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

[The Speaker, Liberal, Geoff Regan]

I appreciate the hon. member's intervention. However, I do not want to engage in debate with members in the House. That is not what the Speaker is here to do.

I have made my ruling. Members should not be drawing attention to whether or not a member is or is not or has or has not been in the House.

Let us move on to questions and comments. We have had enough of this point of order.

Questions and comments, the hon. member for Sherwood Park—Fort Saskatchewan.

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

Mr. Speaker, I wanted to follow up on a question I asked the member before question period. I asked about the important issue of military co-operation with Ukraine, and he said, quite correctly, that we are here to have a discussion about the issue of trade. However, many members have raised the issue of our more general co-operation with Ukraine as part of this debate. Certainly that is an important part of the discussion.

One of the very positive aspects of this trade agreement is that it affirms Canada's ongoing friendship with Ukraine, a friendship that is about strategic and shared values as well as our economic interests. It is with that understanding in mind that I am so perplexed. On one hand, we have government members praising the relationship between Canada and Ukraine and talking about its importance, and on the other hand, we have a government that has, in a number of important policy areas, pulled back from co-operation with Ukraine. It is no longer taking the position with respect to human rights in Russia that we took. It is no longer involved in providing satellite images that are very important in terms of Ukraine's interests and security.

Could the member answer this question directly? Why is the government pulling back from vital security co-operation with this country?

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

Mr. Speaker, I do not think the government is pulling back. There is a measure of continuity in what the government is doing. I refer to Canadian government sanctions related to Ukraine. As the member knows, they were enacted under the Special Economic Measures Act to respond to violations of Ukraine's constitution, sovereignty, and territorial integrity. This was done on March 17, 2014, under the previous government. Amendments have been made since then, including in 2014 and 2015, under the previous government, but also on March 18 and November 28, 2016, by this government.

It is quite clear where the government stands with respect to the situation in Crimea and that it has acted in continuity with what the previous government did.

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

Mr. Speaker, I would not want to pass on an opportunity to talk about the special relationship Canada has with Ukraine. We have a trade agreement that hopefully will be passed sooner rather than later. However, it goes beyond trade. It is economically sound for both Canada and Ukraine, but there is also an important component in terms of that special relationship. Perhaps the member might want to comment on that.

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

Mr. Speaker, I have been witness to that special relationship. I believe that the member was a member of this House when a former Ukrainian president came to speak to this House. That was one of the most eloquent forms of testimony to that special relationship.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, it is indeed a pleasure to speak today to the Canada–Ukraine free trade agreement. I am going to be splitting my time with the member for Calgary Shepard, who is also very passionate about this.

To start off this debate, I want to thank the Minister of International Trade. She and I are just a couple of prairie farm kids of Ukrainian heritage who are quite excited about this agreement. I want to thank her for carrying the ball over the finish line, but it was our previous Conservative government, under Stephen Harper, that was able to get this trade agreement negotiated, and it took quite some time.

Actually, I was with the former prime minister back in 2010, along with the member from Langley, when we had those first discussions about free trade with the former Yanukovych regime. I can say that those were interesting discussions, to say the least. It was our first chance to interact with the president of that time, before things started going sideways in Ukraine as he tried to stamp out the Ukrainian nationality and as he robbed the treasury of Ukraine and tried to move all those funds into his personal coffers and those of other oligarchs and his own friends and family.

We have to remember that the member for York—Simcoe was the trade minister who started these negotiations back in 2010. Also, we have to pay tribute to the member for Abbotsford, the last Conservative trade minister, who really moved the yardstick when we had the discussions with the new president, President Poroshenko, and was able to finalize the substance of the free trade agreement between Canada and Ukraine in June 2015.

This is a huge win for both the Conservative Party and the Liberal Party. I am glad to see that our colleagues from the NDP are supporting this very important trade deal.

I have been to Ukraine, as have many of our other colleagues, on numerous occasions on election observation missions, on trade missions, and for diplomatic discussions. We can see the potential in Ukraine.

Even though Ukraine is still in a war with Russia, Crimea is under illegal occupation and annexation by Russia, and there is continued conflict in eastern Ukraine and Donbas, we know that we need to stand united with Ukraine. This Canada-Ukraine free trade agreement again shows the solidarity of this Parliament and the Canadian government standing with the people of Ukraine as we continue to support them in this struggle for democracy and international law and in making sure that they are ultimately victorious over the aggression of Vladimir Putin.

