Bill C-31 (Historical)

Canada-Ukraine Free Trade Agreement Implementation Act

An Act to implement the Free Trade Agreement between Canada and Ukraine

This enactment implements the Free Trade Agreement between Canada and Ukraine, done at Kyiv on July 11, 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 15 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, provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement, and gives the Governor in Council the power 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.
Part 3 contains coordinating amendments and the coming into force provision.

Canada-Ukraine Free Trade Agreement Implementation Act

[Jim Eglinski, Conservative, Yellowhead, AB]

Mr. Speaker, we had our discussions the night that we sat and had some pizza and the odd beer. They were afraid that the funding for their country was drying up and were hoping that Canada would support and continue its program of support, because they found it so beneficial to the development of their future. My colleagues on all sides of the House who belong to the Canada-Ukraine Parliamentary Friendship Group feel it is very important that government supports the group with funding.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I will be splitting my time with my esteemed colleague from the beautiful Lac-Saint-Louis.

I am thankful for the opportunity to speak today on the topic of the Canada-Ukraine free trade agreement and the benefits it would provide to Canadians and Ukrainians. I am proud to speak in support of this free trade agreement on behalf of the riding of Davenport.

In my riding of Davenport, believe it or not, there used to be a fairly significant Ukrainian community centred around the Ukrainian school and two churches. Most of the Ukrainians have now moved away to Etobicoke or Mississauga, but the churches, the school, and the memories still remain. The school was called Saint Josaphat's. I used to attend it in grade school, but, sadly, it is now closed. My father was Ukrainian, which is where I got the name Dzerowicz, and my mother is Mexican. I feel very blessed and lucky to live in a country where I can be both a proud Mexican Canadian and a proud Ukrainian Canadian.

Today, I stand in my Ukrainian shirt as a proud Ukrainian Canadian to talk about something I am so excited about, the Canada-Ukraine free trade agreement. It is a blessing for me to be able to strongly support this agreement. I believe that strong economic ties will be mutually beneficial for both countries, as well as in so many other ways, including helping Ukraine continue to strengthen its financial systems, develop its economy, strengthen its civil society, and combat things like corruption that have plagued Ukrainian society for far too long.

What is the Canada-Ukraine free trade agreement? It is a modern, high-standard agreement that includes chapters in a breadth of areas, including trade facilitation, government procurement, intellectual property, competition policy, transparency, and anti-corruption. Once fully implemented, this agreement would not only support Canadian and Ukrainian businesses through preferential market access but also deepen trade linkages, further strengthen Canada's bilateral relationship with Ukraine, enhance co-operation, provide for increased transparency in regulatory matters, and help reduce transaction costs for businesses.

As in all of Canada's free trade agreements, the cornerstone of the Canada-Ukraine free trade agreement is new and enhanced market access for Canadian-produced and manufactured goods. Once the agreement is fully implemented, 99.9% of Canada's current exports will be eligible to enter Ukraine duty free. This would make Canadian goods more competitive in the Ukrainian market. Importantly, it would put our exporters on a level footing with European companies who are already benefiting from the EU's free trade agreement with Ukraine, and lead to new opportunities for Canadian business. It would also put Canadian exporters at a decided advantage relative to most of the rest of the world, which is not lucky enough to have an free trade agreement with Ukraine.

Let me elaborate on this point a little further. On the first day the Canada-Ukraine free trade agreement enters into force, Ukraine would eliminate tariffs on approximately 86% of current Canadian exports to Ukraine. This means that Canadian exporters will see a huge immediate benefit from this agreement. The balance of Ukraine's tariff reductions and eliminations would be phased in over periods of up to seven years.

Speaking of specific products that would benefit, the Canada-Ukraine free trade agreement would eliminate tariffs on all industrial products and the vast majority of agricultural exports to Ukraine. For example, Ukraine would eliminate tariffs on industrial machinery, which currently faces tariffs of up to 10%, as well as plastic articles and cosmetics, which currently face tariffs of up 6.5%. In terms of agriculture, this agreement would eliminate tariffs of up to 20% on fish and seafood products, including on caviar substitutes, which would be duty free on the first day the Canada-Ukraine free trade agreement enters into force.

