Bill C-4 (Historical)

Canada–United States–Mexico Agreement Implementation Act

An Act to implement the Agreement between Canada, the United States of America and the United Mexican States

This enactment implements the Agreement between Canada, the United States of America and the United Mexican States, done at Buenos Aires on November 30, 2018, as amended by the Protocol of Amendment to that Agreement, done at Mexico City on December 10, 2019.
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 20 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 the coming into force provisions.

Canada-United States-Mexico Agreement Implementation Act

[Dean Allison, Conservative, Niagara West, ON]

Mr. Speaker, as I said, we will be supporting this. I guess the challenge I have is what I talked about in terms of competitiveness. I think that this is definitely not as good a deal as we could have had. I think everyone admits that we had to take what the U.S. offered to us. They also talk about the fact that Mexico was negotiating with the U.S. while we were not at the table.

I realize the importance of certainty. There is no question about that. We need to have certainty and that is what business organizations have told us. Even if it is a bad deal, we need to make sure that we have the opportunity to solidify what the rules are going to be because it is too unpredictable. When we look at a country like Canada, which takes investments in to make sure that we compete around the world, this certainty is definitely required in order for us to move forward.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Mr. Speaker, yesterday, in response to one of my questions, the Prime Minister said that 70% of aluminum was protected under the new agreement, known as CUSMA. Everyone knows that this is not the case. That statement is incorrect. The 70% refers to parts made from aluminum. This means that parts manufacturers can bring in the world's dirtiest aluminum from other countries at a lower price. For the past two months, I have been struggling to get him to see the difference between the protections for steel and the ones for aluminum.

Does my hon. colleague think that the Liberals are acting in bad faith by giving these kinds of answers, or does he think that they simply do not understand the agreement?

[Dean Allison, Conservative, Niagara West, ON]

Mr. Speaker, this goes back to what I originally said. We have been a taker in this agreement. This is what has been dictated to us, so to go around and say that this is a great deal is factually incorrect.

Is it the best deal we could get? I do not know. I guess time will tell.

However, I can assure colleagues of one thing that speaks to the issue I have been talking about, which is competitiveness as a nation. Regardless of the trade deals that we have, if we cannot be competitive at home, which means getting our most economically and environmentally sustainable aluminum to the rest of the world, then we are competing at an unfair disadvantage. These are the things that we need to continue to work on to be competitive at home, so that we do well here at home and around the world.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, in my riding of North Island—Powell River, one of the biggest concerns folks had around NAFTA was the investor-state provisions that really left Canada in a very weakened space. We were sued again and again by investors.

When we look at these, we see they were negotiated by a Conservative government. It is hard for me to be complimentary. Actually, those who I should be most complimentary to, of course, would be the Democrats in the United States. The reality is that in this agreement the investor-state provisions are not there.

I am wondering if the hon. member could share his thoughts with us on that.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Speaker, as I said before, I think one of the things that we need to continually focus on here in Canada is competitiveness. That includes a whole range of issues, as I have said.

Part of the challenge we have is that we compete in a global economy. If we are paying more for energy, if we are not mobilizing and getting the most out of our workforce, if we are not treating people, in terms of education and being able to get the jobs that they need to do, then all of these things factor into our competitiveness. Taxes play into that, as well as trade deals, and all of those other kinds of things.

I would just say that we still need to continue, even with deals like this, to work on our competitiveness domestically so that we compete globally and around the world.

[The Deputy Speaker, Bruce Stanton]

Before we go to resuming debate, it is my duty pursuant to Standing Order 38, to inform the House that the question to be raised tonight at the time of adjournment is as follows: the hon. member for Mégantic—L'Érable, International Trade.

[Gudie Hutchings, Liberal, Parliamentary Secretary to the Minister for Women and Gender Equality and Rural Economic Development]

Mr. Speaker, I will be sharing my time with the member for Scarborough—Guildwood.