We have to also acknowledge that within Ukraine there are still many challenges. The Canada–Ukraine free trade agreement would open the door for more commerce, more prosperity, and more opportunity for individuals and companies in Ukraine and those in Canada who want to do business with Ukraine. Often we assume that it is people in Canada of Ukrainian heritage who are going to go over there and do business, but there is huge potential for all sorts of sectors to go over there and open the door. There is energy and gas exploration and development. The agricultural fields of Ukraine are tremendous. It is often called the bread basket of Europe. We know that if we can go over there and help them with infrastructure, transportation, genetics, and new farming technologies, they will be even more prosperous and more successful. It would enable people to farm their own land and generate wealth for their own families.

This is a key catalyst in making sure that we have a response in Ukraine as Ukrainians aspire to be more westernized, to have closer ties with us here in North America and particularly with the European Union, and to get out of the sphere of influence, which they have been living under for far too long, of Moscow and the Kremlin.

I also have to acknowledge the leadership we saw from former prime minister Stephen Harper. It was an amazing demonstration of Canada's commitment to Ukraine in his numerous trips there. From the time of the maidan, the revolution of dignity, that took place on the streets, to the time he left the Prime Minister's office, former prime minister Harper was there four times. He was also there before that, in 2010, when we went over for early discussions with the Yanukovych regime. We were trying to make sure Ukraine embraced the west rather than returning to the old corrupt Soviet ways and crawling into bed with Vladimir Putin.

It was former prime minister Stephen Harper who really led the charge on making sure we supported the new president and the young democracy, that we had this trade deal, and that we were supporting them with their defence needs and providing non-kinetic military equipment. It was under his lead that we continued to isolate Russia on the world stage. It was under his leadership that we started to sanction hundreds of Russians and Ukrainians and organizations that were part of the whole process of destabilizing Ukraine with Russian aggression and the invasion of Crimea and Donbas. It was the former prime minister who said we were going to share RADARSAT satellite images with our friends in Ukraine so they could see the activity of Russia, as well as Russian proxies, taking place in Donbas and along its borders.

The former prime minister led on that front, and he was not scared to stand up to Vladimir Putin at the G20 talks in Brisbane, Australia. He told Vladimir Putin that he had to get out of Ukraine. When the Russian president said that he was not in Ukraine, former prime minister Harper told him there was nothing to talk about, and he turned on his heel and walked away. That is leadership. That is being principled. That is why we need to continue in that vein.

While I appreciate all the support from members of Parliament from all parties for the Canada-Ukraine free trade agreement, let us make sure we do not forget its other needs.

Operation UNIFIER is coming to an end in March. We have to make sure that the government provides recommendations as well as a mandate to the Canadian Armed Forces to continue the training mission in western Ukraine. They have to support Ukraine's troops to ensure that they are getting up to NATO standards so they can get closer to NATO integration but also so they are more capable of dealing with the Russians as they fight in Donbas.

We also need to sign the defence co-operation agreement we had negotiated as the government. It has not been signed yet by the Liberal government. We have to sign that deal so we can more closely align ourselves and work with the Ukrainian armed forces in their battle.

We have to look at things like visas. As we are going to have a free trade agreement, we need to simplify the process so that people from Ukraine can come here to do business. We need a youth mobility agreement so that young people can come here. Many of us have experience with the Ukrainian interns in our offices, who are just amazing individuals. They are going to change that country in the next generation.

We also have to make sure that we continue to isolate Russia and Vladimir Putin, not normalize that relationship, as the Minister of Foreign Affairs wants to do. Any time we try to normalize, any time we try to engage, any time we try to reset the relationship with Russia, Putin sees that as a sign of weakness. Every time we do that, he tries to expand his aggression in Ukraine or elsewhere, as we are witnessing right now in Syria, especially with the humanitarian crisis and devastation taking place in Aleppo.

Finally, tonight we are voting on Bill C-306, the Crimean Tatar deportation memorial day act, also known as Sürgünlik. The Crimean Tatars have always been ostracized. A genocide was committed against them in 1944. In Crimea today we are witnessing the Russian Federation arresting them, taking away their freedom of speech, freedom of religion, and freedom of assembly. This is an opportunity for us to recognize past genocides.

I encourage members of the House to vote in favour of Bill C-306, brought forward by our colleague, the member for Edmonton Griesbach, so we can show that the House stands united with Ukraine.

Finally, to wrap up, I want to send the member for Abbotsford, who was the trade minister, my best wishes. As all of us know, he has had a bit of a health scare. I know he is sitting at home watching and wishing he was here. We want to wish him a speedy recovery. Our thoughts and our prayers are with him.

