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

[Bobby Morrissey, Liberal, Egmont, PE]

Mr. Speaker, I will be sharing my time with the member for Yukon.

I am pleased to rise in the House this afternoon to speak in support of Bill C-4. It is important to restate that Canada did not choose to renegotiate NAFTA. When confronted with the reality that our major trading partner was intent on replacing NAFTA, our government put in place a negotiating team that positioned Canada well as we began the process toward a modernized free trade agreement that, as my colleagues have stated in the House from time to time, has the overwhelming support of the House of Commons.

I have listened to much debate in the House and have heard various criticisms of parts of the renewed trade agreement, but members have not offered how they would have negotiated differently in those areas. While it is easy to pick apart points and say, “We would do it better”, Canada is a country of some 38 million people and our largest trading partner is a country of well over 300 million people. The official opposition would have Canadians believe that we could have simply gone to Washington and dictated to the U.S. every term we wanted in the agreement.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, when we are sitting around a negotiation table, it is not like there is the opportunity to say, “Here's my list and the lists for the Conservatives, the NDP and the Bloc of everything we want”, and then expect the United States and Mexico representatives to say, “Okay, no problem, you have it.” That is not the way negotiations work.

At the end of the day, we achieved a deal that is in the best interests of Canadians in all regions of our country. I would point out to members opposite that over the last couple of years we have had a significant amount of discussion and debate inside the chamber, and equally as important, outside the chamber, dealing with a wide spectrum of individuals, different types of stakeholders, different levels of government and different groupings, if I could put it that way, in order to ultimately pull it all together into what we now have today, which is an agreement we can all be very proud of.

The member for Yukon made reference to the Bank of Nova Scotia. The idea that we did not have to do anything is false. There was a presidential election, and it became very clear that Canada needed to be at the table to negotiate a renewed NAFTA. There were some members of the opposition who ridiculed the government of the day, saying that we should not have indicated to the U.S. that we were okay with sitting down at the negotiation table. We recognized how important it was to actually be there to ensure that Canadians' best interests were being served.

We can look at the final product, Bill C-4, and see the support it has generated. I just made reference to the opposition parties and the government, but different levels of government here in Canada, from the Premier of Quebec to the Premier of Alberta and many other premiers, are talking about how good this deal actually is for our country and for individual provinces.

We have heard unions, including trade unions, being very supportive of many of the gains made in this legislation. Both big and small business communities recognize the value of this particular agreement. Canadians as a whole recognize just how important trade is to our country and they are getting behind this.

For all intents and purposes, even though our Deputy Prime Minister has led the charge on behalf of Canada, it has really been an effort by so many individuals and they can take credit for what we have today.

I want to make reference to the negotiators. We have heard this in the past from other members. We are very fortunate to have some of the best negotiators in the world who are there to protect our interests. I suspect they continue to improve upon those skills because of the number of agreements that have been achieved.

Over the last five years, we have witnessed a government that has been very proactive in picking up where the former prime minister left off. We have been able to sign off on a number of critically important agreements.

From a different perspective, I listened to other members talk about what it means when we talk about trade. When I sit down with my constituents at the local McDonald's and they want to talk about trade, I will often provide tangible examples. In Manitoba we have a number of different industries. I often talk about our pork industry, as I have done in the House.

The pork industry in the province of Manitoba is doing exceptionally well. The vast majority of pork that is produced in Manitoba does not stay in Manitoba. A producer called HyLife is located in the beautiful community of Neepawa. Well over 90% of its products go to Asia. The jobs are into the hundreds. Those individuals are buying products, using services, living in that beautiful community and contributing to the economic and social well-being of Neepawa and the surrounding area. That would not be possible without trade.

Manitoba's pork industry processes millions of pigs every year that are sold around the world. We could talk about whether it is Maple Leaf in Winnipeg or Maple Leaf in Brandon. We could talk about the hundreds of farmers that are engaged in the process, from raising the pigs to ultimately having them delivered to factories or processing plants by truckers. It is a major industry in Manitoba. If it were not for international trade and to a certain degree some domestic trade, that industry would not be anywhere near what it is today. We all benefit, not only immediate communities but the entire country as well.

I often talk about New Flyer Industries, which produces some of the best hybrid buses in the world. The company is thinking into the future. It produces more buses than we could ever use in Manitoba. We need trade.

Our government has been able to achieve a significant number of agreements in the last four or five years.

We can talk about the internal trade agreement that was achieved with the provinces a few years back. Canadians will often say international trade is good but we need to work on interprovincial trade, and we have done that. Our government has been able to move forward on that particular file.

There has never been a government that has been as successful at signing off on international trade agreements as this Liberal government has been in the last five years. We can talk about the European Union. We can talk about the trans-Pacific agreement. We can talk about Ukraine, not to mention the World Trade Organization. A few years back a bill was introduced that dealt with well over 100 countries around the world.

This government and our Prime Minister understand. From day one, our priority has been to enrich Canada's middle class and those who are striving to be a part of it. One of the best ways to do that is to provide opportunities through trade. It is not just what is released in a budget or other legislation. A government has to do a multitude of things in order to achieve success at serving Canadians.

The types of agreements that our government has been able to sign off on have made a tangible difference in Canada.

We often hear about children and seniors having been lifted out of poverty over the last number of years. We have been very successful at doing that.

We do not hear much about the number of jobs that have been created by this government, and it is a wonderful story that needs to be told. I am talking about full-time jobs in most cases, well over one million jobs. It might be 1.1 million net new jobs. That is a significant number of jobs.

We talk about how we can try to grow the economy, provide more choice for consumers and add more value for businesses and entrepreneurs, and Canada has some of the best entrepreneurs in the world. One of the best ways we can achieve that is to look at ways we can secure markets into the future. Because of this government, we are now in a position in which we have agreements with all of the G7 countries. I invite members to name another country in the world that can say the same. We have recognized the value of trade as being one of those critical aspects of development required in order to advance the interests of Canadians in all regions of our country.

I am sensitive to the fact that, whenever we have a trade agreement, there are always going to be areas in which it would have been nice to have been able to achieve something a bit different, but as I pointed out at the beginning of my speech, it would be absolutely naive to believe that we could go in and win on all counts and get everything that we want.

President Donald Trump wanted Canada to dismantle, get rid of, supply management. He is the individual who made it very clear that his administration was not prepared to accept the old agreement. They wanted a new agreement, or they would get rid of the old agreement. A part of that also incorporated the thought that they wanted to see the ripping apart or taking down of supply management.

I am very proud of the supply management system. We have production controls, import controls and price controls. As a direct result of that, we are able to produce things such as the best milk in the world, dairy products and much more. Supply management has been very effective. It is a tool that was actually put in place many years ago by another Liberal government, and I can tell members that it is this government that is protecting the future of supply management.

That is absolute, because there is very little doubt in my mind. I think it was the leader of the People's Party, who had been a member of the Conservative Party not that long ago, who was espousing that we should get rid of supply management. I suspect he was not alone among the Conservative benches. I sat in opposition a number of years ago when there was always the thought that the hidden agenda of many Conservatives was to get rid of supply management.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, it has now been several weeks since Bill C-4, an act to implement the Agreement between Canada, the United States of America and the United Mexican States, was introduced.

It is becoming increasingly clear that this agreement between the United States, Canada and Mexico has some serious consequences for Canada's and Quebec's economies. It is simple. Under this agreement, our exports to the United States will decrease and our imports from our neighbours to the south will increase. As a result, the United States will diminish Canada's industrial activity, shifting this activity to its own cities and towns. The C.D. Howe Institute's most recent study estimates that Canada's GDP will take a $14-billion hit. That is worrisome.

Agriculture in Canada, and especially in Quebec, will be one of the hardest-hit sectors of the economy. It will lose a significant portion of its market share to the United States. This is not to mention all the other trade benefits and legal advantages in terms of copyright, intellectual property, trademarks and data protection that the United States gained over Canada in these negotiations.

