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.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Madam Speaker, my hon. colleague from Northumberland—Peterborough South is a great long-time friend of mine.

I completely agree with you. Seventy-five per cent of our exports are to our great friend and neighbour, the United States. We must continue to ensure we are on the path to further trade diversification. It is a pillar of our economy and a pillar of our government. It is great for our economy and it creates great middle-class jobs.

[The Assistant Deputy Speaker, Carol Hughes]

I want to remind the member he is to address the questions and comments to the Chair and not an individual member.

Resuming debate, the hon. member for Sackville—Preston—Chezzetcook.

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I am always pleased to rise in the House to bring forward the views of my constituents. I will be sharing my time with the hon. member for Don Valley East.

First, this trade deal has been extremely important deal for Canadians. It is an extremely important deal for all 11 countries, but I will show throughout my speech how the CPTPP will benefit Canadians.

A simple way to talk about trade is if we trade a car. It would be an even one-for-one trade, with one item traded. There are all kinds of trades in which multiple items are traded and we agree on certain prices for trading back and forth. Then there are large trade deals that affect many industries and many resources.

This trade deal is extremely important to Canadians. It would benefit Canada's middle class, including the people in my riding of Sackville—Preston—Chezzetcook, as I will explain as I move forward.

When we talk about trade, it is about the elimination of tariffs and taxes. That can only benefit people, and that is what it is all about. Canada is a country that is rich in resources. If anyone can compete and trade in resources or services, this is the nation that can do it.

We are talking about having access to more products and a more competitive price. In general, half a billion people will be involved in this trade deal. We are opening up our markets to half a billion people, but we will have access to a market of half a billion people as well. It is very positive. We will have access and exports for middle-class Canadians.

That is 11 countries, half a billion people, and this deal affects 13.5% of the GDP for Canada and the 10 countries signing this agreement. This is quite impressive. It is almost 15% of the GDP worldwide, which is extremely impressive. If we take some samples, in 2016, Canada and the 10 countries had about $100 billion in trade. By adding this agreement now, the CPTPP, we are not only going to increase that in many sectors, but for Canada next year it means $4.2 billion in GDP. Think about that. It is $4.2 billion. It is an enormous amount of money to be had.

We are going to talk about many sectors. There is the financial sector, the fish and seafood sector, agriculture and agri-food, and metals and minerals, etc. As I said earlier, if any country can compete, it is Canada, because we are very rich in natural resources.

Because I am from Atlantic Canada, we need to talk about Atlantic Canadians and the fish and seafood industry there. One hundred per cent of the tariffs would be removed. Think about that. Between Canada and the 10 other countries, for half a billion people, the taxes and tariffs will be removed. For frozen snow crab in Japan, 4% of the tariffs will be eliminated. Then there is the lobster industry. In my riding of Sackville—Preston—Chezzetcook, in Eastern Passage we have a great company that is growing. It is called Capital Seafood. This will benefit it as well.

Japan and New Zealand would take a 5% elimination of tax and tariffs. There will be no tariffs. They will drop that 5%. Malaysia will eliminate its 8% tariff. Vietnam, over three years, will eliminate its 34% tariff. This is going to be a major advantage to our seafood industry in Canada, and especially for the lobster industry in Atlantic Canada.

Both the Atlantic and Pacific salmon industries in Canada will benefit. How much are we going to eliminate? Of course, the tariffs will be eliminated. We are going to have 18% elimination in Vietnam, enormous sums. In Japan, tariffs will be reduced 3.5% over the next 10 years. In Vietnam, tariffs on frozen fish will be reduced to zero. The 18% tariff will be eliminated. In Japan it will be 10% over 10 years.

My colleague from Malpeque mentioned the fabulous oysters in P.E.I. We have fabulous oysters in Nova Scotia and New Brunswick as well. We are going to see the elimination of those tariffs in Japan, which represents 10.5%.

Those are enormous benefits that we will be seeing in not just the seafood industry but in many sectors across our country.

There are big advantages to signing on early. Three countries have ratified the agreement, and Canada hopes to be the fourth. As my colleague said earlier, there is a minimum of six countries, and we want to be among the first six.