Alongside Canada's fish, seafood, and industrial goods producers, Canada's leading agricultural producers would also benefit from the Canada-Ukraine free trade agreement. I do not have time to go into all of the examples in all of the agricultural areas that would benefit from this agreement, but once this agreement is fully implemented, tariffs of up to 30% on key Canadian agricultural goods would be eliminated. This would provide Canadian agricultural producers with the same market access opportunities as their European counterparts, and be an advantage over most other competitors.

I have spoken at length about the goods market access benefits of the Canada-Ukraine free trade agreement, so let me now turn to other ways that the agreement would help Ukraine. Not only would it help its economy tackle some of the issues that it has been trying to reform, such as corruption, but it would also help it to build its economy and financial sector, with a huge emphasis on small and medium-sized businesses.

Canada has taken a comprehensive approach to economic assistance that supports the stabilization, reform, and growth of the Ukrainian economy. Since January 2014, Canada has committed over $543 million in additional assistance in support of stabilization, reform, and growth. This includes $400 million in the form of a low-interest loan to help stabilise Ukraine’s economy during the implementation of the democratic and economic reforms. It also includes $143 million in bilateral development assistance to support economic reform and economic growth in Ukraine.

Backed by the private sector, our support for economic reform aims to promote more inclusive growth, investment, and job creation in order to reduce poverty. Our support for economic growth aims to bolster local economic development and make small and medium-sized enterprises, or SMEs, more competitive.

Canada sent more than 65 experts to provide specific expertise in the short term and sectorial support in the long term in crucial areas such as: fighting corruption by hiring and training lawyers at the national anti-corruption bureau; assisting in restructuring the finance minister's office; and assisting in trade by supporting the design and implementation of an export development office.

Canada's assistance is consistent with Canadian objectives for the free trade agreement with Ukraine, namely fostering economic opportunity, both in Ukraine and in Canada, and raising the standard of living for our citizens.

As demonstrated around the world, trade is often a key driver of economic development and helps all trade partners generate absolute gains. Canada is committed to providing practical assistance to help Ukraine benefit from this free trade agreement with Canada. This initiative aims to strengthen the ability of Ukrainian SMEs, especially SMEs owned and operated by women, to export and attract Canadian investments.

Small businesses have made a huge contribution to job creation and economic growth in Ukraine. They are able to adapt quickly to changing economic conditions, including for example new business opportunities with Canada. Increasing their participation in trade, their ability to attract foreign investments and comply with international standards, and their productivity will help foster inclusive and sustainable economic growth in that country.

We are confident that the Canada-Ukraine trade and investment support project will provide the technical assistance needed by the selected SMEs to comply with global standards and better take advantage of the opportunities offered by the Canada-Ukraine free trade agreement, which will benefit consumers and businesses in Canada and Ukraine.

Investment and competitiveness lead to economic growth, and equitable and sustainable economic growth allow Ukrainians and Canadians to take advantage of the benefits of trade and a strengthened bilateral relationship between the two countries.

I strongly encourage every member of the House to support Bill C-31 as well as the ratification of the Canada-Ukraine free trade agreement when the time comes.

I urge all hon. members to support the swift passage of Bill C-31, which will allow the government to move forward with the implementation of the Canada-Ukraine free trade agreement and allow Canadians to start benefiting from this agreement.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, I wonder if the Liberals are trading the same vyshyvanka among different members or if there are multiple ones.

I would ask the member about the discussion we have had throughout the day on satellite images and sharing them with the Ukrainian military. We all agree about the importance of Canada's strong relationship with Ukraine. Unfortunately, under the government, a decision was made to stop providing those important satellite images that the Ukrainian military was using in its fight against Russian-backed terrorists in Ukraine.

I want to try to understand why the government did that, and if the member thinks it would be a good idea to start providing this kind of support to the Ukrainian military again.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, this vyshyvanka came right from Ukraine. It is mine and has not been traded with anyone. I cannot be a proud Ukrainian Canadian without owning my own vyshyvanka. I am very proud to have it.

On the member's question, trade agreements more than just mutually benefit our respective economies. They are also about forming stronger relations in a number of different areas, such as security, defence policy, and other foreign affairs issues. It is working together in a number of different ways.

From the time we were elected and came into office just over a year ago today, our government has stood very firmly in support of Ukraine. We have provided assistance in a number of ways, not only helping to support its economy, and this free trade agreement is one example, but also doing everything we can to support it on the ground, helping to build its forces and a stronger democracy.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for her speech. I would like to mention to her that the NDP will be supporting this bill. I hope she will be pleased.

