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 bill was last introduced in the 43rd Parliament, 1st Session, which ended in September 2020.

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 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.

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

Feb. 6, 2020 Passed 2nd reading of Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 5:35 p.m.
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Liberal

Francis Drouin Liberal Glengarry—Prescott—Russell, ON

Madam Speaker, since this is the first time I have had more than 30 seconds to address my colleagues in the House, I want to take this opportunity to thank my wife Kate, who supported me on the campaign trail and has been at my side ever since I started my career. I also want to say hello to my seven-month-old son, Léo-Xavier.

I mention him in the House because some members have done the same with their children. Family is important, and it makes all the difference when we are on the campaign trail or working in the House. I know that every member takes care of their family.

Naturally, I also have to mention my father Yves, my mother Nicole, and my brother Mathieu, who have helped me every step of the way. I also want to thank my parliamentary assistants, namely Martin, who has now gone on to bigger and better things, Louise, Line, Judith, Carole and Andrew. I want to thank them for their support.

The important thing to keep in mind about Bill C-4, an act to implement the Agreement between Canada, the United States of America and the United Mexican States, is that we now have access to a market. MPs who are against the agreement can raise any argument they like, but we need to think about what is more important: a market made up of 35 million people or a market made up of 330 million people, not including Mexico? That is the important thing about this agreement.

Of course I want to talk about the importance of steel producers, a major presence in my riding that, in one municipality, accounts for 25% of the tax revenue. I can hardly imagine what would happen if the Government of Canada did not sign the free trade agreement with the United States and Mexico. I can hardly imagine what would happen to that municipality if 25% of its tax revenue disappeared overnight. That is something else each member should consider when the time comes to vote. Do members of the House want to do something that is good for the steel sector or not?

The Prime Minister and the Deputy Prime Minister worked very hard on the new NAFTA, and it is a good agreement for all Canadians all over this country.

Obviously, we have to acknowledge its flaws. I cannot represent the riding of Glengarry—Prescott—Russell without addressing those. In my riding we have dairy farmers, chicken and turkey producers, and egg producers. Supply management continues to be a very important issue to them.

The only thing I can tell them is that the work of an MP is to be present in the riding. That is what is important. When the government makes decisions, it would be easy to simply tell the producers without ever meeting them that everything will be fine.

The Minister of Agriculture and Agri-Food, the Prime Minister and the Deputy Prime Minister and Minister of Intergovernmental Affairs took the time to meet producers across the country and listen to their concerns.

It is true that we lost some market share. During negotiations around the agreement between Europe and Canada, it was not the Liberal government that was prepared to allow loopholes in supply management. It was the members who are currently seated across the way who, in 2013, were prepared to give up 1.5% of Canada's market share.

It was not the Liberal government that said it was willing to give up 3.25% of the market under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. It was the Conservative government that announced it had signed an agreement on October 5, 2015, at 11:59:59 p.m. The Conservatives threw out a number that did not make any sense to the dairy industry, which nevertheless accepted it without even consulting its farmers.

I think it is important to mention that we have a duty to consult Canadians, even if our party is the one in power. It is important to talk to producers, as I did. I met with some 300 dairy farmers who were against CETA, against the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and against the Canada-United States-Mexico Agreement. It is important to listen to them and to make their voices heard in the House of Commons. That is exactly what I am doing this evening.

Yes, we signed an agreement with Europe. Yes, we signed a trans-Pacific partnership agreement. Yes, we signed a new agreement with the United States and Mexico. However, yes, we are always going to listen to our dairy farmers, our chicken farmers, our turkey farmers and all of our supply-managed farmers. I can only reiterate how important it is to meet with all of the representatives of our agricultural sector across the country.

The agreement between Canada and the United States is important because it helps ensure market stability. My riding is home to a large steel producer, Ivaco. This company helps support our families by employing more than 400 people.

I cannot speak enough about the great work that the United Steelworkers are doing in representing their workers back home, but also the HEICO Corporation and Ivaco, which are doing a fantastic job representing our workers back home and making sure that they have stable, long-term employment.

If there is one thing I can say about Ivaco, it is that it changed leadership at some point and the unions have changed leadership at some point, but they have always cared and they have always put their differences aside to ensure that the families back home, whether they are in L'Original, Hawkesbury or Vankleek Hill, have a steady income and a company that they can believe in. I can assure families that Ivaco and the union have worked hard to ensure that investment remains at Ivaco. It is a great deal for L'Original, Hawkesbury or Alfred.

I have under two minutes left to address my colleagues. I know they are a little surprised by my speech.

Market stability is definitely something we must keep top of mind. The Bloc Québécois should listen to this. If we do not guarantee economic stability for our voters, our employers and all our families, what other option do we have?

In closing, I want to emphasize that the economic issues in my riding, my province and Canada are extremely important to me.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 4:50 p.m.
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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Madam Speaker, the choice before us in the House of Commons is whether, through the implementation of Bill C-4, we want to go back to the old NAFTA, which is not a possible route anymore given that the United States and Mexico have ratified the new agreement, or go to something that is slightly better.

I would refer my colleague back to my remarks during my speech. The Liberals were well prepared in the last Parliament to barge ahead with an agreement that was not quite acceptable. There were still some glaring holes. My main point of contention, my main criticism, is that Canada had to rely on the actions of U.S. Democrats to get a better deal. If we had proceeded with what the Liberals wanted, we would not have these improvements before us today. We had to rely on the actions of a foreign government, and that is unfortunate.

I hope the Liberals will take a lesson from this and take stock from our suggestion that there is now an opportunity before us to have a better process in place.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 4:35 p.m.
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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Madam Speaker, as always, it is a great pleasure to rise in this House and to be speaking on behalf of the amazing constituents of Cowichan—Malahat—Langford. I am pleased to be able to stand today and offer a few of my thoughts on the proceedings before us with regard to the implementation act of CUSMA, the Canada-United States-Mexico agreement, through Bill C-4.

I want to start by acknowledging our relationship with the United States. The sheer amount of trade and travel that happens between our two countries and the long shared history that we have make it the most important relationship that Canada has. I want to also acknowledge how difficult this negotiation was for many of our hard-working trade negotiators, especially when policy from the United States seemed to be changing on the fly, according to tweets we would read from President Trump.

The NDP's position with regard to trade has always been that we want to have fair trade agreements that have enforceable protections for workers, the environment, and the rights of indigenous people and women. We feel that far too often, and there are many examples that we could list, trade negotiations seem to turn into corporate rights documents and give a lot of attention to regulatory harmonization. I understand that in some cases regulatory harmonization can be a good thing, because we do not want our businesses overburdened by too much red tape. However, we have to remember it is often large multinational corporations that are seeking the free flow of goods between borders, and often those regulations are in place because they are are particular and unique to the country that hosts them. When we have regulations dealing with environmental protections or workers' rights, those are extremely important, and we do not want to be chasing the lowest common denominator. We do not want to simply make it easy for the free flow of goods and trade without respecting those very important things.

I understand too that the renegotiation of NAFTA was sparked by President Trump. Again, this illustrates why it is so important for Canada to maintain relationships with the other branches of the United States government. We must maintain our contacts in the United States House of Representatives and the Senate, but more importantly the various governors and state legislatures, because the United States has a very broad power-sharing network and it is certainly not equal to just one person.