When we are among the first to sign, we can do something that others cannot do, and that is to give it what I call a Canadian flavour. That is what we were able to do with the changes in the last two years following our consultations. We were able to bring forward some labour rights, ensuring some improvements in that area. We were also able to bring forward some safety rights and environmental rights, as well as the protection of intellectual property, technology, etc. These are important areas to Canadians, and we also committed to indigenous people and their rights.

We were able to influence because we were early. We were part of creating the CPTPP and what it is all about. That is a big advantage. Being first is also a big advantage for our industries because we get to establish ourselves. We get to put down our footprint. We are able to get our branding in. When other countries follow, they will have to compete with the best, and that is always more challenging. That is why Canadians will benefit greatly. When the Americans choose to join, they will have to compete like the rest of the countries as well.

This is an important deal for Canadians. It continues the work of our Liberal government. Our government signed off on CETA last year, where we saw the elimination of 98% of tariffs, compared to 25% prior to that deal. An enormous amount of money will be saved. Middle-class Canadians will benefit through jobs. They will benefit as consumers, because they will have access to products. It will be a win-win situation.

Canada is the only country to have a free trade agreement with all G7 nations. Canada is the only country to have a free trade agreement with the Americas, Europe, and the Asia-Pacific region. That is pretty impressive when we think about all of the countries in the world. Canada is not only a major player but a leader as well.

This agreement would also allow us to be less dependent on certain countries, such as the U.S.A., of course. We love Americans and we want to work closely with them. We invite them to sign off on the NAFTA deal as soon as possible and join us here, because together it will be much better.

I have to finish by sharing a quote from Pierre Gratton, the president and CEO of the Mining Association of Canada, who said, “We can't afford to be outside of this trading bloc. ... It would put us at a huge disadvantage.”

As I have indicated in my remarks this afternoon, middle-class Canadians will have many opportunities for better-paying jobs through this deal, and they will benefit from having access to products at a good price.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Madam Speaker, this summer I had the privilege of having the member for Niagara West, the shadow minister for international trade diversification, in my riding. We held a round table in my riding with a number of small business owners and manufacturers. They had some major concerns around many issues: lack of clarity on tariffs; increased government regulation and red tape; increased taxes and the impending carbon tax. However, one of their main concerns was the TPP.

In June, we had the privilege of encouraging the current government to pass the TPP before we left for the summer. There was nothing.

During the summer we said, “Let's meet and get the TPP passed and implemented so that it will start to benefit our trade with our trading partners.” Again there was silence.

My question is this. Today I heard the quote many times about the government being impassioned about this, being enthusiastic about this TPP, yet here we are, months past when we could have passed it. I would like to ask my colleague why there has been this delay. Is it really the fact that the Liberals are so impassioned, or are they finally recognizing that the Conservatives had it right all along and we should have passed it in June?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, one thing our government is doing that is much different from the former Conservative government is that we consult with Canadians. We consult to make sure that we can put strategies and principles in place to ensure a much more level playing field. That is what this agreement does.

The member must keep in mind that at least six countries must sign on for this to come into effect, and only three have signed on already. We will hopefully be the fourth one, so there has been absolutely no delay. We have been hard at work in our constituencies throughout the summer listening to middle-class Canadians so that we are able to bring forward good decisions for middle-class Canadians.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I am not even sure where to begin to bust apart the myths and the misinformation we just heard coming from the other side. However, I will attempt it.

First, the member mentioned CETA. Stats Canada came out and said that our trade since signing on to CETA has declined, that Canadian exports are lower than where they were a year ago before signing on to this agreement. Therefore, the benefits for Canadians are not there. The tanker traffic has increased simply because we have so many imports coming into our country from Europe.

A second point is about labour. I want to let the member know that in the original TPP, the U.S. negotiated some advances with respect to labour. There was a 12-page labour reform plan to allow Vietnamese workers to have free and independent collective bargaining. Canada could not even secure this same commitment and let it go.

In terms of labour as well, under President Obama there were labour consistency plans that were struck with Malaysia and Brunei in an effort to have both countries live up to fundamental labour standards. Again, that is gone with Canada sitting at the negotiating table by itself.

Last, there is the progressive piece. There is no gender chapter, no indigenous persons chapter, and no mention of climate change whatsoever.

