Bill C-79 (Historical)

Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act

An Act to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam

This enactment implements the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, done at Santiago on March 8, 2018.
The general provisions of the enactment set out rules of interpretation and specify that no recourse is to be taken on the basis of sections 9 to 13 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.

Bill C-79—Second Reading

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, as I mentioned, we hope that this agreement is ratified as quickly as possible. We hope that the other countries do not move more quickly than we do, but there are no guarantees of that. Who can guarantee that three other countries will not sign and ratify the CPTPP next week. That is the problem. We had the opportunity to beat them to the punch. Canada has the second-largest economy of the CPTPP countries. Does it seem right that we are among the last of the first group of six to ratify it? We are going to benefit a lot more from this agreement than many other countries, and yet the Liberals waited until the last minute. They put our economy at risk for purely political reasons.

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, the CPTPP which is being moved forward by the government would result in some 60,000 Canadian jobs being lost. Given that this is the case, why would the Conservative members support this deal going forward?

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I do not how the member is getting those numbers from an injection of over $4 billion dollars into the Canadian economy. I think the government must be looking at international trade agreements in a very partisan way to be saying things and coming up with numbers like that. I think that exports will help to stabilize our agricultural industry. Right now, there are a lot of problems on the global agricultural market. This will help to maintain jobs and create new ones. I can guarantee that.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, I want to commend my colleague on his speech. I know how hard the member for Mégantic—L'Érable has worked in the agriculture sector as the shadow minister for agriculture and agri-food.

I would like the member to explain what he thinks makes the CPTPP so imperative right now as the Liberal government has bungled and failed in our relationships with other countries which have been trusted trading partners in the past. India, Japan and Italy are now pulling back from accessing the Canadian market which is costing us some very vital export markets for our producers. Now, because of how the Liberals have bungled NAFTA, our main trading partner, the United States, is also at risk. Losing that market could be costly to the Canadian agriculture sector.

With everything that is going around and how mismanaged our relationships have been with our trusted trading partners, why is CPTPP that much more important right now?

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I completely agree with my colleague. The CPTPP is very important, and the Liberal government must take our international trade relations with all of our partners seriously.

Just look at the Prime Minister's trip to India back at the beginning of the year. Shortly after that trip to India, we got hit with harsh tariffs. The Prime Minister was there, but he did not broach the subject with the Indian prime minister. They did not talk about it at all, and as a result, our pulse exports to India are down $300 million this year. When he was there, the Prime Minister could have tried to deal with the situation before it got this bad. The fact that the Prime Minister skips out on signing ceremonies and visits countries but does not talk about major agricultural issues with our partners is causing problems, like the one we are having with India right now.

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

Mr. Speaker, it is a pleasure to rise in the House to debate Bill C-79, the comprehensive and progressive agreement for trans-Pacific partnership implementation act. I would like to thank the member for Abbotsford for the excellent work he did on this agreement during his tenure as the international trade minister under the previous Conservative government.

I would like to begin by underscoring how important this bill is to our farming communities. According to the Canadian Agri-Food Trade Alliance, passing this legislation could boost the value of Canada's agri-food exports by $1.84 billion. This agreement will open up a whole new market where Canadian farmers will be able to sell their products.

In addition, given the uncertainty over NAFTA negotiations, it is even more crucial that we pass this bill so that we can further diversify our trade. When the United States starts imposing tariffs on Canadian steel and aluminum, Canada needs to find new markets for its products. When Canada loses access to a market and to thousands of jobs, it just makes sense to find a new market where we can sell the same products.

Furthermore, the countries that Canada will get access to through this agreement have a combined GDP of about $13 billion. These countries include Japan, which has the third-largest economy after the United States and China. This represents a market worth about three-quarters of the U.S. market. The CPTPP is an incredible opportunity to diversify Canada's trade and improve Canadians' economic well-being.

When we look at all the benefits that the CPTPP will have for Canada once we pass this bill, it is hard to understand why the Liberals chose to ignore the opposition leader's request to recall the House of Commons to pass Bill C-79. The Conservative Party leader made that request because the agreement will only come into force once it has been fully ratified by six different countries. Mexico, Japan and Singapore had already ratified it by the time the request was made, so only three other countries needed to sign on for the agreement to come into force.

If the Liberals had recalled the House to pass this bill during the summer, as we requested, Canada could have secured the earliest possible access to the new markets. Instead, they decided to take a chance that three other countries would ratify the agreement, costing Canada thousands of jobs. With NAFTA, the government sat on its hands while the other countries negotiated a free trade agreement, and it almost let the same thing happen with the CPTPP.

The Liberals had no reason not to recall the House to pass this bill. The fact that they ignored this request shows that they do not take Canadians' economic well-being seriously. In fact, this Liberal government seems almost determined to make life harder and harder for Canadians.

First, the Liberals are imposing a carbon tax, but they do not want to say how much it will cost Canadians.

