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 Implementation Act

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, I appreciate knowing that the member agrees with 95% of what I said, and we would love to have him over here any time.

With regard to investor-state dispute settlement, I believe, although I know some colleagues in this House do not agree, that if we are going to sign an agreement, then there has to be a mechanism for dispute settlement that in some cases would allow us to go beyond simply the national courts. If a Canadian company is investing in Mexico and there are terms of the trade agreement that say it is able to make that investment and should be treated on an equal footing with local companies, but that is not happening, the company should have legal remedies that go beyond the local courts.

Unfortunately, in this particular deal we were set back in terms of investor-state dispute settlement mechanisms. Chapter 11 of the old NAFTA dealt with this issue, but we just do not have that kind of protection for Canadian companies. Of course these provisions protect American and Mexican companies investing in Canada, which should not bother us as a rule-of-law country, but it makes Canadian companies more vulnerable when making investments in other countries, particularly if there are situations in, for example, Mexico, where Canadian companies would be adversely affected.

I believe in the—

[The Assistant Deputy Speaker, Carol Hughes]

I remind the member that other questions need to be posed as well, so let us keep the questions and comments short.

Questions and comments, the hon. member for Saanich—Gulf Islands.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I am pleased to see that my friend from Sherwood Park—Fort Saskatchewan grasps chapter 11. I am certainly thrilled that it is no longer in NAFTA 2.0, or CUSMA, or whatever we are calling it.

In experience and theory, I hear what the member is saying about how it would have protected Canadian companies against unfairness from U.S. governments. However, we have an empirical track record and a history showing that when Canadian companies brought forward these chapter 11 cases in the U.S., they virtually always lost. On the other hand, when U.S. companies such as Ethyl Corporation from Virginia, SD Myers of Ohio, AbitibiBowater or Bilcon brought charges against Canada, they succeeded in cases that were fundamentally anti-democratic and against what Parliament had decided was best for Canada.

I cheer the removal of chapter 11 from NAFTA.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, my colleague probably agrees a little less than I do with the previous questioner. However, it is not just a matter of opinion; it is a matter of numbers. Let me share the numbers with the member in terms of ISDS cases that have been settled or decided.

Canada has lost eight cases and won nine cases, so we are batting above .500, and in total Canada has paid out about $219 million in damages and settlements and has spent about $95 million in legal costs to defend against ISDS claims. This is during the period in which NAFTA was in place. I compare those relatively small numbers to the $406.1 billion in foreign direct investment from the U.S. into Canada today.

By having a mechanism that protects Canadian companies that are making investments, we are winning more than we are losing and we are benefiting more than it is costing. It is a reality of a rule-of-law country that companies can sue the government when agreements have not been followed. That is part of a—

[The Assistant Deputy Speaker, Carol Hughes]

Unfortunately, time is up. I tried to allow for a little more time.

Resuming debate, the hon. member for Brampton East.

[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.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Madam Speaker, I commend my colleague on his first speech here in the House of Commons. However, he should remember that we cannot assume that every document sent out by the Liberal Party is accurate. We must question some of that information.

My colleague said that dairy, egg and poultry farmers were fully compensated for the losses they incurred as a result of concessions made in earlier free trade agreements. That is false. Only dairy farmers have received compensation. Egg and poultry farmers did not receive anything. What is more, we are still waiting for the continuation of the program.

Did the member know that only dairy farmers were compensated and that the others are still waiting?

[Maninder Sidhu, Liberal, Brampton East, ON]

Madam Speaker, while we respect the dairy and poultry industry, our position is to negotiate for Canadians across Canada. The member's questions are very important to me. The new NAFTA is incredibly important for Canadians from coast to coast to coast, including the dairy and poultry sectors. I have talked to numerous business people across Canada. Some of them are farmers from Alberta and Saskatchewan, while others are tech entrepreneurs from Vancouver. They told me they rely heavily on this trade agreement.

Over the last 11 years, I have worked as an international trade consultant across many different industries, and everyone is for this NAFTA. Thank you for your question.

[The Assistant Deputy Speaker, Carol Hughes]

I want to remind the hon. member that he is to address the responses to the Speaker of the House and not to individual members.

Questions and comments, the hon. member for Hamilton Mountain.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Madam Speaker, one of the things I am concerned about is that, when the first agreement was made, it was such a great agreement that the minister said that she did not want to renegotiate it, did not want to open it back up, and that it was very naive of the NDP to ask them to do that as it would be opening a Pandora's box.