I find the debate surrounding this agreement interesting. Not only has the current Parliament been seized with the agreement, but it was also a big feature in the 42nd Parliament. I can remember when question period often had the theme of CUSMA. I want to acknowledge the hard work of my former colleague Tracey Ramsey, the former MP for Essex, who led the way as our international trade critic and was often probing the government's negotiating tactics and the objectives that it was trying to achieve.

At that time, our main argument was that we should hold off on ratifying the agreement, because it was quite clear to anyone who was a keen observer that the United States Democrats in the House of Representatives were keen on changing some aspects of the deal, yet the Liberal government in the 42nd Parliament thought that would be a mistake. They wanted to agree to it as it was, not taking into account the fact that changes were coming.

In fact, the Deputy Prime Minister, when she had her previous role as the lead minister for this file, said, “Mr. Speaker, what the NDP needs to understand is that reopening this agreement would be like opening Pandora's box”, and that it would be naive for the NDP to believe that Canadians would benefit from reopening this agreement, yet that is precisely what happened. I do not know of any other instance in which Canada had to rely on the actions of a foreign government to deliver a better deal. I think that is actually quite unprecedented.

If only we could have had a process whereby the Parliament of Canada had played a bigger role. I know a lot of legislators on the opposition side of the benches were constantly referring to this and to the fact that there were possibilities of getting a better deal, but no: The government at the time wanted to proceed forward. Thankfully, we did get a renegotiated deal, and the U.S. Democrats were about to put in some important provisions. I think that when we look at the balance sheet, some improvements were definitely made.

I look to my home province of British Columbia. I make my home on Vancouver Island. Of course, the big industry that has had no mention in this agreement is our softwood lumber industry. That dispute is still ongoing with the United States, and I understand that Canada has had to take its concerns to the World Trade Organization.

We have many workers in British Columbia who still have this cloud of uncertainty hanging over their industry. Many mills have closed over the previous decades. Many communities in British Columbia have had to transition out of a mill-based work force into something closer to tourism or a service-based industry. However, it has forever changed the face of many small towns in British Columbia.

For the towns that are lucky enough to still have a thriving mill, we still are plagued with a lot of uncertainty. This is certainly one part of the Canada-U.S. relationship that has to be studied and worked on.

As the NDP's critic for agriculture, I would also be remiss if I did not mention the concessions that were made in this agreement to our supply-managed dairy sector. We are giving up a few percentages of our market, as we did under the CPTPP and CETA. The Liberals constantly say in the House that they are the party that defends supply management and that they are the ones who brought it in. However, now we have started to see even more cuts. The problem is that when we were negotiating this deal and opening up parts of our market to the United States, especially in supply management, in a sense what the government is asking our dairy farmers to do is to pay the price for another jurisdiction's overproduction problems.

I will illustrate that by pointing this out. The State of Wisconsin produces more milk than the entire country of Canada combined. As it does not have supply management, it has wild fluctuations in price. Many farmers are experiencing bankruptcy down there. There are serious concerns to mental health and they do not have the protections there. In a sense, we are trying to open up our market from U.S. demands. We are trying to pay the price for their overproduction.

It goes further. Under clause 3.A.3 of the agreement, we have now agreed to establish threshold limits on exports. We have put those threshold limits on things like infant formula, milk protein concentrates and skim milk powder. This means that Canada has agreed to absolute limits of exports in those categories. Furthermore, if we exceed those thresholds, we then have to place a punitive tariff, which would essentially price us out of the market.

I would like to know if we have an economic impact statement on how this will affect the future growth of the industry. Has the government done an analysis of how close our industry already is to those threshold limits? Furthermore, in the coming into force provisions of the agreement, are we giving our producers enough time to compensate and deal with those changes?

Through the debate on Bill C-4, I would really like members of the House to think about how we can have a better process in place for future trade negotiations.

We all know that the negotiation of international treaties, such as trade treaties, is a royal prerogative of the Crown. It is a latent power of the Crown, held over from centuries ago. It is certainly within the executive's right to negotiate deals. However, the problem is that when we get the final product in the House of Commons, all we are allowed to do is to vote yes or no. The deal has already been signed. Our role is limited only to implementing legislation.

I know there have been consultations with many groups, but if we could find a process whereby members of Parliament actually have that opportunity to have a more fulsome discussion, where we can state what are objectives are and have a more fulsome role, as they do in the European Parliament and in the United States Congress, then we could take this opportunity to ensure that in future negotiations, perhaps with the United Kingdom, we would go in as the people's representatives with a much better idea of exactly what we are trying to achieve.

I look forward to any questions that my colleagues may have.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 4:20 p.m.
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Liberal

Pam Damoff Liberal Oakville North—Burlington, ON

Madam Speaker, I again want to start by acknowledging that we are on the traditional territory of the Algonquin people.

I am pleased to speak today to Bill C-4. In the fall of 2018, leaders from Canada, the United States and Mexico announced a new trilateral trade agreement to replace the 24-year-old North American Free Trade Agreement. This was a pivotal moment for our country, for North America and for fair trade around the world. This agreement would ensure free and fair trade in North America, a trading zone that accounts for more than a quarter of the world's economy, with just 7% of its population.

During the negotiations, we saw unprecedented support from across the country. We came together to ensure that we got the best possible deal for Canada and Canadians. We had co-operation from all political parties.

In May 2017, I visited Washington, D.C., with the public safety committee. Conservative, NDP and Liberal MPs came together to meet with U.S. elected officials. Talk inevitably turned to trade and we successfully shared stories about why NAFTA was so important to the trading relationship between our countries.

Brian Mulroney and Rona Ambrose have both worked with our government and have spoken out in favour of the agreement. The new NAFTA has the support of the Canadian Chamber of Commerce, the Assembly of First Nations, the Federation of Canadian Municipalities and the Automotive Parts Manufacturers' Association, to name just a few. Business, industry, individuals and local governments are in favour of this deal because of the certainty, security and prosperity that will come from a modern free trade agreement.

Perry Bellegarde, AFN national chief, said:

The new NAFTA...is the most progressive and inclusive trade agreement to date. It’s good for #FirstNations and Canada. Involving #Indigenous peoples & respecting our rights leads to better outcomes and greater economic certainty.

As the Deputy Prime Minister said following the signing of the new NAFTA:

...it preserves free trade across the North American continent and market access in a $25-trillion open market of 470 million people. A market that has tripled in size since the creation of NAFTA in 1993.

And it does this while providing insurance against the spectre of auto tariffs that were threatening our economy and thousands of good, well-paying jobs—on both sides of the border.

...[It] maintains tariff-free access to the majority of Canadian exports to U.S. markets.

...Since the Auto Pact, Canada has been an integral and essential part of a North American auto industry, with its highly integrated supply chains. We fought for that, and we have preserved it and created opportunities for growth.

She also said:

...[It] is good for hundreds of thousands of Canadian workers. Not only does it preserve essential cross-border supply chains, but it significantly improves wages and rights for Mexican workers. This will concretely level the playing field for auto workers in cities like Windsor and Oshawa [and Oakville]. It helps guarantee their future.

The minister continued:

...[It] preserves the Canadian cultural exception, that was demanded by Canada, especially in the digital world. That protects our cultural industries and more than 650,000 jobs across Canada. It preserves our unique, bilingual identity, as Canadians.

...[The] agreement fully upholds the impartial dispute resolution of Chapter 19 of the original NAFTA. When there’s a disagreement over trade, it goes to an independent, bi-national panel. And that panel gets to decide.