I would also like to ask her whether the government is doing anything to foster trade. Having as many free trade agreements as possible is a good thing. However, our businesses sometimes face technological or technical barriers that may limit their ability to export.

Is the government being proactive and investing in exporting to ensure that it is easier for our businesses to export and to do business around the world? That is the role of free trade agreements, but there are other barriers to exporting besides tariffs and taxes.

Is the government also working on supporting exporting and trade in order to help our businesses export their goods around the world?

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I am delighted to hear the NDP will be supporting the bill.

I began my speech by saying that this agreement was more than just promoting freer trade and eliminating tariffs. I also said that it would include a number of elements that would talk about trade facilitation, competition policy, intellectual property, and government procurement. There are a lot of regulatory changes in there.

We are a free-trading nation, and our government has been very active in supporting that value and belief. We also engage with a number of key stakeholders to ensure our companies continue to have freer trade around the world. A number of key stakeholders are supportive of this agreement, such as the Canadian Chamber of Commerce, The Conference Board of Canada, the Business Council of Canada, and the Canadian Manufacturers & Exporters. We engage with them all the time to ensure that beyond even this trade agreement, we continue to help our companies become competitive internationally.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, I am happy to have the opportunity to speak today on the topic of Canada's progressive approach to trade.

Globally, there are trends of growing populist backlash against international trade and globalization more broadly, while at the same time increasing protectionism. In addition to what we have seen in recent months from political campaigns in the U.S. or the Brexit referendum result in the UK, the World Trade Organization and other international institutions published a report in November that noted that G20 economies introduced 85 new trade-restrictive measures between mid-May and mid-October 2016.

At an average of 17 new measures a month, this is a slight decline over the average of the previous review period. However, this number remains high and coupled with the slow rollback of existing trade-restrictive measures means that we are seeing a steady accumulation of such measures.

This growing protectionism is an issue of global concern, and it is especially problematic for a trade-dependent country such as Canada. Canada is a medium-sized economy competing in the global marketplace. As such, free and open trade is integral to our economic success.

The Government of Canada is determined to ensure that Canada is well-positioned to take advantage of the opportunities of international trade that are so important for Canada's continued economic prosperity. Implementing the Canada-Ukraine free trade agreement is an important step in that regard, because free trade agreements, or FTAs, are important tools to access the benefits of trade. FTAs provide transparent and predictable rules for Canadian companies doing business abroad, and ways to deal with problems when they arise. They create and maintain level playing fields in foreign markets, and they reduce or eliminate tariffs or other barriers.

While trade is crucial to the Canadian economy, however, it is also important to Canada and Canadians that trade is inclusive and is not conducted at the expense of important values. That is why the Minister of International Trade is working with Canadian and international partners on the development of a progressive approach to trade to address the concerns of citizens and organizations regarding trade and globalization more generally.

Trade, immigration, and international openness are more and more commonly identified as the cause of economic hardships and inequality. Globally, people are feeling powerless and anxious in the face of unceasing change. The issues are not just about trade. Globalization and the technology revolution have created wealth and opportunities for many, but parts of the middle class and those working hard to join it feel they are falling behind.

These apprehensions are not entirely unfounded. For example, Credit Suisse found that the top 1% of wealth holders owned just over half of the world's wealth; the bottom 50% combined owned less than the top 1%. Furthermore, 71% of world's adult population has a net worth of less than U.S. $10,000.

Our government believes we cannot turn back the clock on globalization and that we should not turn our backs on trade. Increased trade can actually raise living standards, create more jobs, increase prosperity and help to strengthen the middle class, when it is done with the right overall objectives in mind. If Canada and other countries start closing borders, we will find ourselves in a less prosperous and more insular, fearful world.

This is one of the reasons that our government is pursuing a progressive approach to trade in collaboration with our like-minded partners around the world.

A progressive approach to trade seeks to advance higher standards of living and foster sustainable and inclusive economic growth. It includes an emphasis on transparent and inclusive approaches whereby the government is committed to a consultative process on international trade that allows all segments of our society to contribute and be heard. It also ensures government can pursue broad, societal objectives without facing obstacles imposed by trade agreements. The government firmly believes that governments should defend the best interests of their citizens, particularly the most vulnerable.

