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.

The House resumed from January 30 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 second time and referred to a committee.

Canada-United States-Mexico Agreement Implementation Act

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

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

I listened carefully to the exchanges between my colleagues and the members opposite on this matter. My Liberal colleague mentioned that our interim leader, Rona Ambrose, who was a member of the negotiating team, said that the free trade agreement negotiated was the best possible outcome under the circumstances. I just wanted to mention that our former leader is a very intelligent woman who was able to see the limitations of the Liberal government, the Prime Minister and the former minister of foreign affairs.

If we consider the players in the negotiations, it really is the best agreement that could be reached by the Liberals. That is the reality. Therefore, we must pay attention to the context in which statements were made. When we know the limitations of the team leading the negotiations and its weakness vis-a-vis the U.S. government and we know that we are the last ones to reach an agreement, we can understand that our former leader was right when she said that it was the best agreement under the circumstances.

The legislation to implement the Canada-United States-Mexico agreement builds on the first NAFTA signed by the Conservatives. We on this side of the House like to say that this is free trade agreement 0.5, not free trade agreement 2.0, the new North American Free Trade Agreement or the new Canada-United States-Mexico agreement. It really is a weakened free trade agreement.

Indeed, many sectors were shortchanged because this government is incapable of negotiating correctly and achieving the gains it should have. I am not the one saying so, but rather the chair of the U.S. house ways and means committee. Some of the power of what he said is lost in translation, but in English, he was very clear.

“[The Minister of Foreign Affairs and the Prime Minister] conceded to just about every point that we asked for because of the following: enforceability, enforceability, enforceability.” What concessions did we agree to in order to elicit such a reaction?

What were the concessions that prompted the chairman of the U.S. Congress's most important committee to state that the former foreign affairs minister and the Prime Minister conceded to just about every point that was asked for during the negotiations? The answer is simple. It is that their party is not the party of free trade. The party of free trade is the Conservative Party. I would like to congratulate all the former Conservative ministers who negotiated free trade agreements.

All the Liberals did was come close to jeopardizing CETA and the TPP. Members may recall that the Prime Minister did not even show up for a TPP signing ceremony. The leaders of all the other TPP countries were there, but he was not. Where was the Prime Minister? People looked for him, but he was not there. He was absent. An agreement of tremendous importance to the entire Canadian economy almost fell through because the Prime Minister did not show up. Maybe it was because the photo op was not at the right time, or he was not happy with his outfit. I have no idea. It took even more work and more discussion to finalize the agreement.

That is where the problem lies. The Liberals agreed at the last minute. We used to be the United States' main partner. Now it would seem that Mexico has more influence than Canada, even though the Americans have been our neighbours and partners forever. This is due to the fact that the agreement was first reached between the United States and Mexico. Then they told Canada that it would have to hurry up and sign if it wanted to be part of the agreement. That is where the Liberals' ability to reach a consensus and sign good agreements for Canadians gets us. That is the reality.

One of the major concessions has to do with the aluminum industry. In that regard, I really want to mention the excellent work of my colleague from Chicoutimi—Le Fjord, who has repeatedly spoken out against the last-minute concessions that the Liberal government made concerning the aluminum industry.

The members opposite are bragging about how this agreement protects 70% of Quebec's aluminum, Canada's aluminum. They are saying that there was no protection before. This percentage applies only to parts. If parts are cast using aluminum from China or any other country, aluminum that was made using energy from coal or all sorts of things that we no longer want to see here, it would be considered a North American part that meets the 70% requirement. It is an insult to people's intelligence to say that this agreement protects Quebec's industry. That is completely unacceptable.

I know that my colleague from Chicoutimi—Le Fjord is working very hard with his colleagues from the Saguenay—Lac-Saint-Jean region. I would like them to say that they are working hard with the member for Chicoutimi—Le Fjord. Just because he was not at yesterday's meeting with the stakeholders does not mean he is not collaborating. He met with the stakeholders. He met with Ms. Néron, the mayor of Saguenay, Patrick Bérubé, the executive director of Promotion Saguenay, Christian Fillion, the general manager of Aluminium Valley Society, and the union leaders. He met with all of them. He did not meet with all of them at the same time, but that does not matter. The goal is to work together to do something for workers and for Quebec's aluminum industry.