I even heard Canada's chief CUSMA negotiator say that the Government of Canada negotiated with the United States without analyzing the consequences of its decisions. Negotiating that kind of free trade agreement usually takes three years. Canadians should have been invited to submit studies that should have been debated to gain a better understanding of the long-term benefits for our economy. In this case, the United States forced negotiations and Canada was left scrambling.

The Government of Canada also rushed the study of Bill C-4. After finalizing the agreement last year, the Liberal government, which had a majority at the time, rejected the House of Commons' requests to examine the ins and outs of a future CUSMA implementation bill. That was last May. Then a general election was held on October 21. The House could have convened sooner, but that is not what happened. We finally opened the parliamentary session in December, but we did not discuss the agreement. We could have discussed it back in January, but that did not happen either. We could even have scheduled time for it in March during break last week, but it was all done in a rush in committee.

Fortunately, now that we have a minority government, the tone has changed, which has translated into some gains for Quebec. The Liberal government's haste was concealing some things. The Bloc Québécois insisted and managed to make the government aware of the consequences that its decisions and actions have on Quebec.

Fortunately, the Bloc Québécois was able to intelligently intervene to make this agreement a little more favourable for Quebec. If the Bloc Québécois had not done so, the Liberal government would have hurt Quebec's aluminum industry, even though it is the cleanest in the world. Indeed, CUSMA would have driven away more than $6 billion in investments in Quebec's aluminum industry. The Bloc Québécois salvaged something from the wreckage. The negotiations with the Liberal Party on Bill C-4 proved once again the importance of the Bloc Québécois in Ottawa.

On the other hand, it is unfortunate that CUSMA does nothing to address the softwood lumber crisis. Once again, it lets the United States dictate the market.

I now want to come back to the impact the agreement will have on rural life. In Quebec, over two million people live in rural areas. Eighteen percent of Quebeckers live in a village like Saint-André-de-Kamouraska or in a small urban community like Macamic in the west of Abitibi. Over 40% of the revenue in Quebec's agricultural regions comes from the dairy industry. The weakening of supply management directly undermines the economic and social development of Quebec's rural regions.

Last weekend, I attended the Fédération de la relève agricole du Québec convention in my home town of Rouyn-Noranda. I spoke with many next generation farmers who are very concerned about the impact of the changes to supply management because a stable, predictable income is important.

In CUSMA, as in previous agreements, Canada failed Quebec's dairy farmers. I would like to remind members that most of Canada's dairy farms are in Quebec. CUSMA gives up more than 3% of our dairy market, which amounts to an annual loss of $150 million in revenue for the two million people who live in the rural regions. Our agricultural community, which is at the very heart of our villages' vitality, continues to grow weaker every year.

I therefore expect the government to think about our towns and villages in the various compensation programs. That is why the Bloc Québécois, dairy producers and farmers in general are asking for a direct support program to compensate for losses, starting with the next budget—and that means very soon—to ensure that the economic vitality of our rural regions is not undermined.

Canada seems to have no regard for the reality that farm life and supply management create jobs and investments that contribute to the existence of a strong middle class in Quebec's rural areas.

Fortunately, a few days ago, the Bloc Québécois introduced a bill to protect supply management in Quebec in future trade negotiations.

Under this bill, the federal government will not be able to make an international trade commitment through a treaty or an agreement that would have the unfortunate effect of undermining supply management in Quebec. Our farmers and producers will finally have the protection they deserve to deal with the politics of free trade in the world. Circumventing supply management needs to stop. This bill is essential. I invite all my colleagues in the House of Commons to support it because, in addition to being an easy target in negotiations, supply management can also be circumvented with the right strategies. It is no secret that the United States has been using milk protein as a way of getting around supply management for years. It used to be a way for them to offload their surpluses onto Canadian markets at a lesser price than what our producers were asking. Now, they use it as a weapon to destroy supply management.

With the last agreement, the Canadian milk solids industry has literally been put under third-party management by the United States. Washington can limit the amount of protein our producers are entitled to sell in the rest of the world. The Americans will be able to squeeze Quebec out of global markets. That is a direct attack on our sovereignty. In other words, our producers could end up with huge surpluses and the surpluses could disrupt and jeopardize our family farm model.

Even worse, CUSMA also requires that we consult the United States about changes to the administration of the supply management system for Canada's dairy products. To force a Canadian industry to consult its direct competitor in another country about administrative changes it could make in future on the national level challenges our sovereignty.

For that reason the Bloc Québécois is recommending that Bill C-4 be accompanied by the following measures: that supply-managed producers and processors be fully compensated for their losses resulting from the trans-Pacific agreement, CETA and CUSMA and that this be clearly indicated in the next budget; that import licences resulting from breaches in supply management be issued first to processors rather than distributors and retailers; that, before ratifying CUSMA, the government consider the fact that if the agreement comes into force before August 1, 2020, milk protein export quotas for 2020-21 will be 35,000 tonnes rather than 55,000 tonnes if the agreement comes into force after August 1; that the government establish a permanent forum with producers and processors to ensure that the export tariff quotas are implemented in such a way as to cause the least possible harm to the dairy sector.

I was talking about the importance of income stability, which will have huge implications for the next generation of farmers in particular. Access to land, all of the bank loans and other programs are made possible through guarantees. The quota system and supply management were the main guarantees that farmers could offer. The implications are still being downplayed and they affect the cities, towns and regions of Quebec especially. All of Canada's concessions to our trade partners in recent agreements will have a direct impact on Quebec's rural economy. The latest trade agreements negotiated and signed by Ottawa have done nothing but create uncertainty in Quebec's towns and regions, in particular among farm owners, who are generally the ones who stimulate economic growth in their communities.

The principles of CUSMA will clearly have huge implications on investments in farms and processors, not to mention the job losses in cities and towns. The impact on agricultural producers goes beyond dairy farmers. We are talking about other farmers, veterinarians, equipment manufacturers, equipment vendors, truck drivers and feed suppliers. These financial losses will be felt by the various SMEs that remain in these towns. What is worse, the towns' social development will be affected. Services could be lost, schools could be shut down, and so on.

I invite all my colleagues in the House to visit the riding of Abitibi-Témiscamingue, particularly east of Témiscamingue, to understand the impact of a school closure or even the closure of a single retail store. In order to reduce the impact of all these losses, especially on rural Quebec, would it be possible for Ottawa to finally accede to Quebec's request that Quebeckers be put in charge of regional development programs? In the wake of the disastrous outcomes for rural Quebec, federal programs should be tailored to rural Quebec instead of being Canada-wide programs designed by Ottawa. If Ottawa is not in a position to protect and develop rural Quebec, if Ottawa does not care about Quebec's regions, then it should let Quebec manage the programs in a way that is more effective and beneficial for Quebec.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, I will be sharing my time with the member for Cumberland—Colchester.

It is a great pleasure to rise in the House today in support of Bill C-4, the implementing legislation for the Canada-United States-Mexico agreement, otherwise known as CUSMA.

This agreement brings about the continued economic benefit to all parties and secures economic development and job opportunities by maintaining economic security, investment confidence and our dispute resolution and retaining existing access. The agreement provides key outcomes for Canadian businesses, workers and communities in areas such as labour, environment, automotive trade, dispute resolution, culture, energy, and agriculture and agri-food. Importantly, CUSMA also includes language on gender and indigenous peoples' rights.

The new and modernized agreement includes Canada's most ambitious environmental chapter to date, completed by a new environmental co-operation agreement. The environment chapter of the new NAFTA introduces key measures, such as a new enforceable chapter on the environment that replaces the separate side agreement. It provides assurances to workers and businesses by ensuring that all three state parties are held to account. It makes dispute resolution more accessible by reducing the burden of proof for the complainant, and clarifies the relationship between the new trade agreement and domestic or multilateral environment agreements. Moreover, the amendments agreed to in December of last year strengthen the act's dispute settlement provision to make a good deal even better and ensure that robust obligations on the environment will be fully enforceable.

