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

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, I thank my hon. colleague for his great speech, with some great information, and thank him as well on behalf of the residents of southern Alberta for how hard he worked on effecting this deal.

My riding of Foothills is the heart of cattle country, the home of Alberta beef, some of the best malting barley in the world, and metallurgical coal. The stakeholders in my riding are very excited about the opportunity to see the new markets this will bring.

I realize how hard they worked to bring this, but I also understand how close this came to collapsing because of the meddling, let us say, of the Liberal government. Residents of my riding were very concerned about almost losing CETA, despite our doing all the work in getting it almost to the finish line. There are now very legitimate concerns that the Liberals will do much the same with the trans-Pacific partnership. Ranchers, farmers, miners, and energy workers are very excited to also see that come to fruition.

I ask my colleague if he shares those same concerns, that meddling with the CETA agreement, which has also been agreed upon in principle, may happen to TPP.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, unlike the Canada-European free trade agreement, the Liberals have not actually come out and said that they support the trans-Pacific partnership. Boy, that would be sad if we were not part of that agreement, if and when it gets ratified.

We are talking about 12 countries representing forward-looking trading partnerships, like Australia and New Zealand. Why would we not want to have a trade agreement with those countries? Japan is the third-largest economy in the world. Why would we not want to have a trade agreement with Japan, to open up new markets for Canadian exporters, especially agricultural producers. Unfortunately, there has been deafening silence on the Liberal side.

When it comes to agriculture, of course, there are some challenges that our agricultural producers face under CETA. We have not yet fully negotiated some of the behind the border standards, and rules and regulations, the sanitary and phytosanitary issues, that bedevil our agricultural exporters.

Unfortunately, as part of this negotiation, the Liberal government opened up the door to the EU actually applying safeguards for import surges, as I mentioned in my speech. We do not know what impact that will have on our producers, such as the beef and pork exporters in Canada.

We are still looking to see what that looks like. It was unfortunate that agreement was opened up as much as it has been. However, it is important for us to focus today on the fact that legislation is before us. If it is passed and this agreement is ratified, it will still be of remarkable benefit to Canadians and our long-term prosperity.

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Mr. Speaker, I thank the member for his contribution to the debate today. It is great to hear him speak to it. I have the pleasure of serving on the trade committee with some of his colleagues as well,. They can attest that I actually credited the member for his great work in getting the agreement to where we are today, as well as his colleague from Battlefords—Lloydminster. I also gave him some credit for his work.

I do thank the member for his mostly magnanimous speech today, and I want to give him the opportunity to comment on some of the opponents of CETA, and perhaps opponents of free trade in general, and how perhaps some of their fears are not founded, how we can work together to make sure we can alleviate some of these fears, and let them know that this agreement will work for all Canadians.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, I did refer to some of the naysayers in this House as being skeptics and scoffers, and they are exactly that. I do not apologize for that comment at all. These are people who do not understand the role that trade plays in Canada's national prosperity. They have continued to opine that Canada will lose its cultural identity, that we will lose our health care system, that we will lose our pension system, that our economy will be hollowed out, millions of jobs would be lost.

It has been over 25 years that we have had the Canada-U.S. Free Trade Agreement, NAFTA. None of that has happened. History has shown that when trade is done right, it has the capacity to enhance the standard of living for millions and millions of people, not only in Canada, but around the world.

I am encouraging the NDP in this House, for once, to sit down and come up with a coherent trade policy. It supported trade agreements with Jordan and South Korea. However, with one of the most like-minded trading partners, the European Union, New Democrats are now saying no. No one can make sense of their trade policy, so I am asking them to go back to the design board to see if they can get this right.

[David Lametti, Liberal, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, it is a great pleasure to rise in the House today in support of the legislation before us. Hon. members will know that CETA is the most progressive trade agreement that Canada has ever negotiated. It will help to further our economy, create well-paying jobs in Canada as well as in Europe, and support our efforts to strengthen the middle class, all the while ensuring that trade benefits everyone.

Canada's great friendship with the European Union goes back many years. In fact, Canada's formal relationship is the EU's oldest with any industrialized country, dating back to 1959, when we signed the agreement for co-operation in the peaceful uses of atomic energy. Of course, there are many cultural and people-to-people ties that date back for centuries and serve to underline our common history and many partnerships.