However, the Democrats in the United States reopened it and apparently we got a better deal than our first best deal.

What is the best of the best? Is the first one the best, or is the second one the best? Is there a third best?

[Maninder Sidhu, Liberal, Brampton East, ON]

Madam Speaker, 75% of our trade is with our partners to the south. We know this is a great deal for Canadians. It is an honour to stand here and talk about this deal.

I know the member across the aisle is from Hamilton. The auto sector has a huge part in this new agreement. The new rules of origin level the playing field for Canada's high-wage workers. We signed a side letter on November 30 that has already entered into force. It is a gold-plated insurance policy against possible 232 tariffs on cars and car parts. The insurance policy is strongly supported by our auto industry. Canada is the only G7 country with that protection.

The bottom line is that this is a good deal for Canada and for Canadian workers.

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I thank the member for his speech.

I am wondering what he thinks about the delegation of people from Saguenay and Lac-Saint-Jean who came to Ottawa this week to express their concerns and disclose the results of the study conducted by the Groupe Performance stratégique. This group examined the economic impact that the failure to include a definition of aluminum similar to the definition of steel in the protocol of amendments would have on Quebec over 10 years, from 2020 to 2029.

Does he believe that those people are not Quebeckers?

[Maninder Sidhu, Liberal, Brampton East, ON]

Madam Speaker, I wish I could respond to the member in French. I am working on that right now.

This is a great deal for Canadians and for the people of Quebec. The respected Premier of Quebec has one of the highest approval ratings across the country. The Bloc Québécois must defend the interests of the Québécois, and it is in the interests of the Québécois that the agreement is ratified and adopted.

The trade between NAFTA, Quebec and the U.S.A. is $57 billion. It preserves the culture exemptions and preserves supply management when the U.S. was calling for its complete dismantlement. When the new NAFTA is ratified, we will have a guarantee that 70% of aluminum contained in a car built under NAFTA must come from North America. At the moment 0% of aluminum in NAFTA must come from North America. In my books, 70% is better than zero.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, I rise today to talk about NAFTA, but first I would like to thank the hon. Speaker for the opportunity of a lifetime earlier, having sat in the chair with some of the most important people in Canadian history.

Conservatives are the party of free trade. There can be absolutely no doubt about that. Our party is responsible for negotiating some of the largest and most important trade agreements in Canadian history. The importance of that cannot be underscored too much. Our economy today is greatly reliant on the great work of previous prime ministers from the Conservative Party. Indeed, we benefit from that today in our daily lives and in our productivity and wages.

Because of the importance of free trade, I will signal today that it is my intention to support NAFTA .7, however, it is not without deep reservations that I do so as the new NAFTA .7 will have significant impacts on the aluminum industry, the forest industry and an industry that is very important to my riding, the dairy and supply-managed sectors.

National unity should be a key issue that we discuss in every debate. It is incumbent upon members of other provinces to reach across. As the member from Ontario, I have to acknowledge and tell the members, our brothers and sisters from Quebec, that I believe this agreement has an unfair and disproportionate impact on Quebec.

Much of the 2019 discourse focused on a little company called SNC-Lavalin and the Prime Minister's decision to direct his Attorney General to act on a deferred prosecution had a significant impact on Canada. Of course, Canada is seen across the world as a beacon of virtue, honour and light. Unfortunately, that beacon dimmed a little with his actions.

In the Ethics Commissioner's report, it was found that the Prime Minister's attempt to influence his Attorney General breached the Conflict of Interest Act. Acknowledging mistakes were made, he stood and said he would not accept full responsibility, saying he will always stand up for Quebec jobs. That statement is very troubling because it means almost limitless actions to protect maybe one job in Quebec. Is he willing to put in peril the rule of law, one of the most sacrosanct principles, just to protect one job in Quebec? Apparently so.

Also, the reality of that statement was found to be untrue because the CEO of SNC-Lavalin said there were not Canadian jobs at stake with respect to the deferred prosecution agreement.

I believe that the final bit of any credibility left in the statement that the Prime Minister will stand up for jobs in Quebec fell apart with the signature of NAFTA .7. To be clear, it is the worst deal for Canadians. The pain from this diminished deal is disproportionately felt by rural Canada and by Quebec.