This legislation is the final step in safeguarding more than $2 billion a day in cross-border trade as well as tariff-free access to our largest trading partner. It will also support hundreds of thousands of Canadian jobs, now and in the future.

In December 2019, Canada joined the U.S. and Mexico in signing an agreement that reflected additional changes. That has given us an agreement that strengthens the state-to-state dispute settlement mechanism, labour protection, environmental protection, intellectual property and the automotive rules of origin. It will also help make the most advanced medicines affordable for Canadians.

These changes were met with widespread praise. I was particularly happy to see Jerry Dias, president of Unifor Canada, say, “The new [deal], while far from perfect, provides a road map to implement necessary changes in trade policy to benefit workers.”

Throughout the negotiations for the new NAFTA, we fought for a total lift of the U.S. tariffs on Canadian steel and aluminum, and we succeeded. Canada is now the only major producer of aluminum in the world that is not subject to U.S. tariffs. It is the result of our firm and measured response, including $2 billion in support for Canadian workers and companies and hundreds of interactions with U.S. officials.

I was pleased to welcome the Prime Minister to Oakville North—Burlington in 2018, shortly after the negotiation had finished on this new agreement. We visited MetriCan, which has facilities in Canada, the United States and Mexico and is a significant, innovative player in the global automotive industry and a leading supplier of tooling and stamped metal components.

The Prime Minister told MetriCan employees:

Canadians told us they wanted us to stand firm to protect good middle-class jobs like those here at MetriCan. The automobile and auto parts manufacturing industry remains a key driver of Canada’s economy. Thank you for showing me the important work you do here at MetriCan to ensure it remains so.

I am proud to have a company like MetriCan in my riding, and I know the impact the visit had on the owners and employees of the company.

Ford of Canada's head office is located in Oakville, and from the time of my election, ensuring their access to the U.S. and Mexico has been a top priority. I have been pleased to work with both management and Unifor Local 707 to ensure their concerns were heard and shared with the government.

I remember a meeting held with the presidents of the big three automakers and the president of Unifor Canada, where we all agreed that a team Canada approach to trade with regard to the auto industry was critical for success. I am proud to work with the fine men and women from Ford of Canada, and I know they want to see this agreement passed by this House.

These are just two examples of businesses in my community that are counting on us to ratify this agreement. The new NAFTA is an important achievement for the middle class and Canadians working hard to join it. This new agreement will be good for Canadian workers, businesses, and families. It will strengthen the middle class and create good, well-paying jobs and new opportunities for the nearly half a billion people who call North America home.

This agreement is good for Canada's economy. It will modernize and stabilize the economy for the 21st century, guaranteeing a higher standard of living for Canadians for the long term. The agreement will also protect jobs and preserve cultural industries in Canada.

It is now time to ratify the agreement so that we can move ahead with confidence that the Canadian economy is secure, even as we expand our trade to markets around the world. Canada has always had strong economic ties with the United States and Mexico. By strengthening the rules and procedures governing trade and investment, the agreement will provide a solid foundation for building Canada's prosperity and demonstrate the benefits of open trade for the rest of the world.

I am proud of our government for standing firm and getting not just any deal, but the best deal for Canada. I would in particular like to single out our Deputy Prime Minister for her leadership, professionalism and determination to ensure that the interests and values of Canadians were always defended. She did yeoman's work to see this agreement negotiated and to see it ratified here in the House. I thank her on behalf of all residents of Oakville North—Burlington and all Canadians.

As hon. members know, the Deputy Prime Minister has asked that we work together as colleagues to put Canada and Canadians first and get this important work done without undue delay. We have seen industry, business, union leadership, diplomats, indigenous leadership and government officials all buy into a team Canada approach. The United States and Mexico have already ratified this agreement. Now it is our turn.

Let us show the world that we all play for the same team.

The House resumed consideration of the motion that Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, be read the second time and referred to a committee.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 11:55 a.m.
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Scarborough—Rouge Park Ontario

Liberal

Gary Anandasangaree LiberalParliamentary Secretary to the Minister of Crown-Indigenous Relations

Madam Speaker, I am delighted to speak this morning in support of the Canada-United States-Mexico agreement, Bill C-4.

I want to start by acknowledging that we are gathered here on the traditional lands of the Algonquin peoples.

Let me take this opportunity to thank our Deputy Prime Minister and her outstanding team for their efforts in securing this deal for Canada. There were many moments of angst, but our minister was diligent and focused on getting not just any deal, but the best deal for all Canadians.

The new CUSMA is a big win for Canadian businesses, Canadian jobs and Canada as a whole. The agreement solidifies our government's resolve to expand trade around the world through agreements such as CETA, CPTPP and a renewed NAFTA. It will help our middle class grow and allow more jobs to be created right here in Canada. The agreement has wins for all parts of the country and in many sectors.

Trade is more important today than at any other time. Access to other markets, free of tariffs, allows us to compete around the world. It also gives our businesses certainty and predictability.

The agreement allows over 500 million people in North America to trade freely, move freely and build an area of trade that is unprecedented in the world. Last Friday, we saw our good friends in the United Kingdom exit the European Union after 47 years. We know that many parts of the world are contracting, in terms of trade. This is an opportunity for Canada and North America to shine as we solidify and reaffirm our interconnectedness, the people-to-people ties and the enormous economic benefits we have seen over the last 24 years through NAFTA.

This bill is about NAFTA and advances it in many significant ways. I want to outline a few key points in the agreement.

First, there is a lot of conversation on agriculture and the very important issue of supply management. This was central to our negotiations in this agreement. As we can see, supply management is secured in this agreement. It allows our farmers to benefit from existing policies. Of course, it opens up a bit of market share to others, but fundamentally for all farmers it secures the supply management system that we have.

It is important because, in 2017, Canada-U.S. bilateral agricultural trade was $63 billion and Canada-Mexico bilateral agricultural trade was $4.6 billion. Together, that represents close to $70 billion in trade. This allows our farmers to be secure in the work they do. Of course we will compensate those who are affected, with cheques going to them as early as this month.

The auto sector is very important to our economy. It affects us across the country, but particularly in Ontario and Scarborough, where we have a lot of auto workers and auto-related jobs.

Over the last 25 years, we have lost many jobs. I grew up in a place called the golden mile, which is within walking distance of my apartment. In the golden mile area, we had Ford, GM and many auto manufacturers and suppliers. Over the years, we saw many of those jobs move.

What is critical is there is still a very strong auto industry in Canada. We see the pressures in Europe. We see Germany, France and the United Kingdom struggling to maintain a strong auto industry. I believe this agreement will ensure that the Canadian auto industry remains strong and vibrant, and will ensure high-paying jobs for Canadians going forward.

As members know, on November 30 our government signed a side agreement that essentially ensures us against possible 232 tariffs on cars and car parts. This is critical for the protection of auto jobs. Canada is, in fact, the only G7 country to have such a protection, and it really does allow us to advance the auto industry.

I will speak briefly on the cultural exemption that was negotiated in this agreement.

Previously, I was the parliamentary secretary to the minister of Canadian Heritage, and in that role I met with many stakeholders in the cultural sector. There are over 650,000 quality jobs for the middle class as a result of our cultural industries, with 75,000 just in Quebec, and it is a $53.8-billion industry.

This is an important part of our economy and an important part of who we are as a people. The cultural exemption provisions allow our cultural industries to continue without diluting their ability to create content. It is such an important part of this agreement.