It is the Government of Canada's priority to ensure that Canada's trade agreements not only advance our commercial interests, but also bring real benefits to all Canadian stakeholders. The environmental provisions support Canadian businesses by ensuring that trading partners enforce their environmental laws so that all parties operate on a level playing field.

When NAFTA came into effect in 1994, it was the first free trade agreement to link the environment and trade through a comprehensive agreement. This agreement was called the North American Agreement on Environmental Cooperation. Over the past quarter-century, officials and experts from all three countries have carried out co-operative projects through this agreement. By doing this, we have enhanced our shared capacity to address environmental challenges.

Continuing with this tradition, the new NAFTA, or CUSMA, integrates comprehensive and ambitious environmental provisions directly into a dedicated environment chapter within the agreement, which is subject to provisions on dispute settlement that were not there before.

The new NAFTA preserves the core obligations on environmental governance that were present in the original agreement. This includes commitments to pursue and maintain environmental stewardship, effectively enforce environmental laws and promote transparency, accountability and public participation. These measures reflect the importance we place on ensuring that open trade and environmental conservation go hand in hand.

The new environment chapter includes commitments that go beyond what the original environmental co-operation agreement envisioned. State parties are no longer permitted to ignore environmental law to attract trade or investment and must also ensure that proper environmental impact assessments are carried out for projects with potential risks to the environment.

The new NAFTA creates new commitments on a wide range of global environmental issues, such as illegal wildlife trade and illegal logging, management of fisheries, protection of the marine environment and the ozone layer, sustainable forestry, and the conservation of biological diversity and species at risk. It also includes new commitments aimed at strengthening the relationship between trade and environment, including the promotion of trade in environmental goods and services, responsible business conduct and voluntary mechanisms to enhance environmental performance.

For the first time in a free trade agreement, the new NAFTA includes articles on air quality and marine litter. It includes binding commitments prohibiting the practice of shark finning. It also recognizes the important role that indigenous people are playing in the ongoing stewardship of the environment, sustainable fisheries and forestry management, and biodiversity conservation.

This agreement also provides for an environment consultation mechanism. Should state parties fail to resolve any environmental matter in a co-operative manner through various levels of consultation, including consultation at the ministerial level, a complainant may seek recourse through a broader formal dispute settlement. Additionally, trade sanctions may be imposed by an independent review panel, if needed, to ensure compliance with environmental obligations.

Although 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 not only the federal level but also the provincial level.

I mentioned earlier that the new NAFTA contains enhanced provisions to ensure enforceability. In December 2019, Canada, the United States and Mexico agreed to update certain elements of the agreement, including stronger environmental obligations. For example, state parties have committed to doing their part to implement multilateral environmental agreements that have been ratified domestically. The new NAFTA also provides better clarity on its relationship to these other environmental agreements.

Canada, the United States and Mexico have negotiated a parallel environmental co-operation agreement that ensures a continuation of a trilateral co-operation, ministerial-level dialogue between parties and public engagement. The Commission for Environmental Cooperation will continue to operate with the support of a secretariat based in Montreal, a ministerial council that will continue to meet on an annual basis and a joint public advisory committee.

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

Furthermore, 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. This committee's membership will be diverse and gender-balanced, and will reflect all segments of society by including representatives of non-governmental organizations, academia, the private sector, indigenous peoples, private citizens and youth.

These measures highlight the importance of honouring our role as environmental stewards and upholding multilateral environmental standards.

The issue of environmental conservation is of the utmost importance to the residents of my riding of Richmond Hill. While I was knocking on doors last summer, resident after resident raised the issue of environmental action and compliance as something that our government should prioritize. In fact, concern over the environment was second only to affordability as a key voter issue.

In response to this feedback, my team and I have collaborated with environmental stakeholders and community groups, such as Blue Dot and Drawdown, and have held town halls to encourage public participation and give residents the opportunity to comment on how we can improve government programs and services.

The Government of Canada is committed to bringing Canadian goods and services to international markets while maintaining our highest standards of environmental conservation and stewardship. We know this is possible, and we have a responsibility to do both at the same time. Under the new NAFTA and the parallel environmental co-operation agreement, Canada, the United States and Mexico have come together to ensure we are protecting our shared environment now and for future generations.

I encourage all members of the House to support the bill so we can move it toward implementation.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I rise in the House today to speak to the new NAFTA agreement and the repercussions of this important agreement. Of course, it is always a pleasure, and indeed my duty, to rise in this place and defend the interests of my constituents and those across Canada.

I want to thank all those involved on both sides of the House and all our neighbours and friends in the United States and Mexico for working on this agreement. As we all know, there was an incredible effort to get a deal on the table and that effort was a testament to how everybody understood how important this deal really was.

The Conservatives are in support of a trade agreement with the United States and with Mexico. It is good for business and it will provide the certainty for which all are looking.

The Conservatives, of course, are the party of trade. Our party is responsible for negotiating some of the largest and most important trade agreements in Canadian history. It was also under the previous Conservative government that we signed 40 trade agreements with countries all over the world. It was also under a Conservative government that NAFTA was first created. It was a historic agreement that propelled the Canadian economy into the future and provided unequalled opportunities for Canadian manufacturing, industry, energy, agriculture and other sectors.

The previous Conservative government was very forthcoming with information on the free trade negotiations that were taking place. The member for Abbotsford, as the then minister of international trade, provided many opportunities for parliamentarians to ask questions, take part in briefings and see documents. Unfortunately, we have not seen the same from the Liberal government. It prefers that the opposition just trust the government and not worry, that it got the best deal possible.

Over the past few weeks, the Liberal Party has claimed that it is the Conservatives who have delayed the implementation of the new NAFTA deal. Conservative members on the Standing Committee on International Trade sent a letter to the Deputy Prime Minister, outlining the concerns the Conservative Party had heard with a new NAFTA deal and to correct the record that outlined how it was, in fact, the Liberal Party who had been delaying the implementation of this new NAFTA deal.

Knowing that the federal election was coming up in October of 2019, the Conservatives offered to begin a prestudy on the original trade deal. It was originally called Bill C-100. That happened in May of last year. When the government was ready to move the legislation through the House of Commons, the work would already have been done in committee. However, the Liberals declined.

When the revised agreement was signed in December 2019, the Conservatives offered to come back early from the Christmas break to begin work on that bill. The Liberals declined that as well.

The Liberal government waited until January 29 to introduce the implementation legislation in the House of Commons, even though the revised agreement was signed in December. The Conservatives moved that legislation through the House of Commons in just six sitting days compared to the 16 days it took to move the original implementation legislation, Bill C-100, through the House of Commons and to committee.

The international trade committee had approximately 200 requests to appear on that new trade deal. The amount of work to do on the legislation had not changed and the Conservatives consistently offered to commence that work earlier. The Liberals declined.

The Conservatives ultimately offered to complete a clause-by-clause examination by no later than March 5, under the assumption that the government would not be recalling the House of Commons during the constituency break week to conduct report stage and third reading of Bill C-4. The Liberals declined that too.

The Liberals released their economic impact analysis for that trade deal only one day before the international trade committee had to conduct its clause-by-clause review and the first formal briefing that parliamentarians actually received on the new agreement was on December 11, 2019.

Canada's Conservatives sought a unanimous consent motion in the House of Commons to speed up the ratification of that new trade deal. The Liberals declined that too.

Those are the facts.

I want to turn now to the substance of that agreement. The deal is not perfect. We have said that many times on this side of the House and so have some of our other opposition colleagues. There are a number of shortcomings that I would like to put on record.

The Liberal government has left our great aluminum industry vulnerable to backdoor imports from China. While steel was protected with rules that steel must be melted and poured by primary steelmakers in North America in order to receive preferential tariff treatment, no such provision was added for aluminum.