We have always been close partners, and not only because millions of Canadians, like me, trace their family roots back to Europe, but also because there is a palpable buzz among these communities. I was in Toronto on Friday evening at an Italian Canadian chamber of commerce event, in a room full of importers and exporters, people who have business ties with Europe. They were clearly very positive about the opportunities that this agreement would present.

Canada and Europe are united because our societies, economies, and systems of governance are founded on the same set of values, such as equality, freedom, and respect for all individuals in society, not to mention democracy. Canada and the EU co-operate on many crucial international issues, including climate change, democratic governance, and human rights, as well as international peace and security. In a world of shifting global power, the Canada–EU relationship and our common efforts are more important than ever. This is something I heard a great deal about while travelling in Europe to promote CETA.

The EU is also a very important economic partner, representing the world's second-largest economy, and Canada's second-largest trading partner after the United States. It is also the world's second-largest importing market for goods, with its annual imports alone worth more than all of Canada's GDP.

As well, the EU is a key market for global supply chains. It has more Fortune 500 companies than any other country in the world, including the United States. This significant access to global supply chains is an important avenue of opportunity for the global ambitions of many of Canada's small and medium-sized enterprises.

CETA would help Canadian businesses better access the EU market. It will deepen our long-standing relations. It will help to generate much-needed growth and jobs while fully upholding Canada and Europe's high standards in areas like food safety, environmental protection, and workers' rights. CETA will deliver benefits for consumers through lower prices and more choice, for workers, through more and better jobs related to exports, and for businesses, through reduced costs and tariffs.

Experts project that once CETA comes into force bilateral trade of goods and services will increase by more than 22%, which will stimulate job growth on both sides of the Atlantic. Canadian businesses will enjoy a first-mover advantage over their competitors from markets such as the United States, which has yet to conclude a trade agreement with the European Union. In fact, CETA and NAFTA combined give Canada preferential access to nearly half the global marketplace.

Once CETA comes into force it will cover almost every sector and aspect related to trade between Canada and the European Union. Roughly 98% of European Union tariff lines on Canadian merchandise will be duty-free as soon as the agreement comes into force, and an additional 1% will be cut over a seven-year phase-out period.

Eliminating duties under CETA will create better opportunities for countless Canadian exports to the EU, where duties remain high. Currently, Canadian exporters of fish and seafood pay duties as high as 25%. EU duties on wood are 8%, while duties on wood products, information technology, and communications technology can be as high as 14%.

Machinery and equipment are subject to tariffs of up to 8% when imported to the European Union. CETA will eliminate those tariffs. What is more, Canadian service providers will benefit from the greatest access the EU, the world’s largest importer of services, has ever provided in a trade agreement, as well as the most ambitious commitments on temporary entry the EU has ever provided.

Canada is one of the largest service exporters in the world. We exported nearly $16 billion-worth of services to the EU in 2015. CETA will ensure that Canadian service providers are able to compete on a level playing field with EU service providers and gain a competitive advantage over competitors from nations outside the European Union.

In addition to increased access to markets, CETA also contains many other important measures. It is the first bilateral agreement in which Canada has included a stand-alone chapter on regulatory co-operation. The provisions set out in that chapter are forward-looking and promote proactive co-operation.

Under a protocol on conformity assessment, Canadian manufacturers in some sectors will be able to test and certify their products in Canada for sale in the European Union. This is an important innovation that will save companies time and money and will be particularly profitable for small and medium-sized businesses.

CETA includes a detailed framework for the mutual recognition of professional qualifications, a key aspect of labour mobility. The provinces made a valuable contribution to the negotiations on a matter under their jurisdiction, as did my former professor, Pierre Marc Johnson, chief negotiator for Quebec.

CETA provisions on labour mobility will enable entrepreneurs from Canada and the European Union to travel abroad more easily. Business people on short-term visits, individuals transferred within a company, investors, contract service providers, and independent professionals will be able to do business in the EU more easily.

CETA also opens up government procurement opportunities in the European Union, a sector worth about $3.3 trillion. When CETA comes into force, Canadian companies will be able to provide goods and certain services to all levels of government in the EU, including the 28 European Union member states and thousands of government, regional, and local organizations.

CETA sets out a framework that will enable Canada and the European Union to make the most of their already strong investment ties, which are an important part of their economic relationship. In 2015, the known stock of Canadian direct investment in the EU was valued at $210 billion, which represented over 21% of known Canadian direct investment abroad.