This tax will not reduce greenhouse gas emissions. It will only make Canadians' lives more difficult by encouraging investors to invest outside Canada, in countries with different environmental regulations.

Second, the Liberals are incapable of building pipelines like Trans Mountain and energy east. These pipelines would have brought new jobs to Canada and benefited all Canadians.

Finally, the Liberals refused to recall the House to guarantee that Canadians in every sector would have access to a larger market.

These three examples show that the Liberals are not fighting for the middle class and those seeking to join it. Instead, they show that the Liberals do not take Canadian jobs seriously. It seems that every time the Liberals announce a new policy, it discourages investment in Canada and stifles the creation of new jobs.

In closing, I would like to explain why I support the bill and free trade.

In general, free trade is a good thing. It certainly has played a role in major changes around the world. For example, free trade has resulted in the rate of extreme poverty dropping from 44% to less than 10% since the early 1980s. Free trade has increased the life expectancy at birth from 53 years in 1960 to 70 today. There are fewer wars around the world because of free trade. When countries trade, they become more dependent on one another economically. When countries trade, it is no longer profitable to be at war. It is much more advantageous to keep the peace so that we can reap the mutual benefits of trade between countries.

These are the many reasons why the previous Conservative government signed free trade agreements with many countries. It did so with Panama, South Korea, Honduras and many others. That is why the Conservative government negotiated the TPP and the free trade agreement with the European Union. On this side of the House, we support free trade for practical reasons and on principle.

Free trade also helps promote freedom. I have always advocated for human rights and freedom in my work here and elsewhere. Free trade is an essential form of freedom. Free trade implies that people have the right to buy and sell across borders as they see fit.

For all these reasons, I will vote in favour of this bill. Once again, I want to point out that my Conservative colleagues, like the member for Abbotsford and the former prime minister, worked hard to ensure Canada's prosperity.

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

Mr. Speaker, I commend my colleague across the way for his ability to communicate in French. It was done quite well.

I appreciate the fact that the Conservative Party has recognized the value in supporting the legislation and has assisted us in moving forward by supporting the time allocation motion. The whole trade file has been a very important for this government, virtually from day one. We saw a lot of the work from the previous administration that was finalized and signed off by this government at the economic union. That was very helpful.

We recognize that trade negotiations and discussions evolve. However, it is really important for us to recognize that the biggest benefactor of this is the middle class, the economy and those aspiring to become a part of the middle class as we try to expand the markets. These trade agreements are all about that, providing opportunities and a potential for ongoing expansion of our economy.

Could my colleague across the way provide his thoughts on how important it is that we pass the legislation relatively quickly, given we would like to be one of the first six countries to sign on, which is an important aspect of the legislation in itself?

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

Mr. Speaker, it is great that my Liberal colleagues agree with the Conservative Party and that they support the work we did as a government. I agree that it would be ideal if we could move this bill forward. However, it was not good when the government decided to deny our leader's request to hold a special sitting in the summer. We could have gotten started on this bill before September. Unfortunately, the government chose not to. Now, we must certainly move this bill forward very quickly.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, the CPTPP includes investor-state provisions that will allow investors to sue Canada for regulating in the public interest on issues like health and the environment. Why does the member support an agreement with such harmful provisions? Maybe he could elaborate on that.

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

Mr. Speaker, the issue of the provisions the hon. member refers to is quite clear. If we have a free trade agreement, there needs to be a mechanism to ensure that measures are followed. That is why, for example, in the NAFTA negotiations, we are calling for the same thing from the United States, namely to protect the impartial mechanisms that are used to assess requests from companies, individuals and governments. I do not understand what makes the NDP think we can have free trade agreements without a mechanism to ensure that measures are followed. In the meantime, it is clear that the NDP does not support any free trade agreement.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, first, I want to congratulate my colleague for his excellent speech in French, 100% French. This is a good inspiration for all of us.

I have a simple question: what made the hon. member decide to deliver his speech in French?

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

Mr. Speaker, I thank the member for his question. I spent four weeks in Quebec this summer to improve my French. I am glad to have francophone colleagues who can help me practice my French. I think it is important for all members to be able to present their arguments in both official languages and to speak in such a way that we can all understand each other.

[Pam Goldsmith-Jones, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs (Consular Affairs)]

Mr. Speaker, our government strongly believes that the comprehensive and progressive trans-Pacific partnership agreement, or CPTPP, will help increase and diversify Canada's trade and investment in the rapidly growing Asia-Pacific markets and improve Canadians' economic prosperity. At the same time, the agreement will ensure that the benefits of trade are widely shared, in particular by making it easy for small and medium-sized enterprises, or SMEs, to take advantage of the opportunities it offers.

Exports are essential for the health and vitality of Canadian businesses and Canadian SMEs play a key role in increasing trade and economic growth in Canada. Indeed, SMEs are the backbone of the Canadian economy. They represent more than 99% of all businesses, 90% of all private sector jobs and 10.7 million workers and they generate nearly 40% of Canada's gross domestic product.