If the Liberals are sticking up for the middle class, my question to the member—through you, Madam Speaker—is this: What does he say to the 58,000 manufacturing workers and supply-managed farmers who today are very afraid about losing their livelihood?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, it is a very simple formula. When we are able to open up markets with countries and with the business community across the world of half a billion people and we are able to reduce or eliminate tariffs as we see in this agreement, the solution is very simple: The growth will be tremendous. As I said in my speech, we are going to see a $4.2-billion GDP increase in one year. Those are major improvements.

I understand, as my colleague said earlier: The NDP hate it because they did not do it. If they had the opportunity to do it, then of course they would be talking positively about it.

[Tracey Ramsey, NDP, Essex, ON]

Because we would do it right.

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, instead of trying to break everything apart, the NDP should be helping us to make it better. That is why we are moving forward and we will get it done. Every middle-class Canadian will benefit from this very shortly.

[The Assistant Deputy Speaker, Carol Hughes]

I want to remind the member for Essex that when someone has the floor, she needs to allow that person to speak without being interrupted.

Resuming debate, the hon. member for Don Valley East.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Madam Speaker, I am pleased to rise today to speak to Bill C-79, an act to implement the comprehensive and progressive agreement for the trans-Pacific partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

What would the bill do? Bill C-79 would implement the CPTPP that was signed in San Diego on March 8 and would make all legislative changes required to ratify the CPTPP.

The CPTPP will benefit a wide range of sectors and industries across Canada, from beef and barley to forestry products and seafood. The agreement will enhance the competitiveness of businesses and services, while protecting and preserving our unique culture. Through this agreement, we will improve market access for Canadian businesses and bring economic prosperity to Canadians. We are ensuring real progress.

In my riding of Don Valley East, the many representatives of businesses whom I met over the summer through my meets and greets and coffee meets were thrilled that we were diversifying our markets. They believed it was a long time in coming.

I would like to provide a brief background on the bill.

The CPTPP is one of the largest free trade agreements in the world, comprising 11 countries. The CPTPP was concluded on January 23 and signed on March 8. The parties are now undertaking their respective domestic procedures for ratification and implementation before the agreement can enter into force. The CPTPP represents a trading block of 495 million people and a combined GDP of $13.5 trillion or 13.5% of the global GDP.

In light of all of these positive benefits that would accrue to Canada, our government is committed to the swift ratification and implementation of the comprehensive and progressive agreement for the trans-Pacific partnership. Why? Because this trade agreement will open up markets of an additional 500 million consumers, approximately 15 times the population of Canada, and this is positive because it also represents a combined GDP of $13.5 trillion or 13.5% of the global GDP.

What would this mean for businesses?

In my riding, business people are keen to see the progress and how it will benefit them and the people they employ. Therefore, to them and all businesses interested in this agreement, the agreement will provide preferential market access for Canadian exporters to key markets in the Asia-Pacific region. It will provide additional market access that Canada has with the existing FTA partners: Chile, Mexico and Peru. It will add valuable new market access opportunities with Australia, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam. It will level the playing field for Canadian businesses competing in markets where other countries already have FTAs and in some cases it will create a first-mover advantage over other foreign competitors, especially in the Japanese market.

Through the CPTPP, our government is signalling that it is working hard to diversify trade so the middle class can compete and win on the world stage.

Here are some examples of what the CPTPP will benefit. In the agriculture sector, when the CPTPP enters into force, more than three-quarters of agriculture and agri-food products will benefit from immediate duty-free treatment, with tariffs on many other products to be phased out gradually. This will create new markets for Canadian pork, beef, pulses, fruit and vegetables, malts, grains, cereals, animal feed, maple syrup, wines and spirits, and processed goods. This is a win-win. In my riding, the businesses are very keen on it.

In the fish and seafood area, the CPTPP will eliminate 100% of tariffs on Canadian fish and seafood products. The vast majority of tariffs will be eliminated immediately while a small number will be phased-out over periods of up to 15 years. Tariff eliminations will make Canadian exports of a wide range of products such as salmon, snow crab, herring roe, lobster, shrimp, sea urchins, and oysters more competitive. This is real progress for our fishing industry.

In the area of industrial goods, under the CPTPP, 100% of tariffs on industrial goods and consumer products will be eliminated. The majority of Canadian industrial goods exported to CPTPP countries will be duty free immediately upon entry into force of the agreement, with most remaining tariffs on industrial goods to be eliminated within 10 years, which is another win for all Canadians.