There was a great deal of skepticism when the minister and our government spoke about protection for the environment, gender equality and labour. There was a great deal of criticism from others saying that this is a trade agreement and we should not bring issues that may appear to be ancillary to trade into these discussions. I am very proud to say that we did not give in to that.

We knew, and we know, that we can have good trade and good social policies at the same time, and we can advance many important values that Canada espouses through these trade agreements. This particular agreement is an example of how we were able to do that.

On the environment, for the first time we are ensuring that we are upholding air quality in flights and addressing marine pollution. We believe that commitments to high levels of environmental protection are an important part of not just this trade agreement but all trade agreements. They protect our workers and they protect our planet.

On gender equality, we worked hard to achieve a good deal that benefits everyone, but particularly to ensure that provisions that protect women's, minority and indigenous rights and environmental protections are the strongest in any of the agreements that we currently have. We also included protection for labour to ensure that there are minimum standards across our three countries.

I believe this is why, for a variety of reasons, we have Canadians from many different backgrounds supporting this agreement. For example, Premier Moe of Saskatchewan has said that a signed USMCA trade deal is good news for Saskatchewan and for Canada. Also, Hassan Yussuff, the president of the Canadian Labour Congress, said, “The USMCA gets it right on labour provisions, including provisions to protect workers against employment discrimination on the basis of gender.”

I will conclude by saying that this is a very important step in protecting our economy, creating middle-class jobs, ensuring our businesses are able to compete and ensuring that Canadians have secured access to this market of 500 million. It is an important step forward in advancing our economy.

I look forward to all parties coming together to support this agreement. No agreement is perfect, but there are sufficient benefits here for many sectors and across the country that warrant the support of all parties.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 11:55 a.m.
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Conservative

John Nater Conservative Perth—Wellington, ON

Madam Speaker, that is the concern being expressed by my friend and colleague, the hon. member for Chicoutimi—Le Fjord. He is such a strong advocate for the aluminum industry, particularly in his riding. No one on this side of the House wants to see the potential for that industry to become corrupted by the dumping of aluminum from China into Mexico.

The 70% rule looks good on its face, but it ignores the reality of what we are going to see on the ground. It ignores the reality of what we are seeing today, where the market cap is already above that 70%. It is already having a major role here, but we are seeing the impact of that down the road. How can we know this for a fact without the economic impact assessments that have been promised to the opposition parties since December 12? Here we are on day three of debate on Bill C-4 and the government still has not provided those statements.

In question period, we heard that the government was working on this. If Liberals have been working on it since December 12, are we simply supposed to take their word that, yes, it is as they have said? That is not good enough for the people in the aluminum industry. It is not good enough for the people in Perth—Wellington. It is not good enough for the Canadian people who are impacted by this trade agreement.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

February 3rd, 2020 / 11:40 a.m.
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Conservative

John Nater Conservative Perth—Wellington, ON

Madam Speaker, it is an honour to rise in the House today to continue debate on Bill C-4, which would implement the new NAFTA between Canada, the United States and Mexico.

Since this is my first opportunity to address the House at some length in this Parliament, I would like to very briefly thank the good people of Perth—Wellington for giving me the honour of serving a second term as their representative here in Ottawa. While I have a great fondness for the 105,000 constituents in Perth—Wellington, I want to thank four constituents in particular: my wonderful wife Justine and our three kids Ainsley, Bennett and Caroline. They have been my biggest supporters, my greatest fans and my rock of support over these past four years and into the current Parliament as well.

The Conservative Party's record on trade is clear. In the previous Conservative government, our government negotiated trade deals with over 40 different countries. We recognize the importance of trade on a global scale, and at a personal level, in my great riding of Perth—Wellington, we recognize the importance of trade for our local agriculture industry and also for the manufacturing industry there, so the concerns of this new trade deal are there as well.

The Liberals appear to not be entirely aware that they are now operating in a minority Parliament, that the basis for their support is not limited only to their party and that they need and require the support of opposition parties to negotiate and to pass these types of trade deals. Therefore, relying on us as the official opposition to blindly rubber-stamp any piece of legislation, but in particular a piece of legislation like this, would be foolhardy. We will not idly vote simply to ratify a deal without certain provisions and certain information being provided to us as the official opposition.

That said, we do recognize the stability that is provided by a continental trade deal such as the new NAFTA. In Perth—Wellington, we are landlocked. We do not share a border with our friends south of the border, but the industries in Perth—Wellington are global in nature. They are reliant on trade deals to export their products all over the world.

After all, Perth County is number one for pork producers in Ontario. Wellington County is right behind it at number three. Perth County and Wellington County have over 100,000 cattle, placing them in the top five for cattle production. Perth—Wellington has, literally, some of the most fertile farmland in the world. Prices for farmland are as high as $25,000 an acre. If we believe the gossip at the coffee shop, the price is approaching $30,000 per acre because of the great nature of the farmland in Perth—Wellington.

Chicken production in Perth and Wellington counties accounts for nearly one-quarter of all chicken production in Ontario. Zones 6 and zone 7 for the egg farmers of Ontario have over 800,000 and over 1.7 million laying hens respectively. Of course, the dairy industry in Perth—Wellington is massive. There are more dairy farmers in Perth—Wellington than in any other electoral district in this country, so when we talk about trade deals and we talk about agriculture, Perth—Wellington is truly at the heart of these discussions on a global scale.

However, it is not just agriculture. It is auto parts manufacturing as well. We have many auto parts facilities in our riding in the city of Stratford, but auto parts facilities across the riding in Palmerston, Arthur, Listowel and St. Marys also provide inputs to the auto parts industry, so it is important that we provide the stability of this trade deal.

At the same time, this trade deal saw concessions. Typically in any negotiation, when we make concessions, we receive something in return. We saw concession after concession after concession, but all we got in return was maintaining the status quo. There was not any new market access. There were not any new opportunities for farmers and farm families and auto parts manufacturers in Perth—Wellington to expand on the global scale. What we saw were concessions, including 3.6% in the dairy industry and the elimination of milk classes 6 and 7. What we saw were potential limits on future exports in the dairy industry, all against the backdrop of $619 million worth of dairy imports already coming into Canada from the United States.

We saw an agreement that will see 10 million dozen more eggs coming into Canada. We saw 57 metric tons more of products from the chicken industry that will flow into Canada, which is nearly double that negotiated under the trans-Pacific partnership.

On the issue of sovereignty, we saw a trade agreement in which we need permission from another country, the United States, to explore trade deals with non-market countries. This is a concern for people across Canada and people in Perth—Wellington.

Despite all these concessions, despite all these opportunities where we gave, what did we see in return? We did not see a softwood lumber agreement, which has been called for since the beginning of the previous Parliament to help the forestry sector. We saw that the “buy American” provisions have remained. While Mexico was able to negotiate a specific chapter on “buy American”, Canada did not.

We also saw concerns raised around the aluminum industry. My colleague, the hon. member for Chicoutimi—Le Fjord, has been a strong voice on this, not only for his constituents but for the aluminum industry as a whole. He has proposed meaningful solutions to help address these concerns. He is truly a champion for the people of Chicoutimi—Le Fjord, but also for the aluminum industry as a whole.

Trade is important, particularly with the Canada-United States relationship. Estimates from places like the Canadian Chamber of Commerce have indicated that two-way trade is as high as $627.8 billion on an annual basis. That is approximately $320 billion of exports from Canada, and about $307 billion of imports back into Canada.