[The Speaker, Liberal, Geoff Regan]

I thank the hon. member for doing that. I certainly join him, and I am sure all members do, in sending our very best wishes to the hon. member for Abbotsford for a speedy recovery to excellent health.

Questions and comments, the hon. member for Winnipeg Centre.

[Robert-Falcon Ouellette, Liberal, Winnipeg Centre, MB]

Mr. Speaker, I wonder if the member could talk a bit more about the spheres of influence that he was talking about, also the idea of promoting democracy or democracy-building around the world and in Ukraine, as I would like to have more information about his thoughts.

We do have a multipolar world, or there are different visions about the world that we should be living in, whether it should be a multipolar world with not just the one superpower, or whether it should be going down, where we should be imposing a world view on various spheres or various areas of the world. I would like to hear his thoughts on those issues.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, let us just keep it focused on Ukraine. It is the people of Ukraine who aspire for closer western ties. The whole revolution of dignity on the Maidan in Kiev was about having more ties to Europe. It was when Yanukovych reneged on his promise to sign the European Union–Ukraine free trade agreement that they decided to start protesting—peaceful protests, which Yanukovych turned into a massacre, with Russian support. We of course remember that day in January, almost three years ago now, when we saw innocent young people being killed on the streets by snipers.

This is about helping Ukraine realize its own aspirations for a government that respects the rule of law, about a democracy that is actually functioning, about an economy that is market driven and not filled with corruption, which we witness in Ukraine today and which was rampant before.

By having a Canada–Ukraine free trade agreement, by supporting its democratic institutions, by working with it and supporting it, as we have been as both Liberal and Conservative governments, in reformation of how its government functions, we will succeed for the people of Ukraine, not the oligarchs, not those who are corrupt government officials, but we will succeed.

This is our opportunity to also bring forward the Magnitsky Act to make sure we hold to account those foreign corrupt officials who are getting rich off the backs of the people, as well as often committing murder and other heinous crimes.

[Borys Wrzesnewskyj, Liberal, Etobicoke Centre, ON]

Mr. Speaker, I would like to thank the hon. member for his dedication to this file. I know he cares passionately about it and has visited Ukraine many times.

Ukraine also has a free trade association agreement with the European Union, which would allow Ukraine to become a gateway for Canadian businesses to invest in Ukraine, as well as to operate in Ukraine and, in doing so, use Ukraine as a gateway into the European market.

In his opinion, what businesses—in particular, Canadian businesses—could look forward to using this free trade agreement to that sort of advantage?

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Mr. Speaker, I want to thank the member for Etobicoke Centre for his passion for Ukraine, as well, and for that question.

He knows all too well that Ukraine has great potential and that we could capitalize; Canadian entrepreneurs, Canadian businesses, and Canadian people could go over there and do business.

Ukraine wants to do more and more business with the European Union. As the breadbasket, it has this great opportunity for food processing, for more agricultural production, for taking over there our infrastructure for grain handling, for grain processing, as well the livestock industry. As the breadbasket, as we have often seen in Ukraine, it has this huge production capability, this rich black soil from one end of the country to the other. Really, it is an opportunity for it to capitalize on this natural asset. Too often it has been held back from really exploiting because of Soviet communism, because of Holodomor where the people were actually starved to death and not even allowed to plant those fields.

We want to make sure that the people of Ukraine, as well as the people of Canada, can join together to open every door to prosperity, which would bring about a better Ukraine.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I am very pleased to be joining the debate on Bill C-31. I would like to thank the member for Selkirk—Interlake—Eastman for his contributions so far. It is a great introduction to the intervention I intend to make.

The member reminded this House that it was indeed Yanukovych's refusal to implement the free trade agreement with Europe that led to the downfall of his regime and to freedom for Ukrainians and unfortunately, today, to the crisis of Ukrainians having to repel an attack from Russian forces, initially under the guise of being a so-called separatist movement. We now know that not to be true.

We know that there are 1.3 million Canadians of Ukrainian heritage living in Canada. Many of these people are small business owners, Canadians who are looking forward to this opportunity to trade freely with their country of origin, possibly the country of their birth and also the birth of their fathers, mothers, grandfathers, and grandmothers.