In the forestry and value-added wood products area, the CPTPP will eliminate tariffs on all Canadian exports of forestry and value-added wood products. Many tariffs will be eliminated immediately upon entry into force of this agreement, while others will be phased-out over periods of up to 15 years.

The majority of the businesses in my riding are either in the service industry, investment or government procurement. In the service industry, the CPTPP will provide Canadian service suppliers with more secure access through greater transparency and predictability in the dynamic CPTPP regions. This is important because of governance and transparency issues. I have been travelling across Commonwealth countries and these issues prevent our investors from going there. Therefore, this area will be critical for businesses to look at before they go into different countries. I have many innovative firms in my riding that provide excellent, high-paying jobs, and they are looking for assurance that this portion of the agreement for services where it provides transparency and predictability is very strongly adhered to.

In the investment area, Canadian investors in the CPTPP will benefit from a comprehensive set of investment protection provisions, including against expropriation and denial of justice, backed by a robust mechanism for the resolution of investment disputes. This is critical for Canadian companies as well. As we go around the globe, people may be a little reticent to invest when they do not know what the investment climate is or whether there will be nationalization or any such thing.

In the area of government procurement, the CPTPP will create significant commercial opportunities for Canadian companies in the area of government procurement by improving upon existing access for Canadian businesses in Chile and Peru, and creating new opportunities in Australia, Brunei, Malaysia, and Vietnam. This will allow Canadian companies to compete equally with domestic suppliers in these markets for contracts involving covered goods, services, and construction services.

There are also non-tariff measures that will be advantageous to Canadian businesses, such as new rights and obligations regarding sanitary and phytosanitary measures. This is what we faced when we went into the agriculture and agri-food industries in India.

For the SMEs that are job creators in Canada, the CPTPP is good news. The CPTPP will make it easier for Canadian SMEs to explore and navigate the markets.

There are so many reasons for the House to support the passing of this bill.

[Brigitte Sansoucy, NDP, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, I represent a very agricultural riding, a riding where agriculture is very diverse. I am well aware that some sectors fare better than others when an agreement is signed. What I am hearing in my riding is that the farmers in sectors that might benefit from the agreement do not want to do so at the expense of other sectors. They are certainly not prepared to benefit at the expense of industries that produce staples such as milk and eggs.

Should we not be asking questions about food security when we sign international trade agreements like this one?

Will this agreement jeopardize some of our industries, making us dependent on other countries for our basic food needs?

To me, food security should be a central consideration in these discussions, but that does not seem to be the case so far.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Madam Speaker, it is important to understand that we cannot do hypothetical analysis. We have to do a very thorough reading. We have key stakeholders who need to be consulted as well. This is not a fait accompli. This is an agreement that needs due diligence through our various committees. I suggest that be done because we cannot sit back and say that we will not trade with anyone, that we will not assign agreements. That is not our way. The globe is shrinking and we need to be part of it.

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

Madam Speaker, I want to thank my colleague for her speech and wish her a good parliamentary season.

This is a very important issue to all parliamentarians. This summer, the official opposition asked the government to ratify the CPTPP sooner. We need to do it soon because Canada absolutely needs to be among the first six countries to ratify the CPTPP so it can take full advantage of the markets that the agreement will open up.

The CPTPP will enter into force 60 days after being ratified by the first six countries. If Canada is not among the first six countries, our beef and grain producers and all those who will want access to this market will miss out on getting first pick and will be stuck with whatever is left.

The Liberal government has spoken today about the urgent need to adopt and ratify the CPTPP, but why did it refuse to do so before we adjourned in June? Why did it reject our proposal to recall the House for a special sitting this summer in order to be among the first six countries?

My question is simple, and I would like an answer.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Madam Speaker, I would like to reflect on the marathon sessions we have had. This was where we put a lot into the government agenda. When the opposition does marathon sessions for no rhyme nor reason, or holds up the government's agenda and then comes back and says that we should have done it in June, that is a little too rich for my liking.

In fact, we wanted time to consult. We are not ramming anything through. We are asking for consultation. We have a whole list of stakeholders who would be interested in being consulted on this agreement.