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 bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Oct. 16, 2018 Passed 3rd reading and adoption of 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
Oct. 3, 2018 Passed Concurrence at report stage of 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
Oct. 3, 2018 Failed 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 (report stage amendment)
Oct. 3, 2018 Failed 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 (report stage amendment)
Oct. 3, 2018 Passed Time allocation for 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
Sept. 18, 2018 Passed 2nd reading of 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
Sept. 18, 2018 Failed 2nd reading of 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 (reasoned amendment)
Sept. 18, 2018 Passed Time allocation for 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

Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 4:30 p.m.
See context

NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, it is always good to be back in the House. It is good to see all of my colleagues here. I had a wonderful time in my riding of North Island—Powell River spending time with constituents and hearing their concerns. I am sure that most of the members here did the same in their ridings.

I am here today to debate at second reading Bill C-79, which is an act to implement the comprehensive and progressive agreement for the trans-Pacific partnership between Canada and 10 other countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. It is very important that we have an opportunity to debate this implementing legislation as the CPTPP is a huge agreement with far-reaching implications for Canadians.

In my riding of North Island—Powell River, there are several businesses that trade internationally. They are good businesses that provide jobs that support people meaningfully. I want to see trade that benefits people, businesses and communities in this wonderful country of Canada.

The other part of living in my riding is the fact that my communities and I have lived through very hard times. I currently am seeing some of those hard times in some of the communities in my riding. An example in the past is when the mill shut down in Campbell River. I saw a lot of people lose their incomes. Soon afterward, some lost their homes. Many had to have one partner travel to another community to work while the remaining family members stayed at home and did their very best to survive. It was really hard as people lost their savings, and in many cases lost their physical and/or mental health.

Losing one's job is absolutely terrifying. It is the very thing that puts food on the table and puts a roof over one's head. When people lose their job and cannot find meaningful employment, it can break so much in their life. I think of a community right now in my riding, Port Alice, which has been waiting several years for the mill to reopen after years of being closed. It is getting to the point that the mayor and council are having to make some very hard decisions about what resources they can have available to the people in their community and what resources they are going to have to shut down. No one wants to be in that position.

I think about Catalyst Paper in Powell River and how the community came together to work so hard. The community, the unions, the mayor and council, the local representative from the province and I fought hard to overturn the countervailing duties. It was a lot of hard work. I really appreciate how hard the community and the business worked together. It was a big relief when those countervailing duties were overturned. However, during that time when so many in the community were unsure of what was going to happen and the community was worried that the mill would be shut down, I got a lot of emails and letters about that and their stress. They shared with me their concern. They wanted to know what it would mean for workers and the community at large. I want to thank everyone again for their amazing work in addressing this issue. It is a very scary situation to be in.

These are but a few of the realities that the people I represent face and are currently facing. With the CPTPP, this is what too many Canadians are facing. Those occupying the 58,000 jobs under threat are facing this type of experience going forward. As parliamentarians, we must take very seriously that the CPTPP threatens to kill thousands of good Canadian jobs. Once these jobs are gone, they are not easily replaced, and when they are replaced, it is often precarious, part-time, and low-wage work, or community members have to leave their community and families behind.

It is the government's job to make sure that when we make opportunities for trade we open more doors rather than close them. Therefore, I hope that as we debate this issue, all parliamentarians keep in mind that the economic analysis conducted by Global Affairs Canada concluded that the CPTPP would generate economic gains for Canada of $4.2 billion. That sounds good, until we realize that this is over a period of 22 years. This is minimal. The sum of $4.2 billion represents the same level of economic output measured as gross domestic product Canada generates in one day. When we hold on one hand 58,000 family-supporting jobs and on the other $4.2 billion over 22 years, I am always going to vote to keep people working.

Some of my constituents have asked what the difference is between the TPP and the CPTPP. Well, besides more letters, I have to point out that there are not many differences. I am very sad to say that it contains the same harmful provisions on auto, dairy, temporary foreign workers, labour mobility, and investor-state dispute settlement. The idea that the TPP was somehow transformed into something progressive is simply not the reality of the text. In fact, it appears to be an attempt to mislead Canadians.

In the communities I represent there are concerns about keeping people in our communities working. This trade agreement would allow companies to bring in temporary foreign workers without a permit process or a study on labour market impacts. Many of my constituents agree with me when I say that if someone comes to Canada as a temporary worker, he or she should be allowed to stay when filling in a long-term job. I am shocked when long-term work is filled in again and again with changing temporary foreign workers. That is simply not temporary work.

When I look at our small communities and the challenges we face to attract and retain people, and as a parent who hopes that her children will settle close to home once their education is done, the ability of businesses to not connect with the local labour market and provide meaningful employment to the people in our communities concerns me deeply. The CPTPP expands these loopholes for companies to do this.

