Mr. Speaker, it is an honour to rise in the House at the point of calling the question on Bill C-30, the bill that would bring in the comprehensive economic trade agreement between the European Union and Canada.
I have the honour to represent the only party in this place that has voted against all investor-state agreements. Although mostly the NDP members vote against them, they do not always. I would urge them to reconsider and ensure, for the future, that all investor-state agreements be rejected. They really have nothing to do with trade at all. I want to dive into that aspect of the investor-state agreement and touch briefly on the other aspects Canadians should be concerned about.
First, as many members in this place have already raised, it will increase the cost of pharmaceutical drugs. It is very clear that this will happen. Numerous independent studies have looked at the implications of the so-called CETA on drug prices for Canadians.
Second, it is also clear, and it has been raised by a number of groups, that the language the European Union wants in the text on the question of municipal powers for procurement will also be negatively affected by CETA, including access to procurement for municipalities, academic institutions, school boards, and hospitals. If they should decide that they want to make sure they are buying locally, they could be offending the provisions of CETA.
The third part is the most controversial. It is certainly the most controversial in Europe. It is why Canadian parliamentarians are being sold a bill of goods when we are told that there is any urgency here. I am really surprised that the Liberal government chose not to have significant review and consultation nationally. We had that on the trans Pacific partnership agreement but not on the comprehensive economic trade agreement with the European Union. This is surprising, given that there can be no need for urgency in Canada to ratify when there are 28 countries, and an additional 10 subnational groups throughout the European Union, that have yet to ratify, and given that there is still a pending decision from the European Court of Justice as to whether the comprehensive economic trade agreement is compatible with European law.
The controversy within Europe is overwhelmingly about the one piece of this agreement that I think could be very conveniently and easily removed without affecting the trade aspects at all. This takes some underscoring. What kind of trade agreement has an entire section that has nothing to do with trade? The answer, these days, is almost all of them. We are being sold, hook, line, and sinker, the notion that a trade agreement must include something called investor-state dispute resolution systems, or FIPAs, foreign investment protection agreements.
The first of these anywhere in the world was chapter 11 of NAFTA, and we have a lot of experience with it. I do not believe that even the negotiators of NAFTA believed that they were introducing anything novel when they negotiated chapter 11. As much as Canada had a national debate on NAFTA, chapter 11 never came up, because it was a sleeper provision. It might have stayed asleep, actually, if it had not been for the ingenuity of a Toronto lawyer, Barry Appleton, who decided that chapter 11 of NAFTA could be interpreted in a completely novel way.
The essence of the legitimate protection of investor interests in other countries is that we do not want a government coming along and nationalizing the assets, saying, “You have built a lovely refinery here. We are now going to say it belongs to the government of 'fill in the blank', and you, as an investor, are not going to get your money back on that.”
That is what people thought chapter 11 was initially, because it talked about protection from expropriation, but chapter 11 used some novel language. It talked about governmental measures that were tantamount to expropriation. Here is where the clever lawyering came in.
The first chapter 11 came to us when this Parliament banned the trade and use of a toxic gasoline additive, a manganese-based gasoline additive, that had a human health threat component. It also gummed up the diagnostics of the on-board catalytic converters for automobiles, so car manufacturers were worried that it would void their warranties. Environment Canada was worried that it would cause more air pollution. Neurotoxicologists, like Donna Mergler, at the University of Quebec in Montreal, was worried about it causing an increase in a disease that looks a lot like Parkinson's, but it is manganism.
Well, Parliament banned it, but because of a chapter 11 NAFTA challenge from a private corporation in Richmond, Virginia, Ethyl Corporation, Canada found itself in an arbitration case. This was just the first of many, and we keep losing them, or we keep having them settled out of court, although we cannot call these places courts, unless we use the word “kangaroo” first. These are arbitrations in hotel rooms with private arbitrators. They make money being arbitrators. They are expert lawyers. We can find Canadian lawyers who claim to be environmental lawyers suddenly selling out to be expert lawyers for U.S. corporations at these secret hearings.
The secret hearing process under NAFTA in chapter 11 is egregious. Just as egregious is the Canada-China investment treaty. I would have to say that it is more egregious, because every investor from the People's Republic of China is going to be a state-owned enterprise for the People's Republic China. Therefore, their ability to sue us is virtually unlimited. Of course, the Canada-China investment treaty never had even as much debate as we are getting on CETA. It never went through Parliament at all, because previous Prime Minister Harper approved it in cabinet, confidentially. The treaty binds the Canadian government until the year 2045 to the People's Republic of China, and its state-owned enterprises have more right to challenge decisions made in Canada than any Canadian corporation does.
CETA falls somewhere in between. CETA is being sold to us by many as the gold standard. It was the head of trade negotiations for the European Commission, Cecilia Malmström, who came up with the idea that since this investor-state provision in CETA is so controversial and is attracting so much protest from within the European Union, maybe we can make it look more like a real court and end the fact that it is so clearly profit driven.
Can members imagine arbitrators who are one day working in their big downtown law firms and the next day are essentially judges determining whether the decisions passed through parliaments around the world are going to hold up to their private scrutiny? There is no appeal, no oversight, and no room for intervenors to make the case as to why it was appropriate to ban a gasoline additive or to stop the export of PCB-contaminated waste or to not put a toxic waste disposal facility next to a town's freshwater supply. These are all real-life examples under chapter 11 where the polluters have won and the citizens have lost, and it happens over and over again.
CETA proposes some improvement, no question. It is much better than chapter 11 of NAFTA and better than the Canada-China investment treaty, which we seem to have forgotten ever even happened in this place. When I hear Conservative members getting up and asking whether the new administration under the Liberals is moving too close to China, I kind of want to run over, shake them, and ask if they do not remember that they passed, in secret, or their cabinet did, the Canada-China investment treaty, which is the worst of all of these.
Professor Gus Van Harten, of Osgoode Hall Law School, literally wrote the book on the bad investment deal with China. The book is called Sold Down the Yangtze, if members want to pick it up to find out how our sovereignty was sold out by the Harper administration.
Gus Van Harten has done a careful study of what is being offered in this so-called gold standard, and there definitely are flaws.
The arbitrators will have a more permanent roster. Can members imagine if our judicial system picked judges at random from the private sector, and they did better on cases where the rich guys won? Can members imagine how fair our judiciary would be seen to be? Well, CETA makes an improvement on that. There will be a permanent roster of such judges. They will still be drawn from private-sector work, and although they will be prohibited under the CETA terms from acting as advocates and lawyers before a CETA investment court, they will not be barred from operating as advocates and lawyers under other dispute resolutions, such as chapter 11 of NAFTA.
There is still this culture of an elite group of corporate lawyers who are literally global ambulance chasers. They find companies and tell them that they can sue a government if they want to.
The sad part, as well, is that, for a moment, Cecilia Malmström's proposal called for allowing civil society to come forward as intervenors. That part of her proposed gold standard was dropped.
My plea to the current government, and my plea to all parliamentarians, is to dig in our heels on this. I commend the NDP caucus for digging in its heels on this. We should dig in our heels and say that these are anti-democratic by definition.
There is no chance in the world that a company that emanates from the European Union is going to expropriate Canadian property in Europe, contravening all the laws and international common law practice. We are in a safe zone here, developed country to developed country. Let us get rid of the unfair investor-state provisions and fix CETA so that it is about fair trade.