As this is the first time I am rising in the House in the 43rd Parliament, I would be remiss if I did not take a moment to thank the wonderful constituents of Long Range Mountains for re-electing me and returning me to this place to work on their behalf. The support from each and every community, of which I have well over 200, is greatly appreciated. To my many volunteers, friends, and most of all my family, my heartfelt thanks.

Congratulations, Mr. Speaker and all of my colleagues in the House, on being elected. Working together, we can accomplish so much for this magnificent country we are blessed to call home.

I am pleased today to speak about the new Canada-United States-Mexico agreement and highlight its benefits for Canada's agriculture and agri-food industries.

In my riding of Long Range Mountains, along the western coast of Newfoundland and Labrador, one will find dairy and beef cattle farms and sheep and goat farms of all sizes. All of these are found in the rural parts of my riding and they are a mixture of small family-run businesses and large enterprises.

One will find as well innovative produce and grain growers, many using hydroponic techniques and environmentally friendly practices. Of course the fishery is a traditional and vital part of my riding and my province, and both the fishers and the fish processors are excited about this new trade deal and the benefit it will have in my riding and the country.

Our farmers and food processors not only put food on our tables, they drive our economy. They contributed over $68.6 billion to our gross domestic food product in 2018 and $61.6 billion in agricultural exports. They contributed over $13.4 billion to our trade balance and they supported over 550,000 jobs in agriculture and agri-food in 2018 alone. The majority of those jobs are in rural Canada.

The government's ambitious agenda for agriculture includes a strong focus on trade. Canada has always been a trading nation, and our farmers depend on trade. They export about half of the value of their production. Canadian canola and soybean growers depend on trade for 80% of their sales. Wheat growers export 70% of their product and pork producers 67%. That is why we can and must engage in international trade, and that is why our government has big plans for agricultural trade.

Our exports hit a new record in 2018, but we are not stopping there. We have set our sights on $75 billion in agricultural exports by 2025. The report of the agri-food economic strategy table has challenged us to think even bigger, proposing a target of $85 billion.

To help us get there, over the last five years the government has concluded and implemented two major trade deals: the Comprehensive Economic and Trade Agreement with the European Union, CETA, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP. Together these gold standard agreements have opened new markets for our farmers and food processors. These agreements are part of our government's strong strategy to strengthen and diversify our trade.

CETA has been provisionally applied since September 2017. Canadian farmers and food processors are already taking advantage of access to the world's single largest market for food.

A second major milestone in trade was the one-year anniversary of the CPTPP on December 30, 2019. The CPTPP strengthens and diversifies Canada's trade and investment position with some of the world's fastest-growing economies. A wide range of Canadian agriculture and agri-food products are already benefiting from reduced tariffs, from pork to beef, blueberries to icewine, canola to pulses, and lobster to salmon.

Our government pushed hard for Canada to be among the first six nations to ratify this landmark agreement. That means Canadian farmers will be among the first to benefit from new sales in the CPTPP countries. For example, our wheat growers are now able to take advantage of Japan's Canada-specific quota for food wheat.

While it is still too early to measure the full impact of the CPTPP, early signs of success are evident. For example, Canadian exports of pork to Japan increased by 10.8% and exports of beef grew by 68% during the first 11 months of the CPTPP alone. That is an incredible increase.

While diversifying our agricultural trade, we are also securing our business with our largest trading partner through the new NAFTA. The North American trading zone is vital for our farmers and our food processors.

Under the 25 years of NAFTA, our nominal GDP has tripled. Meanwhile, agricultural and food trade in the North American region has risen to a value of $100 billion U.S. That is just about $275 million each and every day.

The new NAFTA means stability and security for our farmers and food processors when they are trading with their largest customer, and it means a strong foundation for growth in the future and growth in rural Canada. With this new agreement, we have maintained the tariff-free access to the U.S. market for Canadian exports that we enjoyed under NAFTA.