Jean Simard, president and CEO of the Aluminum Association of Canada, said the following:

The advantage thus conferred to Mexico makes it more or less China's North American backyard to dispose of the products of its overcapacity, thereby generating the gradual relocation of North American transformers to Mexico.

The Liberal government also failed to secure a new ISDS, leaving Canadians and their businesses unprotected by unfair laws, tariffs or trade practices of our partners. This will leave many Canadian industries open to abuse, with little to no recourse.

In the early 2000s, the softwood lumber industry was devastated by unfair trade practices and it was only because of arbitration panels ruling against the U.S. that we eventually worked out a settlement.

In a statement, the president of the BC Lumber Trade Council said:

Having a robust and fair dispute resolution mechanism is absolutely critical to maintaining a rules-based trading system and providing an avenue for Canada and Canadian companies to appeal unwarranted duties.

The CUSMA deal, the new NAFTA, fails to include a fair dispute resolution process.

Another huge problem is CUSMA's sunset clause. The sunset clause sets out formal reviews every six years and a termination clause in 16 years unless it is renegotiated. I, among many other Canadians, would like to know why we are not protecting long-term stability for our Canadian business.

Dennis Darby, chief executive of the Canadian Manufacturers and Exporters, said, “With a five-year potential sword hanging over your head, I think what it's going to do is cause manufacturers to not invest and be really, really risk-averse."

I would like to have on the record the shortcomings we see in the dairy section of this agreement. It would reduce Canadian dairy producers' access to the U.S. market at the same time opening the Canadian market to more U.S. milk products. This agreement dictates specific thresholds for Canadian exports of milk protein concentrates, skim milk powder and infant formula. If export thresholds are exceeded, Canada would add duties to the exports in excess to make them more expensive. It would also eliminate milk class 6 and milk class 7, which would affect dairy farms across Ontario and the country.

Pierre Lampron, president of Dairy Farmers of Canada, said, “[T]he message sent to our passionate, proud and quality-conscious farmers and all the people who work in the dairy sector is clear: they are nothing more than a bargaining chip to satisfy President Trump.”

I would like to take a minute to express my concerns with how the government is also handling the coronavirus crisis.

When is the Liberal government going to start to outlining its plan to Canadians in the case of a possible pandemic? Expecting Canadians to stockpile supplies is simply not enough. All Canadians deserve to be reassured that the government is prepared to assist and support those affected by the virus. We need much more vigorous screening processes upon entry, mandatory quarantine for those who do enter from high-risk countries or potentially stopping incoming and outgoing flights from high-risk areas. The health and safety of all Canadians needs to be a top priority.

Canada's Conservatives have offered repeatedly to expedite the new NAFTA deal in order to ensure swift ratification, but again, at every stage, the Liberals have chosen to play politics.

The committee heard from a number of sectors that would be negatively impacted by CUSMA, and it is important the government is aware of those negative impacts so it can work to mitigate them.

I want to reiterate for my friends on all sides of the House that the Conservatives support this legislation. We are the party of trade and we hope to see that continue.

[Steven Blaney, Conservative, Bellechasse—Les Etchemins—Lévis, QC]

Madam Speaker, it is a privilege for me to rise this afternoon and speak to the tripartite agreement between Canada, the United States of America and the United Mexican States. I will be sharing my speaking time on this important issue with my colleague from Haliburton—Kawartha Lakes—Brock.

It is always a privilege to rise in the House in support of trade with our partners, as trade is one of the pillars of our economy. This afternoon, we are not talking about just any partner. We are talking about our American partner. As members know, our shared relationship and border go back a long way.

I will start by saying that I plan on supporting Bill C-4 because this agreement is in keeping with a long tradition that we established. In 1994, Brian Mulroney signed the first agreement, NAFTA, with the United States and Mexico.

This fundamental agreement helped Canada triple its exports to the U.S. and Mexico and also helped stimulate our economy. As a proud representative of a vibrant manufacturing region, I can see first-hand how this free trade agreement benefits our manufacturers in Bellechasse—Les Etchemins, such as Rotobec, and in Lévis.

I just want to remind my colleague that, like him, I plan to support this important bill to maintain our trade relationship with our most important partner. The United States takes in three-quarters of Canada's exports, a significant amount considering that Canadian exports totalled nearly $400 billion U.S. in 2016.

However, we are less pleased about the fact that the current government did a poor job of negotiating this agreement, as it does with most things. The Liberal government does not know how to negotiate agreements for Canada, and that has a negative impact on businesses such as those in the dairy industry in my riding. Nevertheless, we are better off with a bad agreement than with no agreement, which is why I have already voted in favour of this bill and why we hope it passes quickly.

For some time now, the Conservatives have been telling the government to hurry up and approve the deal. I worked in consulting engineering, where people say that a deal is not done until it is signed. It is not a good deal, but we need to get it approved ASAP.

That is why, in spring 2019, before the October federal election, we proposed a preliminary study of the Canada-United States-Mexico agreement so that it could be passed as soon as the government introduced it in the House, but the Liberals refused.

The day after the election, we asked the Liberals to consider the possibility of sitting in December between Christmas and New Year's because we thought it was important to ratify this agreement. Once again, the Liberals ignored our request.

We had to wait until the end of January before they finally bothered to table the agreement here in the House so that we could begin the legislative process. Once again, we asked for things to be done more quickly because people wanted to have their say about the problems with this important agreement. The Liberals refused.

That brings us to where we are today. We are making progress, and I can say that we intend to support the ratification of this agreement every step of the way. The relationship between Canada and the United States is one of the closest and most solid relationships that can exist between two countries. It plays an important role in our manufacturing jobs. A number of agreements and several billion dollars are at stake.

I want to take this opportunity to remind members that there is a border between Canada and the United States. Of course, it is important to ensure the free flow of goods between the two countries, but it is also important to ensure that our borders remain secure. I am referring to the beyond the border action plan announced in December 2011 by then U.S. president Barack Obama and then Canadian prime minister Stephen Harper. We recognize the importance of maintaining a strong trade relationship while keeping our borders secure.

Unfortunately, as I mentioned, the Liberals did not negotiate a good deal in this case. As we have seen, many groups were left out in the cold. Overall, the agreement that was signed and that we are going to approve is not as good as the previous agreement that was negotiated by the Conservatives. That is unfortunate, but, as I said, we would rather have a bad deal than no deal at all.

Why are the Liberals such bad negotiators? When we look at their record on negotiating, we have to remember that the agreements collectively provide the big picture.

Take the dairy sector. This sector plays a very important role in the Chaudière-Appalaches region, especially in Bellechasse and Les Etchemins, where businesses are handed down from one generation to the next and are an economic mainstay in our region. These businesses have had to deal with not one, not two, but three agreements.

The first agreement, which was negotiated by our government, is the Canada-European Union Comprehensive Economic and Trade Agreement. That agreement made some accommodations with regard to supply management to allow European products to enter our market. On October 18, 2013, an agreement in principle was signed with the European Union, and the agreement came into force in September 2017.

The trans-Pacific partnership is now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This happened during the transition from the Conservative government to the current government.

At the time, when we were in negotiations on the trans-Pacific partnership, the U.S. was involved, but it withdrew from the agreement in January 2017. The other members of the initial agreement picked up where they left off and renamed the agreement. However, the concessions that were made in the Canada-Europe free trade agreement and then in the trans-Pacific partnership were renewed. This left the dairy sector vulnerable, because there was no agreement with the U.S. when it came time to renegotiate the Canada-United States-Mexico agreement. In a way, we had already made two concessions. Even more damaging was the fact that the concessions were cumulative. The Liberals made more bad decisions on cheese imports.