That same year, the known stock of European direct investment in Canada reached $282 billion, or over 31% of its known direct investment abroad, in Canada.

CETA’s chapter on investment provides investors with greater certainty, stability, and protection for their investments, as well as greater access to their respective markets.

CETA includes provisions that facilitate the establishment of investments in order to protect investors from practices like discriminatory treatment, expropriation without compensation, and arbitrary and abusive conduct, and it ensures the free transfer of capital.

CETA obligations are backed by an investor dispute resolution mechanism that includes an appeal tribunal. When an investor files a complaint, the permanent and independent tribunal, as well as the appeal tribunal, if need be, will determine whether a government measure violates CETA's investment obligations and whether the investor suffered a loss as a result.

CETA holds great potential for businesses in both our respective territories. That is why our government has been working extremely hard to bring CETA into force as soon as possible.

While negotiations concluded in August 2014, our government has made enhancements to the agreement in order to strengthen and introduce progressive elements related to environmental protection, workers' rights, consumers' health and safety, and a government's right to regulate.

Prior to our making these changes, support for CETA in the centre left in Europe, which is essential to have CETA ratification in the European Parliament as well as the support of member states, such as Germany and France, was uncertain. Indeed, it was in jeopardy. Now that we have made those changes, the progressive leadership of those countries, as well as the progressive leadership in our country, is squarely behind it.

One of the most important things our government did right after taking office was to listen to the critics of CETA, both in Canada and in Europe, and to understand some of the legitimate concerns people had. We have worked with Canadians, including industry and civil society alike, and with our European Union partners to prove, with CETA, that a progressive trade policy is possible.

CETA will set the bar for trade agreements in the future, and it forms the cornerstone of our government's progressive trade agenda. This is an agenda that has linked the government's domestic policy focus on reducing inequality and enhancing inclusive growth. The idea is to ensure that trade policy makes a more meaningful contribution to this overall agenda and to ensure that trade is done in a way that Canadians can see, feel, and believe works for them.

This agreement clearly provides the advantages that our industries are seeking in expanding their footprints internationally, and does so in a fair and responsible manner that will benefit Canadian society as a whole. This is why it is important for Canada to implement CETA as soon as possible.

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

Mr. Speaker, the government needs to sign agreements that benefit all Canadians. This is a treaty with the European Union and we cannot afford to sign a botched agreement.

The government is asking for carte blanche when it comes to investor-state dispute settlement. We still do not know how the tribunals will be formed. We still do not know what the appeal system will look like. However, the government would have us believe that everything is okay, that the interests of Canadians will be taken into consideration, and that no harm will come to our public services.

Can the hon. member explain how we are supposed to reassure Canadians about local job protection? We know that under these types of agreements, foreign workers come before local jobs. This is quite worrisome to those who still do not have a job and who use social assistance or employment insurance.

This lacks transparency. Canadians are not being consulted on this, even though consultations on CETA have been going on since at least 2012. Those were held by the Conservatives, but the Liberals stopped holding them entirely.

We need more answers and more details. We are not getting the same story from the Liberals.

[David Lametti, Liberal, LaSalle—Émard—Verdun, QC]

Mr. Speaker, I thank my hon. colleague for her question.

With regard to the provisions on employment, the draft text of the agreement was made available in 2014, while the final agreement was drafted and published in February 2016. The text was examined by the committee during the previous Parliament, and many clarifications were made in that regard.

With regard to the investors program, we have reached an agreement with the European Union regarding the framework for a transparent and independent process. We will work in good faith on the details in the near future

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

Mr. Speaker, I want to ask a very specific question. The parliamentary secretary will know that I oppose CETA and many aspects of it, including pharmaceutical prices going up, intellectual properties locations, and that our auto sector is not fairly treated. However, my main concern is the investor-state provisions. Those were the ones that raised the sticking point with the region of Wallonia.

Could he clarify what has happened? It appears that individual nations, or provinces or states within nations in the EU can opt out of investor states, but Canada is saying that it opts in. This means foreign corporations will have the ability to challenge Canada for damages for decisions we make domestically, but we will not necessarily have reciprocal Canadian corporation ability to sue those states if they opt out. It strikes me that a very bad deal just got worse.