This is important for industry, but it goes back to our minority Parliament context and the information that is important and needed by all parties, but in particular the opposition parties to implement this trade agreement.

On December 12, members of the official opposition met with staff and members of Parliament for the government. They requested very specific information about the economic impact that this trade deal would have on specific sectors. Here we are on February 3, and that information is still outstanding.

In fact, on January 28, this question was asked in question period and the minister responsible said that the chief economist from Global Affairs Canada was working on the economic impact and was working on getting that information. However, here we are, still without that information, still being asked to ratify this trade deal despite not having all the information that is needed to ratify it.

We, as the official opposition, have a duty to analyze any piece of legislation that comes before the House, but in particular one that has such a lasting and broad impact on our economy, across every province and every territory, including my riding of Perth—Wellington. For us to do that meaningfully, we need the information that is required.

We need the government to provide us with the economic impact assessments that would tell us the impact this would have on the dairy industry, on supply-managed commodities, on the aluminum industry and on the auto parts industry, in our ridings and across the country.

I am proud to put our record of negotiation up against any. However, we cannot simply idly stand by and ratify an agreement until this information is available to parliamentarians. I look forward to continued debate on this matter. I look forward to the key sector and stakeholder groups appearing before committee and telling us how they see the economy and our country being impacted by this trade deal. We have not gotten the information, as of yet, from the government.

The House resumed from January 31 consideration of the motion that Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, be read the second time and referred to a committee.

Canada-United States-Mexico Implementation ActGovernment Orders

January 31st, 2020 / 1:50 p.m.
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Labrador Newfoundland & Labrador

Liberal

Yvonne Jones LiberalParliamentary Secretary to the Minister of Northern Affairs

Madam Speaker, it is a pleasure to rise and speak to Bill C-4 today in the House of Commons. The Canada-United States-Mexico trade deal is legislation we are all very proud of. I want to start by complimenting the minister on the tremendous work she has done and for the time, dedication and commitment to Canada in every line and chapter in the agreement.

This is the first occasion I have had since the election for me to thank the people of my riding for supporting me and electing me to the House of Commons to represent them in this mandate. I want to thank them for having confidence in me and for supporting the agenda we have worked on together for the people of Labrador. I certainly want to thank the many volunteers who worked on my campaign and all campaigns. As parliamentarians, we know how important it is to have the support of communities and individuals. Their work is so valuable in getting our messages out during the election.

As most members know, I come from a province that is hugely dependent on oil and gas development. We are very proud of the industry we have built. We know that energy within Canada in itself is an industry that has allowed our country to grow. It is a huge export commodity. It is one of the pieces dealt with throughout the trade agreement with the United States and Mexico.

I represent a riding that is not only one of the largest producers of hydro development power in Canada, but also through our partnerships with Hydro-Québec, we are able to see a lot of that export of power going into the United States as well. My riding is also the largest exporter of iron ore in Canada and one of the largest exporters of nickel. We know how important it is to have good trade agreements. We know how important it is to have strong allies and strong export markets. That translates into jobs at home and a stronger economy. It also helps so many families in many industrial sectors.

This is a remarkable time in Canada as we enter into this Canada-United States-Mexico agreement. I believe the outcomes in this agreement are good for all Canadians in every sector.

I want to talk about the energy sector because it is one of the sectors that is critically important to both the Canadian and North American economies. Our natural resources place Canada among the largest energy producers in the world. I am very happy to represent a riding and province that contribute in a major way to that energy production in the world market.

In 2018, Canada's energy sector directly employed more than 270,000 people. It indirectly supported over 550,000 jobs, which is quite substantial in terms of the employment generated through this particular sector. Including indirect activities, the sector accounts for 11% of the nominal gross domestic product of the country. Therefore, it was important that a key objective in the negotiations was to address the needs of the sector. This had to be a priority.

Provisions that govern trade in energy goods in Canada, as well as in other regions, are found throughout all of the agreement. It is not just in one particular chapter. It is spoken to in various places throughout the agreement.

It speaks to a number of things. One is national treatment and the other is market access, which we have heard a lot about with many other resource sectors. It speaks to the rules of origin for the energy sector, customs and trade facilitation, as well as cross-border trade in both services and investment.

Commitments from the original NAFTA agreement were brought forward to ensure that exports of Canadian energy products would continue to benefit from duty-free treatment in both the United States and Mexico, which was critical to the industry. Likewise, imports of energy products into Canada will continue to be duty free as well, ensuring that importers have access to these products without the extra cost of tariffs. We know how critical that is to the survival and stability of those investors and those resource sectors.

I am not going to expand upon each of those sectors, but I want to expand on the rules of origin, because the CUSMA addresses a long-standing request that had been there from Canadian industry. That was to resolve a very technical issue that was related to the use of diluent, a petroleum-based liquid that is often added to crude oil to ensure that it flows properly through pipelines. The issue had previously added upwards of $60 million a year in duties and other fees to our exporters in Canada, which was a burden. It was felt to be unnecessary, and they lobbied for a long time to have that removed because it was a huge cost to Canadian businesses. Under the new agreement, that particular issue around the rules of origin was dealt with, allowing the energy sector in Canada to gain financially from that change.

In addition to the provisions that govern energy that are found across the agreement, both Canada and the United States also agreed to a bilateral side letter on energy co-operation and transparency. I mention that because the United States, as we have all said and recognized many times, is Canada's most important trading partner when it comes to energy, as it is for many other resource sectors. The U.S. also accounted for 89% of our total energy exports in 2018. That is 89% of our total exports.

Due to the importance and integrated nature of this relationship, the CUSMA includes new provisions on energy regulatory measures and regulatory transparency that are tailored directly to trading needs between Canada and the United States. The side letter that was signed committed to provisions that would help Canadian stakeholders with more assurances and transparency with respect to the authorization process and allow them to participate in the energy sector in the United States.

Both parties have agreed to publish this information now. They have agreed to an application process, have agreed on monetary payments and have agreed on timelines. All of this is providing for stability and certainty in the industry. It is giving investors the opportunity to make important deals in full knowledge of the scope and lay of the land and without being exposed to unexpected changes. This in itself was key for the industry, and it is one of the pieces that they have been very pleased to see negotiated directly between Canada and the United States.

I know I am running out of time and that we have to conclude, but I am happy to resume this debate and talk more about the energy sector and the export sector under this agreement at another time.

Canada-United States-Mexico Implementation ActGovernment Orders

January 31st, 2020 / 1:40 p.m.
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Bloc

Marilène Gill Bloc Manicouagan, QC

Madam Speaker, this is the first time that I rise to speak in this Parliament.

I would like to sincerely thank the constituents of Manicouagan for putting their trust in me and electing me for another term. I would also like to thank the team that supported me over the past months: my family, my spouse, my three children—Loïc, Charlotte and Ulysse—my friends, the people who work with me and those who wish to serve the North Shore with dignity, integrity and energy to advance the development of our region and Quebec. I will tackle all the challenges entrusted to me by the people of the North Shore and Quebeckers with humility and respect, as well as with conviction and determination.

Today we are debating a bill that could significantly affect the Quebec economy for the next decade or more. Bill C-4 will have major repercussions for Quebec, especially because of the large volume of Quebec exports to the United States.

We have been doing business with the Americans for over three centuries and, more often than not, our trade relationship has been beneficial to Quebec's economic development. In fact, almost 70% of our exports go to our neighbours to the south. New York state alone receives about 10% of all our world exports, as does the small state of Kentucky, which has a population of 4 million.

