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

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons]

Mr. Speaker, I was listening very closely to what the member for Jonquière was saying. I take a different approach in the sense that on this side of the House, Liberal members of Parliament advocate for all regions of the country. We see the benefits of this trade agreement universally applied to all regions of the country. At no point in time would this government ever consider taking an area and writing it off in any fashion whatsoever.

The Premier of Quebec is encouraging members from the Bloc to support this agreement, recognizing the value of this agreement to Canada and particularly the province of Quebec.

Is the Premier of Quebec wrong in advocating that we pass this legislation?

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I find it astounding to hear the member opposite refer to the Premier of Quebec, because it is probably the first time he has ever listened to him. My colleague has selective hearing. He only hears what the Premier of Quebec says when it suits him.

I could also point out that the Premier of Quebec is asking for a single tax return. In addition, he is asking for an increase in health care funding, which is something the government has been refusing to do for years, and it is a disaster in Canada. This is what we call fiscal imbalance.

The federal government has a much broader tax base than the provinces, it does not spend as much, and it constantly balances its budget by reducing transfer payments to the provinces.

That would be a good start. If the government does that, I might consider voting for the project.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, there is a section on indigenous peoples that was presented to us a few nights ago by the panel that was negotiating on behalf of all Canadians, including indigenous peoples.

This agreement does have government procurement protections for indigenous-owned businesses and enterprises, outcomes around the environment, protecting the role of indigenous peoples and protecting our environment. The sections are in there, and I really wish that the hon. member across the way could refer to those sections when he is speaking in the House.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I find the hon. member's point of view very interesting.

I have taken a closer look at the sections he mentioned and I even think that some could be added. We do not have to just look at the first nations in the negotiations. We could also look at the Quebec nation, and perhaps add certain provisions that would respect Quebec's cultural distinctiveness and Quebec's unique economic sectors. My colleague makes a good suggestion. I thank him for that.

[William Amos, Liberal, Parliamentary Secretary to Minister of Innovation]

Mr. Speaker, I am pleased to have this opportunity to discuss the benefits of the Canada-United States-Mexico agreement for all Canadians, and particularly the benefits for the province of Quebec. I am happy to be sharing my time with the member for Saint-Laurent.

For over a year, Canada fought hard while negotiating a free trade agreement with the United States and Mexico. I would actually like to congratulate the negotiators. All of Canada's negotiators are incredible. They successfully managed an extremely complex file and all kinds of political surprises. We knew how important it was to get an agreement that is good, not only for Canadian workers but also for Canadian businesses and our communities, both rural and urban. We did everything in our power to protect jobs, create more opportunities for Canadian workers and their families, and ensure economic growth. We wanted a progressive agreement in terms of the environment and labour.

This paid off for the farmers of the Pontiac and the Gatineau Valley, the forestry workers in Maniwaki and the entrepreneurs in Gatineau, Shawville and Val-des-Monts. The new agreement will benefit not only the people of the Pontiac, but also Quebeckers and Canadians across the country.

In the agriculture sector, Canadian exports will continue to benefit from duty-free access for nearly 89% of U.S. agriculture tariff lines and 91% of Mexican tariff lines, which is extremely important to Canadian exporters, especially those in Quebec and, of course, the Pontiac.

In 2018, Quebec's farmers and food processors exported $5.6 billion worth of goods to the U.S. Quebec exporters will have access to new markets for refined sugar and goods containing sugar, margarine and whey. The government will continue to work with all supply-managed sectors to mitigate any future repercussions of the new NAFTA.

Let us now talk about culture. In the new agreement, Canada has successfully maintained the general exemption for its cultural industries, a key provision that seeks to preserve Canada's cultural sovereignty, which was an important aspect of NAFTA. The cultural exemption fully preserves the latitude Canada has to adopt and maintain programs and policies that support the creation, distribution and development of Canadian artistic expressions or artistic content, including in the digital environment, which is the future of many cultural industries. This result is very important, especially for Quebec. The dynamic information and culture industries account for more than 73,000 jobs in Quebec and nearly 340,000 jobs across the country, which pumped nearly $63 million into the Canadian economy in 2018.