It is an agreement that was negotiated, of course, and the work on it was concluded on July 14, 2015, by the previous Conservative government. This renewed interest we see from the government on free trade is great news. I will not call it a baptism of free trade, but maybe I will call it a confirmation of free trade. I was always hoping that the Liberal government would take up on every single free trade agreement that the previous Conservative government had successfully negotiated and would bring them to the House for ratification. I am pleased to see this one here today.

We have found this newfound interest that the Liberals are promoting for trade to be both comforting and a good sign. I want to take the opportunity in this debate to talk about the economic benefits for Canada and for Ukraine, which many members have done already. I also want to talk about the broader philosophy of why free trade is both good for our country and good globally. I think it is needed right now, with the wave of protectionism coming through the western world and convincing people to perhaps push back against globalization and against further freeing of trade.

To do that, I will be going back at the end of my speech to talk about Sir Robert Peel and the original corn laws, and the great impact that had on Canada and how it actually formed the Conservative Party. I am a member of the opposition, a member of the Conservative Party of Canada, and we have a proud tradition of having this internal battle within our own party between the protectionists and the free traders.

It deeply inspired many of the Conservatives we see today to become free traders, but that has not always been the case. There have been a great many great Conservative leaders. In the United Kingdom, one of them was Winston Churchill, who made his career on the debate on free trade and actually crossed the floor twice, much to his everlasting shame, I will say.

We know that the provinces in Canada that would likely gain the most would be British Columbia and Quebec. B.C. alone represents 71.3% of Canada's exports to Ukraine, $150.2 million in 2015 alone, which was an increase of $46 million in trade from 2014. British Columbia would have an immense opportunity to gain from this free trade agreement.

We also enjoy a trade surplus of $143 million with Ukraine. I can only see that as an opportunity for Alberta farmers, for Alberta agricultural companies, and of course the resource sector, which is one of the main contributions we make for trade with Ukraine. We know that 86% of tariffs in Ukraine would be lifted; 99.9% of Canadian tariffs on Ukrainian goods would also be lifted.

I just want to go over some of those top exports from western Canada, where I am from: frozen hake, bituminous coal, reservoir tanks and similar containers, parts of boring or sinking machinery, air compressors and other similar equipment, seeders and planters, and frozen pork. These are all things that our western producers either build, make, or grow, which now would have an opportunity to enter the Ukrainian market with a lower tariff.

Furthermore, Canadian pork exporters would benefit from duty-free access on fresh and chilled pork and from the large duty-free tariff rate quota for frozen pork and certain pork offals and fats. Reservoir tanks and similar containers would see the tariffs of up to 7% eliminated immediately upon entry into force of this agreement.

Meteorological, geophysical, and other surveying instruments are something for which Alberta and Alberta companies are well known worldwide. We are one of the top providers in the world of both the equipment and the know-how to operate it. The tariff of 5% would be phased out over five years from the coming into force of this agreement.

Wine and ice wine, as well, would see their tariff go down. Pet food and animal feed, as well as pulses, would see tariffs go down, all good news for Canadian producers and Canadian manufacturers in western Canada.

As we know, as of September 19, 2016, Ukraine has a GDP at purchasing power parity of about $339.2 billion. It is an immense market and has immense opportunities for Canadian small and medium businesses to expand their trade exports into this country. It has a population of 45.2 million people. It is Canada's 75th largest merchandise trade partner, and we can only see that number decrease over time. It would become a better trading partner with us.

In terms of ease of doing business, it is ranked 83rd among 189 countries. Hopefully, Canadian know-how, knowledge, and interest in trading with other countries would be transferred to Ukrainian companies and they would be able to do business and potentially hire Canadians, maybe of Ukrainian heritage, who would be able to explain to them how to do business and make it easier to do business in Ukraine. Overall, it is an immense opportunity not just for trade but for that cultural exchange and to show Ukraine what it means to trade freely with other countries.

As I have always done, I will give a Yiddish proverb today: many trades and few blessings. It is an old Yiddish proverb that says a jack of all trades will seldom make a good living. In Canada's case, though, it does not prove entirely true. We have been debating the merit of free trade. Free trade is what Canada does, as a jack of all trades, and what we have always done. Whether we have called it reciprocity in the past or free trade, it has been part of our Canadian identity and the culture that Canada has developed over the years, decades, and centuries.

The story of Canada is, in fact, about securing better markets for our products. Confederation came out of debates over a customs union for the Atlantic provinces and when the Fathers of Confederation came together, that was initially what they were talking about. They were not so much talking about forming a Canadian country. That was really Sir John A. Macdonald's great contribution. He injected himself into a customs union conversation, the great debate, raising it to the level of maybe creating a country like Canada based on the free trade of goods between the provinces that were, at the time, colonies of the British Empire.