Given how important a free trade agreement is to Quebec's economic future, each member of the House has a duty to take the time to carefully examine all the details of the agreement and to ensure that all its victims have a forum to tell us about the harmful consequences that passing Bill C-4 will have on their industry.

It is only natural to want a “full, frank, and vigorous debate”, as the Deputy Prime Minister said. To think that we do not need serious, legitimate and therefore necessary discussions about the negative impacts of Bill C-4 on Quebec and its regions, on the stability of international trade, on unfair import practices and on the environment shows a lack of respect for Quebec voters and for workers in the dairy and aluminum industries.

I will focus on aluminum workers in particular, not just because there are two smelters in my riding, including the biggest smelter in America, but also because I can foresee the impact that the agreement will have on my constituents.

We are talking about aluminum because this economic sector is crucial for Quebec. The North Shore, Saguenay—Lac-Saint-Jean and Quebec need good jobs in order to prosper. However, in its current form, the agreement between Canada, the United States and Mexico places no less than 60,000 aluminum sector jobs in jeopardy.

We will all agree that the government can hardly claim to be looking after Quebec's economic development if it accepts, without any serious negotiation, a free trade agreement that may seriously jeopardize six major projects in Quebec's aluminum sector representing $6.2 billion in investments, according to an impact study carried out by Groupe Performance Stratégique. The study estimates that these private investments could generate more than $16 billion in economic spinoffs from 2020 to 2029. That is $16 billion that Quebec would have to go without for the next 10 years.

It is important to understand that the only reason these investments in Quebec are in jeopardy is that the government failed to take Quebeckers' interests into consideration when it signed this agreement between Canada, the United States and Mexico.

Perhaps the government does not fully appreciate the importance of regional development and land use. Although the Prime Minister claims he secured guarantees that 70% of the aluminum parts used in automobile production in North America must be from North America, the fact remains that he did not bother to also ensure, as he did for steel, that the aluminum content in those parts would also come from North America. Worse still, he is playing games with the figures, which is just misleading.

The Prime Minister's carelessness and lack of faith in the intelligence of voters is leaving the door wide open for Mexican auto parts plants to import aluminum from China, even though Canadian and U.S. courts have determined that Chinese aluminum was being dumped.

As written, CUSMA makes it possible for Chinese aluminum to flood the North American market, even though Canada and the United States have anti-dumping duties in place. Chinese aluminum needs only to be processed in Mexico in order to circumvent the protections we have collectively put in place. In other words, we could wind up with car parts that are supposedly North American but in fact contain “made in China” aluminum.

For free trade to be truly free and profitable for everyone, we must make unfair trade practices such as dumping impossible.

Allowing car parts made with Chinese aluminum to be considered North American in origin is an insult to Quebec's expertise in the aluminum sector, especially since our aluminum is the greenest in the world. The Liberals seem to think that Chinese aluminum is Quebec aluminum. Just ask Quebeckers if they agree. It is absurd.

Primary aluminum produced in Quebec releases 67% less greenhouse gas than aluminum produced in the Middle East and 76% less than Chinese aluminum. Why would a government taking steps to close coal-fired power plants in Canada be so supportive of Chinese aluminum when 90% of the electricity used to produce it comes from coal? That makes no sense.

Providing aluminum the same protection as steel is not just an economic decision. It is a political one.

If the government had given any consideration at all to Quebec's interests, its economy, its regions and its workers, it would never have signed an agreement whose every concession is detrimental to Quebec. If the Prime Minister's team is really working for Quebeckers, it should fight for Quebec as vigorously as it fought for Ontario steel.

It is unacceptable to the Bloc Québécois that every single concession in the free trade agreement should be made at the expense of key sectors of Quebec's economy, and as such, even though it supports free trade, the Bloc Québécois cannot support Bill C-4. The Bloc encourages hon. members to not blindly accept a bill that is deeply unfair to Quebeckers.

If Quebec had negotiated the agreement, it would have negotiated it in its own interest and never would have compromised the growth of key sectors of its economy.

We are talking about my riding and my constituents. Hon. members will agree that we cannot allow the government to sacrifice aluminum workers back home just to satisfy Ontario's economic interests. The Bloc Québécois is the only party that is truly standing up for the interests of Quebeckers, and I am one.

Canada-United States-Mexico Implementation ActGovernment Orders

January 31st, 2020 / 12:55 p.m.
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Liberal

Maninder Sidhu Liberal Brampton East, ON

Madam Speaker, I am honoured to rise in the House today for my first official speech. As the member for Brampton East, I would like to take this opportunity to thank my constituents for putting their trust in me to represent their interests here in Ottawa. I would also like to thank my family, especially my wife, Jo, and two daughters, Ayva and Maya.

Having spent the last 11 years working as an international trade consultant with businesses from coast to coast to coast, I am grateful to have the opportunity today to speak to Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States. I know this agreement will give businesses the stability to keep trading and investing in good middle-class jobs here in Canada. With over $2 billion in trade per day, and the countless integrated supply chains with our neighbours to the south, it is clear that Canadian businesses rely on a dependable and stable trade relationship with our friends in the U.S. and Mexico.

In my riding of Brampton East, trade has an enormous impact on families. The trade corridor in my riding brings stability to many Canadians, giving them good-paying jobs and the ability to provide for their families. Many businesses rely on an open trade agreement with the U.S. and I have seen that first-hand. In Brampton the transportation industry, especially the trucking industry, relies heavily on trade with the U.S. This trade deal will give businesses the stability they need to further invest in their ventures and continue to create new middle-class jobs.

The new NAFTA will continue to give Canadian businesses favourable access to almost half a billion consumers. This agreement was a robust, collaborative effort that sought the perspectives and opinions from over 47,000 Canadians to ensure their views were considered at the negotiation table. We also spoke to over 1,300 stakeholders, including small businesses, indigenous groups, female entrepreneurs, academics and youth. Thanks to Canadians who shared their views, we went into these negotiations prepared and, in the end, we got a good deal for middle-class families and for our country.

This trade deal will bring new opportunities, security and market access for many Canadian industries. This new progressive trade deal brings forth a great opportunity for growth and expansion in Canada's automotive sector. More robust rules of origin for the auto sector will help to keep the benefits of the agreement in North America and level the playing field for Canada's high-wage workers.

This new agreement has the potential to generate increased automotive production in North America, including Canada. Additionally, this agreement creates sourcing opportunities for many Canadian parts producers. The strength of Canada's highly skilled workforce and our workers' ability to produce high-quality vehicles has always given the Canadian automotive sector an advantage.

For auto workers in Ontario, this new deal preserves crucial cross-border auto supply chains. It provides an incentive to produce vehicles in Canada and significantly improves labour rights for Mexican workers, which helps level the playing field for Canadian workers. Jerry Dias of Unifor has said that this is a much better deal than the deal that was signed 24 years ago.

Throughout the negotiations for the new NAFTA, Canada fought hard to lift the U.S. tariffs on Canadian steel and aluminum, and we succeeded. Canada is now the only major producer of aluminum in the world that is not subject to U.S. tariffs. This is great news for Canadians. This success is the cumulative result of our firm and measured response, including $2 billion in support for Canadian workers and companies, and hundreds of interactions with U.S. officials.