The new agreement preserves the mechanism for dispute settlement by a binational panel that was included in the original NAFTA. This mechanism allows Canada to use an independent and impartial process for challenging American or Mexican anti-dumping and countervailing duties. The mechanism is especially important for Quebec's softwood lumber industry and, of course, for my riding, because exports to the United States reached $1.3 billion in 2018.

The original NAFTA's temporary entry provisions were maintained, providing Canadians with preferential access to the United States for the purposes of providing services or after-sales service or monitoring their investments on the ground. These investments are especially important in advanced manufacturing, such as Quebec's aerospace sector, because it is essential that engineers and other experts be able to travel freely within North America to provide their services.

The agreement also seeks to modernize the disciplines to adapt them to the digital economy, thereby enabling businesses to conduct business across borders electronically, while still maintaining the government's ability to regulate and protect Canadians' personal information.

This modernization is important for the video game industry, which is booming in the Montreal area. It is also important for the region's position as a burgeoning leader in tech innovation and a top destination for investment in artificial intelligence and life sciences. The information, culture and recreational sector in Montreal supports more than 56,000 jobs. The city is becoming a top international hub in this field.

Because the riding of Pontiac has a large number of small and medium-sized enterprises, I also want to point out that this agreement includes a new chapter on SMEs. This chapter will allow for greater co-operation between the three countries, which will open up new markets and increase investment opportunities for small businesses. The new chapter will also ensure that SMEs have access to the information they need on how the agreement works and what obligations it imposes. This chapter is of particular importance to Quebec, where SMEs accounted for 99.7% of all businesses in 2019.

We must not forget that a progressive approach was taken in negotiations for the new NAFTA. We were sometimes ridiculed by the opposition for that. We always wanted the agreement to be progressive on environmental and labour matters.

I would now like to highlight these matters. The labour chapter is robust and fully subject to the dispute settlement provisions of the agreement. It aims to improve labour standards and working conditions in each of the three countries, based on internationally recognized labour principles and rights.

For example, the labour chapter includes new provisions prohibiting the importation of goods produced by forced labour, imposes obligations related to discrimination, including discrimination on the basis of sex, sexual orientation and gender identity, combats violence against workers who are exercising their trade union rights, and ensures that migrant workers are protected under labour laws. To ensure a timely response to cases of labour rights violations related to collective bargaining and freedom of association, the agreement also includes an innovative rapid response mechanism between Canada and Mexico.

On the environmental front, the agreement strengthens and modernizes the environmental provisions by incorporating them into an environment chapter that is ambitious, comprehensive and enforceable. This chapter sets out a mandatory, enforceable dispute resolution process for all compliance issues. When the countries cannot agree on the method of consultation and co-operation, it provides for recourse to the agreement's more general dispute resolution mechanism. The agreement also includes new obligations to address global environmental challenges, including the following important obligations: combatting the illegal wildlife trade, illegal logging and illegal fishing; promoting sustainable forest and fisheries management, in particular through a commitment to prohibiting subsidies that negatively affect fish stocks; preserving species at risk; implementing relevant multilateral environmental agreements; and taking measures to protect the ozone layer and prevent marine pollution.

I would also like to mention that the much-criticized chapter 11 on investor-state dispute settlement was scrapped for Canada. In addition, the chapter on investment includes a provision on corporate social responsibility.

We can see that this new agreement is full of progressive elements. I could have mentioned the aspects related to trade and indigenous peoples. I hope I will get questions about that. I could also have talked about trade and gender. Those are some very interesting aspects.

In closing, I am very pleased that our officials and our negotiators were able to negotiate the best possible agreement. This agreement will be good for Canada, for our economy, for the environment, for our workers and for our SMEs.

[Luc Thériault, Bloc, Montcalm, QC]

Madam Speaker, I heard a colleague opposite bragging about the three free trade agreements, but if there is one thing that the successive federal governments have in common, whether blue or red, it is that they signed those agreements at Quebec's expense. We need look no further than the forestry industry, aluminum, cheese producers and supply management. It is true. These parties are like two peas in a pod. Whether the Conservatives or the Liberals are in power, they both do the same thing when signing free trade agreements. They sign them at Quebec's expense.