Under the Canada-Europe free trade agreement, 16,000 tonnes of imported cheese from Europe was to enter our markets. The Liberals made the mistake of granting the power to import these cheeses not to those who were affected, namely manufacturers and processors, but to distributors, who received half of the import quota. This was even more detrimental than a simple reduction in volume because Quebec's entire cheese sector was undermined.

Mr. Letendre, the chairman of Les Producteurs de lait du Québec, stated that it made no sense to allocate 50% of the quota to distributors. He said that it is expensive to develop new products in order to compete and that this would hurt Quebec's industry.

I wanted to cite the example of the three agreements that were negotiated. Every time the Liberals were involved in the negotiations, it hurt the dairy industry and Canadian industries. Ultimately, our businesses are being penalized, and we have yet to see any compensation. That is unfortunate, because had Canada's interests been considered in the negotiations, we would not have had to make concessions.

I had many things to say, but I realize that my time is running out. I made my point at the outset. We intend to support the agreement despite its weaknesses because it is important to maintain the relationship with our most important partner, the United States.

[Gagan Sikand, Liberal, Mississauga—Streetsville, ON]

Madam Speaker, I will be sharing my time with the member for Yukon.

I am pleased to speak in the House today in support of Bill C-4, an act to implement the new NAFTA and, in particular, the agreement's intellectual property provisions. Canadian creators and innovators make an important contribution to the North American knowledge economy. For instance, in 2017, 68% of the patents filed by Canadians internationally were filed in the United States, more than at any foreign patent office. The new NAFTA would allow Canadian creators and innovators to continue to conduct business with our U.S. and Mexican partners, ensuring that they would continue to receive a clear, predictable and transparent framework for the protection and enforcement of intellectual property, or IP, rights in all three markets.

IP rights provide Canadian innovators and creators with a period of time during which they can expect to hold exclusive rights and be entitled to receive compensation, such as royalties for the use of their creations and innovations. With the new NAFTA, Canadians can be confident that their IP rights will receive a minimum standard of protection and enforcement across the entire North American marketplace.

Since the original NAFTA was negotiated, a number of key technological and multilateral developments have taken place that have presented novel challenges, such as with respect to the protection and enforcement of copyright in the digital environment. These include significant advances in the digital economy, including the further development of modern digital technologies that, since NAFTA, have been addressed in multilateral frameworks like the World Intellectual Property Organization.

The updated IP chapter builds upon those international IP treaties, like the WTO agreement on Trade-Related Aspects of Intellectual Property Rights, as well as the multilateral treaties administered by the WIPO with a view to establishing minimum standards on IP rights protection and enforcement for the North American marketplace.

Under the new agreement, all three parties agreed to an updated comprehensive chapter on IP rights protection and enforcement. This chapter includes obligations on copyright-related rights, trademarks, geographical indications, industrial designs, patents and pharmaceutical IP; data protection for agricultural chemical products and trade secrets; and IP rights enforcement in the civil, criminal and border contexts.

The modernized agreement also reflects several recent reforms to Canada's IP regime, such as those under the Combating Counterfeit Products Act and the Copyright Modernization Act, Canada's recent accession to several multilateral treaties under the WIPO, and initiatives undertaken through the government's recent intellectual property strategy.

For instance, further to reforms to Canada's copyright regime under the Copyright Modernization Act, the new NAFTA contains rules with respect to Internet service providers' liability that recognize Canada's notice and notice framework in this area as an effective approach to addressing online copyright infringement. The new agreement contains rules concerning legal protections for technological protection measures, or the digital locks on copyrighted works, which align with Canada's existing law and policy.

Regarding geographical indications, or Gls, the signs used on products to show that they come from a particular place with distinctive characteristics or qualities related to that place, the new NAFTA outcome is in line with Canada's open and transparent system for the protection of Gls. This means wines, spirits, agricultural products and foodstuffs remain eligible for GI protection in the Canadian marketplace, in line with Canada's current framework.

The agreement also contains provisions that require the parties to provide that judicial authorities can, where appropriate, order the award of attorney's fees to the prevailing party in civil proceedings. This is a valuable tool that often serves as a disincentive against bad actors who pursue bad faith litigation tactics, which can otherwise stifle innovation.

The agreement is not the end of the conversation among the three partners. It also includes a commitment from all three parties to co-operate in discussions on a range of IP issues of interest, such as on enhancing procedural fairness in IP litigation, including choice of venue, an issue of particular concern for some Canadian business owners operating abroad.

Building upon Canada's already strong IP regime, the new agreement would require changes in certain areas of Canada's existing IP legal and policy framework. For example, on border measures, Canada already provides officials at the border with the authority to act on their own initiative, as appropriate, to detain suspected counterfeit trademark or pirated counterfeit goods on import and export. The new agreement would require Canada to extend this authority to such goods transiting through Canada destined for another marketplace.

Regarding copyright, the new agreement requires a change in the general term of copyright protection from “life of the author plus 50 years”, to “life of the author plus 70 years”. With respect to patents, Canada would be required to provide for a patent term adjustment in respect of unreasonable delays in the issuance of a patent.

To implement these two obligations, Canada has transition periods of two and a half years for the general term of protection for copyright and four and a half years for patent term adjustment. These transition periods would commence following the entry into force of the agreement and would enable the government to thoroughly consider and consult on how best to implement these new commitments.

On December 10, 2019, Canada, the United States and Mexico agreed to update certain elements of the new NAFTA to improve the final outcome and clear the path toward ratification and implementation. With respect to IP, agreement was reached to delete or amend certain provisions dealing with patent and pharmaceutical IP. Most notably, the parties agreed to delete the commitment on data protection for biologics, which means that Canada would no longer need to amend its domestic regime to provide 10 years of data protection in this area.

The parties also agreed to remove a provision on the availability of patents for new uses, new methods or new processes of using a known product, as well as provisions on data protection for new indications of existing drugs. Last, language was also added on an exception related to regulatory reviews on how the three countries may meet obligations dealing with patent term restoration, patent linkage and data protection for small-molecule drugs.

These amendments clarify that Canada, the United States and Mexico would remain flexible under the new agreement to pursue domestic policy priorities in these areas. Notably, Canada would be required to make changes to domestic patent or pharmaceutical IP regimes in order to implement the amended provisions. For many Canadian creators and innovators, one of the key barriers to exporting abroad is uncertainty over IP rights and whether they will be protected and enforced when operating in foreign markets. That is why Canada worked tirelessly to ensure that the new agreement establishes clear standards on IP rights and is enforced across North America.

Ratifying the new NAFTA is not just about securing economic benefits for Canada today, but also ensuring our continued prosperity in the future. The agreement would ensure that Canada continues to have a strong and vital relationship with our closest neighbours.

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 third time and passed.

[Randeep Sarai, Liberal, Surrey Centre, BC]

Mr. Speaker, it is with great pleasure that I am here to discuss the benefits that the Canada-United States-Mexico agreement will bring to Canadians.

Over the last few weeks, my colleagues and I on the international trade committee had the opportunity to hear from over 100 witnesses from across industries and from across the country as part of our study on Bill C-4. We presented the report back to the House on February 27 without amendments.

The new NAFTA, or CUSMA as it is also called, marks a new milestone in the mutually beneficial trade relationship between Canada, the United States and Mexico. We understood from the start that this achievement would not have been possible without the support, contribution and dedication of Canadians across the country.

Before the negotiations started, we began speaking with Canadians across the country. We listened to their views on the original agreement's benefits and challenges, and what could be done to improve Canada's trading relationship with the United States and Mexico.

Guided by Canada's inclusive approach to trade, we worked very hard from the beginning of the negotiations to secure outcomes that would advance the interests of provinces and territories, indigenous peoples, business and business associations, labour organizations, civil society organizations, women and youth, among others.