What is also missing from this trade agreement is the complete lack of safeguards in place to guarantee that foreign workers are getting paid what is in their contract with the employer. I spent over eight years working as the executive director of the Immigrant Welcome Centre serving all of north Vancouver Island. It was my job to support newcomers as they came to Canada, and they came in many different ways. Many migrant workers who came to our communities in the region had very positive experiences. There were a rare few who did not. The lack of support for these folks was just appalling. It is very hard to speak up against injustice when the risk to do so is so high. How can this be called a progressive trade agreement when this fundamental right has absolutely no safeguards for implementation? This is a severe gap and something that should be addressed seriously. That this is not being addressed is shameful in a country as great as Canada.

The response by the government to address many of these serious issues is to refer to the side letters. In fact, this is where the Liberals will point to in addressing all of the concerns that the New Democrats have. However, the reality is that these side letters are created with aspirational language that has absolutely zero enforceability. This is a serious problem. This is also where the Liberals point to the so-called progressive elements which carry very little weight compared to the text of the main agreement. Side letters simply cannot supersede the text of the main agreement, and a side letter is not enforceable through the agreement's dispute settlement mechanisms unless it is explicitly mentioned. This is a reality.

I would really like to hear the Liberals address this in a reasonable way. It is time for a meaningful conversation about these issues. Quite frankly, I am tired of simply being accused of being a person who does not support trade at all. What we are asking for is the basic rights of people in this country to be appreciated. We are asking for the meaningful work that supplies families with jobs, that helps them put food on the table, that helps them put their children into school, be respected, and that if something is going to happen, we do not abandon those communities or those sectors but we stand with them and make sure that the outcome is not as terrifying as this trade agreement is setting them up for.

In closing, I look forward to meaningful questions that really talk about this trade agreement. I have a lot of concerns, but my concerns are reflective of so many Canadians out there. What they want to hear are reasonable answers to those concerns.

I look forward to the debate. I know that this is not going to go the way I want it to go, but I want the government to understand that we will bring up the voices of these people every single time, because the workers deserve to be supported and this country could do so much better.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 4:10 p.m.
See context

Liberal

Celina Caesar-Chavannes Liberal Whitby, ON

Madam Speaker, I would like to take this opportunity to express my support for 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. I really do support this piece of legislation, particularly because where I come from in Whitby we have a lot of small businesses. We have a lot of middle-class families that depend on the growth and success of their businesses to be be able to provide for their children and to be able to provide for themselves for years to come.

The fact is that the CPTPP allows access to Asia-Pacific markets. It is something that will really benefit not just the people of Whitby or the people of Durham region, but people right across the country.

This particular agreement will open a market to an additional 500 million customers, resulting in 40% of the world economy. This allows us to not be solely reliant on the bulk of our trade going to the United States but opens up those markets and allows our businesses to be able to thrive in other jurisdictions. It is one of the largest free trade agreements in the world with access to a trading bloc of 495 million people, with a combined GDP of over $13.5 trillion. Canadian businesses will get preferential access, market access for our exporters to key markets in the Asia-Pacific region. I think that is critically important.

One of the things that Canadians need to understand about this agreement and one of the things that we want to ensure that Canadians know and Canadian business owners know is that we have full confidence in their ability to grow their businesses and to do well by their customers, and to put forward business plans that allow them to grow. We have seen that over the last three years. We have seen the Canadian economy being the fastest growing in the G7.

Our small businesses have created 500,000 jobs since we have taken office. They are the engine that drives our economy and we are creating even better conditions for them to get their goods and services to market.

We have the lowest unemployment in 40 years. Our middle-class families are seeing and feeling the positive effects of our policies. A family of four right now here in Canada will be receiving $2,000 more in their pockets, so we are seeing the economy doing well. How do we make that better for businesses?

I am going to go back to the previous speaker, who said that it was a tough three years and then he spoke about creating a level playing field for businesses. This government has done that. We reduced the small business tax rate for our businesses down to 9%. We are making sure that there is a level playing field. However, we can and we will do more. We are actively diversifying our trade, which is something that Canadians, when I go to the door in Whitby, are concerned about. They are concerned about NAFTA. They are concerned about steel and aluminum. They want to ensure that this government is taking the steps to not only make things better here on the ground but to also look forward and think how can we make things better. How can we allow our businesses to have access?

I want to talk about a couple of businesses in Whitby specifically. Whitby has a company called Greenwood Mushroom Farm. Not a lot of my riding is rural, but we have a few farms on the north end of the riding and they are really sophisticated, innovative enterprises. Greenwood Mushroom Farm is state-of-the-art facility in north Whitby.

Windmill Farms is the sales, distribution and marketing division of Greenwood Mushroom Farm, one of the largest mushroom-producing companies in Canada. It was built in the early 1960s. It has grown. They have made massive investments, ensuring that they are innovative and staying top-of-the-line. Going through the facility, there is no smell. They have a state-of-the-art compost facility. It is actually remarkable, and I would invite anybody to come to Whitby to tour this fantastic farm.

