, an even larger subtraction from Canadian output and employment.

When we look at the actual trade flows between Canada and the EU, particularly the EU excluding the United Kingdom, there is very little reason to believe that CETA could increase Canadian output and employment; but even if it did, CETA also makes it easier for European companies to bring in temporary foreign workers. Even if there were some increase in employment in Canada, there is absolutely no guarantee that it would go to Canadian workers.

Beyond trade, I think it is important to recognize that CETA has many other provisions that have nothing to do with free trade. As other New Democrats have mentioned in this debate, CETA would increase the duration of pharmaceutical patents. That is the opposite of trade liberalization. It is a restriction that would make it harder for generic drug manufacturers and harder to have competition in pharmaceuticals and it would boost the price of those medications for consumers.

Another aspect of CETA that is very controversial and has very little to do with trade is the investor-state dispute provisions. These provisions have been watered down somewhat to try to make CETA more palatable to Wallonia and other areas of Europe that were concerned, but nevertheless there still are investor-state provisions, and CETA for the first time extends these to the municipal level of government.

The question I would ask is, why do we need these provisions at all in CETA? The origin of investor-state provisions was in NAFTA where Canadian and American investors may have had doubts about the Mexican judicial system. However, clearly Canada has a well-functioning court system. Clearly, Europe has a trustworthy judicial system. Why is it even necessary to set up a special tribunal process that is only accessible to foreign investors? Why can Canadians not use the European court system, and why can European investors not use the Canadian court system? We really have not heard an answer to this question from the government side.

It is worth reviewing some of the outrageous cases that have been brought against Canada under the investor-state provisions of NAFTA. If we go back to the 1990s, there was the Ethyl case, in which Canada tried to ban a gasoline additive, MMT, that was already banned in the United States. However, the American producer of it sued Canada under NAFTA, and the Canadian government not only lifted the ban, but also paid $13 million U.S. in compensation.

More recently, we had the AbitibiBowater case, where AbitibiBowater, a Canadian pulp and paper company, shut down its last remaining mill in the province of Newfoundland and Labrador. The provincial government reclaimed water rights that it had given to AbitibiBowater to operate those mills. The company, which had registered itself in the United States, was able to present itself as an American investor and sued Canada under NAFTA for the loss of these water rights that it was no longer even using. What happened? The Canadian government paid AbitibiBowater $130 million in compensation.

To talk about an even more recent case, Lone Pine Resources is an Alberta-based oil and gas company that registered itself in Delaware and then used NAFTA to sue Canada because of Quebec's ban on fracking. Lone Pine Resources is claiming $250 million in compensation.

What we see in all of these cases is that companies are abusing the investor-state provisions of NAFTA to directly challenge democratic laws, regulations, and public policies that arguably interfere with their potential future profits. Given the bad experience we have had with the investor-state provisions of NAFTA, it is totally unclear why Canada is pushing to include these provisions in CETA. Again, it is not just a matter of re-including in CETA what is already in NAFTA. CETA actually goes farther, in the sense that it imposes this regime on municipalities, something that NAFTA and previous trade deals did not do. There is a real objection to the investor-state provisions in CETA, notwithstanding the government's efforts to water them down somewhat.

In conclusion, there is no case for CETA as a trade deal, if we look at the actual trade flows between Canada and what is left of the European Union after Brexit. Furthermore, there are many negative non-trade aspects of CETA, such as more temporary foreign workers, longer pharmaceutical patents, and more of these outrageous investor-state disputes. For all of these reasons, the NDP is opposing Bill C-30.

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I appreciate the fact that we are diving into the investor-state provisions. I thank my friend for mentioning the ones under chapter 11 that we have already lost.

One of the most recent decisions that I think is particularly egregious was a split decision, two arbitrators against one, in the Bilcon decision, a U.S.-based open-pit quarry company. Bilcon is from New Jersey. It wanted to do open-pit mining in Digby Neck, Nova Scotia to get material to build highways in New Jersey, but it threatened extinction to one of the most endangered whale species on the planet, the right whale.

The Canadian arbitrator in dissent said of the Bilcon case, “a chill will be imposed on environmental review panels, which will be concerned not to give too much weight to socio-economic considerations”. It goes on about some of the details of the case and continues with “the decision of the majority will be seen as a remarkable step backwards in environmental protection.”

This is the kind of thing that happens in secret tribunals where there has been no offence under Canadian law. A Canadian corporation would have no right to complain, but Bilcon of New Jersey was able, under chapter 11 of NAFTA, to sue Canada for $300 million.

I would ask my colleague if it is not time to actually open up all of the investor-state agreements, stop taking on new ones, such as in the TPP, and take investor-state out of the comprehensive economic trade agreement.

It is the number one reason why I do not believe CETA will ever be, in its current form, ratified sufficiently in the EU to enter into effect. It is because of this kind of impact, of which Canada has been a major victim in investor-state agreements.