We need to speak the same language if we want to find a solution. My colleagues opposite have been saying over and over that 70% of aluminum is protected. I have just one simple question: Does the member know that Mexico does not produce aluminum and that the anti-dumping provisions apply only to producers, that is, to Canada and the United States? This means that China could provide Mexico with aluminum that can be resold as parts. Is he aware of that? Will they stop saying that 70% of aluminum is protected when that is not the case? Nothing is protected when it comes to aluminum production.

[William Amos, Liberal, Pontiac, QC]

Madam Speaker, I thank my colleague for his question. We know we will hear a lot of sovereignist and nationalist rhetoric from the Bloc Québécois. We expect this type of criticism, but it is untrue that the new agreement is not good for Quebec. Quebec's SMEs, business councils, companies and elected officials all tell us the same thing. They want us to sign this agreement. They want us to pass legislation that secures a place for Quebec and Canada in the North American economy.

As for aluminum, our government has made it clear time and time again that this agreement protects and benefits the aluminum sector. That is why Jean Simard, the president and CEO of the Aluminum Association of Canada, said that we absolutely must move forward and sign this agreement.

[Richard Lehoux, Conservative, Beauce, QC]

Madam Speaker, I appreciated my colleague's speech. He spoke a lot about innovation and technology, which was very interesting. I think it is important and worthwhile for SMEs to have access to new technologies.

You mentioned that SMEs are very important. They are important in your riding, in my riding and in many ridings across Quebec and Canada.

Does the new NAFTA give our SMEs, especially those in the regions, an opportunity to access all of these new technologies?

[The Assistant Deputy Speaker, Carol Hughes]

I would remind the member for Beauce that he must address the Chair and not speak directly to the parliamentary secretary or the member who gave the speech.

The hon. parliamentary secretary.

[William Amos, Liberal, Pontiac, QC]

Madam Speaker, I would like to thank the member for Beauce and congratulate him on winning his seat. I am always happy to see new faces here in the House of Commons.

Pontiac is indeed full of SMEs. In Pontiac, Vallée-de-la-Gatineau and Collines-de-l'Outaouais, SMEs are the backbone of our economy. As I said in my speech, that is why we are so pleased with the negotiations. SMEs were foremost in our minds during negotiations. That is why there is a new chapter on SMEs.

Our SMEs will definitely be able to seek advice from government departments such as Global Affairs if they want help exporting more of their products to the United States and Mexico.

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Madam Speaker, I am pleased to speak to Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

When negotiations began over a year ago, I remember how much uncertainty there was about what would happen if we did not manage to sign a deal. People were afraid for our economy's future, because there were too many unknown or unpredictable factors going into these negotiations.

I represent the federal riding of Saint-Laurent, one of the most industrial ridings in the country. There are technically more jobs in my riding than there are people. I had countless meetings with companies that told me that they relied on a good NAFTA deal to continue to thrive and, in some cases, for their company to even survive.

During these meetings, I told them about the confidence I had in our then foreign affairs minister, the member for University—Rosedale, to get a good deal for Canada. Many of them asked me why it was taking so long and had doubts that we would succeed in getting a good deal. I explained that we were not going to fold until the deal was a good one for all Canadians, that we had a strong team of skilled negotiators hard at work who were going to hold off on signing until it was an excellent deal for Canadians.

Lo and behold, we have done just that. We have managed to get an excellent trade deal that will support well-paying middle-class jobs in many different industries for Canadians across the country.

In addition to ensuring that our jobs are protected, this new deal also has a new enforceable environment chapter that will uphold air quality and fight marine pollution. Furthermore, we have worked hard to protect women's rights, minority rights and indigenous rights. In fact, this deal has the strongest protection for these groups as well as for the environment of any Canadian trade agreement to date.

It is through our trade deals that we are able to hold other countries accountable when it comes to the environment and gender equality.

This new Canada-United States-Mexico agreement, which we refer to as the new NAFTA, is an excellent agreement that will allow us to solidify economic ties and support good, well-paying jobs for middle-class Canadians. It took us quite some time to sign this agreement because we felt it was important that it benefit all Canadians.