The dairy industry is an incredibly important part of the economy in Northumberland—Peterborough South. There are 66 dairy farms in my riding. They contribute over 34 million litres of milk to our community. I have been told over and over, most recently at a debate during the election by a farmer who said he was not going to ask for anything except that we stop going through the negotiations bartering their livelihood, farmers' futures, as the first bargaining chip that goes down. Farmers are more important than that and they deserve better treatment than that.

Quebec's dairy industry is also extremely significant. There are nearly 8,000 dairy farms averaging 55 cows per farm and three billion litres of milk are produced, which accounts for about 30% of Quebec's total agricultural production. NAFTA .7 will do significant damage to the dairy industry by reducing the market by nearly 4%. We lost that production without receiving any equivalent compensation from the United States and that is because it is difficult for our producers to get into the U.S. and European markets.

Those markets, as I am sure many members are aware, are barred by tariff and non-tariff barriers. One great example of that is the U.S. pasteurization standard. Due to technicalities in the market, it is nearly impossible for Canadian producers to hit that. However, our milk is safe, it is perhaps the safest in the world, and the only reason to apply that standard on our producers is to block entry into their markets. Why could we not have made progress on that important issue?

Perhaps just as significant as the reduction in quota and the reduction in market size is the elimination of classes 6 and 7. The milk that comes from our wonderful cows becomes many different products, such as cream, whole fat and skim. However, the reality is that the market is limited for skim milk, but classes 6 and 7 would allow that skim milk to be sold competitively. In the absence of classes 6 and 7, that skim product now becomes unsaleable and unmarketable, and could be a wasted by-product, adding to the cost and perhaps even limiting the market.

This is not a good deal for the folks in the dairy industry. It is not a good deal for our dairy producers from coast to coast to coast. When we look across the nation, we could have gotten a better deal, and it is not just me saying that this is not a good deal for our dairy. Bruno Letendre, the head of the Quebec milk producers association said that “the agreement is a bad one for the Canadian industry” and that our Prime Minister “negotiated on his knees, and I'm being generous.”

There simply can be no question that the dairy industry and the supply management sector have been damaged. However, supply management has been great for the Canadian economy. It has been great for the Canadian consumer. We have amazing milk in Canada, which is among the safest in the world. Therefore, I was shocked when a Liberal member across the way earlier today said that supply management was not a good system for our consumers. That is completely untrue and objectively false.

When we look at this agreement, we acknowledge that there has been something taken away from supply management. It is clear, because the government has signalled that it will have a compensation package. However, when I talk to our farmers, they do not want another government handout. What they want is to be left alone so that they do not live in fear that, the next time a Liberal negotiator walks up to a free trade agreement, the first bargaining chip put on that board is the farmers of our country. It is not right and it is not fair.

On the impact to the aluminum sector, I have to say that the government members have done an extremely poor job in communicating. Instead of engaging us as the opposition, as partners, they have attempted to gloss over it. Therefore, I will be forthright with members. The aluminum protection is better, because it was not there before. However, the Liberals also have to acknowledge that, to be fair, this protection is undermined, if not completely undermined, by the fact that the aluminum does not have to be melted or poured in North America. I was pleased to hear, during the conversation from members on the other side, an acknowledgement of that, but they should have done that from the beginning instead of trying to sail over these issues.

My ask of government members is that in future communications with opposition parties, they simply acknowledge the loss issues rather than attempt to sail over them. The intellectual dishonesty of selling too hard leads to distrust, which is never useful, particularly in a minority Parliament.

Further, I ask that the government be transparent and answer the following questions.

What will the economic impact of NAFTA .7 be? The Liberals have the numbers. Please share.

What are the details of the dairy compensation package? How many millions of dollars will the dairy industry lose as a result of this deal?

What is the potential exposure of the aluminum market to foreign dumping? Why was the aluminum industry not afforded the same protection as steel, and if it had been, what would the economic benefit be?

This deal, beyond a shadow of a doubt, shows that the Liberals will not stand up for jobs in Quebec when it means doing the hard job of negotiating with President Trump, and will only act when it is politically expedient to do so.

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Speaker, we have been speaking with the dairy producers and dairy processors of Canada who have been working on a committee of agricultural trade to look at impacts and things he has addressed with respect to economic impact, mitigation and compensation strategies going forward.

We are very deeply involved with the people in dairy industry to ensure we do what we can to protect them. They have told me, and maybe to the member across the way has heard this as well, that it is important to label Canadian dairy products being produced in Canada, so Canadian consumers can make the right decisions.

Would the hon. member agree that if Canadians knew that it was Canadian milk, they would buy Canadian?