My colleague has some good solutions to propose. He will not oppose the free trade agreement, because we need it. At least 80% of the businesses in my riding deal with the United States every day. That is our country's economy. That is why the Conservatives decided to negotiate a free trade agreement. We knew all the benefits it could have for our country. However, something can be done. The member is opening the door for the government. He has concrete proposals to present, such as an action plan and a timeline for ensuring the traceability of aluminum in North America. We could identify the origin of the aluminum used for the parts that make up the 70% we keep hearing about. If we do not do this, one thing I can guarantee is that, given the current price of aluminum in Canada, more and more Chinese aluminum will be used in our cars.

The hon. member is also proposing that there be more transparency over the assistance that was provided. There were tariffs on aluminum. There is money lying dormant somewhere in the government coffers. We do not know what is being done with that money or what will be done with that money. Can there be more transparency so we can find out what is happening with that money? There could also be a low carbon footprint procurement policy on steel and aluminum. Why are we unable to agree with the United States and Mexico on having North America use aluminum with a very low carbon footprint? That would help us get results in lowering our greenhouse gases. It would also help us preserve Quebec's aluminum industry, and that would help thousands of workers in Saguenay–Lac-Saint-Jean, Portneuf and every other region with aluminum smelters to keep their jobs. This would help us ensure that Quebec remains a leader in the aluminum industry.

There are solutions. We will vote in favour of the bill. Obviously, we would have preferred not to be in this situation. We hope the government, which has offered to work with us from the start, will listen to the recommendations made by my colleague from Chicoutimi—Le Fjord to protect the aluminum industry.

I used to be the agriculture critic. I will not talk about compensation in the dairy sector. I will not talk about it because there is none. Nothing has been announced. The government made some major concessions affecting the dairy industry. Unfortunately, the Liberals were unable to tell us how much this would cost, what kind of sacrifices they made, why they put a limit on powdered milk exports to other countries and why they gave the United States oversight over how we manage our fee structure. This was part of the last-minute agreement they negotiated. They were unable to ensure that Quebeckers and Canadians would benefit.

I will probably support the bill, but I hope that the government, which wants our co-operation, will give us some answers before the final vote.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 second time and referred to a committee.

Business of the House

[Pablo Rodriguez, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, this afternoon we will continue with second reading debate of our first key priority, the CUSMA implementation bill.

Next Monday and Wednesday, we will resume debate on Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Tuesday will be a supply day.

Next Thursday and Friday, we will continue debate on Bill C-3 on border services.

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 second time and referred to a committee.

Canada-United States-Mexico Agreement Implementation Act

[Francesco Sorbara, Liberal, Parliamentary Secretary to the Minister of National Revenue]

Madam Speaker, it is with great pleasure that I rise to speak on Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

CUSMA, as it is commonly known, reminds me of a song by the Village People from my time working and living in New York City. It reflects over two years of negotiations by our Canadian, American and Mexican trade officials.

I first wish to commend and congratulate Canada's negotiating team and our lead trade negotiator Steve Verheul, along with our Deputy Prime Minister and Minister of Intergovernmental Affairs and member of Parliament for University—Rosedale, who reached an agreement that modernizes the original NAFTA that came into effect on January 1, 1994.

I also wish to congratulate the Government of Mexico as well as the U.S. Senate and the House of Representatives on ratifying the trade deal. This is an instance in the United States of bipartisan support from both Democrats and Republicans.

I have the privilege of representing a dynamic and entrepreneurial riding, Vaughan—Woodbridge. Businesses and their employees in my riding depend on trade certainty with the United States and Mexico, full stop.

My riding is home to CP Rail's busiest intermodal facility in our country, with logistics hubs for Home Depot, Costco, Sobeys, FedEx facilities, Saputo and leading exporters of products, including Martinrea's flagship auto parts facility, which supplies parts for the GM Equinox and Terrain; Vision Plastics, employing thousands in the York region and exporting over 75% of its products to the United States; and Extrudex Aluminum, with headquarters in my riding of Vaughan—Woodbridge and facilities in Ohio and Saint-Nicolas, Quebec, manufacturing high-quality aluminum extrusions for usage across North America.

This trade deal brings certainty to Canadian businesses and obviously to Canadian employees across Canada and our communities. It is very important that we move ahead with multipartisan support from all parties here in the House.

As vice-chair of the Canada-U.S. interparliamentary association, I had the opportunity to visit the United States capital and speak with many congressmen, congresswomen and senators on trade. During those conversations, it was evident that all parties and all political representatives wanted to come to an agreement to provide certainty in trade among Canada, the U.S. and Mexico.