The reason that I bring up the Greenwood Mushroom Farm, and I could bring up any number of farms in Whitby, is because of the benefits we see for agriculture and agri-food products through the CPTPP. They will benefit from immediate, duty-free treatment of tariffs on many products, to be phased out gradually. This will create, of course, new market opportunities, not just for vegetables and fruits but for other Canadian agriculture and agri-food products, beef and pork, cereals, maple syrup, spirits and a wide range of goods.

I know the owners and people who work at Greenwood Mushroom Farms would appreciate the fact that we are looking at different ways for them to sell their products globally in a competitive way.

Again, this goes back to who is within these organizations. This is not some arbitrary company that is trying to grow. These are Canadian families. These are middle-class families that are trying to do the best they can to work at an organization, to stay competitive, to be able to expand and grow, and do what they need to do for their families.

I would also like to talk about the technology industry. I think many people will be surprised to hear this. In Whitby, we have a number of thriving businesses in our downtown core. We are having an immense revitalization of our downtown. It is becoming a place where people want to hang out. We no longer go to Toronto; we stay in Whitby. There are things to eat and drink, and activities for families. People like to be downtown.

It has the ability to be a place where people live, work and play. There is no longer the need, or we are creating what is no longer the need, for people to go to Toronto to go to work. We have companies like geekspeak that do global work, and companies like 360insights that work in international markets.

Our tech industries are really supportive of the CPTPP, more than the TPP, because of the provisions we negotiated in intellectual property. These are companies of middle-class families. I actually knocked on the doors of the owners of geekspeak. I have seen their children. I know who they are. They want to be able to provide the services that they have taken from a little idea in a basement to a thriving enterprise within downtown Whitby, and to then take it to beyond the global enterprise that they currently have.

It is critically important to understand that our companies want to be able to grow and succeed, and we are giving them the access to do that. We are creating the conditions by which they will be able to grow and succeed.

I would be remiss if I did not speak about the auto sector in Durham region. We have heard from many colleagues in here about the auto sector, and the challenges with NAFTA, with steel, with aluminum. The diversification of our products, goods and services to Asia-Pacific markets will help.

Right now most of our trade goes to the United States. The opportunity to have that go to a market of close to 500 million people will really impact our businesses in a positive way. We have confidence in our businesses. We have confidence in our small businesses. We have created the conditions domestically for them to succeed. We are now creating the conditions for them to succeed internationally.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 3:45 p.m.
See context

Conservative

John Nater Conservative Perth—Wellington, ON

Madam Speaker, it is an honour to rise today to debate this important legislation. Conservatives support free trade and expanding our markets. The Conservative record speaks for itself.

During our time in office we negotiated trade deals with 53 countries, including Peru, Colombia, Jordan, Panama, Honduras, South Korea, Ukraine, as well as the original signatories of the trans-Pacific partnership and the 28 countries of the Canada-Europe trade deal.

Conservatives support trade because we know how important it is for our constituents, for our industries, for our agricultural industry and for our Canadian farmers.

I am glad that we are finally debating Bill C-79, but I have to wonder why it has taken so long for the government to finally act on the CPTPP. After all, back in June it was the Conservatives who offered to have the bill fast-tracked at all stages so that Canada could be one of the first countries to ratify the CPTPP.

Back in July, it was our leader, the leader of Her Majesty's loyal opposition, who wrote to the Prime Minister strongly encouraging him to bring back Parliament during the summer so that we could work here to get the bill passed so that all Canadians could enjoy the benefits of this important trade deal. After all, this trade deal was originally negotiated by our government. We have to give credit to those who have done the hard work, the heavy lifting, to get the TPP to the finish line.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 1:40 p.m.
See context

Liberal

Peter Fonseca Liberal Mississauga East—Cooksville, ON

Mr. Speaker, it is great to be back, to be able to speak on Bill C-79 and, in particular, to be able to speak to trade.

I believe trade is part of Canada's DNA, from our beginnings with the fur trade to today, where we are a leader globally when it comes to mining, minerals and exploration. We can look at all the other sectors, be it agriculture, manufacturing, innovation and tech, and Canada is a leader.

I want to leave a statistic with the Chamber that really highlights how important trade is to Canada and how great a job we do at trade globally. We are 0.5% of Canada's population, but we do 2.5% of all global trade, five times our population. That just shows, globally, that we are a trading nation.

We look at CETA, where we were able to sign that agreement and open up another market of over 500 million people and over $20 trillion GDP in that market. Now, we look at the CPTPP and we look to Asia as another opportunity for Canada to be able to trade our great goods and services, a market of about 500 million people and $13.5 trillion GDP.