For our farmers and food processors, the new agreement will help secure $30 billion in agricultural exports to the United States alone. The new NAFTA will modernize, stabilize and re-energize our continental trading partnership, and it will drive even further integration of our North American supply chains.

Under the new agreement, access for Canadian refined sugar into the U.S. market will almost double. That is great news for our sugar industry, especially our sugar beet producers, who are looking to expand access for their high-quality sugar, which is 100% Canadian-grown and processed.

For our world-class wines and spirits industry, the new NAFTA provides for protection of Canadian whisky as a distinct product of Canada. It also protects the definition and traditional production method of authentic icewines. As well, Canadian wineries and distilleries retain the authority to sell only their own products on site.

Our new NAFTA is forward-looking. It will ensure our farmers have access to current technologies and will also benefit from future innovations in biotechnology. The agreement will encourage both innovation and trade in North America by mandating practical and trade-friendly approaches to getting safe agricultural biotech products to market.

There is a requirement for more transparent regulations for current and future agricultural biotech products, so everyone knows what requires approval and how to obtain that approval. As well, there is a provision to drive greater co-operation on agricultural biotechnology on the global stage, as North America will lead by example.

The new NAFTA will set the stage for further growth and help our agri-food industry keep a step ahead of the competition as we get ready to feed the world.

Throughout the negotiations, our government worked extremely hard to advance the interests of Canadian farmers and food businesses. We know that they are key economic drivers for this country. We know they create well-paying jobs, particularly in our rural communities. Over two million jobs in Canada depend on trade with the United States.

The agreement provides increased market access for the U.S. into Canada for dairy, poultry and eggs, but most importantly, maintains the three pillars of the supply management system: production controls, price controls and import controls. It is important to remember that the U.S. administration was calling for the abolition of this, but we know how important supply management is to our agriculture industry. Our government has pledged to fully and fairly support our dairy, poultry and egg producers.

Furthermore, successful trade depends on successful trade routes. That is why our government invested $10 billion in trade and transportation corridors to help get agri-food products to market. We enacted the Transportation Modernization Act. This legislation is delivering a more transparent, fair and efficient freight system that includes a number of new tools to support the grain industry. It is a long-term solution to help farmers get their products to market in a safe and timely manner.

Our government has strong and ambitious growth plans for our agriculture and food industry. Together, we will give our farmers and food processors a competitive edge in two-thirds of the global economy, and the future is bright.

I am confident hon. members will join me to support this bill.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Mr. Speaker, I thank my hon. colleague for her speech, which was lovely. I congratulate her on her election and her appointment.

I have been trying to get an answer all week, so I will try to ask a very simple question in hopes of getting a very simple answer. Thus far, the Liberals have been telling me that they thought steel and aluminum had the same protections when the agreement was signed.

Does my hon. colleague on the other side of the House think that steel and aluminum were given the same treatment when this agreement was signed?

[Gudie Hutchings, Liberal, Long Range Mountains, NL]

Mr. Speaker, I would like to welcome my hon. colleague from across the way to this House for great debate and discussion.

The focus of my conversation today in debate was on agriculture, but I know members heard the minister today, and we will make sure that aluminum and steel are looked after in this way forward with the new NAFTA.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, my ears perked up when the member talked about Canadian whisky. Shelter Point Distillery in my riding makes some of the best whisky in the world. Recently, in Canada, they won several awards. I am really impressed with their product, and they are doing a great job. It is good to see that is going to be protected.

However, as the whole NAFTA process unfolded, we were told, “NAFTA is good; hopefully, we will not have to negotiate, and it is the best deal.” Then we had CUSMA come back to us and we were told that was the best deal we could get. The NDP was very clear: “Let's send this back and see what can happen with the U.S. Democrats”, and they were not interested in that.

Now, here we are again. Finally it has been fixed by the U.S. Democrats, and we are here again, hearing that it is the best deal ever. I wonder at what point do we measure, and how do Canadians measure, what the best deal is, ever.