As we look at how we are doing in terms of inclusive growth and growth for all citizens in society, it is very important to ensure that the trade deal is a win-win-win situation for all involved and that we stop and think about how this trade deal prevents what is called the race to the lowest common denominator. In this regard, we can be very proud that this trade deal has provisions on labour and the environment and that it maintains the cultural exemption, which I know is so important for La Belle Province, Quebec.

We know that a race to the bottom creates inequality. We know that it can create resentment and create losers. We do not want that. We want to make sure that workers in North America benefit from trade deals. We want to make sure that those workers have bright futures, that middle-class families across North America and working-class families across North America and all employees benefit from trade. We want to make sure that trade lifts all boats.

We know that since NAFTA came into effect in 1994, trade between Canada and the United States and Mexico has exponentially grown. It has grown ninefold between Canada and Mexico and more than doubled between Canada and the U.S.

The companies in my riding that I referred to have a few things in common. They continue to invest in Canada and in Canadians, which is helping to grow our economy. They need certainty in the markets they serve and they need trade certainty, and CUSMA delivers that.

I ask my colleagues across the aisle to support this deal, to come together and do what is in the best interests of all Canadians, including businesses, employees and communities.

We know that increased trade means jobs for Canadians. Since 1994, when NAFTA came into effect, it has generated economic growth and rising standards of living for the people of all three member states. In fact, total merchandise trade between Canada and the U.S. has more than doubled since 1993, as I stated earlier, and grown ninefold between Canada and Mexico.

Since our government was elected, we have pursed an aggressive trade agenda. The signing of CUSMA has followed both the completion of the Canada-Europe free trade agreement and the CPTPP. Canada is the only G7 country that has trade agreements with all other G7 countries, enjoying free trade with nearly 1.5 billion people. This gives Canadian companies unprecedented access to markets and allows for the creation of good jobs in all markets.

The world is much more connected and interconnected today than at any point in history. Canada is leading the way, and our government, which I am proud to be a part of, is leading the way with policies on trade, infrastructure investment and immigration to attract the best and the brightest to Canada and allow trade-oriented firms to establish themselves and continue to invest in Canada to create those jobs and, most importantly, to ensure a high standard of living for today's generations and future generations, including my children. I want to ensure that they inherit a strong economy and a strong environment that are both filled with opportunity.

The 20-year-old agreement was in need of modernization. The world has changed significantly over the last two decades, and many clarifications and technical improvements need to be made to the original NAFTA in the areas of labour, the environment, culture and many other sectors.

Our government's objectives in reaching a new revised free trade deal centred upon three objectives: defend the national interest, which we did; preserve and create jobs, which we have done; and foster economic growth. Canadians can rest assured that the government and the negotiating team were on their side from day one.

I would like to take a step back to understand how important our trading relationship is with our southern neighbours. Let us examine a few statistics.

Realistically, over two million jobs in Canada are trade-dependent on Canadian exports to the United States. Nearly nine million jobs in the United States are connected to trade with Canada. Over 400,000 individuals cross the border back and forth every day, and nearly $2.5 billion worth of goods and services cross the border between our two countries every day. Trilateral trade among the three countries, measured by imports among the member states, totalled $1.1 trillion, while two-way trading of goods and services between Canada and the U.S. in 2017 totalled over $900 billion.

Those are big numbers, but behind those numbers are individuals getting up in the morning, going to work, saving for a better future and creating a better future for their families in our communities from coast to coast to coast. That is what it is about. This trade deal is about people in Canada, the United States and Mexico creating a better future for themselves and their families and ensuring a brighter future for their children.

The importance of this agreement cannot be understated. Trade certainty provides a path forward for businesses to invest in Canada. It allows businesses to remain focused on ensuring Canadians have the right skills to succeed in today's globally competitive economy and ensures that they can undertake investment decisions here in Canada and invest in Canada and Canadians to continue to grow our economy. We know growth continues in Canada. We know we have put in place the right policies. Since the deal came into effect in 1993, Canadians have created over six million new jobs.

I will focus the rest of my time on the auto sector.

CUSMA provides for revised automotive rules of origin. These rules will require higher levels of North American content in order to incentivize production and sourcing here in North America. These were ideas put forward by our Canadian team, and we will see the robust rules of origin for the auto sector keep the benefits of the agreement in North America and encourage both sourcing and resourcing here in North America.

