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.

Second Reading

[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, Parliamentary Secretary to the Minister of Foreign Affairs (Consular Affairs), Lib.]

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]

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.

[Wayne Stetski, NDP, Kootenay—Columbia, BC]

Mr. Speaker, I have a fairly simple question. In my riding, in the town of Creston and area, dairy farming is a very important part of the agriculture industry and the economy. It seems like with every trade deal that gets signed dairy is sacrificed. I would like to hear from my colleague across the floor why it is okay to continually sacrifice our dairy farmers in these trade agreements.

[Pam Goldsmith-Jones]

Mr. Speaker, this is the party of supply management. We firmly support and will continue to defend supply management.

With regard to the CETA agreement, I was part of the cheese quotas and the compensation out of regard for supply management. There is no doubt in my mind we will continue to defend it strongly.

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

Mr. Speaker, I listened closely to the parliamentary secretary's speech about the CPTPP, an incredible agreement that will open a market of 500 million people.

I would like my hon. colleague to talk about the spinoffs that this agreement will have in her riding, particularly for SMEs, but also for women entrepreneurs. That is a very important aspect.

[Pam Goldsmith-Jones]

Mr. Speaker, the opportunity for women entrepreneurs is a key aspect of the CPTPP. While I had the honour of serving as the parliamentary secretary to the minister of international trade, I spent quite a bit of time in countries like Malaysia, Vietnam, Brunei and Singapore, convening round tables of women entrepreneurs. That has been very well received. Canada is seen as a leader in supporting women in small business, and certainly the CPTPP is evidence of that.

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

Mr. Speaker, the member has not talked about first nations and how they are affected by the CPTPP.

The member's party recently indicated its support for the United Nations Declaration on the Rights of Indigenous Peoples, yet the government has failed to consult indigenous peoples on the CPTPP.

Does the member not believe that consultation with, and consent by, indigenous peoples is critical for reconciliation, and that there should be a chapter and provision in this deal that ensures that is reflected?

[Pam Goldsmith-Jones]

Mr. Speaker, there is no relationship that is more important to the government than with indigenous peoples, Métis, and Inuit, first nations.

This is an opportunity to discuss the new position of the ombudsperson for corporate social responsibility, because it takes into account the rights of indigenous peoples, particularly in the countries of the CPTPP and globally. Furthermore, with regard to culture, it is very important to our country to defend our unique and inclusive culture.

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

Mr. Speaker,

[Member spoke in Cree]

I am pleased to have the opportunity today to talk about the significant benefits of the comprehensive and progressive agreement for trans-Pacific partnership, or CPTPP. I want to talk specifically about the Canadian fish and seafood sector.

This agreement is extremely important not only for Canada, but also for Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. It is also important for us to have access to those markets.

The Canadian fish and seafood sector is vital to our economy and essential to maintaining a solid employment base in a diverse economy. We are fortunate to have a very prosperous fish and seafood sector. It contributes more than $2 billion to Canada's GDP annually and provides more than 76,000 jobs for Canadians.

Regionally, this sector offers economic opportunities to countless communities both on the coasts and even in Canada's interior.

In the west, employment in British Columbia's fish and seafood industry accounts for approximately 12% of all jobs in this sector across Canada. In the Maritimes, more than two-thirds of the entire Canadian fish and seafood sector is employed across the provinces of New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. Fishing is also important in Quebec and our northern communities in Yukon and Nunavut, while freshwater fishing is notably important for Manitoba.

Commercial fishing is a valued industry in Manitoba. For over 100 years, Manitobans have been commercially fishing and harvesting fish. The majority of production comes from Lake Winnipeg and Lake Manitoba, but seven smaller lakes in the south and northern Manitoba are also fished. The resource is managed through the use of quotas, the mesh size of gillnets, by season, and by regulation of the number of licenced fishers. The management tools allow fish populations and the industry to remain viable. They also ensure that resources are shared equitably on all the lakes with not only non-indigenous people but also treaty indigenous people and Métis people. Since almost all of the commercial production is sold out of the country, the $30 million in annual sales represents a significant and important contribution to the livelihoods of Manitoba fishing families.

In Manitoba, it is also important to maintain high quality. Manitoba is the only jurisdiction in the western hemisphere with an eco certified freshwater market. We have achieved a Marine Stewardship Council certification and are very proud of that. Now, 85% of the total fish harvested in Manitoba is exported to other markets. There are 3,155 licenced fishermen in Manitoba and 83% of these are of indigenous descent. They help support many indigenous communities and help provide a good livelihood and support for many families. There are 46 communities and first nations who are involved in this fishery and 294 resulting direct jobs that have improved people's quality of life from their involvement in the fishery. Many Canadians' jobs and livelihood depend on this sector, which is the economic mainstay of approximately 1,500 communities in rural and coastal Canada.

I will now focus on why free trade agreements and the CPTPP in particular are necessary to sustain and develop Canada's fish and seafood industry.

Simply put, Canada's fisheries and aquaculture industries produce high-quality, sustainably sourced fish and seafood that help feed the world. The Canadian fish and seafood industry is export-oriented and depends on international markets. In Asia, increased demand from the region's growing middle class represents enormous potential for Canadian exporters of high-quality fish and seafood products.

Once the CPTPP enters into force, it will provide Canadian fish and seafood exporters with preferential access to one of the largest trading blocs in the world, representing close to 500 million people and 13.5% of global GDP. Altogether, Canadians exported an annual average of $732 million in fish and seafood products to CPTPP markets from 2015 to 2017.

Japan is one CPTPP market where Canadian companies can expect huge growth opportunities. Japan is the third-largest economy in the world and imports more than 60% of its food on a caloric basis, so its demand for imported foods is high.

