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.

(The House divided on the motion, which was agreed to on the following division:)

Vote #881

Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act

[The Speaker, Liberal, Geoff Regan]

I declare the motion carried.

The House resumed from September 17 consideration of the motion that Bill C-79, 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, be read the second time and referred to a committee, and of the amendment.

Second Reading

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Mr. Speaker, as I have the opportunity to speak to Bill C-79 today, I would like to extend my best wishes to people in Edmonton Centre, who are braving the snow and looking forward to a sunny fall before the snow actually stays for the winter.

I will be sharing my time with my esteemed colleague from Rivière-des-Mille-Îles. We are beginning the debate on Bill C-79.

Our government strongly believes that the comprehensive and progressive agreement for trans-Pacific partnership, or CPTPP, is the best deal for Canadians and for our economy. The CPTPP is a historic new agreement between Canada and 10 other countries in the Asia-Pacific region, namely Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

Once it comes into effect, the CPTPP will constitute one of the largest trading blocs in the world, representing close to 500 million people and 13.5% of global GDP. The agreement will generate major economic benefits for Canada thanks to trade with countries like Japan, our fourth-largest trading partner and top source of investment from Asia, and with fast-growing economies like Malaysia and Vietnam.

Today, I would like to speak to how the CPTPP will facilitate foreign investment into Canada and provide protections for Canadians looking to invest in CPTPP markets. Investment at home and abroad is vital for the Canadian economy. Foreign investment contributes to job creation across the country. It also promotes trade by facilitating integration into global value chains, improving access to new technologies and enhancing our competitiveness.

According to economic modelling by Global Affairs Canada, the CPTPP will spur an additional 810 million dollars' worth of investment into Canada, and will encourage increased and diversified Canadian investment throughout the Asia-Pacific region. It will achieve this by creating a predictable investment environment to ensure that investors are treated in a fair and equitable manner in all CPTPP markets. If a company is going to invest its capital abroad, it needs to know that capital is safe and secure and is going to provide a return on investment.

The CPTPP will establish a comprehensive and enforceable set of investment protection provisions. It will provide new, more robust obligations on non-discriminatory treatment of CPTPP businesses and investors. These will benefit Canadian businesses through better protection from expropriation or nationalization without compensation, elimination of unfair requirements on foreign investments that favour domestic industries, and easier transfer of capital and profits to and from the host country.

To ensure that these obligations are observed by all member countries, the CPTPP also introduces and includes a fair and impartial mechanism for the resolution of disputes. Investor-state dispute settlement, or ISDS, is an important component of international trade and investment agreements. With an ISDS mechanism in place, Canadian investors will have greater confidence that they will be treated in a fair and transparent manner in other CPTPP markets. It will also provide an impartial means to resolve any investment-related disputes in the event that specific obligations under the CPTPP are breached by a government. Such protections will help facilitate two-way investment by providing a transparent and predictable investment-friendly environment.

The agreement, once implemented, will encourage Canadian companies to look to fast-growing markets across the CPTPP region to grow their businesses. It will encourage investment in Canada and CPTPP countries. It will also connect Canadians with partner investors and businesses in new markets, and help our businesses further integrate into global supply chains. In doing so, it will create new opportunities and generate jobs for Canada.

It is important to emphasize that while the CPTPP's ISDS rules will help protect Canadian investors abroad and serve to attract foreign investment to Canada, the rules outlined in the CPTPP will also preserve the Government of Canada's right to regulate to achieve legitimate policy objectives. Under the CPTPP, Canada has taken certain exemptions to CPTPP obligations that allow continued policy flexibility to regulate in the public interest in sensitive areas such as health, education, indigenous affairs, culture, fisheries and certain transportation services.

Foreign investors in Canada and all the other CPTPP nations will be required to follow the same laws and regulations as Canadian investors, including laws and regulations aimed at protecting the environment and maintaining high workplace health and safety standards.

The investor-state dispute settlement mechanism, or ISDS, gives investors a way to resolve disputes without resorting to the national justice system of the host nation, but it is not a blank cheque. Damages could only be recovered if specific requirements under the agreement were violated. The ISDS tribunals would never have the power to nullify government decisions or laws. They would only be authorized to grant investors compensation for damages resulting from violations of the treaty.

By suspending certain ISDS provisions that were included in the original TPP, the CPTPP ensures that the ISDS complies with Canada's standard, balanced approach to investment obligations in free trade agreements.