Erin Weir NDP Regina—Lewvan, SK

Mr. Speaker, I certainly agree with the proposition that we should be trying to remove these investor-state provisions from existing trade agreements. The U.S. president-elect has promised to renegotiate NAFTA, and I would submit that one of Canada's objectives in those negotiations should be to remove chapter 11, because, of course, Canada has been victimized by these investor-state challenges more so than either the United States or Mexico.

I also want to pick up on the point that the member for Saanich—Gulf Islands made about a regulatory chill. We have talked about specific investor-state cases and the negative effects they have had, but another effect they have is often to deter regulators from trying to strengthen standards or improve public policies in the first place. It is very difficult to measure this negative effect of investor-state provisions, but it is clearly pernicious to have regulators constantly having to second-guess whether some sort of improvement they might want to make to public interest regulation might attract one of these investor-state challenges. This is another reason to take these provisions out of trade agreements.

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, very quickly, I want to thank and congratulate my colleague on his speech.

Does my colleague share our concerns regarding the possibility of higher drug costs for patients in Canada?

Erin Weir NDP Regina—Lewvan, SK

Mr. Speaker, I thank my colleague for his question.

Yes, I do share that concern. I think it is rather clear that that agreement is going to cause an increase in drug prices. It really has nothing to do with free trade. The agreement is going to make it harder to produce and sell drugs at a modest price. This is really going to drive up prices, not only for individuals, but also for provincial governments that have to purchase drugs for their public health care systems.

Richard Cannings NDP South Okanagan—West Kootenay, BC

Mr. Speaker, I am happy to have the opportunity this afternoon to speak to this important subject, Bill C-30, regarding the comprehensive economic and trade agreement between Canada and the European Union.

Canada is a trading nation. As we have heard so many times in this debate, we need good trade agreements, and we need to diversify our trading markets. Trade is too important to get these agreements wrong, especially with such an important partner as the European Union. We have to take the time to get it right. However, the Liberal government seems to be in a real rush to get this treaty ratified. The government signed CETA on October 30. The government has a set policy for the tabling of treaties in Parliament. That policy states that the treaties must be tabled with explanatory notes 21 days before the enabling legislation is presented. What happened with CETA? Bill C-30, the enabling legislation, was put on the Order Paper two days before the agreement was even signed, and it was tabled in Parliament on October 31, the day after the signing. What is the hurry? The European Union nations will be taking their time to make sure that this deal is good for them. Why are we giving them that advantage when we should be taking our time to make sure we get it right as well?

There are obviously good things about freer trade with Europe. We are happy to see the reduction or elimination of tariffs on Canadian industries, particularly those in the agricultural sector, such as beef, pork and canola. We like free trade when it is fair trade.

There is a forest products mill in my riding called Greenwood Forest Products, which creates laminated pine shelving and furniture parts. It sells its own products across western North America, but to serve eastern Canada and the eastern United States, it imports finished products from Romania. It is cheaper to do that than to ship products across Canada. That is another story. Therefore, it depends on trade with the European Union to survive. It does not pay any tariffs on products coming from the EU now, so CETA will not directly benefit it, but it does appreciate any strengthening of trade ties between Canada and Europe. It may likely have to do more business in Europe in the near future because it is deeply concerned about the direction that the softwood lumber agreement is taking with the United States. Its products have never been hit by countervail duties or tariffs in the past with the U.S. However, the recent moves in the United States between the U.S. lumber industry and the U.S. Department of Commerce have apparently expanded the number and types of products covered under the industry complaints to include a wide variety of value-added products, instead of being restricted to the dimension lumber, as it has been in the past. Therefore, it is very disappointed with the Liberal government's inaction on the softwood lumber front.

That is a good example of why we need to diversify our trading relationships. We need good trade deals with other nations and other regions. However, we do not want bad deals that will result in decreased market share for Canadian companies, unfair competition, reduced sovereignty, and significant job losses.

We are particularly worried about the investor-state dispute provisions brought in by this agreement. Under similar trade agreements, Canada has become one of the most sued countries in the world, winning only three of 39 cases against foreign interests, as we try to maintain our sovereignty in legislating protections for the environment, health, and other social interests.

I would like to quote something from the Canadian Environmental Law Association about this. It states:

[CETA] will significantly impact environmental protection and sustainable development in Canada. In particular, the inclusion of an investor-state dispute settlement mechanism, the liberalization of trade in services, and the deregulation of government procurement rules 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.

Yes, there are carve-outs for some of these categories, but that will not stop corporations from initiating litigation, forcing us to prove that we are protected, and putting a regulatory chill on governments across this country, stopping them from enacting progressive legislation as they fear possible litigation. Since some European regions are clear that they want this provision removed, why does Canada feel compelled to insist on this part of the agreement when it is clearly not in our national interest?

I am also concerned about what CETA would do for drug costs in Canada. Changes to intellectual property rules for pharmaceuticals under CETA would be expected to increase drug costs by more than $850 million annually. This would not only be harmful to individual Canadians and their families who are struggling to get by but would make it increasingly difficult to bring in a national pharmacare program in Canada, something this country desperately needs.