From February 2017 to December 2019, the government engaged with over 1,300 stakeholders through nearly 1,100 interactions on NAFTA modernization. Over the same period, we received over 47,000 submissions from Canadians on NAFTA modernization. Canadian stakeholders have been largely supportive of the new agreement and have underlined the importance of securing stability and predictability in our commercial relationship with the United States and Mexico. Their views informed Canada's negotiating positions in this modernization process.

From the outset, the government worked closely with the provincial and territorial governments. Their representatives were invited to travel to the location of each negotiation round and received daily debriefs from the chief negotiator and the members of the negotiating team. We also worked very closely with representatives of indigenous people. In fact, an indigenous working group was formed to work collaboratively on elements of importance to indigenous people in the NAFTA modernization process. In total, the Government of Canada met with representatives of 49 different indigenous groups, including self-governing nations, tribal organizations, national organizations, development corporations, business and lending organizations, legal advisers and policy experts.

We sought and received input and insight from across party lines. We reached out to current and former politicians, premiers, mayors, and community and indigenous leaders for help not only in shaping Canada's priorities, but in championing them. We created a NAFTA advisory council that included representatives of other political parties, as well as business, labour and indigenous leaders. All contributions and advice helped guide our way forward.

Since early 2017, fellow federal, provincial and territorial ministerial colleagues and their teams have cumulatively undertaken over 530 visits to the United States, including parliamentarians here who engaged on similar bilaterals with congressmen and governors in the United States. Others, including many members, have contributed to these efforts. Together, team Canada has collectively engaged with over 750 influencers and decision-makers across the United States.

The new agreement was made possible because we acted together and we acted with resolve at the negotiating table to uphold the interests and values of Canadians in seeking a workable and progressive trade agreement. We sought and obtained consensus on the key issues at home. That helped us prioritize Canada's interests and develop Canada's negotiating positions. In spite of the many hurdles, we worked tirelessly and remained steadfast in our principles and objectives in reaching agreement with the United States and Mexico.

The benefits of the new agreement for Canadians are concrete and considerable. They reflect Canadians' views expressed in the engagement process. Most Canadians viewed the modernization process as an opportunity to preserve key elements of the original NAFTA, modernize and improve the agreement where possible, and ensure the stability and predictability of the North American market. We delivered on these key priorities.

The new agreement preserves key elements of the original NAFTA, allowing for our continued regional prosperity and stability. It reinforces the strong economic ties between Canada, Mexico and the United States, while also recognizing the importance of progressive and inclusive trade by including key components in areas such as labour and environment, as well as language on gender and the rights of indigenous peoples.

In particular, Canada was successful in preserving the NAFTA chapter 19 binational panel dispute settlement mechanism for anti-dumping and countervailing duties, the cultural exemption, NAFTA duty-free access into the U.S. and Mexican markets, and the provision of temporary entry of business persons.

We preserved Canada's system of supply management, despite U.S. attempts to dismantle it.

We modernized and improved the agreement to address the modern-day trade realities and enhanced business opportunities in North America.

CUSMA has nine chapters, including chapters on digital trade, anti-corruption, and small and medium-sized enterprises.

We eliminated the investor-state dispute settlement and the energy proportionality clause. We brought the labour and environmental chapters into the agreement and subjected them to a more effective and efficient dispute settlement procedure.

CUSMA improves the dispute settlement mechanism in a manner that strengthens enforcement, including the areas of labour and environment. This is an outstanding achievement for Canada.

The agreement streamlines customs procedures to facilitate trade, reduce red tape and lessen the administrative burden for Canadian exporters and investors. It also includes outcomes that advance the interests of small and medium-sized enterprises, women and indigenous peoples in line with Canada's inclusive approach to trade.

Overall, CUSMA provides key outcomes for Canadian workers, businesses, communities and families.

In the new agreement, Canada was successful in achieving priority outcomes with respect to indigenous peoples, in line with the government's efforts to advance indigenous rights, prosperity and sustainable development in Canada and around the world.

There are also outcomes that reflect the important role of indigenous peoples regarding the environment, including the conservation of biodiversity.

Canada has made gender equality and women's economic empowerment a key priority in recent trade negotiations, including playing a leadership role to integrate gender-related provisions in the agreement. This is the first international trade deal to recognize the discrimination of gender and sexual orientation-based discrimination. This includes labour obligations regarding the elimination of employment discrimination based on gender, as well as other provisions related to corporate social responsibility and small and medium-sized enterprises.

The inclusion of language on indigenous peoples and gender rights is an important step in our government's commitment to reconciliation and gender equality. What we learned throughout the consultation and negotiation period of this agreement will be beneficial to apply to negotiations for future trade agreements.

With the stability CUSMA brings to Canadian producers and industries, we hope it will help Canada take advantage of our unique position of having free trade agreements with so many other regions around the world, including CETA with Europe and CPTPP with Asia and the Pacific. While the United States is our largest trading partner, Canada has the opportunity to become a hub for trade, being the only North American nation with free trade agreements in so many regions that reach over 1.5 billion people around the world.

It is amusing to hear members from across the aisle critique Prime Minister Trudeau or our government's handling of CUSMA and NAFTA, but what the most experienced expert on this issue said is in stark contrast. To quote someone who is considered the architect or originator of the first free trade deal and the second one with the U.S., former Conservative prime minister Brian Mulroney said this about our government, “I told Trudeau he did a really good job with this renegotiation—”

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 third time and passed.

Speaker's Ruling

[Patricia Lattanzio, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I will be sharing my time with the member for Surrey Centre.

I am pleased to rise in the House today in support of Bill C-4.

Over the generations, Canada, Mexico and the United States have established an economic relationship that is a model for the entire world. Since 1993, trade between Canada, the United States and Mexico has more than quadrupled and was valued at $1.2 billion U.S. in 2018.

In 1994, NAFTA created the largest free trade zone in the world. The continental North American economy, which is currently estimated to be worth $23 billion U.S., encompasses a regional market of nearly 490 million consumers.

Under this proven, rules-based free trade system, key sectors of the North American economy have developed into integrated production platforms that strengthen the innovative and competitive economic backbone of North America.

The new agreement will enhance the strong economic ties between the three countries and improve North America's ability to remain competitive globally. This agreement also restores the predictability and stability of economic relations between Canada, the United States and Mexico.

The U.S. took several trade actions that contributed to economic instability for Canadian businesses and their workers. Canada had to choose between either renegotiating NAFTA or seeing the United States withdraw from the agreement. I am pleased that we now have a modern trilateral agreement that turns the page and focuses on the three pillars that make our economic relationship so successful: stability, economic integration, and clear, transparent and enforceable rules.

From the start of the negotiations, Canada set out to achieve key priority outcomes: preserve important NAFTA provisions and market access into the U.S. and Mexico, modernize and improve the agreement as much as possible, and reinforce the security and stability of market access into the U.S. and Mexico for Canadian businesses. We are proud that we achieved those objectives.

It is particularly important to note that the preferential tariff treatment under NAFTA is preserved in CUSMA, which helps consolidate our most important trade relationship. Canada's preferential access to the U.S. and Mexican markets is vital to the continuing prosperity of Canadian workers whose livelihoods rely on this trade.

During consultations with stakeholders, we heard repeatedly about the importance of preserving the benefits of NAFTA and the integrity of North American supply chains. We understand how vital it is to Canadian companies and exporters.

As an annual average from 2016 to 2018, Canada exported $412.2 billion worth of goods to the United States, our top export market. Over the same period, Canada exported an annual average of $9.2 billion worth of goods to Mexico, our fifth-largest trading partner. The new NAFTA ensures continued preferential access to these key export destinations.

Maintaining these tariff outcomes provides Canadians with an advantage over countries without a preferential trade agreement with the United States and Mexico. The agreement ensures predictability and continued secure market access for Canadian exporters to our largest trading partner.

The preserved tariff-free environment also safeguards the integrity of integrated North American supply chains. Other key elements of the original NAFTA have been preserved, including the chapter 19 binational panel dispute settlement mechanism, the state-to-state dispute settlement process, the cultural exemption and temporary entry for business persons.