Right now, Canada's ability to compete in the CPTPP markets is hindered by the high tariffs imposed on fish and seafood products like frozen snow crab, lobster, salmon, fish fillets, and oysters. These tariffs can range from 3.5% to 34% in CPTPP countries like Japan, Malaysia, Vietnam, and New Zealand.

When the agreement enters into force, more than 90% of the fish and seafood tariff lines will immediately become duty-free for Canadian exports, which had an average annual value of $647 million between 2015 and 2017. The remaining 10% will be phased out within 15 years.

For example, close to 66% of Japan's fish and seafood tariff lines will be eliminated upon entry into force of the agreement, providing preferential market access for Canada's premium fish and seafood products, such as lobster, crab, shrimp, salmon, herring roe, sea urchins and halibut. Eighty-three per cent of Vietnam's fish and seafood tariff lines will become duty free upon entry into force, while all Canadian fish and seafood exports to Malaysia will become duty free on day one. Enhanced market access for Canadian companies through the CPTPP will create the conditions for increased exports and will contribute to the vitality of the sector and its greater long-term prosperity.

Additional rules for streamlined customs and administration procedures, as well as enhanced regulatory co-operation, will also help Canadian exporters and suppliers save time and money at the borders of CPTPP countries. With increased access and less red tape, these products will gain an advantage over those of competitors from countries that do not have preferential access to CPTPP markets. At the same time, each CPTPP party will maintain the right to take measures necessary for food safety and to protect against risks to animal or plant life or health while helping to ensure that market access gains are not undermined by unnecessary trade restrictions.

The CPTPP's clear rules on developing, adopting and implementing measures for food safety and the protection of animals, plant life and health ensure that any measures will be science based, risk based and transparent. Ultimately, these provisions will create a predictable training environment for CPTPP members, giving manufacturers and exporters a leg up in prospective markets. Consultations with the fish and seafood industry have been overwhelmingly positive. The feedback from Canadians making a living in this sector is that the fish and seafood industry stands to benefit from the elimination of tariffs, and they are excited about this agreement.

The CPTPP also includes an environment chapter that addresses a number of important global environmental challenges with binding commitments from CPTPP members to, among other things, combat illegal, unreported and unregulated fishing and promote sustainable fisheries management, including through obligations to prohibit subsidies that negatively affect fish stocks. The environment chapter also establishes a framework for co-operation in areas of mutual interest. This includes, for example, working together to mitigate the impacts of climate change, promote and conserve biodiversity, address the illegal wildlife trade, combat invasive alien species and promote sustainable fisheries practices. By maintaining policy flexibility in areas, including fisheries and aquaculture, Canada will ensure the sustainability of our valuable fish resources now and into the future.

By increasing and diversifying Canada's presence in major seafood markets in the Asia-Pacific region, this trade agreement has the potential to provide significant benefits to thousands of Canadians. By providing duty-free access to this huge market, CPTPP will help put more of our country's world-class fish and seafood products on more dinner plates and tables around the world. The fish and seafood sector contributes greatly to Canada's economic prosperity and standard of living, especially our coastal regions, but also to indigenous communities in the interior like Manitoba, and is vital to long-term growth.

I am fully committed to supporting this sector and to ensuring that it remains a vibrant and integral part of Canada's culture and economy. That is why I encourage all members of the House to vote in support of this bill, to allow us to implement the CPTPP in order for Canadians, including indigenous fishermen and all fishermen in Manitoba, to reap its benefits.

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

Mr. Speaker, we know that Canada has lost billions of dollars in legal fees and payouts due to the investor-state provisions in NAFTA, so I wonder why the government is continuing to push trade deals that entrench these provisions that will continue to undermine our sovereignty and ability to regulate in the best public interest.

We know that indigenous communities have raised these concerns repeatedly. The member's party recently indicated its support for UNDRIP and the government still has failed to consult indigenous peoples on the CPTPP. Why is the member supportive of this trade agreement when the government has not consulted indigenous peoples? We know how critical consultation is for reconciliation and building trust with those communities, as well as ensuring that they have the sovereignty to protect themselves.

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

Mr. Speaker, I have been involved in many consultations working with first nations communities in Manitoba talking about the importance of the fisheries. For instance, with respect to the Freshwater Fish Marketing Corporation, the Conservative government in Manitoba actually removed Manitoba from the Freshwater Fish Marketing Act and essentially caused a bit of chaos in the freshwater lake fisheries in Manitoba, which impacts indigenous fishers. Eighty-three per cent of the fishers in Manitoba are indigenous.

I spent a long time talking to the Assembly of Manitoba Chiefs and other groups, like the Manitoba Metis Federation, as well as other colleagues in the Manitoba caucus. We discussed how these fishers could eventually buy the corporation so they could be the owners not only of this resource but of how they market the fish and where that fish eventually goes. They could be real true partners in what actually happens. This is part and parcel of the things I am working on in Manitoba.

Obviously, there are a few other questions and ideas the member raised related to chapter 19 of NAFTA, as well as other things, like how we resolve disputes. These are very important considerations. However, if we do not have those agreements and someone puts tariffs on our products, how do we then resolve that question? Do we start a trade war or do we have a mechanism where we could actually have an agreement and come to some sort of conclusion about unfair trade practices which may be on both sides?

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

Mr. Speaker, I would like to congratulate my colleague on his speech on this second day of our return to Parliament. His support for this very important deal is clear.

We are looking at GDP increasing by $4.2 billion in the first year. We are talking about Canadians having access to half a billion people who can purchase products. We are also talking about the Canadian economy and the small business community and the middle-class being able to import various products tariff-free. I would like my colleague to share his opinion on small business and the middle class and how his community and surrounding areas would benefit from this very important deal that would improve access to products and markets for our products, because we are the richest country in the world in natural resources.