We are able to now talk about some of the benefits we will be able to experience from CPTPP if we were to sign on. Looking at our industrial and manufacturing sectors, located right in Mississauga East—Cooksville, we have Maple Leaf, a great company. They do a great deal of export. Having these tariffs stripped away from many of the countries in Asia that are part of the CPTPP that they work with will mean more jobs here in Canada and will give us greater market access.

I have heard from my constituents and the businesses in my area that this is the way forward.

Mississauga is Canada's sixth-largest city and we continue to grow, mostly through companies that are export oriented. Those export-oriented companies are producing the best jobs. Whether it be automobiles or medical devices, metals, chemicals or plastics, they are all essential components to our national economy, employing 1.7 million full-time and highly skilled Canadians, and contributing close to 11% of Canada's GDP.

Our government firmly believes that the CPTPP is the ideal agreement for Canadians and our economy. This is a high-level trade agreement that will increase Canadian exports and help us to succeed in foreign markets as a cornerstone of our government's comprehensive efforts to enhance Canada's engagement with 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 the CPTPP countries accounted for an annual average of $22.4 billion. By eliminating now nearly 100% tariffs on manufactured goods, including some tariffs that are as high as 85%, a high barrier, and creating mechanisms to address non-tariff barriers to trade, the CPTPP will 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 coming into force, there will be no tariffs on over 87% of industrial tariff lines, covering Canada's exports to CPTPP markets, worth an annual average of close to $20 billion over a two-year period.

What will this mean for individual industries? Allow me to provide just a few examples for Canada's multi-billion dollar chemicals and plastics industry.

The CPTPP will provide opportunities for companies in Ontario, the hub of Canada's plastics industry, to cutting-edge mechanical facilities in Alberta with improved market access. This industry will improve its annual average of $1.1 billion in exports to the CPTPP countries by eliminating tariffs that are as high as 50%. What a difference that will make in our exports of plastics.

With respect to metals and minerals, a sector contributing nearly 600,000 jobs here in Canada and exporting $5 billion in goods to CPTPP markets, the agreement would result in the elimination of all tariffs, again 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 this agreement to meet growing needs within established and developed 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 these markets.

In the auto sector, our government listened, and listened a lot, to what Canadians had to say and made their concerns a priority. As part of the negotiations, Canada has obtained bilateral cover letters from Australia and Malaysia to establish more liberal rules of origin, which will allow our automotive manufacturers to take advantage of the preferential tariff treatment in these markets without having to adjust their current production models.

We also achieved bilateral results with Japan and Malaysia on standards and regulations in the automotive sector, a key demand from industry stakeholders as these non-tariff barriers were impeding our export abilities.

These are just a few examples of areas that could benefit from the CPTPP. By making Canadian industrial and manufacturing exports more competitive, reducing the red tape that impedes access to dynamic and growing markets, this agreement would provide Canadian businesses with significant opportunities to increase profits and create new jobs.

Beyond tariff reduction, another aspect of the CPTPP that stands to benefit Canadian companies in these sectors is the area of intellectual property. The agreement's provisions on intellectual property cover virtually all areas regarding trade and IP, including copyright, patents, trademarks, geographical indication, industrial designs, domain names and enforcement. Most importantly, the protection and enforcement of IP rights will help protect Canadian innovation and investment as our businesses trade abroad. For 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.

Intellectual property is valuable property and this agreement establishes a clear and predictable standard on IP rights and enforcement in the Asia-Pacific region. This will allow Canadian creators, innovators and investors to conduct trade with our new CPTPP partners with the assurance that their products will be protected while benefiting from the same rules as other parties within this agreement. In turn, this will encourage investment in innovative technologies in Canada and allow Canadians to develop and market their brands in the region.

As a result, innovative Canadian companies will be better positioned to commercialize their products in both established and fast-growing Asian markets. In addition to tariff reduction and IP rules, the agreement also addresses costly and time-consuming non-tariff barriers that make it difficult for Canadian companies to enter these foreign markets. Commitments by CPTPP members to cut away that burdensome and restrictive regulatory red tape in such sectors as cosmetics, medical devices, pharmaceuticals and ICT will provide Canadian manufacturing exporters with greater certainty and predictability that the competitive benefits their products receive from tariff elimination will be fully realized.

By establishing an effective and transparent rules-based trade system in one of the world's most dynamic and growing regions, the CPTPP will lay the groundwork for exporters in our industrial and manufacturing sectors to take advantage of these opportunities. This is why I am encouraging all of my hon. colleagues to support Bill C-79 and allow for the swift implementation of this important agreement.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 1:05 p.m.
See context

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, we are discussing Bill C-79, a bill to implement the new incarnation of the TPP without the United States.

The Bloc Québécois is sincerely and seriously concerned about supply management and the breaches that are included in this new version of the agreement. The government gave up 3.25% of the dairy market, 2.3% of the egg market, and 2.1% of the poultry market.

The Liberals and Conservatives, who boast about being the great defenders of our farmers and supply management, just voted in favour of time allocation in order to pass this bill quickly. Last spring, they tried to have a motion adopted unanimously to pass the bill immediately. Obviously, we were there and voted against the motion.