The new NAFTA also helps open new market access opportunities in the United States for Canadian companies and improves access to existing markets. The new modernized agreement includes new customs measures and will also make it easier for companies to move goods across the border by reducing paper processes and providing a single portal for submitting import documentation electronically.

In particular, the new agreement moves away from the traditional certificate of origin to a new certificate of origin that allows companies to use existing documents in their business process, such as an invoice, to certify origin.

The new NAFTA also includes a new stand-alone chapter on rules of origin and origin procedures for textiles and apparel goods that will support Canada's textile and apparel sector. The agreement preserves the existing market access that Canada has under NAFTA to the U.S. and Mexican markets in these sectors and ensures that the benefits of the agreement go primarily to producers located in North America.

Furthermore, the agreement expands a provision from NAFTA to set out a special procedure to more easily establish the origin of indigenous textiles and apparel. Under this provision, a textile or apparel item that the parties agree is an indigenous handcrafted good will be eligible for duty-free treatment, even if the good does not satisfy the applicable product-specific rule of origin.

The new NAFTA includes provisions that will provide added assurance for exporters that their goods will not be delayed by unjustified or unclear measures at the borders. The section 232 side letter provides added security and stability for Canadian automotive and parts companies that export to the U.S. market and will reaffirm Canada's attractiveness as an investment destination for this sector.

With respect to trade and indigenous peoples, and for the first time in a Canadian free trade agreement, the new NAFTA includes a general exception that clearly confirms that the government can adopt or maintain measures it deems necessary to fulfill its legal obligations to indigenous people. An indigenous working group was established to further the dialogue between the government and indigenous people, to share ideas and work collaboratively on solutions.

We are pleased to have concluded an agreement that incorporates new and modernized provisions that seek to address 21st century trade issues and support opportunities for Canadian businesses and workers. This includes bringing obligations on labour and environment into the agreement and subjecting them to dispute settlement.

It also includes important outcomes for inclusive trade, including with respect to gender equality and the interests of indigenous people. In particular, the new labour chapter includes commitments to protect and promote internationally-recognized labour rights and principles in North America.

This chapter also includes unprecedented protections against violence and gender-based discrimination with regard to sexual orientation, sexual harassment, gender identity, caregiving responsibilities and wage discrimination. It is worth noting that the new chapter also includes a non-derogation clause that prevents the parties from weakening their labour laws to encourage trade or investment.

To address labour violations related to collective bargaining and freedom of association in a timely manner, the agreement also includes new mechanisms for rapid response between Canada and Mexico and between the United States and Mexico.

In the event that, in a state-to-state dispute settlement, one party is found to have violated its obligations with regard to child labour, the other party could trigger the rapid response mechanism to remedy the violation of the child labour obligations.

The full environment chapter, which is subject to the dispute settlement mechanism, includes measures for implementing the parties' obligations under multilateral environmental agreements and responding to global environmental problems, such as illegal wildlife trade, illegal fishing, conservation of species at risk, protection of biodiversity, ozone-depleting substances and marine pollution.

This modernized agreement is good for Canadians because it provides the predictability and stability that businesses and workers sorely need.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, I truly appreciate the opportunity to speak to Bill C-4, the new free trade agreement with the United States and Mexico, at third reading.

Perhaps I should say that I appreciate finally having the chance to speak to this agreement, as Conservatives have tried time and again to move this deal forward.

It is that clear we need economic stability, and an unsigned free trade agreement with our largest trading partner is anything but stable. In 2016 alone, Canada exported approximately $425 billion in goods and services to the United States while importing approximately $407 billion.

I will be speaking about how this deal will impact my riding and my province, but first I want to reflect on how we got here.

For over 30 years, free trade in North America has been a cornerstone of the Canadian economy. Negotiated by a Conservative government in the early 1990s, NAFTA made tangible, positive impacts on the lives of millions of Canadians. It helped propel us to becoming one of the most prosperous countries in the world, a country that weathered the 2008 recession better than any of our G7 counterparts. This is a Conservative legacy, a legacy of prosperity.

However, for some time during the previous Parliament, it appeared that this legacy of prosperity was in jeopardy as a result of the actions of the Liberal government. Still, the Liberals managed to pull a deal out of the fire. Of course, it would have been better not to have started the fire in the first place.

This deal is likely the best the Liberals could do, but it certainly was not the best deal possible. When negotiations began, President Trump was concerned about what were perceived as unfair trade practices from Mexico. Canada was not his target, nor was there any reason to expect that we would be, yet the Liberals squandered much of the goodwill we had with the United States almost as soon as the negotiations began by presenting a list of priorities that had essentially nothing to do with free trade, a list not, I would note, dissimilar to the list the Liberals presented in their initial discussions with China, who quickly sent them on their way.

Within months, the United States placed the removal of the dispute settlement mechanism and supply management on the table. There had been little indication that these were issues with Canada. The United States went further by imposing tariffs, no doubt unfairly, on Canadian steel and aluminum. We were then left on the outside looking in as the Americans negotiated and agreed to a bilateral trade agreement with Mexico. Canada was forced to play catch-up in negotiations and needed every ounce of goodwill to save a deal.

How did the now Deputy Prime Minister respond to this precarious situation? She responded by using her platform while accepting an award to imply that the president of the country we were trying to sign a free trade agreement with was a totalitarian. That is what I mean by starting the fire.

It is remarkable, and I say this with all honesty, that the Liberals were able to salvage any deal out of that house fire, let alone one that contained a dispute resolution mechanism and did not do away with supply management entirely. Still, the question must be asked: How much better would this deal be if the Liberals had not undermined themselves time and time again? Unfortunately, we will never know what deal we could have had, but we do know what deal we have.

Now I would like to take some time to speak about how this agreement would impact my riding and my province.

As many in the House may know, I represent a large, mostly rural riding which is home to the majority of Saskatchewan's supply-managed farms. However, most of my colleagues would be unaware that I also represent a large area that is referred to as the “iron triangle”, a cluster of municipalities with metal manufacturing as a primary or major industry. Communities like Humboldt, Annaheim, Englefeld, St. Gregor, Vonda and many others punch well above their weight in the design, development and manufacture of high-quality, world-leading agricultural equipment.

They make up an important part of Saskatchewan's growing manufacturing industry, which is an industry that exports over $300 million in products each and every year. One can imagine how much of an impact the tariffs placed on Canadian steel and aluminum had on these communities and the companies that call them home.

The trade war that resulted had real consequences for the constituents in my riding, many of whose livelihoods rely on the free movement of manufactured metal equipment throughout North America. Understandably, it came as a relief that the tariffs on steel were removed in the negotiation process. However, that good news has been tempered by the ongoing tariffs on Canadian aluminum. Given what I have already outlined, I think there can be little doubt that a better approach in negotiations would have seen these tariffs removed completely.

Similarly, Canada was in a good position at the beginning of these negotiations to finally bring an end to the long-running saga of softwood lumber disputes. Now, as luck would have it, the United States Department of Commerce recently announced that there would be a significant decrease in the tariffs on Canadian softwood lumber, yet there is still no agreement in place going forward, leaving lumber producers in Saskatchewan in limbo for long-term planning. This was another missed opportunity.

Supply management, as I mentioned earlier, is a part of our economy that likely only came under scrutiny because of the Liberals' poor strategy in the early days of negotiations.

First, let me be clear that I am very happy to see that the Liberals did not literally give away the farm, although whether they figuratively did is up for debate. This new agreement would open up 3.6% of the Canadian dairy market to imports, significantly more than was agreed upon by the previous Conservative government in the TPP. It would also impose a threshold on Canadian exports of milk protein concentrates and other similar products to the United States and Mexico.