The new agreement includes the following: an increase in the regional value content threshold for cars from 62.5% to 75%; stronger regional value content requirements for core car parts, such as engines and transmissions; a requirement for 70% North American steel and aluminum; and a new labour value content provision requiring that 40% of the value of a passenger car and 45% of the value of light trucks, including final assembly, be made up of materials, parts and labour produced or carried out by workers in plants averaging an hourly wage of $16. This is what I refer to as “lifting all boats”. We will not be going to the lowest common denominator for employees but allowing employees across North America to have a better future for themselves and their families.

We were adamant about getting a good deal for our Canadian workers. We got the deal done with help from former members of the prior government, who approved of this deal.

It is interesting and really nice to see the premiers in western Canada saying that they need this deal signed, and I encourage them to continue adding their voices to this debate.

The enforceable provisions that protect labour are the strongest in any Canadian trade agreement to date. With the labour chapter being further strengthened by establishing a new bilateral mechanism with Mexico, Canadians can be assured that state-to-state dispute settlements and facility-specific rapid response labour mechanisms are in place to ensure that we can keep tabs on facilities to make sure that labour regulations are followed.

I look forward to questions and comments from my hon. colleagues.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, it is great to start off this debate with the co-operation of all parties, which we are going to need as we proceed down this road.

I will be splitting my time with the new member for Desnethé—Missinippi—Churchill River, whose riding happens to be right next to mine. I think this chamber will come to enjoy working with him, seeing his positive contribution to the House and watching him in action with his speech.

I want to thank the minister; the team; the negotiator, Steve Verheul; and the guys in the background, such as Andrew Leslie, the member for Malpeque, Mark Eyking and the other members of the trade committee. There are all these people, such as the member for Oshawa, who is sitting right next to me. There was a tremendous effort put forward to make sure that there was a team Canada approach so that everybody understood how important this deal was, not only here in Canada but also in the U.S.

I know that those on the team tried their best and did their best. That said, there are some shortfalls and problems, which is why we need to do our due diligence and go through it. Where there are problems and shortfalls, we will do things like we did with the briefing here this week. There the member for Chicoutimi—Le Fjord said that we have the greenest aluminum in the world, which comes out of his riding, and made the point to Steve Verheul, the negotiator, that we could sell it under the environmental chapter, so why not put that into the implementation side of things? We could see that the negotiator was thinking that he had not thought of that, but it was a good idea.

These are the types of things we can do if we work together and if we have proper briefings and documents to solve or mitigate some of the issues or missed opportunities in this agreement.

Today we begin debate on Bill C-4, the implementation of the legislation for the new NAFTA. This deal, as described by President Trump, is something negotiated totally on his own terms, which I think is right. It is sad, but I think that is what has happened here. I think that the reality is that President Trump sat down with Mexico, and they did a deal and told Canada to take it or leave it, which is disappointing. It did not have to be that way.

The good news is that after rigorous debate in Parliament and in committee, Canada will continue to have a trade agreement with our largest trading partner. The bad news is that it was negotiated by the Liberal government, which made concession after concession to the United States and Mexico. The good news is that we have an agreement, but the bad news is that it could have been better.

This agreement, if we had done it right, would have set North America up for the next 50 years to become the most competitive sector in the world. With companies in the U.S., Canada and Mexico using our strengths and working together as we have in the past, we could have been so competitive that we could compete with anybody around the world. However, we did not get that in this agreement. In fact, if anything, we got more barriers, more red tape and more hassles for our businesses. It is disappointing.

Unfortunately, the mismanagement of the deal by the Liberal government is going to cost taxpayers money, because the reality is that we will have to have a plan for the sectors and industries that have been left out. During the election we heard quite clearly President Trump talking in the Rust Belt states about people who supposedly lost their jobs because of previous trade deals. There were other things in play, such as modernization and robotics and things like that, which never got talked about, but there was this idea that people were left behind. We cannot do that. In a new trade deal in this day and age, we cannot leave sectors behind, which is why, again, we need to have the proper documents and processes in order to go through the deal, do what we can to mitigate it and create a plan for those people who may have been negatively impacted by it.

However, I want to make it clear that our party supports and wants the free trade deal with the Canada, the U.S. and Mexico. Some things are just too big to play politics with.

The United States is our largest trading partner, and NAFTA has been good for Canada, with $2 billion a day in trade crossing our border, which represents 75% of all Canadian exports. U.S. direct investment in Canada in 2018 was over $400 billion, which is huge. Since NAFTA was first implemented, over 5 million jobs have been created, and total trilateral trade has quadrupled to $1.2 trillion. Who says trade does not work? This is proof that trade does work.