There is quite a disconnect between what they say and what they do. They say they want to defend supply management in its entirety, without any breaches. Now that there is a tangible case in front of them, they are changing their tune and cannot pass this new version of the TPP, with all its breaches, soon enough. That does not add up. There is a major lack of credibility here.

On that note, I would remind the House that whenever there is a by-election, big promises are made. During the by-election in Lac-Saint-Jean, the Prime Minister said, "We will not make any concessions when it comes to supply management."

He said this about the TPP on October 19, 2017, in Saint-Félicien, as reported by the Journal de Montréal. I was there too, and I heard it. We were happy at the time, but we now know how much his word is worth.

Just before the last election, on October 4, 2015, the Prime Minister gave an interview to Radio-Canada, which is still available online, in which he said that the Liberal government would not make any concessions on supply management in the TPP. There was even a unanimous motion passed on February 7, 2018. The motion stated:

That the House call on the government to ensure that there is no breach in supply management as part of the new Trans-Pacific Partnership.

My colleague from Mirabel moved this motion, which passed unanimously. The two Liberal international trade ministers were in the House, and they agreed.

I remind members that we, as legislators and elected officials, are the government's boss. We asked the government, including all of the Liberals and all of the Conservatives, to ensure that there was no breach in supply management in the new version of the trans-Pacific partnership. We ended up with a significant breach nonetheless. I repeat that his word and his promise are worthless in my eyes.

I would remind members that we are talking about 3.25% for milk, 2.3% for eggs, and 2.1% for poultry. These are all supposedly protected by a quota system that is very costly for farmers. In total, to have a protected market, we are talking about approximately $33 billion in quotas, including $20 billion just for the dairy sector. That is not peanuts. We should respect that.

This is the current explanation for the breach. The Americans wanted concessions with respect to supply management. As they no longer want to be part of the new TPP, they are being enticed with concessions to come back to the table. So what do President Donald Trump and the Americans do? They say they do not want the new TPP, but they want these types of concessions in NAFTA renegotiations. Since we made them in the TPP, we can make them to the Americans, as well. That makes a breach in two agreements for our farmers, who are paying for absolutely nothing.

I will draw a parallel to NAFTA. On June 7, the Prime Minister stated in a Radio-Canada article that if Donald Trump wants to attack supply management, there would be no NAFTA, that they would not sign NAFTA. Given that the government's credibility and the worth of its word have been seriously tainted, there may be some doubt about that.

On September 26 of last year, we were proactive and passed a unanimous motion:

That the House reiterate its desire to fully preserve supply management during the NAFTA renegotiations.

There is an election campaign underway in Quebec. All party leaders are asking that supply management remain intact in NAFTA. However, it seems that this is not as important given the comments made by Simon Beauchemin, the Prime Minister's advisor in NAFTA renegotiations, who wrote an open letter in La Presse calling for the abolition of supply management.

On that topic, last winter I asked him if he wanted to abolish supply management and how he planned to reimburse the $33 billion worth of quota once supply management is abolished. Farmers are borrowing from financial institutions to cover that. All he did was chortle at me before taking off.

I would remind the House that back when the majority of seats in Quebec were held by Bloc Québécois members, supply management was respected, and those sectors were automatically excluded from the 10 trade agreements signed by Canada, including NAFTA.

At the time, Quebec had more of a voice and Canada listened. Since 2011, that has no longer been the case. Consider the Canada-EU agreement. The bargaining chip that Canada gave up was a new breach for the dairy and cheese sector.

The Harper government had not only promised but even budgeted $4.3 billion in compensation for our dairy producers. The Liberals came to power and tore up that agreement, and instead created a mini program worth $250 million. The first part was gone in a matter of minutes. It was heavily criticized and not suited to our farmers. That is unacceptable. Our farmers were used as a bargaining chip in the Canada-EU agreement. The same thing happened with the TPP and now the CPTPP.

The government has not announced any compensation for our farmers. Once again, farmers are being used as bargaining chips. We are worried about the NAFTA renegotiation because the Prime Minister and the Minister of Foreign Affairs have changed their tune. We get silence, or they talk around the issue. We have real concerns that there could be another breach in supply management.

This is in addition to all of the tricks, which I consider illegal, that American producers use to try to break into our market and that take an awful lot of time to address. I am talking about milk proteins, diafiltered milk, and misuse of the duty deferral program. There is also the spent fowl scandal, or the distributors that throw in a couple packets of sauce to bring in chicken wings and bypass supply management. Another example is how pizza kits are used bring in grated cheese, and I could go on.

Up until 2011, the government made its position clear to other countries. If they wanted us to make changes to supply management, they would have to eliminate their subsidies and other protectionist mechanisms. That used to be a prerequisite for negotiation, but not anymore. The government gave an inch, and now it is open season.