The new NAFTA is in the interests of steel and aluminum producers across Canada. Jean Simard, the president and CEO of the Aluminum Association of Canada, even said, “We think the USMCA is the right way to go.”

Catherine Cobden, president of the Canadian Steel Producers Association, said, “Implementation of the CUSMA is critical to strengthening the competitiveness of Canadian and North American steel industries and ensuring market access in the face of persistent global trade challenges and uncertainty

Let us set the record straight. This modernized agreement has secured key benefits and key access for many generations to come and CUSMA is something that all Canadians should be especially proud of. The new NAFTA will preserve existing agriculture commitments between Canada, the U.S. and Mexico and help bring together an already integrated North American industry.

We fought hard to secure many beneficial outcomes for agriculture, including new market access in the form of tariff-free quotas for refined sugar, sugar-containing products and certain dairy products. We established a modernized committee on agriculture trade, which will address issues and trade barriers, and provide obligations for agriculture biotechnology that will promote innovation, transparency and predictability. Over 50% of all of Canada's food exports are destined to the United States.

That is why the new NAFTA is so important. It would ensure that our farmers and producers can continue to have the access they need to sell their goods across the border so that they can continue to help grow the Canadian economy.

Leading into the trade deal talks, the U.S. summary of objectives for NAFTA renegotiations focused on the one key priority of eliminating the remaining Canadian tariffs on imports of U.S. dairy, poultry and egg products. Through our firm approach to the negotiations, Canada preserved it for future generations, just as we are delivering on our commitment to fully and fairly compensate for the impacts of the other trade agreements like CETA and CPTPP for our dairy, poultry and egg producers and processors. We will do the exact same once CUSMA is fully ratified.

Fundamentally, the ratification of CUSMA is good news for the hundreds of thousands of jobs in the agriculture sector that depend on continued tariff-free access to our largest trading partner. Canada's status on the national stage is a non-partisan issue. Canada's success benefits all of us, some way or another.

Premier Moe of Saskatchewan has expressed his support for the new NAFTA, having said that a signed CUSMA trade deal is good news for Saskatchewan and Canada.

Premier Jason Kenney of Alberta has said that he is relieved that a renewed North American trade agreement has been concluded.

Premier Legault of Quebec, who knows how important this trade deal is for Quebec and Canada, has said, “I think that the Bloc [Québécois] must defend the interests of Quebeckers, and it is in the interests of Quebeckers that this agreement be ratified and adopted”.

From farmers in Alberta and auto workers in Windsor, to aluminum producers in Quebec and entrepreneurs in St. John's, Brampton and Vancouver, the new NAFTA would benefit Canadians from every corner of the country.

Throughout the entire process of NAFTA negotiations, Canada's key objective remained the same: Ensure our new deal secures benefits for every Canadian. I am proud to see that this objective was fully achieved. Through the full ratification of this new trade agreement, I am confident that Canada's strategic objectives will be further advanced through a united approach to managing and maintaining our economic relationships with two of our most key allies.

While my speech has featured just some of the key successes of the new NAFTA, I would like to also point out other notable revised outcomes of CUSMA on areas such as environment, energy, culture, indigenous peoples and gender equity. In every aspect, we got a good deal for our country, which means we got a good deal for all Canadians. Canadian parliamentarians of every political stripe must understand that, politics aside, the interests of Canadians come first, last and always.

The House resumed consideration of the motion that Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, be read the second time and referred to a committee.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 31st, 2020 / 10:45 a.m.
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Liberal

Yasmin Ratansi Liberal Don Valley East, ON

Madam Speaker, I rise to speak to Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States, or CUSMA. For over a year, Canada negotiated hard for a modernized free trade agreement with the United States and Mexico. We knew how important it was to get a deal that was good for Canada, good for Canadian workers, good for Canadian businesses and good for communities across the country.

CUSMA, or the new NAFTA, is a significant milestone in our relationship with the United States and Mexico. The United States, as we all know, is our biggest trading partner. Two billion dollars' worth of goods and services are exchanged every day, totalling about $720 billion per year.

I would like to thank the Prime Minister, the Deputy Prime Minister and the team of negotiators, who worked so hard not only to ensure that Canadian jobs were protected but also to create more opportunities for Canadian workers and their families.

CUSMA, as the new NAFTA is known, has paid off. We have secured a great deal that protects all Canadian communities and benefits Canadians from coast to coast to coast.

What does this ratification mean to all Canadians and to my constituents of Don Valley East? CUSMA will reinforce the strong economic ties between the three countries and support well-paying middle-class jobs for Canadians. CUSMA will maintain the tariff-free market access from NAFTA, which includes the updated new chapters to address modern-day trade challenges and opportunities.

In this speech I will focus on some of the key outcomes of CUSMA as they impact Canadians and my constituents.

First is the environment. The environment has been and continues to be one of the biggest concerns to Canadians. In the last election, 95% of Canadians stated that the environment was their top priority. I am pleased to say that the agreement has a new enforceable environment chapter that replaces the separate side agreement.

What are some of the highlights of the environment chapter? It upholds air quality standards and fights marine pollution. It has an enforcement mechanism through the core obligations in the agreement. It establishes binding and enforceable dispute resolution processes to address any questions regarding compliance. It means robust environmental governance and a win for Canada.

How? Canadian businesses can remain competitive by ensuring that our trading partners do not gain an unfair trading advantage by not enforcing their environmental laws. When all parties play fair on the environment, we can continue to be competitive, grow and expand our economies and get good-paying jobs.

Second is the cultural exemption. Our cultural industry is a robust $53.8-billion industry. Our government, through CUSMA, has protected this industry. The industry represents 650,000 high-paying jobs. In my riding, there are many cultural organizations that are very pleased with the exemption the government has negotiated. This is one way of augmenting the middle class.

The new NAFTA, or CUSMA, preserves cultural exemptions and provides Canada the flexibility to adopt and maintain programs and policies that support the creation, distribution and development of Canadian artistic expressions or content, including the digital environment. That is why the negotiators of team Canada stood firm to protect the cultural exemption and our economic interests during the renegotiation of the new NAFTA.

As I mentioned, this is good for the cultural businesses in my riding of Don Valley East. For example, organizations like SOCAN can count on the stability and assurances the new trade agreement brings. It means they can defend our cultural sovereignty and see that financial benefits go to our talented Canadian artists and the economy.

Many of the creative industry organizations are small and medium-sized enterprises that depend on exporting large amounts of their production to the North American market. It is imperative for the House to implement CUSMA sooner rather than later so that our creative industries can gain from the financial benefits and protections offered through it.

A robust cultural sector enables the growth of innovative businesses that embrace the digital market and increase their cultural exports, which makes Canada stand out globally. To back this up, I will quote from an open letter from creative industry organizations published in The Hill Times on January 27, 2020:

We thank the government for signing the Canada-U.S.-Mexico (CUSMA) trade agreement last year. Under it, copyright in Canada will be strengthened by extending the term of protection by 20 years, to the life of the author plus 70 years.

Third is the auto industry. Canada's auto sector is one of the biggest winners from CUSMA. On November 30, 2019, Canada signed a side letter, which has already been entered into force to protect our auto industry and its high-paying jobs against a possible 232 tariffs on cars and car parts. The new rules of origin level the playing field for Canada's high-wage workers. I am pleased to say that Canada is the only G7 country with that protection. This is a good deal for Canada and Canadian workers.