This reflects the concerns that were heard from Canadians through extensive consultations, and I am proud to say that the CPTPP gets ISDS right.

To reiterate, CPTPP will not prevent Canada from protecting the environment or maintaining or enhancing labour, health, and safety standards. In short, it will allow us to continue promoting the values that Canadians cherish, which are the values that make us Canadian.

I would like to highlight for residents of Edmonton Centre, and for all Albertans, that this CPTPP is one of the most comprehensive trade agreements that our country will enter into. It comprises 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Once approved, it will open up a market of an additional 500 million consumers, resulting in 40% of the world economy being able to trade with us when we add in CETA, NAFTA and South Korea. This demonstrates our commitment to opening up new markets. It is an important agreement because it will eliminate over 95% of tariff lines, representing over 98% of total trade and over 99% of Canada's exports.

I want to highlight the importance of this for Alberta industry and Edmonton companies. Let us take a look at the agriculture provision.

When 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 means new market access opportunities for Canadian pork, beef, pulses, fruit and vegetables, malt, grains, cereals, animal feeds, maple syrup, wines and spirits, and then processed grain and pulse products as well. All of these products hail from my province of Alberta.

Let us take a look at industrial goods. Under the agreement, 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 the entry into force of the agreement, with most remaining tariffs on industrial goods to be eliminated within 10 years. That is also good for Alberta and Edmonton businesses.

On forestry and value-added wood products, CPTPP will eliminate tariffs on all Canadian exports of forestry and value-added wood products. Many will enter into force immediately, while others will be phased out over 15 years.

With regard to services, our economy is diversifying in Alberta. Many companies in my own city of Edmonton will love the provision in CPTPP that will provide more secure access through greater transparency and predictability in the dynamic CPTPP region.

I would like us to think about professional sectors like engineering, architecture and those related to environment and mining. My riding of Edmonton Centre alone is headquarters to the seventh-largest engineering and design firm in the world, Stantec, and one of the world's largest construction companies, Poole Construction Limited, known as PCL. This is the kind of free trade deal that allows these companies, as well as small and medium-sized enterprises, to continue expanding around the world.

In terms of government procurement, this agreement will provide more transparency and opportunity for companies in my hometown of Morinville, in St. Albert and in Edmonton to compete on the global stage. It is what we promised Canadians during the campaign. It is what our government has been doing. It is what we will continue to do: opening up markets, creating jobs, and growing the Canadian economy.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I would like to raise a question about what is not in this deal. This deal looks like it was maybe drafted in the 1990s. There is no mention of climate action and no mention of sustainable development. It contains very dated environmental measures. It completely derogates from the strong measures in the North American Agreement on Environmental Cooperation. There is no council of ministers, and no right of the public to petition on a complaint of failed enforcement. It fails to recognize the rights in Canadian law for citizens to file environmental actions.

The member and his government always say the environment can go hand in glove with economic development and trade. Why then is it accepting downgraded measures that were put in place decades ago in the NAFTA agreement?

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Mr. Speaker, as our government has said and will continue to say, the environment and the economy go hand in hand. That is why we have worked hard with member nations in this agreement and in others to ensure high environmental standards. In the case of CPTPP, as I mentioned, there are exemptions in Canada for culture, labour and environmental considerations.

As it pertains to this agreement, this is about opening up markets to half a billion of the world's consumers and making sure Canadian businesses can compete on the global stage.

We take our environmental responsibilities very seriously here at home and abroad, and we will continue to do so.

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

Mr. Speaker, as we settle back into our roles here in the House, I thank my colleague for his pointed and passionate speech, which is reminiscent of the speeches he made over the past three years.

I would like my colleague to expand on the CPTTP. Canada is getting $4.8 billion in GDP per year from it. This is enormous. He knows, as I do, that Canada is one of the richest countries in the world when it comes to natural resources. This is a major agreement that would benefit Canadians from coast to coast to coast. I would like him to share how he sees the different industries in Canada benefiting from the agreement and how the middle class would benefit from jobs, opportunities and access to markets.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Mr. Speaker, I thank my hon. colleague for his passion, which has not diminished over three years. It is an important opportunity to mention that all of the provisions of the CPTPP would benefit small and medium-sized enterprises. We know they represent well over 95% of businesses and job creation in the country.

