Canada–United States–Mexico Agreement Implementation Act

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

This bill is from the 43rd Parliament, 1st session, which ended in September 2020.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

This enactment implements the Agreement between Canada, the United States of America and the United Mexican States, done at Buenos Aires on November 30, 2018, as amended by the Protocol of Amendment to that Agreement, done at Mexico City on December 10, 2019.
The general provisions of the enactment set out rules of interpretation and specify that no recourse is to be taken on the basis of sections 9 to 20 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Agreement, provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement and gives the Governor in Council the power to make orders in accordance with the Agreement.
Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement.
Part 3 contains the coming into force provisions.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-4s:

C-4 (2021) Law An Act to amend the Criminal Code (conversion therapy)
C-4 (2020) Law COVID-19 Response Measures Act
C-4 (2016) Law An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act
C-4 (2013) Law Economic Action Plan 2013 Act No. 2

Votes

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

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:05 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, my understanding is that the aluminum going forward under the present provisions does not have the same protection as steel. I would certainly enjoin any efforts that would grant that to our aluminum producers. I am not aware of that at this point.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:05 a.m.

NDP

Randall Garrison NDP Esquimalt—Saanich—Sooke, BC

Madam Speaker, the agreement that the Conservatives will be supporting takes out the investor-state suing provisions in the current trade agreement with the United States. Since the Conservatives are supporting that, I would be interested in the hon. member's opinion on the agreement the Conservative government signed with China, the FIPA agreement. Can we be assured that if Huawei is denied participation in the 5G network, there will not be financial repercussions for the United States under that agreement, which the previous Conservative government negotiated?

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:05 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, unfortunately, I did not have the time to finish my concluding comments, but I will go at that question another way.

The government does have a responsibility to the sectors affected by its decisions and there should be redress for the casualties of the government's compromises.

I wanted to conclude with the fact that the upcoming budget must begin that process. As Conservatives, we stand ready to address the upcoming shortcomings of NAFTA .7 and hold this government to account.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:05 a.m.

Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Madam Speaker, I congratulate my hon. colleague on his maiden speech.

I am from a forestry riding in the province of British Columbia, in which 140 communities are dependent on forestry. Tens of thousands of jobs have been lost just in the last year alone. The Liberal government has dithered away time and has not secured a new softwood lumber agreement.

I would ask my hon. colleague why he thinks the Liberals missed a key opportunity to negotiate a new softwood lumber agreement in this new agreement.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:05 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, the short answer is this. I have no idea why the Liberals would not address such long-outstanding issues such as softwood lumber, buy America provisions and a whole host of other provisions. I do not know.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:05 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Madam Speaker, I am pleased to rise on behalf of the Bloc Québécois to speak to the Canada-United States-Mexico agreement. The Standing Committee on International Trade has put a lot of time into analyzing the agreement. My colleagues who sit on that committee with me can confirm that we have worked late on many occasions.

As I reminded members in my first presentation to the House on this topic, Quebec's separatist movement does not need any lessons on fostering trade with the rest of the world. Free trade with the United States is the result of a successful gamble taken by Jacques Parizeau and Bernard Landry following—and this is interesting—a fear campaign led for the most part by the House targeting Quebec's presumed inability to survive without the Canadian economy. That was not the case.

We took a chance on free trade, and what a success it has been, since access to the market south of us has been such a windfall for our SMEs, especially because Quebec has always managed to merge openness to trade with economic nationalism, using the most effective tools. However, as Jacques Parizeau later criticized, free trade has too often become synonymous with secret negotiations in favour of multinationals, ranging from the relinquishment of political sovereignty to sacrificing the most vulnerable members of society.

What does all this mean for CUSMA?

First of all, transparency was severely lacking from the entire process. At the Standing Committee on International Trade, the economic impact study authored by the chief economist at Global Affairs Canada was not tabled ahead of his appearance. How were we supposed to read and go over that study with enough time to prepare speaking notes?

What is more, the study presents a dubious and dishonest methodology because it compares CUSMA to the absence of an agreement. It compares CUSMA to nothing, as though NAFTA has not been in effect for years. Of course, some might say that without CUSMA there would be nothing left.

Personally, I cannot imagine a situation in the near future where Canada and the United States would no longer trade with one another. We can only conclude that, without CUSMA, we will revert back to NAFTA. If we tear up NAFTA then we will go back to the FTA. If we tear up the FTA, then there is always the World Trade Organization.

I know that each of these scenarios does not amount to the same thing. I know that it would be better to have a direct channel between the signatory countries. Nevertheless, it is just fearmongering to claim that we would somehow magically end up in a situation where trade between the United States and Canada would no longer exist.