Fourth is the SMEs. Small and medium-sized enterprises will be one of the biggest beneficiaries of the new NAFTA agreement. SMEs are the backbone of the Canadian economy and employ more than 10 million Canadians, or 90% of the private-sector labour force. CUSMA includes a new chapter on SMEs designed to foster co-operation among the parties to increase trade and investment opportunities for them, ensuring information is available to the SMEs on the obligations and functioning of the agreement. This is good news for many SMEs in my riding of Don Valley East. Businesses like Conavi, Clear Blue Technologies, 7D Surgical and Volanté Systems will benefit from this trade agreement through continued access to the U.S. and Mexican markets.

The streamlined customs and origin procedures and greater transparency in government regulations make it easier for our small and medium-sized enterprises to do businesses in North America and grow and expand. The the Business Council of Canada has said:

We applaud your government's success in negotiating a comprehensive and high-standard Agreement on North American trade. [It] maintains our country's preferential access to the United States and Mexico—Canada's largest and third-largest trading partners respectively—while modernizing long-outdated elements of the North American Free Trade Agreement.

In conclusion, CUSMA is good deal for Canada. Millions of Canadians depend on stable, reliable trade with our largest trading partners. We are moving forward with the new NAFTA right away to secure millions of jobs, create more opportunities for Canadian businesses and keep our economy strong.

I hope to see support from all of my colleagues in the House to ratify this important deal.

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January 31st, 2020 / 10:15 a.m.
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Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, before I start my first speech in the House, I would like to thank my wife, Barbara, and my kids, Shauna, Carolyn, Christina, their partners, their kids, the whole team that helped to get me here including my campaign manager, Brent McArthur, and the voters of Guelph.

It is such an honour to rise in this place today in support of Bill C-4 regarding the implementation legislation for the Canada-United States-Mexico agreement. This agreement encompasses Canada's most ambitious environment chapter to date and it is also complemented by the environmental co-operation agreement.

It is a priority for the Government of Canada to ensure that all of Canada's trade agreements not only advance our commercial interests, but also bring concrete benefits to all stakeholders. By including environmental provisions with our free trade agreements, we support Canadian businesses and ensure that trading partners do not gain an unfair trading advantage by not enforcing their environmental laws.

The North American Free Trade Agreement, which came into effect in 1994, was the first free trade agreement to link the environment and trade through a historic parallel agreement on environmental co-operation, the North American Agreement on Environmental Cooperation.

The parties committed at that time to maintain robust environmental provisions established on our tri-national institution for environmental co-operation, the Commission for Environmental Cooperation.

The Canada-United States-Mexico agreement integrates comprehensive and ambitious environmental provisions directly into an environment chapter within the agreement, which is subject to the chapter on dispute settlements.

The agreement also retains the core obligations on environmental governance found in the North American Agreement on Environmental Cooperation. This includes commitments to pursue high levels of environmental protection to effectively enforce environmental laws and to promote transparency, accountability and public participation. This reflects the importance that we place on ensuring that trade liberalization, environmental protection and conservation are mutually supportive.

The agreement also includes commitments that go beyond the North American Agreement on Environmental Cooperation. This includes prohibiting a party from moving away from environmental law to attract trade or investment and ensuring that environmental impact assessment processes are in place for projects having potential adverse effects on the environment.

The new NAFTA creates substantive commitments and many of these are in line with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on a wide range of global environmental issues, which shows the interconnection of our trade agreements within major markets within the globe.

These protections include illegal wildlife trade and illegal logging; fisheries management; protection of the marine environment and the ozone layer; sustainable forestry; and conservation of species at risk and biological diversity, which also include consultations with indigenous peoples. New commitments aiming to strengthen the relationship between trade and the environment include the promotion of trade in environmental goods and services, corporate social responsibility and the voluntary mechanisms to enhance environmental performance.

For the first time in a free trade agreement, the new NAFTA includes new articles on air quality and marine litter, as well as a binding commitment that prohibits the practice of shark finning. This is a first for Canada. It also recognizes the important role of indigenous peoples in the long-term conservation of the environment, sustainable fisheries and forestry management, and biodiversity conservation to make sure that their voices are also at the table as we move forward.

The agreement provides for an environmental consultation mechanism. Should parties fail to resolve an environmental matter arising under the agreement in a co-operative manner through various levels of consultation right up to the ministerial level, the complaining party may seek recourse through broader formal Canada-United States-Mexico agreement dispute settlement procedures. To help ensure compliance with the environmental obligations, trade sanctions may be imposed by an independent review panel.

While the core obligations on environmental governance apply only to federal legislation, commitments in other areas of the agreement, such as conservation and fisheries, apply to the federal government as well as to Canada's provinces and territories. Provinces and territories were consulted thoroughly throughout the negotiation process.

The agreement maintains and incorporates the submissions on the enforcement matters process established under the North American Agreement on Environmental Cooperation, which is a key mechanism to promote transparency and public participation on the enforcement of environmental laws in North America. Under this process, citizens of the three countries may file a submission alleging that one of the three parties is not enforcing its environmental laws. The Commission for Environmental Cooperation secretariat evaluates the submissions and requests from the implicated party to provide information and clarification regarding the enforcement of the environmental law at issue within its jurisdiction.

In December 2019, Canada, the United States and Mexico also agreed to update certain elements of CUSMA, including to strengthen environmental obligations under the agreement. This includes a commitment from parties to implement their respective obligations under specific multilateral environmental agreements, MEAs, that are ratified domestically, as well as the new provision to clarify the relationship between CUSMA and MEAs.

New language has also been added confirming that failure to comply with one's obligations in the environment chapter that affect trade or investment are now presumed to be “in a manner affecting trade or investment between the parties”, unless the defending party can demonstrate otherwise. The environmental provisions are written right into the law of the agreement.

In addition, Canada, the United States and Mexico have negotiated a parallel environmental co-operation agreement that ensures trilateral environmental co-operation continues, supported by ministerial-level dialogue and public engagement as we move forward to improve our targets under the co-op agreement and other international agreements.

The environmental co-operation agreement ensures that unique institutions for trilateral environmental co-operation are created under the North American Agreement on Environmental Cooperation and maintained and modernized going forward. This includes the continued operation of the Commission on Environmental Cooperation, including the secretariat, based in Montreal; a ministerial council, which will continue to meet on an annual basis; and a joint public advisory committee.

The environmental co-operation agreement allows the three countries to establish a work program in which they can develop co-operative activities on a broad range of issues related to strengthening environmental governance; reducing pollution and supporting strong low emissions and resilient economies; conserving and protecting biodiversity and habitats; supporting green growth and sustainable development; and promoting the sustainable management and use of natural resources.

In addition, through the joint public advisory committee, representatives from each country will continue to ensure active public participation and transparency in the actions of the commission. Membership of this committee will be from a diverse pool of candidates, including with respect to gender balance, and will include representatives from all segments of society, including non-governmental organizations, academia, the private sector, indigenous peoples, private citizens and youth.

The environmental co-operation agreement complements the ambitious environmental chapter of the Canada-United States-Mexico agreement. The environmental co-operation agreement will contribute to the maintenance of robust environmental governance and the modernization of the existing institutions for trilateral environmental co-operation.

The Government of Canada is committed to bringing Canadian goods and services to international markets while maintaining our high standards of environmental protection and conservation. We know it is possible, and we have a responsibility to do both. Under this agreement and the new parallel co-operation agreement, we will be moving forward together to ensure we are protecting our shared environment now and for future generations.