We in the NDP are also concerned about compensation for sectors that would be negatively impacted by CETA. The dairy industry was promised compensation by the previous Conservative government, but the current Liberal government is now offering dairy farmers less than 10% of the amount previously on the table. There are other sectors that would be directly or indirectly affected by this agreement.

As many members know, my riding of South Okanagan—West Kootenay produces the finest wines in Canada. I will admit that good wines are produced across the country, from Vancouver Island to Nova Scotia. I have sampled a nice wine produced from grapes grown by the President of the Treasury Board, and I hear that the member for Brome—Missisquoi makes a great late-harvest Vidal.

The Canadian wine industry is a very important sector in the Canadian economy, contributing $8 billion to the national bottom line. It almost died after the free trade agreement with the U.S. in 1988, but through hard work on the part of a few small wineries, a long-term vision, and attention to high-quality products, the industry survived to live another day and now produces some of the best wines in the world.

In 2004, Canada signed a wine and spirits agreement with the European Union. Since that time, imports from the European Union to Canada have increased by 40 million litres to 180 million litres a year, valued at $1.16 billion. This compares to Canadian exports to the EU of only 123,000 litres, valued at $2.7 million. It is a significant imbalance.

Canada has one of the fastest-growing wine markets in the world. More and more Canadians are drinking wine, but three-quarters of that growth has gone to imported wines. The Canadian wine industry is not asking for protection or tariffs under CETA. Members of the industry are in favour of continued free trade in wine with Europe, but they are asking for help from the federal government to build the domestic industry to a level at which they can fairly compete with Europe and other wine regions of the world. The Canadian wine industry, through the Canadian Vintners Association, is asking the federal government to implement a 10-year wine industry innovation program to support the growth of this industry and to create jobs across Canada.

We need to be supporting Canadian industries at this time so they are not unduly harmed by these trade agreements but can truly take advantage of them.

To conclude, the NDP is very much in favour of trade. We are very much in favour of good trade agreements. We simply want to ensure that these agreements are in the best interests of Canada, that they help grow local industries, and that they support job creation across the country.

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I want to thank my colleague and congratulate him on his extremely clear and detailed speech on the many dangers and pitfalls of this free trade agreement with the European Union. Actually, it is a proposed agreement, since it is far from a done deal.

I wonder if the member could explain how it is that an agreement negotiated by the Conservatives, for which the Liberals asked for studies on the impacts and the costs of various aspects, magically and suddenly became a progressive agreement because it is now endorsed by the Liberal Party.

What does that say about this new government's true beliefs?

Richard Cannings NDP South Okanagan—West Kootenay, BC

Mr. Speaker, as my colleague mentioned, when the Liberals were in opposition in the previous parliament, they were very concerned about CETA and asked for more studies. Now we are presented with a bill and a trade agreement. The Liberals accuse the New Democrats of being against all trade agreements. We just wanted to look at this and look at the details to find out how this would help Canada. We did not want to say yes to a deal we had not seen. Now that we have seen it, we would like time for Canadians to comment on it and for industry to comment on it. I am still getting comments from people and from industries in my riding about their concerns. We have to take the time.

There are good things about this bill. There are good things about this agreement, but there are some things that are deeply troubling and certainly are not very progressive. We talked about the investor-state provisions and the intellectual property extensions that would raise the price of drugs across Canada. Those are things that are not progressive and that we would like to see changed.

Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I thank my colleague for his speech. I know how important the agrifood file is to him.

I will not compare the quality of the wine in his riding to that of the wines in other ridings, as he did. However, as many MPs have said today, it is important to go over this agreement as it applies to the particularities of each of our ridings.

Every member of the House has the duty to go over such an agreement and assess its impact on people, jobs, economic development, and our regions.

Like my colleague, I have demonstrated how bad this agreement might be for the dairy industry in my riding. Importing 17,000 tonnes of cheese from Europe will further erode the supply management system. Under this system, our constituents are guaranteed an adequate supply of high quality products at set prices.

I am sure, knowing my colleague's interest in agrifood, that he also has an opinion on the impact of this agreement on this industry.

Richard Cannings NDP South Okanagan—West Kootenay, BC

Mr. Speaker, agriculture is certainly one of the most important industries in Canada. We hear more and more about eating local produce, about supporting our local agriculture for health reasons, for economic reasons, for climate action reasons, and for reducing the cost of transporting these products. It makes real sense to make sure that our local agricultural industries are well supported.

Agriculture is a large part of my riding. It is mainly fruit, grapes and wine as I have mentioned. There are real issues with trade around these products.

We want free trade but it has to be fair trade as well. It cannot make the trade imbalance larger. My colleague from Regina—Lewvan mentioned the effect that would have. I talked about wine. If we make it easier to import and export wine without other measures, the Canadian wine industry may suffer as wine imports increase. The same goes with the dairy products my colleague mentioned. We have to be careful about keeping the playing field level.