[David Lametti, Liberal, LaSalle—Émard—Verdun, QC]

Mr. Speaker, let me clarify. First, in regard to the investor-state mechanism, we have known since the beginning of the summer that this fell under the competence of European member states. In the case of Belgium therefore it devolves down to its provinces. We knew from the outset we would be working to elaborate the details of that investor-state dispute mechanism with the 28 member states.

We also agreed with our European partners that nothing would be imposed non-reciprocally. Whatever does or does not get negotiated will be equally treated on all sides.

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, I appreciate the parliamentary secretary's speech today. I find it curious that, once again, we are hearing there is in fact a way for this agreement to change, that this is not the final version. What the parliamentary secretary just said was that essentially we could not sign onto investor-state provisions. That is exactly what the NDP and other parties in the House are asking for. I find it curious to hear that from the parliamentary secretary, and look forward to following up with him on that.

My question is around the cost of pharmaceuticals. Recently at the health committee our critic spoke to the assistant deputy minister for Health about the cost implications inside of CETA. She admitted at the committee that there would be a rise in cost of drugs. Where is our analysis on what this will cost Canadians, when the Liberals advocated for that in the previous Parliament, and where is the information and honesty with Canadians about the fact that drug costs will increase if we sign CETA?

[David Lametti, Liberal, LaSalle—Émard—Verdun, QC]

Mr. Speaker, the hon. member's question is one that concerns me, having taught intellectual property for 20 years in Canada's best law faculty.

There are a number of different factors that go into the pricing of pharmaceuticals. There is the potential for an increase in the length of the protection period of up to two years under the agreement. It is not automatic. It compensates for a regulatory regime in Canada, a good regulatory regime that sometimes delays the entry into the market for certain pharmaceuticals. In that sense, yes, the protection period will be longer and therefore the price of patented medicines, which is higher than the price of generic medicines, could be extended for two years.

However, Canada has a pricing mechanism for patented medicines. We have provincial pricing. Therefore, a lot of different factors go into the actual pricing of pharmaceuticals that are not necessarily tied to the length of patent protection. Europe has had these kinds of patent protections for a long time and yet its prices are lower. It even has pharmacare regimes. There is not a necessary direct link between the price of patents and these other factors.

[Chris Bittle, Liberal, St. Catharines, ON]

Mr. Speaker, I represent a riding in Niagara, an area with which the hon. parliamentary secretary is quite familiar. There is a lot of apprehension about free trade from past free trade agreements. It is the same in many blue collar areas of Ontario and beyond. Could the parliamentary secretary advise the House and my constituents how CETA will benefit the good people of Niagara?

[David Lametti, Liberal, LaSalle—Émard—Verdun, QC]

Mr. Speaker, I thank the hon. member for St. Catharines. As one of the other members of the House who can spell St. Catharines the way he has to spell it, I am pleased to get that question.

There will be a great deal of benefit to manufacturing industries in Ontario. I know that the auto industry is in Niagara, and this is an agreement that should benefit the auto industry with the reduction of tariffs. I know that at least one automaker is already planning to produce automobiles for the European market. With respect to other manufacturers, it should help agriculture in Niagara, as well as Ontario wine manufacturers expand their markets even further. There is plenty of good in here for Niagara.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I wonder if I could ask my colleague, the parliamentary secretary, this. Once Canada approves CETA, as it goes through the process here and is approved, and the European Union approves CETA, what is the process from there? I understand it has provisional approval. How does it unfold from there as each country in Europe goes through the process of applying CETA to their country? Also, with respect to the present process, what is tariff-free right now and what is waiting until each country approves it?

[David Lametti, Liberal, LaSalle—Émard—Verdun, QC]

Mr. Speaker, I thank the hon. member for his question and his work on the committee. I will talk about the European process, because I believe that is what he is referring to.

With passage in the European Parliament, which we expect by the end of this calendar year, and once ratification in Canada has taken place, 98% of the agreement, everything falling under the negotiating competence of the European Parliament, will be provisionally in force. That is virtually the whole agreement with the exception of the investor-state dispute mechanism, and a few other provisions that we feel are only a very small percentage of the agreement. Those fall under the competence of the European member states, and in each case the member states will have to ratify those parts of the agreement on their own. Once all 28 do, we will have to sit down again to ratify the agreement in a permanent fashion.

For the remaining 2%, this government is committed to working with European member states over the next number of years in order to make sure that the agreement gets ratified.