The fish and seafood provision alone would eliminate 100% of tariffs on Canadian fish and seafood products. We know what that means to fishers coast to coast to coast who are trying to export their goods around the world. CPTPP is good for them and middle-class families.

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

Mr. Speaker, we wanted to have an emergency session in July on Bill C-79, but the government refused our proposal. Why?

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Mr. Speaker, the answer is simple: we are debating the CPTPP now. It is good for Canadians, for the middle class, for economic growth and for job creation. We are doing the work today. That is what we promised and what we are going to do.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am pleased to rise today as the proud member for Rivière-des-Mille-Îles.

The trans-Pacific partnership is a very important agreement. As the member for Edmonton Centre said earlier, Bill C-79 is historically significant. It opens up a new market of 500 million consumers. This will help SMEs and create jobs for the middle class. It is something that is very important to me.

For two and a half years I was a member of the Standing Committee on International Trade, where we studied this agreement. We visited this country from coast to coast, meeting people in many towns and cities in every province. We wanted to give everyone a chance to have their say on this very important matter. We also met with many representatives from the labour movement, civil society, business associations and chambers of commerce. We were also the first committee to have open-mic meetings so that everyone would have a chance to speak, and we certainly took their comments into consideration.

Let's think about it: eleven countries, namely Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam managed to come together to reach such an important agreement. We are opening up access to these markets and that is very important. We already have a free trade agreement with Europe, we will have one with Asia-Pacific countries, and we are currently negotiating to open up markets. With all these free trade agreements, Canada will be well positioned to grow the middle class and create good jobs for our SMEs.

I am very pleased to talk about the CPTPP and the positive impact it will have on businesses in Canada's industrial and manufacturing sectors.

My riding is a suburb north of Montreal with a huge number of SMEs and businesses that work in the aerospace, agrifood, and food processing sectors. These sectors produce a wide range of products across the country from cars to medical equipment, metals, chemical products and plastics. They are key components of our country's economy that employ 1.7 million highly qualified Canadians full time and account for nearly 11% of Canada's GDP.

Our government firmly believes that the CPTPP is an ideal agreement for Canadians and for our economy. This is a top-notch trade agreement that will help increase Canadian exports.

As a cornerstone of our government's comprehensive effort to enhance Canada's engagement with the dynamic, fast growing and increasingly influential Asian markets, it is an important part of our commitment to diversify trade, grow our economy and strengthen our country's middle class. Trade and investment flows between Canada and Asian economies have increased significantly since the turn of the century. From 2014 to 2016, Canada's exports of industrial and manufactured goods to CPTPP countries accounted for an annual average of $22.4 billion.

By eliminating nearly 100% of tariffs on manufactured goods, including some tariffs that are as high as 85%, and creating mechanisms to address non-tariff barriers to trade, the CPTPP would create opportunities for world-class Canadian businesses to increase their sales. Once the agreement enters into force, it will enable Canadian exporters to access diverse and internationally integrated value chains. On day one of the agreement's coming into force, there will be no tariffs on over 87% of industrial tariff lines covering Canadian exports to CPTPP markets worth an annual average of $19.5 billion from 2015 to 2017.

What does this mean for our industries? Allow me to provide a few examples.

For Canada's multi-billion dollar chemicals and plastics industry, the CPTPP will provide opportunities for companies, from those in Ontario, the hub of Canada's plastics industry, to cutting-edge chemical facilities in Alberta. With improved market access from the elimination of tariffs of as high as 50%, this industry will increase its annual average of $1.1 billion in exports to CPTPP markets.

With respect to metals and minerals, a sector contributing nearly 600,000 jobs across Canada and exporting $5 billion in goods to CPTPP markets, the agreement will result in the elimination of all tariffs, some as high as 50%. As a result, highly sought-after Canadian aluminum, steel, iron, petroleum products and precious metals will become even more competitive in such markets as Japan, Australia, Malaysia and Vietnam.

Canada's information and communication technologies sector, critical to major urban centres across Canada, is also well positioned under the CPTPP to meet growing needs within established and developing markets in the Asia-Pacific. In addition to eliminating tariffs, the agreement will protect companies from having to divulge their proprietary information in order to sell their products in CPTPP markets.