A C.D. Howe Institute study showed that, in its first year, the TPP's impact on the GDP would be 0.01%. That is negligible. Any benefit will go mainly to Ontario and the west. Quebec is too far from the Pacific nations to benefit much at all. Nevertheless, the things Canada gave up in order to join the partnership are things that matter to Quebec. That is deplorable and unacceptable.

The supply management system works. The United States has a number of protected sectors such as cotton and sugar, but also dairy, eggs and poultry, same as here. All of the agreements that have been signed include very high tariffs to protect domestic markets. Most, if not all, industrialized nations have mechanisms to protect agriculture. Agriculture is an important sector, one vital to any country's national security and to feeding its people.

Apparently Canada's government is the only one prepared to sell out its farmers time after time. That is unacceptable.

We do not want to see the kinds of megafarms that have been popping up in the United States in recent years. Some of those farms have 10,000 cows. Megafarms account for 30% of milk production. Here, farms typically have about 50 cows. I am talking about a family farm land use model. If we did things here like they do in the United States, my entire riding would have a single producer. That is unacceptable, and we want nothing to do with it. An American magazine called Quartz reported that the suicide rate on American family farms is one a week.

That is not what we want, so we will vote against this agreement because of the major breach it creates in supply management.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 12:45 p.m.
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Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, I want to thank my colleague from Berthier—Maskinongé for her speech.

I would like to remind her of the motion that was unanimously adopted by the House on February 7, 2018:

That this House calls on the government to ensure that there is no breach in supply management as part of the new Trans-Pacific Partnership.

Bill C-79 proposes 3.25% for the dairy market, 2.3% for eggs, and 2.1% for poultry, which would supposedly be protected. I would like to point out that we, the legislators, the elected officials, are the bosses. We are the ones giving orders to the government. We adopted a unanimous motion. I recall that the two ministers of trade were present in the House and supported the motion. Now we get a bill that contains a major breach in supply management. In my view, the government is acting like a poor student with a bad attitude.

I would like to hear my colleague from Berthier—Maskinongé's thoughts on this.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 12:35 p.m.
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NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Speaker, I am pleased to be back in the House, to see my colleagues again, and particularly to participate in the debate on Bill C-79. I would like to inform you that I will be sharing my time with the hon. member for Vancouver Kingsway.

Yesterday, we began the debate about the ratification of the comprehensive and progressive agreement for trans-Pacific partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Yesterday, we spent five and a half hours debating this important bill. This morning, a time allocation motion was moved. The Liberal Party, the government, worked with the Conservative Party, the official opposition, to fast-track Bill C-79.

It is disappointing not to have time to rise to express the concerns of the people we represent concerning an important bill like the ratification of this agreement. It is frustrating and disappointing. I am pleased to have the opportunity to rise to express Canadians' fears and concerns about this bill.

I would first like to set the stage by providing a bit of context. The Prime Minister made a statement during the election campaign. On October 5, 2015, he said:

The government has an obligation to be open and honest about the negotiation process, and immediately share all the details of any agreement. Canadians deserve to know what impacts this agreement will have on different industries across our country. The federal government must keep its word and defend Canadian interests during the TPP’s ratification process—which includes defending supply management, our auto sector, and Canadian manufacturers across the country.

That was in 2015. It is now 2018, and it is clear that the Prime Minister has kept neither his word, nor his promise.

The Standing Committee on International Trade held consultations, and I want to thank our critic who worked very hard in committee. We are proud of what she has been able to accomplish. These consultations were not very accessible to members of the public wanting to participate. The public did not get much warning that consultations on the TPP were being held. People did not have much time to prepare, get to, and participate in the consultations. Members of the public had one hour to make submissions and give testimony. In Montreal, 19 members of the public opposed the agreement. Three individuals in Quebec City opposed the agreement. The committee received more than 8,000 submissions from Canadians.

We had a very hard time getting them translated and reviewing all of the submissions properly. There was no comprehensive consultation like the one the Prime Minister promised in 2015. The committee is supposed to be independent, but its consultations were strongly influenced by the government.

I remind members that the Standing Committee on International Trade held dozens of meetings, heard from more than 400 witnesses, and received written comments from more than 60,000 Canadians, 95% of whom opposed the bill and the ratification of the comprehensive and progressive agreement for trans-Pacific partnership.

I rise today to speak on behalf of the people of Berthier—Maskinongé, whom I am proud to represent. I had the honour of sitting on the Standing Committee on Agriculture and Agri-Food since 2012. In January I took on new responsibilities, but I follow the committee's work closely.

All of the agreements that the government has signed since I entered politics in 2011 have chipped away at our supply management system. Every agreement signed gives greater access to our dairy, poultry, turkey or egg markets.