In addition, a progressive approach to trade also ensures government's continued right to regulate for strong rules on food safety and consumer protection, in addition to world-class, publicly funded health care and other public services. This approach will more effectively promote labour rights and result in stronger environmental protection. It will also include a more progressive approach to investment dispute resolution that is widely recognized as fair, open and impartial, including exploring the establishment of a multilateral approach.

The government is still in the early stages of developing this new progressive approach to trade, but we can already see some real results. This includes advancing the Canada-European Union comprehensive and economic trade agreement, CETA, toward ratification and implementation, on which the Minister of International Trade has worked tirelessly with her EU and member states counterparts. These results also include the work before us in the House today to implement and help bring into force Bill C-31 to implement the Canada-Ukraine free trade agreement.

The Canada-Ukraine free trade agreement is a modern, high-standard agreement that once fully implemented will provide new opportunities for Canadian businesses, deepen trade linkages, provide for increased transparency in regulatory matters and help reduce transaction costs for businesses.

This agreement will provide Canadian companies preferential market access for exports of goods, as well as preferential access to procurement opportunities in Ukraine at the central level. It also includes commitments on non-tariff measures that will help to ensure that market access gains are not undermined by unjustified trade barriers; trade facilitation designed to reduce red tape at the border; and protection and enforcement of intellectual property rights, which will allow Canadian IP right-holders to do business in the Ukrainian market with increased confidence.

The Canada-Ukraine FTA also includes provisions to address the needs of 21st century economies. An electronic commerce chapter obliges both Canada and Ukraine to not levy customs duties or other charges on digital products that are transmitted electronically, for example. In addition, the Canada-Ukraine FTA incorporates several key progressive trade elements to help ensure the economic gains are not achieved at the expense of important Canadian values and priorities.

The agreement contains robust provisions in the areas of labour, environment, transparency and anti-corruption, as well as protections for the government's right to regulate in the public interest. It also supports our foreign policy objectives by strengthening Ukraine's commercial ties to western nations and supporting Ukraine's economic reform efforts. This will complement the support we have committed through bilateral assistance and low interest loans to help Ukraine stabilize its economy.

I support the Canada-Ukraine free trade agreement and all the benefits it would bring to Canadians and Ukrainians. I urge all hon. members to support the bill. I heard in the House this morning that all major parties seemed to support it, which is good news for both Canada and Ukraine.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, it is important that all major parties agree about the importance of passing this trade deal and a deeper economic integration between Canada and Ukraine.

In my speech earlier, I mentioned a number of areas where I thought Canada could do more to help Ukraine. One is to support the Magnitsky Act and do more for human rights inside of Russia. Another is to return to a policy we had under the previous government of providing satellite images to support the Ukrainian military.

Does the member agree that the government can and should be doing more to support Ukraine, and what he thinks of those specific proposals?

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, there is a wide range of areas in which we can co-operate fruitfully with Ukraine, but the subject of today's debate is really focused on international trade. Of course international trade is one component of the whole series of relationships in which two countries can engage. Usually we start with trade and we expand those relationships. Trade brings countries together around commerce and trade, but those relationships can spawn so many other areas of co-operation.

[The Deputy Speaker, Conservative, Bruce Stanton]

The hon. member for Lac-Saint-Louis will have three and a half minutes left in questions and comments when the House resumes debate on this motion.

The House resumed consideration of the motion that Bill C-31, An Act to implement the Free Trade Agreement between Canada and Ukraine, be read the second time and referred to a committee.

[The Speaker, Liberal, Geoff Regan]

The hon. member for Lac-Saint-Louis had three-and-a-half minutes remaining in his debate.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, we were at questions and comments.

[The Speaker, Liberal, Geoff Regan]

Questions and comments, the hon. member for Lanark—Frontenac—Kingston.

[Scott Reid, Conservative, Lanark—Frontenac—Kingston, ON]

Mr. Speaker, I rise on the same point of order, if you will forgive me, and I stand to be corrected. I too am looking at page 614 of House of Commons Procedure and Practice, and my understanding is that the reference you made here is to the then current presence or absence of a member in the House of Commons. It would, for example, be inappropriate for me now to comment on whether or not the Prime Minister is currently in the chamber, but if it is the case that we are not allowed to refer to the past or future absence of a member, I would like you to draw that to our attention so that we can all act accordingly, if that is in fact the way the rules work.