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

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

Madam Speaker, I totally agree with my friend that trade, especially in our country where we produce more than we consume in a number of areas, is so important to how our economy functions.

We need to be able to get our product out and we need to have access to the world market. However, we are seeing some challenges, especially in the oil and gas industry. We are seeing it in some of our agricultural products. We still have concerns on aluminum. Softwood lumber still has its problems. Investment in the oil and gas sector is leaving the country by the hundreds of millions of dollars.

Although I agree with my friend across the way that trade is extremely important, and I congratulate the process moving forward, we need to talk about the shortcomings in this deal. Trade is a big piece of the economic puzzle, but unless we have the foundation correct, it is hard to attract investment and therefore increase business and economic capacity within the country.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, I have a quick question.

I agree that this is not a perfect agreement. I think New Democrats all agree that it is not what we had hoped for. There is a lot in it that we like, but it is not a great agreement.

One of the things that is most concerning to me is the way the negotiations happened. It was all done behind closed doors. Parliamentarians were not invited into that process. Nor were the citizens of Canada invited into the process. That is not how we would like to see trade negotiations go forward. We would like to see Canadians involved from the very beginning, not given a fait accompli at the end.

Could you talk a little about whether a Conservative government would potentially also ensure that Canadians and parliamentarians would be involved in the process right off the bat?

[The Assistant Deputy Speaker, Carol Hughes]

I am not going to respond to that. However, I want to remind the member that she is to address questions to the member through the Speaker.

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

Madam Speaker, on previous trade deals, if we look back in time, many of us who were in this place at the time would remember that the former minister of international trade, the member for Abbotsford, regularly opened up his office to members of all parties who had questions or who wanted to see documents.

I agree with my colleague that much of this deal was done in secret. Opposition parties had a very difficult time trying to access any kind of information. This is our job as parliamentarians. Our job is to analyze legislation. I know I had to find any text of this legislation on the U.S. government site.

Absolutely, the Conservatives support ensuring that the information is out. I think our past record speaks to that. The member for Abbotsford did just that when he was negotiating trade deals.

[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.

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Madam Speaker, I have a couple of questions about the environment and transboundary access for water control. The member said many things were established with respect to the environment. How do we control the air that goes across the border and the water that flows across the border, the transboundary water bodies like the Great Lakes? How is this tied up in CUSMA?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, for the bill and the programs, we brought together experts from the three countries through various committees to work together to make sure that elements such as water and air, where they cross borders, are taken into account.

From my point of view, this is no different from the extended supply chain in NAFTA or CUSMA throughout the three jurisdictions. Our supply chain is integrated and the agreement preserves our access. Therefore, water and air could be considered as an extended supply chain of cleaner air, cleaner water and a cleaner environment.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Madam Speaker, I thank my colleague for his speech.

I really like taking preventive action. I am happy to learn that the new agreement includes measures dealing with the environment. However, I have to wonder whether the agreement provides for consequences if Mexico, Canada or the U.S. does not uphold its part.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, this is one of the areas we are proud of. Our dispute mechanism remained intact. It is through the dispute mechanism, if these commitments have not been met, that we have a venue to bring issues to the forefront for a discussion.

I also talked about the parallel agreement that has been reached. Complainants now have the opportunity to use the dispute mechanism that is already in place and legislated to address issues.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, when the NDP called on the government to wait to ratify the first version of CUSMA so that the Democrats could improve it, the Deputy Prime Minister said, “what the NDP needs to understand is that reopening this agreement would be like opening Pandora's box.... It would be naive for the NDP to believe that Canadians would benefit from reopening this agreement.” However, the Liberals are very keen to brag about the improvements made by the U.S. Democrats.

Why should Canadians believe that the Liberals had anything to do with the changes that increased protections for workers and guard against higher drug prices?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, this is a collaborative process and better is always possible. When there is an opportunity for amendments to come forward that meet the needs of all three parties and enhance the agreement, it is our responsibility to listen and incorporate them. In this case, we did listen and incorporate, and now we have the support of our government.

I am hoping that all members across the aisle will support the bill, and hopefully some of the concerns will leave room for opportunities to address issues in the next round.

[The Assistant Deputy Speaker, Carol Hughes]

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the member for Vancouver East, Housing; the member for South Okanagan—West Kootenay, Natural Resources; and the member for Elmwood—Transcona, International Trade.

[Lenore Zann, Liberal, Cumberland—Colchester, NS]

Madam Speaker, it is a pleasure to rise today to have the opportunity to speak to the new NAFTA for the second time in this House. I would like to discuss the benefits of the Canada-United States-Mexico agreement for all Canadians. Guided by Canada's inclusive approach to trade, we have worked very hard from the beginning of negotiations to secure outcomes that would advance the interests of the Canadian middle class, small and medium-sized enterprises, women, indigenous peoples, and also to protect our most vulnerable residents.

Historically, Canada has always been a trading nation. Canadian exports account for nearly one-third of our GDP. Imports help meet the needs of both Canadian businesses and consumers, providing both variety in consumer products and important inputs for industry. Canada has productive trading relationships with much of the world. Our government is working hard to support trade diversification and to have new and expanding markets.

However, the United States is still our closest and largest trading partner, and the vast majority of goods that cross our common border do so tariff-free. Every day, $2.7 billion in trade and roughly 385,000 people cross the border between Canada and the United States. This exchange of goods, services and investments supports Canadian jobs, businesses and communities. Our close relationship underpins the prosperity of Canadians from coast to coast to coast.