I would also like to address another matter. The first version of CUSMA, as presented in recent years, was completely unacceptable. Just think of the provisions that would have allowed the digital giants to bring their goods into Canada without tariffs and to sell them tax-free. The provisions concerning pharmaceutical patents would also have benefited major corporations and increased the cost of prescriptions. Fortunately, these provisions are not in the current version of CUSMA.

I must say from the outset that the current version of the CUSMA is far from what an agreement should be in 2020. I will take the example of the environment. Although we are in a climate crisis, the agreement contains next to nothing on the environment, except for some good intentions. There is no mention of environmental agreements other than those that were in NAFTA. There is no climate standard, no acknowledgement of climate change and no system to deal with problematic cases, except for the state-to-state dispute settlement mechanism, which is not exactly known for its amazing efficiency.

However, when compared to NAFTA, CUSMA is an improvement in some respects. For that reason, we must opt for this version rather than the status quo.

CUSMA abolishes the ban on limiting exports of Canadian oil to the United States, a measure that could hinder efforts to fight climate change, and that is just fine.

The agreement reaffirms the cultural exemption, which we are very happy about. Quebec has been actively advocating at UNESCO, with the support of France, to make sure that culture is not treated like a commodity.

The elimination of NAFTA's chapter 11 is another significant step forward. This chapter dealt with investor-state dispute settlements and sacrificed political power in favour of a virtual government of multinationals. These multinationals were able to sue states if they had the misfortune of limiting the ability of a corporation to make profits while trying to protect their citizens.

Ottawa was sued several times over the years, for example for its decision to restrict imports of a fuel additive suspected of being toxic, for restricting the export of toxic waste, for revoking patents for medications of questionable quality, and also for Quebec's decision to ban the sale and use of certain pesticides on lawns and Quebec's moratorium on drilling in the Saint Lawrence. That list is far from exhaustive.

Canada is the NAFTA country most often sued by private investors. The worst thing is that this mechanism has subsequently been emulated in all of the free trade agreements. Around the world, 60% of these lawsuits have ended in multinational corporations triumphing over the states being sued or negotiating a friendly agreement, according to the UN report. That means that in 60% of cases, the power of money partially or totally prevailed over the states' political will and the power of democracy. Naturally, this quantitative assessment does not factor in the constant pressure on public decision-makers, who need to censor their own comments to avoid getting dragged into court.

Jacques Parizeau used to say that globalization was like the tide. We cannot stop the tide, but we can build dikes.

This chapter of NAFTA did not even allow us to build dikes. Now that this chapter, which had such serious consequences, is gone, all we can say is good riddance. However, we will keep a vigilant eye on the new chapter on good regulatory practices. The chapter is quite restrictive, and its tone reveals a deep-seated distrust of state intervention. That is something we will certainly have to keep a close eye on, to ensure that it does not turn out to be a new impediment.

The elimination of the provision allowing private investors to sue states is a laudable precedent. It will be hard to bring back that type of mechanism in future international negotiations.

Other gains were sadly much too symbolic. CUSMA includes one chapter dedicated exclusively to small and medium-sized businesses and it emphasizes how important they are. That is very good, but this chapter unfortunately does not go beyond affirming some basic principles. CUSMA fortunately protects market access for these businesses in most sectors.

The chapter on labour does contain some notable improvements, in particular for the auto sector. Although Quebec has no direct ties to this sector, the provision does indirectly establish a minimum wage that, I must say, will be difficult to enforce. Nevertheless, that is definitely an improvement.

Other categories of workers will unfortunately not benefit from that same improvement, although this chapter does give workers some recourse. Will these methods be effective? Only time will tell.

However, CUSMA is not free of grey areas. It is important to mention that one of them is softwood lumber. The softwood lumber situation is a constant irritant. It never stops. It is like a problem that is never solved. As we know, the United States has always applied punitive tariffs on our lumber. The U.S. math has always been clear: Industries are driven into bankruptcy while the wheels of justice slowly turn.

Washington has always been able to play outside the rules. The CUSMA negotiations could have been an opportunity to clarify those rules to ensure that such unfair practices no longer occur. That was not the case.

That is why I introduced an amendment to have the minister create an advisory committee on softwood lumber products that are not on the export control list.

As my colleague mentioned earlier, some copyright issues are being addressed similarly to how the United States is addressing intellectual property. This approach may well favour big business.