But there is more: Not only would CUSMA limit dairy exports to the signatory countries, but it would also limit exports to other countries not party to this agreement. What is more, we would now be required to report to the U.S. dairy commission before we begin negotiations with other countries. This would further limit the ability of Canadian dairy farmers to replace market share lost in Canada by sales to the signatories of CUSMA, and would handcuff us in other free trade negotiations going forward.

The losses to our dairy sector arising from these concessions will be in the hundreds of millions of dollars, and this comes at a time when dairy farmers are seeing increased costs from the carbon tax, costs they cannot recover either through rebates or through the market. The government must realize that our dairy industry, especially the many family farms in my riding, cannot continue to see their margins shrink and still remain in business.

There is more I could say on this deal, but in truth, Canada needs a free trade agreement going forward. We recognize that. Our already weakening economy cannot handle further trade uncertainty. Industry groups, chambers of commerce and provincial premiers understand this, and the majority have therefore asked the House to ratify CUSMA.

Faced with this reality, the questions of what could have been must give way to what is, and so, while far from perfect, CUSMA is better than nothing.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, CUSMA validates my private member's bill, Bill C-222. It naturally follows that Bill C-4 also supports the same principles found in Bill C-222. That is why I am supporting this CUSMA agreement.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I thank my colleague for the great work he did on the committee. He was a great member to work with, as were all the members on the committee.

Not everything goes the way we all want it to go. At the committee level, in reference to the economic report we were waiting for, we did receive it quite late in the process. All of this has been very difficult to ensure that this NAFTA and Bill C-4 get through the committee and that we recognize all of the pluses, such as the thousands of jobs we are protecting in Canada as well as the opportunities for growth that need to happen.

We always learn in everything we do as parliamentarians, and I hope we will learn from this experience as well to move forward.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I am very pleased to join my colleagues today as we deal with Bill C-4, which is extremely important for us. We call it the CUSMA, or the Canada-United States-Mexico agreement.

I am pleased with the work we did at committee on this particular issue. My committee colleagues from all parties showed their dedication to their constituents and their country while we did this study. Every member made it clear to me that it was their sincerest intent to collaborate, co-operate and come together as a committee to make sure that we did the job we were elected to do and worked in a non-partisan way on something that is critically important to Canada.

With our intensified schedule, our committee analyzed this bill for a total of 38.5 hours. The hard work that took place at committee ensured that Bill C-4 was returned in a timely fashion. Over 117 witnesses were invited, and we heard from a large range of individuals, organizations and businesses.

I would be remiss if I did not acknowledge the hard work of the staff of the House of Commons who were present during these extended meetings. None of this could have been possible without the work of our committee clerks, analysts, translators and the House of Commons staff, who carried out their duties with utmost professionalism. A huge thanks goes out to everyone involved.

This new agreement will help reinforce strong economic ties between Canada, the United States and Mexico. It will improve North America's ability to compete on the global stage. This agreement will also bring back predictability and stability to the economic relationship between Canada, the U.S. and Mexico, which we heard a lot about from various businesses and presenters.

We have seen several actions from the U.S. on trade that had contributed to economic instability for Canadian businesses and their workers, and they were clearly concerned. Canada was confronted with the option of either renegotiating NAFTA or facing the possibility of the United States withdrawing from the agreement. I am pleased that we now have a modern trilateral agreement that turns the page and focuses on the three pillars that make our economic relationship so successful: stability, economic integration and clear, transparent and enforceable rules.

From the start of the negotiations, Canada set out to achieve key priority outcomes: preserve important NAFTA provisions and market access into the U.S. and Mexico, modernize and improve the agreement, and reinforce the security and stability of market access into the U.S. and Mexico for Canadian businesses. We are proud of the fact that we have achieved all three of those objectives.

It is particularly important to note that the preferential tariff treatment under NAFTA is preserved in this new agreement. Canada's preferential access to the U.S. and Mexican markets is vital to the continuing prosperity of Canadian workers whose livelihoods rely on this trade. During consultations with stakeholders, we heard repeatedly about the importance of preserving the benefits of NAFTA and the integrity of North American supply chains. We understand how vital they are to Canadian companies and exporters.

As an annual average from 2016 to 2018, Canada exported 412.2 billion dollars' worth of goods to the United States, Canada's top export market. Over the same period, Canada exported an annual average of 9.2 billion dollars' worth of goods to Mexico, Canada's fifth-largest trading partner. These are very significant numbers, and the new NAFTA ensures continued preferential access to these key export destinations.

The new agreement preserves the market access outcomes that were achieved in the original NAFTA. This means that NAFTA's duty-free access for all non-agricultural goods will be maintained. For agricultural goods, Canadian exports will also continue to benefit from duty-free access for nearly 89% of U.S. agricultural tariff lines and 91% of Mexican tariff lines. The new NAFTA will help farmers to be more competitive and will make it easier for them to export their products and continue to feed North America and the rest of the world.

Maintaining these tariff outcomes provides Canadians with an advantage over those in countries without a preferential trade agreement with the United States and Mexico. It also ensures predictability and continued secure market access for Canadian exporters to our largest trading partners. The preserved tariff-free environment also safeguards the integrity of the integrated North American supply chains. Other key elements of the original NAFTA have also been preserved, including the chapter 19 binational panel dispute settlement, a state-to-state dispute settlement, the cultural exception and temporary entry for business persons.

The new NAFTA also helps open new market access opportunities in the U.S. for Canadian companies and improves existing market access. The new modernized agreement includes new customs and trade facilitation measures that will make it easier for companies to move goods across the border, including by eliminating paper processes and providing a single portal for traders to submit import documentation electronically. In particular, the new agreement moves away from the traditional certificate of origin to a new certificate of origin that allows companies to use existing documents in their business process to certify origin.

The new NAFTA includes a new stand-alone chapter on rules of origin and origin procedures for textiles and apparel goods that will support Canada's textile and apparel sector. The agreement preserves the existing market access that Canada has under NAFTA to the U.S. and Mexican markets in these sectors and ensures that the benefits of the agreement go primarily to producers located in North America. The new agreement provides greater flexibility for producers to use small amounts of materials from outside the region without losing their preference.

Furthermore, the agreement expands a provision from NAFTA to set out a special procedure to more easily establish the origin of the indigenous textiles and apparel. Under this provision, a textile or apparel item that the parties agree is an indigenous handcrafted good will be eligible for duty-free treatment, even if the good does not satisfy the applicable product-specific rule of origin.

Given the importance of predictability and transparency in international trade, the new NAFTA includes provisions that will provide added assurance for exporters that their goods will not be delayed by unjustified or unclear measures at the borders. Companies will have enough time to adjust to new regulations and other requirements. The agreement also ensures Canada's agricultural and processed food exports can rely on sanitary and phytosanitary measures that are risk-based and that increase predictability of market access so that products make it to market in a reasonable amount of time.

The section 232 side letter on autos and auto parts achieved as part of the overall outcome provides added security and stability for Canadian automotive and parts companies that export to the U.S. market. It will reaffirm Canada's attractiveness as an investment destination for this sector.

On trade and indigenous people, for the first time in a Canadian free trade agreement, the new NAFTA incorporates a general exception that clearly confirms that the government can adopt or maintain measures it deems necessary to fulfill its legal obligations to indigenous peoples. An indigenous working group was established to further the dialogue between the government and indigenous peoples, share ideas and work collaboratively on solutions.

We are pleased to have concluded an agreement that incorporates new and modernized provisions that seek to address 21st century trade issues and support opportunities for Canadian businesses and workers. This includes bringing obligations on labour and environment into the agreement and subjecting them to dispute settlement. It also includes important outcomes toward inclusive trade, including with respect to gender and the interests of indigenous peoples.

In particular, the new labour chapter includes commitments to protect and promote internationally recognized labour rights and principles in North America. It also includes unprecedented protections against violence and against gender-based discrimination with regard to sexual orientation, sexual harassment, gender identity, caregiving responsibilities and wage discrimination.