Our focus from the outset of negotiations was to preserve middle-class jobs and foster economic growth. Small and medium-sized businesses, or SMEs, are the backbone of the Canadian economy, employing nearly 10.7 million Canadians in 2018. This represents about 90% of the private sector labour force.

Among Canadian firms that exported goods to the United States, 96.2% were small and medium-sized businesses, which together accounted for over $145 billion in exports. Among those that exported goods to Mexico the same year, just over 88% were small and medium-sized firms, which accounted for a total value of $2.6 billion in exports.

The new NAFTA would preserve Canada's tariff-free access to our most important market. This is vital for our SMEs that rely on North America's integrated supply chains and its almost 490 million customers. By preserving this important tariff-free access, the agreement provides predictability and stability for those nearly 10.7 million Canadians employed by SMEs that depend on trade. This enables SMEs to continue to strive and to contribute to the Canadian economy in communities right across this country.

The agreement also preserves the NAFTA binational panel dispute settlement mechanism, retaining our access to an independent and impartial process to challenge anti-dumping and countervailing duties. This has been particularly important to Canadian companies producing softwood lumber products for export to the United States and the 187,000 workers in the forestry sector. As somebody who is from the northern region of Nova Scotia, I see the effects of this in my riding.

While softwood lumber continues to benefit from duty-free treatment under the new NAFTA, we recognize there is a long history of the U.S. industry bringing forward anti-dumping and countervailing duty investigations against Canadian softwood lumber products. Our success in maintaining the dispute settlement mechanism means that Canada could continue to bring challenges against any unwarranted or unfair duties in order to seek their removal and the reimbursement to Canadian exporters of duties that have been paid.

I am very glad to also see this new agreement preserves the general exception for our cultural industries, which employ over 665,000 people across the country.

Our creative economy is so important. Going forward with the green economy and the knowledge-based economy of the 21st century, it helps us to create content that will be seen all around the world and really show off our country. Our success in maintaining the dispute settlement mechanism means that we can continue to challenge any of these unwarranted examples and challenges to our cultural industries as well. They are integral to our linguistic and cultural identity and they ensure our capacity as Canadians to be able to tell our own stories.

One of Canada's goals is to better reflect the trade interests of indigenous peoples in trade negotiations. To that end, the Government of Canada undertook extensive engagement with indigenous leaders, representatives, proprietors of indigenous-owned businesses and policy experts to better understand their trade interests and to seek input on priorities for the negotiations.

We have also retained policy flexibility to provide preferential treatment for indigenous peoples and indigenous-owned businesses, including in the areas of services, investment, government procurement, environment and state-owned enterprises. This means that Canada will maintain its ability to create procurement programs that support small and minority-owned businesses, including indigenous-owned businesses.

The new agreement will support all Canadian businesses, including SMEs, by ensuring continued access to the U.S. and Mexican markets. It will update the rules of trade within North America, making it easier for Canadian companies to do business, including through streamlined customs and origin procedures and greater transparency in government regulations in a wide range of sectors. For instance, new customs and trade facilitation measures will make it easier for companies to move goods across the border, including reducing paper processes and providing a single portal to submit import documentation electronically.

SMEs stand to benefit to a greater extent from such measures, as they may not have the same resources as larger firms and they have to address challenges when operating across borders. Improvements made on dispute settlement, including labour rights, will also be very important for our SMEs, as it will help ensure effective implementation of the agreement and a more level playing field. This way, SMEs may find themselves to be more competitive and have market opportunities that were not accessible to them under NAFTA.

The new NAFTA also includes a chapter on SMEs that will foster co-operation among the parties in order to increase trade and investment opportunities. This includes capacity building and promotion activities to support SMEs owned by under-represented groups. The agreement recognizes that these groups may benefit from strengthened collaboration on SME promotion activities designed to increase their participation in international trade.

The agreement includes requirements to make information available for SMEs that is specifically tailored for their interests, including information on entrepreneurship, education programs for youth and under-represented groups, as well as information on obligations in the agreement that are particularly relevant to SMEs.

The agreement establishes an annual trilateral dialogue, which provides SMEs with an opportunity to collaborate in addressing any issue that could impact them in the future. The dialogue enables participation of representatives from private sector employees, non-government organizations, unions and other experts, thus ensuring diverse perspectives, which is so important on issues related to the agreement that are relevant to SMEs. By doing so, the new NAFTA will give a voice to Canadian SMEs and facilitate discussions on issues that matter to them.

Let me conclude by highlighting once again that we have worked very hard to ensure that this new agreement will be of benefit to all Canadians, including middle-class workers, small and medium-sized enterprises, as well as traditionally under-represented groups such as women and indigenous peoples.

I am proud to say that we have achieved our objective. We have made important progress toward elevating standards and benefits for all Canadians, and for that I am grateful.

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Madam Speaker, I am anticipating that the Conservative Party will be supporting the bill, but there is a lot of concern with the dithering of the Liberal government. We were basically taken to the cleaners. The U.S. was never really focused on Canada. It was focused on Mexico. We could have had a deal that was a lot more beneficial to Canadian interests than what has been signed.

The member opposite talked about softwood lumber in the Maritimes, but this has proven to be a disaster in British Columbia with mills closing down throughout the province, including in my community of Maple Ridge where a 100-year-old mill, which was still very modern, has closed down.

My question is, although this deal is better than no deal, would the member acknowledge that we could have done a lot better than what it actually turned out to be, which is what the U.S. Congress said—

[The Assistant Deputy Speaker, Carol Hughes]

I am sorry, but we have to allow for other questions.

Members should take note of the signs that I am giving and pose their question when they see that I am telling them to hurry up.

The hon. member for Cumberland—Colchester.