The Reciprocity Treaty of 1854 was when Great Britain abrogated the protective tariffs it had in 1846 that led Canada to look for new export opportunities for its products. Then Canadians turned to the United States, our neighbour to the south, which has been for a great many centuries now—almost two—our greatest trading partner, the best relationship we have ever had. When Great Britain abrogated the Corn Laws in 1846, it accorded advantageous customs duties to Canadian agricultural products. It was a great debate in the United Kingdom at the time, in the Conservative Party especially, on whether it should move toward freer trade or become more protectionist. In fact, that ripped the party apart. It cost Sir Robert Peel his government and the leadership of the Conservative Party.

It is important to dwell on that for a moment as we launch ourselves into this Canada–Ukraine free trade agreement, because the cultural identity we have as free traders would be passed on. As I have mentioned, Sir Winston Churchill crossed from the Conservatives to the Liberals over the issue of free trade and then crossed back to the Conservatives later on, in 1924, hoping to lead a right-wing faction of Liberals into Baldwin's government. It was over free trade that he will be most fondly remembered. As he said in his own words, it takes a special type of leader and politician to first rat and then re-rat, twice.

A different generation and a related Parliament fought over the Corn Laws. In fact, in 1842, the Corn Laws disappointed those expectations overnight by substantially modifying the sliding scale duties last revised in 1828 in the direction of free competition. The Economist magazine was actually founded to fight the Corn Laws and eventually would win in 1846. It would see the abrogation of all of those tariffs. A similar measure applied to Canadian corn in 1843.

Members are probably wondering why I would bring up the Corn Laws issue of the 19th century. It shows that Canada has been trading for hundreds of years. It has been a great part of who we are as Canadians. It means a lot to us when we find new partners who want to trade with us. We see this rise of protectionism worldwide, as I mentioned before.

It is incumbent upon a country like Canada, which has been dependent on trade and finding new countries to trade with, to implement treaties like this, to show the way for countries that have an opportunity to grow their economies through exports and the imports of goods from the Canadian market, in which the consumers at home could potentially enjoy Canadian maple syrup or others goods. It really comes down to a willing seller and a willing buyer being found and agreeing to make an exchange of goods by bartering or for money.

Choosing who we trade with without government interference is really important. It speaks again to that shared identity we have as Canadians. Just as free trade was transformational for Canada and our shared identity, I am convinced it would do the same for Ukraine. As we trade more with Ukraine, as other western European countries do more of it, trade will pull Ukraine out of the soviet sphere of influence it has been trapped in for past centuries.

It is a great opportunity for geopolitical reasons; it is a great opportunity for trade reasons. I urge all members to support this. I have been pleased to hear so far that all members in the House, seemingly, will be supporting this bill. I look forward to further debate on it throughout the day.

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

Mr. Speaker, I have had the opportunity on a number of occasions to emphasize how important this trade deal is between Canada and Ukraine. I often talk about the economic value. The member across the way talked about how British Columbia and other jurisdictions will benefit and there is no doubt that economically Canada's middle class will benefit by this agreement. There is an underlying theme that we hear from both sides of the House and that is the value of moving forward and getting this trade agreement passed because it sends a very strong message that goes far beyond economics. Would the member not agree?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I did not realize the member had Ukrainian heritage, but I congratulate him for it. Obviously, I think this will be the first time this would happen in this Parliament. I am going to agree with the member. I think it is a great opportunity for not just the middle class, but for all classes in Canada.

This is not about raising the profile of Liberals' campaign promises to do more for the middle class. This is about reaching an agreement negotiated before the election and now ratifying it into law in order to enable companies in Canada to freely trade with our Ukrainian partners, companies, and individuals at the most simple of level who want to buy Canadian goods that they know they can trust. I am hoping there will be a massive new market for the export of western Canadian goods, especially at a time when many are looking for work. In Alberta, this can only help more Albertans find work in another export industry.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I would like to thank and congratulate my colleague for his speech.

As we know, Ukraine and Canada have deep ties. Saint Sophie Ukrainian Orthodox Cathedral, Montreal's Ukrainian Caisse Populaire Desjardins, the Ukrainian park, and the Montreal Ukrainian festival are all in the riding of Rosemont—La Petite-Patrie.

Could my colleague tell us what this type of agreement can mean to the Ukrainian community in Canada, apart from the trade details?