The majority of major industry associations in Canada want us to ratify this deal. The Canadian premiers put out a joint statement urging us to ratify it quickly, but it is our democratic obligation to analyze this legislation, and we have to do our due diligence. It is even more important for us to do our due diligence since the government is still refusing, 50 days now since we made the request, to release the economic impact analysis that it has on this new NAFTA.

It looks like the government has something to hide, which is probably true because even though the majority of industries support the deal, many of them have expressed concerns and are looking for clarification on how this deal is actually going to affect them.

The Canadian Chamber of Commerce wants further details, especially with respect to the intellectual property provisions. CAFTA wants to confirm that any changes would not negatively impact their producers. The CME wants to know what steps the government has taken to ensure that Canadian productivity levels are equal to those of other OECD countries, to maintain competitiveness here in North America. They also want to know what the impacts of the concessions will be to our aluminum industry.

The shortcomings and missed opportunities of the deal are clear.

First, the Canadian dairy industry is possibly the biggest loser in this deal, as 3.6% of the Canadian market is now opened up to imports. Milk classes 6 and 7 have been eliminated. That is a big deal. That is very important to dairy producers. That was a way for them to get extra value from some of the dairy products that they produce and they now have lost that opportunity.

The deal dictates specific thresholds for Canadian exports to anywhere in the world on milk protein concentrates, skim milk powder and infant formula. As the industry grows and wants to export more, or if the industry should have a surplus in these products to export abroad, it is limited to quotas. If the industry actually does exceed the thresholds, Canada adds duties to the exports in excess. That makes them more expensive, so it makes them uncompetitive to export. That is something Canada has never agreed to before. We really need to see the ramifications. It also sets a precedence for future trade deals.

We have relinquished some of our sovereignty. If we want to do a deal with a non-market country, for example, China, we have to actually go to Big Brother, the United States, and get permission. That does not make sense to me. That is a growing market. It is a market that we have to trade into. We have to find a path forward to have a proper relationship with China. However, we should not be worrying about the U.S. and its issues with China. We should not be drawn into those issues. We should have our own relationship with China and this could impact our ability to do that.

Second, the missed opportunities in this deal make up a long list. Aluminum is not afforded the same provisions as steel. To defined as North American, it would have to be smelted and poured in one of these three countries. We do not know why aluminum was left out. Why did it not get the same treatment as steel, other than maybe something was going on in the U.S. and China that they wanted aluminum to come through Mexico and go down that path.

On temporary entry for business persons, the list of professionals in chapter 16 was not expanded to include professions that exist in the 21st century. Why did we not modernize that list? We could have added a whole pile of new jobs that have been created in the high-tech sector and the service sector. That was not done.

Buy American was not addressed. Mexico got a chapter on Buy American; we did not.

Our forestry workers are hurting. They are going through some tough times. This should have been talked about in the deal. I understand we had a claim in front of the WTO. I also understand that the WTO appellate body is in trouble right now because of the U.S. not appointing judges. Who is paying for that? That would be the guys who were laid off in British Columbia and the folks who were laid off in New Brunswick in the forestry sector because that market has turned down due to the unfair, illegal tariffs of the U.S. government.

Third, the Liberal government made concessions that will result in continued business uncertainty to a certain extent. The ISDS chapter was removed, with no more protections from politics in the U.S. and Mexico. A sunset clause sets out a formal review of the agreement every six years. The agreement will terminate in 16 years unless it is renegotiated. Again, when someone is looking at their business and trying to plan things, it makes it really tough to work in those types of cycles because it does create some instability.

There are more things in this deal I could talk about, but I understand I am down to the last minute and I will use my time at committee to do that.

However, I want to say one thing. We are plugging our noses because the industries and communities say we need to get that bankability, that stability of a trade deal with the U.S., and we are going to provide that. This deal will go through, but we really need to look at who is impacted negatively by this deal. The government really needs to come up with a serious plan, whether it is compensation, finding new markets, training or reallocation. I am not sure what those are. Every sector might have a different solution, but they need to have a plan.

I look forward to working in the committee to identify those sectors, giving them a chance to speak on how this is going to impact them and also trying to find solutions so that we can move forward. In the end, Canadian businesses will win from this deal, but it could have been better.

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Intergovernmental Affairs]

moved 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 second time and referred to a committee.