The dairy sector has clearly suffered a setback. The scenario is always the same: Every governing party makes a heartfelt commitment during the election campaign to never tamper with supply management again. Every party tells us not to worry because it will not touch it, unlike its predecessor. However, when that party takes office, it goes about negotiating in secret, like its predecessor, and then we learn that supply management has been affected. When the agreement under discussion becomes public, the excuse is always that it is only a small breach and that we must not worry because it is only a small percentage. Okay, fine, but when those small breaches are taken together, let's face it, they amount to a sizeable crater.

In CUSMA, giving up 3% of the market means losses of about $150 million per year. The agreement also eliminates class 7, which dealt with the dairy protein problem. Worse still, it gives Washington the ability to limit the amount of dairy protein our producers can sell to other countries. Allowing one country to oust another as a global competitor by controlling its exports is, we believe, unprecedented.

We will not back down on this. The government must provide direct compensation to affected farmers without delay. I would also encourage the House to support the Bloc's bill banning any future hits to supply management. Our food supply is too important to be subject to the rules of global economic war. Lip service and simple election promises do not cut it anymore. We need a legal obligation here. Our farmers, the very people who enable us to fill our fridges every day, have been made to suffer enough. The first thing we do when we get up every morning is open the fridge. We owe our farmers a debt of gratitude. After all, they are the only professionals we need every day, many times a day.

On the sensitive issue of aluminum, the government pulled a classic Canadian move. Despite the government's denials, aluminum, a Quebec industry, was not given the same protections as Ontario steel. While the government was celebrating this agreement, the Bloc Québécois noted that the protections were not the same and spoke out about it. The agreement protects only North American aluminum parts, but requires that steel be melted and poured in North America. However, Mexico does not produce aluminum and could continue to use dirty Chinese aluminum, which is lower quality and made in coal-fired plants. This dumping would have jeopardized the expansion projects of Quebec aluminum plants, threatened jobs in those plants and undermined the tremendous environmental opportunity presented by our carbon-neutral aluminum, which is the greenest in the world. What is more, in an era of climate change, the trend in the auto manufacturing industry is to move toward lighter parts. The Quebec National Assembly voted unanimously on a motion to support our aluminum workers and industry.

At first, the government denied the elephant in the room, but we held firm. That paid off and the government committed to collect real-time data on aluminum imports. If that data shows that Mexico is indeed sourcing foreign aluminum, the government promised to revisit this issue and ensure that our aluminum gets the same protection as steel. Mexico's angry response shows that there is indeed a problem that the government insisted on ignoring.

Although certain representatives tried to claim that there was no real change, Canada's chief negotiator, who was responding to a question I asked in committee, acknowledged that this definitely constituted a gain. We will be keeping an eye on the government to make sure it keeps its word. The burden lies on its shoulders. We will therefore be voting in favour of CUSMA, not happily and not particularly enthusiastically, and, more importantly, knowing we will remain extremely vigilant. In fact, I promise to be the watchdog at the Standing Committee on International Trade. We will also keep a close eye on all this here in the House.

In closing, I want to talk about a long-term vision for the future. In this file, as in many others, we tried to minimize the losses. The Bloc is always hard at work when it comes to damage control. However, we must not forget one basic rule: Those who are absent always get the blame. Not being at the table when decisions are made definitely has its consequences.

In fact, in the negotiations for the agreement with Europe, the former Quebec representative within the Canadian delegation said that the role of the Quebec delegation was unfortunately limited to offering a love letter. In other words, people were hard at work everywhere, especially behind the scenes, where they were trying to influence the delegation, except at the decision-making table. This cannot always be without consequence. Those who are absent always get the blame. That is why the ultimate, long-term goal of our actions is of course the independence of our nation, Quebec.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:20 a.m.

Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Madam Speaker, the member is on our international trade committee and I appreciate his support and participation.

Looking at the cultural exemption in particular, that is something very important to all of us and certainly to the government. It means that with this agreement we will be protecting a $53.8-billion industry, thousands of jobs across Canada, 75,000 of which are in the Quebec region.

I would like to hear my colleague's comments on whether he thinks that is a worthwhile part to have in this agreement.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:25 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Madam Speaker, I talked about the cultural exemption in my speech. We are pleased that it is being reaffirmed. I would remind hon. members that Quebec fought hard for this UNESCO recognition. There are some things that cannot be treated entirely as commodities. Our culture is undeniably very rich and recognized around the world. That being said, we do not have anything that resembles Hollywood. That is why we need to have practices and guidelines in place to regulate and protect our culture and offer it preferential treatment. The cultural exemption is an excellent way to do that. It is not the only way, but it is essential.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:25 a.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Madam Speaker, I listened to my colleague's speech intently and I want to thank him for his work on the international trade committee. He mentioned how Canadians are going to be paying the price for the Prime Minister's weak leadership. He talked about the aluminum industry, the dairy sector and the softwood lumber sector, all of these lost opportunities.