Our government listened to what Canadians had to say about the auto industry and made their concerns a priority. As part of the CPTPP negotiations, Canada obtained bilateral side letters from Australia and Malaysia in order to establish more liberal rules of origin, which would allow our automobile manufacturers to benefit from preferential tariff treatment on those markets without having to change their existing production models. We also reached bilateral agreements with Japan and Malaysia regarding standards and regulations in the automobile industry, a key demand of industry stakeholders.

Those are just a few examples of the industries that could benefit from the CPTPP. By making Canada's industrial and manufacturing exports more competitive and by cutting the red tape that hinders access to dynamic, growing markets, the CPTPP will give Canadian businesses significant opportunities to increase their profits and create new quality jobs for the middle class.

Beyond tariff reduction, another aspect of the CPTPP that stands to benefit Canadian companies in these sectors is in the area of intellectual property. The CPTPP's provisions on intellectual property cover virtually all areas of trade and IP, including copyright, patents, trademarks, geographical indication, industrial designs, domain names, and enforcement. Most importantly, the protection and enforcement of intellectual property rights will help protect Canadian innovation and investment as our businesses trade abroad. For many Canadian businesses, one of the most significant barriers to trade in some markets is uncertainty over the protection of intellectual property, including whether their intellectual property rights will be respected and enforced.

As a result, innovative Canadian businesses will be better able to market their products on the established, rapidly expanding Asian markets.

Beyond tariff reduction and intellectual property rules, the CPTPP also addresses the costly non-tariff obstacles preventing Canadian companies from entering foreign markets. All CPTPP members have committed to eliminating restrictive red tape in sectors such as cosmetics, medical instruments, pharmaceuticals, and ICTs, and this will give Canadian manufacturing exporters greater certainty and predictability with the competitive advantages they have gained.

The CPTPP marks a very important step in the history of trade in Canada. This agreement will be instrumental in diversifying our markets and promoting economic prosperity here at home. By establishing an effective, transparent, rule-based trade system with one of the most dynamic and fastest growing regions in the world, the CPTPP will open up new possibilities for exporters in our industrial and manufacturing sectors.

I also want to point out that we secured a cultural exception, which is very important for Quebec and for official languages.

[Fin Donnelly, NDP, Port Moody—Coquitlam, BC]

Mr. Speaker, studies show that up to 60,000 jobs could be lost due to the CPTPP.

The economic analysis conducted by the government concludes that the CPTPP would generate economic gains for Canada of about $4.2 billion over 22 years. The $4.2 billion represents the same level of economic output in terms of GDP, gross domestic product, that Canada generates in one day.

Could the member tell us why the government insists on pushing through this deal with such limited gains, a deal that poses grave dangers to labour standards, the environment, manufacturing, and supply-managed sectors?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I thank my hon. colleague for his question.

I was always a bit surprised when I was a member of the Standing Committee on International Trade. We often asked the New Democrats if there was any free trade deal they supported. We have created 500,000 jobs since we took office three years ago in 2015. That is a lot. We have not seen this sort of employment situation for 40 years. I am still at a bit of a loss.

Is there any free trade agreement in the world that the NDP supports?

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

Mr. Speaker, one of the exciting things about this trade agreement is that it strengthens our relationship with a key partner in the Pacific, Japan.

Japan has a great need for a secure supply of energy. It imports the vast majority of its energy resources, much of it coming from the Middle East through the South China Sea. In particular, strengthening our energy relationship with Japan presents a great opportunity for deepening our economic and other relationship with Japan.

So much of the potential of this trade agreement to increase our commercial ties with Asia depends on our ability to get our resources to market. Specifically, we have seen, over the summer, the failure of the government when it comes to actually proceeding with a pipeline it had promised and that would have allowed us to do better at accessing Asian markets for our energy resources.

Could the member explain to me why the government decided to buy the pipeline with no plan to actually get it built? Given that we are in support of this trade agreement, what is the government's plan to actually proceed with the critical infrastructure for getting our energy resources to the west coast that would allow us to benefit from some of these opportunities?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I thank my hon. colleague for his question. He talked about Japan and so I will too.

One thing that often came up when the international trade committee was examining the trans-Pacific partnership was that Japan was so happy to know that we would have an agreement on fish and seafood coming from the Maritimes and the Pacific. The Japanese are pleased to know that they will be able to buy these products without tariffs. There will be an increase in exports of lobster, fish, snow crab and oysters, foods that people in Japan love to eat.

I want to assure my colleagues that we are going to do everything in our power to ensure that our natural resources reach Asia.