[Gudie Hutchings, Liberal, Long Range Mountains, NL]

Mr. Speaker, in my province of Newfoundland and Labrador, we also have some incredible distilleries. Maybe we will have to bring up some samples sometime. As a matter of fact, we have one that is based on seaweed.

I am sorry, Mr. Speaker, that my hon. colleague has left the House, but I look forward to working with her on the new NAFTA, which has been ratified and supported by many people.

Bruce Heyman, the former U.S. ambassador to Canada said that:

Canada should be especially pleased with [the new agreement]. [It is] a really good deal....Every so often you're able to come out with what I call 'win-win-win' solutions, and this is it. We're here.

I would like to take the advice of the past U.S. ambassador and listen to Mr. Heyman.

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, I noticed in the member's speech that she mentioned the importance of the fishery to her riding. I would like to expand on that, as it is so important to the entire province of Newfoundland and Labrador. She said that this deal had great benefits for the fishery, which is the economic driver in just about all of our communities in the province of Newfoundland and Labrador.

I wonder if the member could comment further on that aspect of the agreement.

[Gudie Hutchings, Liberal, Long Range Mountains, NL]

Mr. Speaker, I would like to thank my colleague and friend, the member for Avalon. We share a passion not only for the fishery but also for our province.

Some folks might not realize that Canada exports nearly $4.3 billion worth of seafood every year to the U.S. market. That is 62% of all exports from that sector. Therefore, a stable and protectable tariff-free arrangement is critical to maintaining the growth of those exports, especially from Atlantic Canada.

This will have significant benefits in coastal and rural communities where processing facilities are situated. I know that the lobster and snow crab fishers and the processing companies are excited about the benefits and the stability that this new trade agreement will allow.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, thank you for this opportunity to participate in this historic debate. I want to start by congratulating the Prime Minister, the Deputy Prime Minister and the former leader of the official opposition, all of whom have made significant contributions to getting this agreement to the place it is now, and indeed all colleagues, particularly colleagues who were part of the Canada-U.S. parliamentary group led by the hon. member for Malpeque. Indeed, all of us were down to Congress many times in many senators' and congressmen's offices to extol the virtues of an agreement. It really was a team Canada approach, and I think all members should see themselves in this agreement as we debate it and ultimately, I hope, ratify it.

I want to take a slightly different approach to this agreement and talk about its security benefits. It is trite but true that countries that trade together do not very often go against each other in war or any other form of conflict. If I may, I would like to take these few moments to talk about the security element that is generated by virtue of this agreement and other agreements.

We in Canada are extremely fortunate. Possibly the public and even members in the House do not realize how fortunate we are to have a European trade agreement. We also have a Pacific trade agreement and we are about to have a North American trade agreement. That is 1.4 billion customers we have access to in those markets in 41 countries. I dare say there is no other country in the world that can claim such privileged access to such a large pool of customers.

Of course, it is up to us to take advantage of not only the North American agreement but the European and Pacific agreements as well. There are 1.4 billion customers, and we should look at these customers not only as trading partners but also as allies. That gives us, without going into the business of NATO or anywhere else, 41 new allies. Those allies provide us with a level of security that we have not enjoyed for a long time.

I contrast that with, say, Russia. Who can Russia say is an ally? Maybe Belarus, Kazakhstan, Syria, or Iran. These are maybe not the A-list of allies that one would want. Then there is China. Who can say who is actually China's ally? Possibly it is North Korea. It may not be the most reliable ally that China has ever had.

We can contrast that with these three agreements taken collectively, whereby in effect we put together not just 41 trading partners but 41 allies. That is all to our collective security. The collateral benefit of this trade agreement is clearly security. In fact, the two are mutually reinforcing, because security creates trade and trade creates security. These trading alliances are huge assets to Canada.