Every agreement we sign opens up more of our market. The Conservative government said it would support and defend our supply management system, but what it actually did was negotiate agreements that allowed greater access to our market. The Liberal Party, with its majority, is doing the same thing. Despite the Liberals' insistence that they support our supply management system, they are continuing to poke holes in it.

Canadians are entitled to a government that respects the will of the people and does not negotiate agreements behind closed doors. Experts tell us that ratifying the comprehensive and progressive agreement for trans-Pacific partnership will cost between 60,000 and 80,000 jobs in Canada because of concessions affecting the auto sector. How disturbing that the government is so willing to jeopardize those jobs.

Concessions in the CPTPP are keeping dairy, egg and poultry producers up at night and could cost 26,000 jobs in Quebec alone. Dairy producers say that giving up 3.25% of the Canadian market will likely cost them about $250 million in annual income. Should our supply management system disappear entirely, the poultry sector would lose 60,000 to 80,000 jobs. That does not even take into account concessions in the Canada-EU agreement.

All the agreements Canada has signed recently represent a 15% increase in access to our supply-managed markets. The government kept saying that it would protect our supply management system, but it has never said that it will fully protect it, so naturally, farmers have some fears and concerns.

We also have to think about timing. Right now we are debating ratifying the trans-Pacific partnership, and yet Canada is still negotiating with the United States. Several experts and groups have urged us to be cautious.

By going ahead with this and supporting the trans-Pacific partnership, we will be giving other countries greater access to our supply-managed market. This could send Mr. Trump and our American friends a clear message: we are prepared to grant them even more access to our market.

These market losses will cause Canada's GDP to drop by between $4.6 billion and $6.3 billion. The study also found that dismantling our supply management system would provide no real benefit to Canadian consumers.

According to the Éleveurs de volailles du Québec, across the poultry industry the implementation of the trans-Pacific partnership will result in the loss of more than 2,200 jobs and cut $150 billion from Canada's GDP.

It is true that our supply management system was created by the Liberals, but here it is being greatly weakened once more. We are witnessing its death by a thousand cuts. We are weakening our system to the point that it will no longer be worthwhile to keep it in place.

The government is telling us that there is nothing to worry about and that there will be a compensation plan for producers, but producers are not interested. They do not want to hear about compensation. Canadian producers want the federal government to do its job. Promises need to be kept. We hope the government will hold its own in the NAFTA renegotiation. That said, up to now, it has not been able to stand up for producers.

We could talk about other problems with the trans-Pacific partnership. For example, there is the auto sector. Many people work in the auto and parts sector.

These people and a number of unions are strongly opposed to the CPTPP because it will not do much to help them. It is still causing a lot of uncertainty. Less stringent rules of origin expose Canada to competition with Japanese vehicles that have a lot more components from countries that are not members of the TPP, such as China, Thailand, and Indonesia. However, Canada is maintaining its commitment to gradually eliminate its tariffs in the auto sector over a short period of five years.

There are a number of reasons why we do not support the TPP. It jeopardizes jobs. The government is telling us that it is protecting jobs and will create jobs for the middle class, but it is putting these jobs and these workers in jeopardy.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 11:50 a.m.
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Conservative

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.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 11:35 a.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, the Liberal government has finally seen the light and understands how important it is to quickly ratify the CPTPP.

At long last, Canada may soon ratify the agreement reached in 2015. We hope this will happen quickly. Members will recall that the CPTPP was one of the Prime Minister's first missteps on the international stage. I would like to quote a few articles, including this one:

Prime Minister a no-show at meeting.”

I would like to give the House a quick reminder of what happened.

“Ten leaders from countries remaining in the Trans-Pacific Partnership (TPP) were left “red-faced” by Canadian Prime Minister...when he did not turn up at a TPP-11 leaders meeting.”

Here is some of the reaction:

Shinzo Abe announced that “the signing was off” because the Prime Minister would not attend.

Steve Ciobo called it a 'disappointing development'.

Some ministers said that the Prime Minister got “cold feet” because of looming elections in Quebec.

What motivates this party's actions? Not the national economy. The answer is political trends and partisanship. Why do I think that? Because when the other countries reached an agreement last spring, we could have made short work of Bill C-79 here in the House. The government could have introduced Bill C-79 back in May, and we could have started working on it then. Had that been the case, we would already have ratified the agreement, and we would have been one of the first six countries to do so. However, the government sat on the bill until the last week before the break, at which point it was too late to start working on it.

The official opposition moved two motions for the unanimous consent of the House to get on with studying the bill quickly and adopting it as written. Obviously, that did not happen. Now the government says it is going to act fast. I just do not get it. This has all been such a disappointment. Anyway, if the past is any indication, we know that they do not always walk the talk.

I have a lot more to say about this, but I will not have enough time because I am sharing my time with the member for Sherwood Park—Fort Saskatchewan. He has a lot to say about Bill C-79 too.

Our leader, the Leader of the Opposition, sent a letter to the Prime Minister this summer, asking him to act more quickly so that we would not miss the opportunity to be among the first six countries to sign the CPTPP.