One point he brought up that is incredibly important to Canadians is the lack of transparency. The original TPP that was negotiated five years ago by the government had a positive effect of $4.3 billion on our GDP. The new agreement, according to C.D. Howe and as we heard in committee, is a $14-billion hit to our economy. The economic impact studies, as the member so carefully pointed out, were not even available to us until one day before the end of the agreement.

The Liberal government told Canadians before the election that this was a win-win-win, if members remember. It was a great deal for Canadians. Then we found out their own numbers. In my own community of Oshawa we have had a $1.5-billion hit to the auto industry and a decrease of 1.7% for production.

The member said that he is a watchdog and he is going to be a good watchdog working together on committee. I see myself in that form as well. There is so much misleading information and a lack of transparency.

How important is the implementation of this trade agreement and the oversight for that implementation, given the support for the negatively affected sectors? Also, because of the government's weak leadership and tendency to secrecy, how important are that implementation and oversight going to be?

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:25 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Madam Speaker, transparency is essential. Sadly, it has always been lacking in this type of agreement. It is imperative that we find a way to come up with institutional mechanisms. The committees are one. We will do our job and I invite the other opposition parties to do theirs.

The Bloc, the NDP and the Conservatives all agreed on the fact that this process was short on transparency. Generally speaking, these types of negotiations are held with very little consultation. This is true even at the preliminary stages, before anything is discussed with parliamentarians. Civil society groups are rarely consulted. In the end, they win some and they lose some. We must certainly find a way to monitor this, and I invite my colleagues to give that some thought.

Motions are moved in committee on specific aspects of the potential consequences of trade. We must ensure that we do our job effectively. Yes, negotiations are held behind closed doors, but this issue needs to be debated at the political level thereafter.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:25 a.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, in his speech, the member for Saint-Hyacinthe—Bagot mentioned that an agreement had been reached between the Bloc Québécois and the government regarding the aluminum sector.

In committee, we heard that the government already had mechanisms in place to find out how much aluminum was in transit from China to Mexico. The information needed to find out what is happening is therefore already provided.

How is the agreement between the Bloc and the government different from what the government is already doing?

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:25 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Madam Speaker, the hon. member was at committee when this gain was acknowledged. Although the commitment to provide us with all the data had already been discussed, this new measure goes beyond that commitment. We will have a lot of work to do in committee. If dumping were ever to occur, we now have a clear commitment that the government will raise the issue again and give aluminum the same status as steel. That changes absolutely everything.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:30 a.m.

Bloc

Mario Simard Bloc Jonquière, QC

Madam Speaker, I commend my colleague for his well-researched speech. It stands in contrast to some of the speeches we hear in the House, when members spend their time thanking their families and colleagues. I think his speech was strong and contributed to the debate. For those reasons, I salute him.

As my colleague noted, we have made what we can consider to be a gain on aluminum. At the very least, we have been able to reduce the harmful impact that the agreement might have had on Quebec aluminum.

My colleague mentioned softwood lumber in his speech. I appreciated hearing him mention that the United States is behaving in an underhanded way by dragging certain Canadian lumber producers through the courts until they run out of steam. I also liked his comments on supply management.

He ended on a strong note by telling us that the solution may be independence for Quebec. However, in the meantime, the Bloc Québécois may have a solution to propose. If the Quebec delegation were given a larger role, through some sort of mechanism, would that not result in better agreements? I would like to hear my colleague's thoughts on that.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:30 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Madam Speaker, honestly, that would be great, and we are working hard to make that happen. That is of course an area we will be investing energy in. The problem is that we could invest our energy in so many other things if we were truly free to make our own decisions. We would not get bogged down in convoluted squabbles with the rest of the country, whose interests are sometimes diametrically opposed to ours.

I fully understand why the rest of Canada might not care about aluminum, because aluminum is a Quebec industry. I fully understand why the rest of Canada would make concessions and not do anything for aluminum because it would rather put its eggs in another basket. There is no doubt in my mind that becoming good neighbours would be in our mutual interest.

Speaker's RulingCanada-United States-Mexico Agreement Implementation ActGovernment Orders

March 10th, 2020 / 11:30 a.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons

Madam Speaker, I am sure my friend would recognize that in virtually all provinces and territories there is a certain element of uniqueness in terms of their economy and different industries and so forth. There is a high demand for people to participate in the negotiations and as government we have a role to play.

The member made reference to supply management and we will use that as an example. The original proposal from the United States was to completely dismantle supply management. This government, working with partnerships, was able to ensure that supply management continues on as part of the Canadian heritage and tradition. Does the member not see that as a positive thing?