Some would argue that trade comes first and security follows, and they point to the Auto Pact, to the first free trade agreement, to NAFTA 1.0 and now the Canada-U.S.-Mexico trade deal. I would like to suggest that actually security came before trade. I will go back 80 years, and I know as soon as I say that, someone starts to nod off, because not a lot of people appreciate history. However, I direct members' attention to a meeting between President Roosevelt and Prime Minister Mackenzie King in Ogdensburg, New York, where the two leaders negotiated a security arrangement for North America known as the Permanent Joint Board on Defence.

From that agreement, the entire security architecture of Canada and North America was revamped. In 1941, we were in the middle of World War II. At the time the prime minister and the president were meeting with each other, the Battle of Britain was taking place, and at that point there was no assurance that Britain would emerge from the battle as the victor. In that context and at that time, there was enormous resistance by the American public, particularly led by the ambassador to Great Britain, Joe Kennedy, to engaging in any European conflict, let alone another war, yet President Roosevelt realized that North America was a vulnerable space. It was vulnerable on the Pacific side and it was vulnerable on the Atlantic side.

Prime Minister Mackenzie King was in a very delicate position because he realized that while we were going to continue to be allies of Great Britain and continue the fight, the shifting of empires was pretty obvious. We were going to be taking ourselves out from the security blanket of the British Empire and placing ourselves in the security blanket of the emergent American empire. That has been our security reality for the last 60 or 70 years.

Out of the Permanent Joint Board on Defence, a number of real decisions were made which continue to this day. Gander airport, for instance, was developed as a military airport. It existed prior to the war, but it was really enhanced over the course of the war. That was a result of the Permanent Joint Board on Defence. The Alaska Highway was a result of the Americans' concern that the Japanese might come in through the west coast of Canada and separate Alaska from the continental United States.

There were quite a number of other institutions and military-to-military arrangements that were made, the most significant of which is NORAD. NORAD is clearly our most significant military treaty, and it was a direct result of the negotiations between Prime Minister Mackenzie King and President Roosevelt. Hence, we created a security environment, and that security environment, in turn, led to the Auto Pact. That, in turn, led to the first free trade agreement with the United States. That, in turn, led to the first NAFTA. That, in turn, leads to where we are today, because nations that have good security also have good trade, and those that have good trade generally have good security.

Prime Minister Mulroney used to say that job one of any prime minister is to manage the U.S. relationship. There is great truth in that statement. I want to just recognize that in very difficult circumstances, our Prime Minister has managed this relationship as well as it can be managed; hence, we are here today with an agreement that many members of this House will be able to sign onto in good conscience.

The other consequence of this agreement was that we have preferred nation status with respect to military procurement. In military procurement, we are treated as a domestic supplier. Similarly, we treat the Americans as domestic suppliers. That has relevance to the peripheral debate about aluminum and steel in particular. That is what was so silly about the section 232 tariffs. We are effectively making each other's military security more expensive. That is the difficulty with tariffs.

I congratulate the Prime Minister and the Deputy Prime Minister. However, in my judgment, the next most important treaty to be renegotiated is the NORAD treaty, because, as I say, good security makes for good trade and good trade makes for good security.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, I want to congratulate my friend from Scarborough—Guildwood on his re-election. He is one of the senior members of this House, and his constituents obviously love him because they vote him in over and over again. It is good to see him in this Parliament. I must say that his ties are getting much better too.

I listened to the member's speech and I am in agreement with him that the link between these trade agreements and security is extremely important. I am also in very strong agreement that the NORAD treaty is very important to us. He also talked about the importance of economic collaboration in our manufacturing and defence sectors, especially in supply chains.

In business, we are seeing the importance of being connected internationally, and I want to talk about the 5G network. The Americans seem to be very far ahead of us, and we will be in a trade agreement through which there will be easy flow back and forth. I am wondering if the member could explain to the House the importance of moving forward with this 5G network, and whether he has any insight into the government's plan for implementing one here in Canada and the date that it would be functional.