I forgot to mention, Mr. Speaker, that I will be sharing my time with the member for Winnipeg Centre.

Only 11% of Canadian SMEs benefit from foreign markets, however, and our government is committed to helping increase that. Exports are vital to the growth of Canada's economy. That is why our government will help small businesses expand into new markets abroad by promoting exports through the negotiation and implementation of the free trade agreements, such as the Comprehensive Economic and Trade Agreement, CETA, between Canada and EU; and now the CPTPP.

The CPTPP will enable Canadian SMEs to enter the dynamic Asia-Pacific market through agreements that simplify the export process and increase SME participation in global supply chains. This agreement will strengthen our economic ties with some of our current free trade partners, such as Chile, Mexico, and Peru, while providing preferential market access to seven new free trade partners: Japan, Malaysia, Vietnam, Australia, New Zealand, Singapore and Brunei.

In addition, the CPTPP will eliminate tariffs and improve market access for Canadian companies, including SMEs. Upon implementation, 86% of signatory countries' tariffs will be instantly eliminated. This will apply to Canadian exports to CPTPP countries, with an average value of $28.3 billion per year between 2015 and 2017. Once the agreement is fully implemented, signatory countries would eliminate 99% of their tariffs. This will apply to exports to CPTPP countries that average $32 billion per year between 2015 and 2017. This increased market access will make our SMEs more competitive and position them for success. It will also create opportunities for Canadian SMEs to diversify their exports at a time when this is extremely important.

The agreement provides for enhanced market access agreements for our financial services and service sectors and a comprehensive set of investment protection provisions based on a strong dispute resolution mechanism for investments. These provisions will greatly benefit SMEs as they are disproportionately impacted by non-tariff barriers.

In addition, the CPTPP will be a first in Canada in terms of free trade agreements in that it contains a chapter that specifically guarantees that small and medium-sized enterprises will be able to take advantage of the opportunities it creates. This separate chapter highlights the importance of SMEs, which are the backbone of our economy and an engine of economic growth.

These provisions will ensure that our entrepreneurs and small businesses have access to information tailored to their needs, making it easy for Canadian companies to explore and navigate their way around CPTPP markets and prepare for their successful business ventures.

Through the efforts of the committee, as well as collaborative mechanisms, CPTPP signatories will be able to share best practices on how to support their businesses and to co-operate through seminars, workshops, and other capacity-building activities aimed at helping their businesses seize the opportunities created by the agreement.

The CPTPP will increase market opportunities for Canadian companies of all sizes and in all sectors and regions of the country. In the coming months, we will reach out to small and medium-sized enterprises across the country to ensure they have the knowledge and tools they need to take advantage of this historic agreement. At the same time, we will work to help Canadian SMEs to grow, expand their activities, increase their productivity and be innovative and export oriented so they can prosper and create good jobs for the middle class.

Asia is important to Canada and to our small and medium-sized enterprises. Indeed, that region's contribution to the global economy continues to grow and Asia's importance as a destination for Canadian exports has more than doubled.

The CPTPP is a cornerstone of our government's commitment to trade diversification. It will enable Canadian businesses to trade and invest in this dynamic and rapidly-growing region. Since Asia is a highly integrated and adaptable region, the benefits of CPTPP go well beyond access to new markets. This agreement will provide Canadian companies of all sizes with opportunities to enter into various regionally integrated value chains that are global in scope.

Ambitious agreements with high standards, such as the CPTPP, will help to strengthen the rules-based international system and its solid institutions, promoting global value chains and ensuring a level playing field that maximizes the benefits of trade for everyone.

By responsibly expanding our economic ties with our Asian partners, we are delivering on our promise to create economic growth opportunities that will benefit Canada's middle class. This agreement will create opportunities for Canadian entrepreneurs and small and medium-sized enterprises to expand their activities, prosper and create good jobs for the middle class. We are here to help Canadians, to help them move forward, to grow and succeed abroad, while creating an environment conducive to sustainable and lasting growth for all.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I would like ask the hon. member the same question I previously asked the member for Edmonton Centre.

Both the Conservatives and Liberals deeply supported the NAFTA agreement. One of the remarkable things about the NAFTA agreement were the two side agreements, one on labour and one on the environment. The side agreement on the environment, the North American Agreement on Environmental Cooperation, had very strong provisions. It established a council of environment ministers of all the parties to the agreement and extended a lot of rights and opportunities to the public of all of the signatory parties to be engaged, including filing petitions for action on failed enforcement.

Could the member respond to this? Why has her government decided to significantly downgrade environmental protections, yet claims to put environment on par with economic development and trade?

[Pam Goldsmith-Jones, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Mr. Speaker, it is worth underscoring that in our consultations with Canadians, a strong dispute mechanism was seen to be very important, and that is in place. However, lifting off NAFTA, there has never been a more important time to diversify our markets. Certainly, we and the opposition are in major agreement on that. It is the member opposite who does not seem to fully appreciate the importance of the CPTPP and this opportunity to diversify our markets.