I would now like to read a few excerpts from the letter our leader sent to the Prime Minister. I think it is important that Canadians know where we stood at the time and why we were asking him to act quickly.

These actions by the United States threaten the jobs and livelihoods of thousands of Canadians. This is even more worrying given the U.S. government's repeated threats to impose 25% tariffs on the auto sector. On this file, Canada's Conservatives' most pressing priority is to protect Canadian jobs and industry by having tariffs removed from Canadian steel and aluminium and by stopping new tariffs from being imposed.

The same is true today. He also wrote:

Conservatives have always supported diversifying our trading relationships around the world, which is why the previous Conservative government had the foresight to conclude free trade negotiations and investment agreements with 53 countries, including the countries of the original trans-Pacific partnership and the 28 countries of CETA, which concluded in 2014.

Our leader continued:

...it is even more urgent that we act to expand and diversify our trading relationships.

That is why he called on the Prime Minister to:

...request that the Speaker recall the House of Commons pursuant to Standing Order 28(3) as soon as possible this summer [exceptionally] to debate and pass Bill C-79, the comprehensive and progressive agreement for trans-Pacific partnership implementation act.

The leader cited the Peterson Institute for International Economics which:

...estimated that the original TPP, which was negotiated and concluded by the previous Conservative government, would boost Canadian income by $20 billion over the next decade.

This request was flatly rejected by the government. We do not understand why.

We were ready to get to work and spend part of the summer ensuring that this bill is passed as soon as possible. Why it is so important for us to be among the first six countries? It is simple. It is because after the first six signatures, after six countries enshrine the agreement, the CPTPP comes into effect within 60 days. If we are not there during that time, all the good agreements for exporting and importing with those countries will already have been concluded with the first six signatory countries. Canada will be left with crumbs.

The last one to arrive at the table in a large family gets whatever is left and often that is nothing at all. That is why we think it is absolutely urgent and necessary to ratify the CPTPP quickly.

We will obviously work with the government to adopt the CPTPP as quickly as possible, because it is important to our industry and to farmers. The Canadian Agri-Food Trade Alliance held two press conferences. They held a press conference and send out a press release to explain why we must adopt the CPTPP as quickly as possible. According to research commissioned by the Canadian Agri-Food Trade Alliance, this trade pact could increase Canadian agri-food exports by nearly $2 billion annually for a variety of agriculture products including beef, pork, grains, canola, pulses, soybeans, barley, sugar, and processed foods.

That is the reality. We are talking about the economy. Canadian jobs will be in jeopardy if we do not move fast enough. We are deeply disappointed that the government took too long to finally grasp how important it was to sign the CPTPP as quickly as possible.

I hope the government finally gets it, for the sake of the people who produce these agriculture products, including beef, pork, grains, canola, pulses, soybeans, barley, sugar and processed foods.

I would like to move on to another sector covered by the agreement that is raising some serious concerns. I am referring to the supply management sector. The agreement requires Canada to make concessions on supply management. Under the old agreement, the previous Conservative government foresaw that there would be consequences for producers in supply-managed sectors. That was why we instituted a 10-year compensation plan.

The compensation plan provided up to $4 billion for producers in supply-managed sectors. We created it because we felt it was important to recognize that even though we had succeeded in negotiating a global economic agreement that was good for Canada, we had had to sacrifice part of the supply management quota, and producers deserved to be compensated accordingly. We allocated $4 billion, including $450 million for facility upgrades.

The response of the current government has been to offer no compensation program whatsoever. No wonder people are worried today. No announcements have been made on this subject, and no empathy has been shown towards producers in supply-managed sectors, even though they have willingly sacrificed part of their quotas for the good of the Canadian economy.

The government created a little $350-million program to modernize farms and support processors. The Conservatives' plan allocated $450 million, in addition to more than $3 billion to protect quotas and offset the losses that supply-managed farmers could experience once the TPP is implemented.

In short, the official opposition will support ratifying the CPTPP as quickly as possible, because this agreement is important to our economy. Once again, I hope that the Liberal government will not screw this up come signing time, and I hope that everyone will be there. I hope that we do not end up being a laughingstock on the world stage.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 11:20 a.m.
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Liberal

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.

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 11:20 a.m.
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Conservative

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?

Second ReadingComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 11:05 a.m.
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Liberal

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.

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.

Bill C-79—Time Allocation MotionComprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation ActGovernment Orders

September 18th, 2018 / 10:20 a.m.
See context

Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons

Mr. Speaker, an agreement has been reached between a majority of the representatives of the recognized parties under the provisions of Standing Order 78(2) with respect to the second reading stage of 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. Therefore, I move:

That, in relation to 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, not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill; and

That, fifteen minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration of the second reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the bill then under consideration shall be put forthwith and successively without further debate or amendment.