As my colleagues have certainly heard, the Americans wanted nothing to do with the cultural exemption at the beginning of the negotiations, an exemption that we know is critical for Quebec. We fought very hard to keep it and we clearly indicated to the Americans that we would not sign any agreement without this cultural exemption.

Our government will always stand up for our cultural industries because that means protecting a $53.8-billion industry representing more than 650,000 good jobs for middle-class Canadians. For Quebec, it represents 75,000 jobs.

Yesterday, I was surprised to see the Bloc Québécois vote against this agreement. I was surprised because I know that Quebeckers, who the Bloc generally tries to represent well, want us to sign this agreement. Quebeckers need this agreement, which, in many ways, is even better than the old NAFTA.

The Bloc Québécois argues that this agreement does not offer aluminum the same protections as steel. Let us not forget that the old NAFTA did not protect aluminum at all. Before, when a car was manufactured, 100% of the material could come from China, while under this new agreement 70% of the material has to come from North America.

We hope the Bloc Québécois will vote in favour of this agreement at the next opportunity.

This new NAFTA will also help the manufacturing industry. We have modernized the process at the border in order to cut red tape and to make it easier for small and medium-sized businesses to export and import with the United States.

We have also ensured that the deal is a good one for Canadian workers. The enforceable provisions that protect labour are the strongest ones yet.

It is a great deal for Canada's car sector. The new auto rules of origin will directly secure the future for auto workers in cities such as Windsor and Oshawa.

It is time for Canada to join the United States and Mexico by ratifying this new and improved deal. It is in the national interest to move quickly to get this signed, as the Deputy Prime Minister has stressed time and time again, as signing it will bring our country economic and political certainty.

I think back to the conversations I have had with my constituents in Saint-Laurent, as well as with the many businesses in my riding for whom this deal is a great source of comfort, and I know that not signing it is simply not an option. We have worked hard to ensure this new deal is one that will benefit Canadians and Canadian businesses across the country, and it is time to secure what our top negotiators have fought so hard for.

[Colin Carrie, Conservative, Oshawa, ON]

Madam Speaker, the member mentioned auto workers in Oshawa. I am just wondering if she is aware that our plant closed down. Within a few days after the details of this agreement were announced, GM announced that it was not allocating new product to five plants. One of them was Oshawa. Since the American plants did recover, it did have some product allocated to it. Overall, I think the auto industry is happy with this agreement.

The member did not mention the fact that the uncertainty, by dithering to get an agreement, really caused problems. The government could have signed the TPP, the original one, four years ago. It was Mr. Obama's deal, the most progressive deal out there. However, a lot of uncertainty caused problems.

The TPP was eventually signed. If trade was so important, why did the Liberal government not sign the original TPP when it was available four years ago?

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Madam Speaker, I would like to recognize that it was obviously not a great moment when the plant in Oshawa closed, which was before the agreement was signed.

Uncertainty does not help. We wanted to make sure that this deal was as good as it could be for Canadians. We were not going to sign just any deal. We wanted to make sure that Canadians across the country were going to benefit from this deal. Uncertainty never helps. However, signing this deal is going to help us move forward in a positive way and it is going to help our auto sector.

[Andréanne Larouche, Bloc, Shefford, QC]

Mr. Speaker, I want to thank my hon. colleague for her speech.

I am pleased to know that she listened to the people of her riding. We are also listening to the people in various ridings in Quebec. A delegation of people from Saguenay—Lac-Saint-Jean came here yesterday to express their concerns regarding this agreement.

It is possible to improve the implementation of this agreement without having to renegotiate it. It would not be an exceptional procedure. In the spirit of co-operation, we proposed including standards that would offer certain guarantees for aluminum. That way, the Bloc Québécois could reconsider its voting position.

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Madam Speaker, as I mentioned in my speech, this new negotiation includes some good news for Quebec's aluminum sector. The old agreement had no protections for that sector, but now, in the new agreement, 70% of all materials must come from North America. This will really help Quebec.

I think the Bloc Québécois should have another look at the deal to be sure how it wants to vote. This is a very good deal for Quebec.