Mr. Speaker, I would like to begin by acknowledging that we are gathered on the traditional territory of the Algonquin people.

I am truly honoured to speak here today in support of Bill C-4, an act to implement the new NAFTA. Canadians have come a long way since 2017, when Canada's most important trading relationship, indeed our national prosperity itself, was put at serious risk. The years that followed were among the more turbulent in our history. We have emerged not only with the essential elements of the North American Free Trade Agreement intact, but with a better, more effective and fairer agreement than before.

This agreement is better for steel and aluminum workers, better for auto manufacturers and factory workers, better for farmers, forestry workers and energy workers. This agreements is better for the thousands of people working hard in our service industries. It is better for Canadian artists, singer-songwriters and filmmakers and better for the companies that hire them.

Canada has always been a trading nation. We have trade agreements with Europe and the Pacific in place, and we are about to have a modernized NAFTA. That means free trade with 1.5 billion people around the world and makes us one of the world's greatest trading nations.

That we achieved this at a time of considerable uncertainty in global trade, with the rules-based international order itself under strain, is something of which all Canadians can be rightly proud. It is a testament to the unrelenting work of thousands of patriotic Canadians from all walks of life, representing every political view from all orders of government and from all regions of our great country. This truly has been team Canada at work.

A little more than 25 years ago, the North American Free Trade Agreement created the world's largest economic trading zone, but let us remember that it did not come about easily or without controversy. In fact, a federal election was fought over free trade in 1988, and my own mother ran against NAFTA for the New Democrats in the riding of Edmonton Strathcona. These were intense debates as many in the House will remember, yet today the Canadian consensus for free trade is overwhelming.

That consensus is a testament to NAFTA's long-term effectiveness as a vehicle for economic growth. More broadly speaking, it is also a testament to the fact that rules-based trade advances personal freedom, fosters entrepreneurial spirit and generates prosperity.

Today, Canada, the United States and Mexico account for nearly one-third of global GDP despite having just 7% of the global population. Every day, transactions worth about $2 billion Canadian and 400,000 people cross the Canada-U.S. border. Those are impressive numbers.

When we were first asked to renegotiate NAFTA, we were determined to improve the agreement, update it, refine it and modernize it for the 21st century. That is exactly what we did.

I would like to stress two points. Under the new NAFTA, 99.9% of our exports to the United States can be exported tariff-free, and when it comes into force, this agreement will be the most progressive trade deal our country has ever negotiated. Indeed, I believe it will be the most progressive trade deal in the world.

“Growth that works for everyone” is not just a slogan. It has been the animating, driving idea in our negotiations from the start.

Let us be honest: The negotiations that got us here were not always easy. There were some twists and turns along the way. There were, as I predicted at the outset, moments of drama. There were times when the prospect of success seemed distant, but we hung in there. Faced with a series of unconventional negotiating positions from the United States, a protectionist flurry unlike any this country has encountered before, we did not escalate and we also did not back down. We stayed focused on what matters to Canadians: jobs, economic growth, security and opportunity. That is how we stayed the course.

It was clear from the start that, in order to be successful, Canada as a whole had to come together and work as a team.

We began by consulting stakeholders across the country. We heard from Canadians in industry, agriculture, the service sector and labour. We sought and received advice and insight from across party lines. We reached out to current and former politicians, including provincial and territorial premiers, mayors, community leaders and indigenous leaders. We asked Canadians for their input and gathered over 400,000 submissions on the modernization of NAFTA.

We established the NAFTA council with people from different political parties, as well as business, labour and indigenous leaders.

I would like to thank every member of the NAFTA council for their wisdom, hard work and collegiality. Their insight helped guide our way forward at every step of the way, right up to the present moment.

I would also like to thank current and past members of the House for their contributions. With politics, there is always partisanship, but there can also be collaboration in the national interest. I know, from the many conversations I have had with colleagues across the aisle and across Canada, that every single one of us here shares the goal of working for Canada and Canadians. This negotiation has not been a political project. It has been a national one.

There have been many hurdles. During the negotiations, we were hit with unfair and arbitrary tariffs on Canadian steel and aluminum. We defended ourselves without rancour, but with firmness, imposing perfectly reciprocal, dollar-for-dollar tariffs on the United States even as team Canada fanned out across the U.S., reminding our friends, allies and neighbours that they rely on us for trade, too.

We were consistent. We were persistent. We never gave up. We just kept digging in the corners, if I may be allowed one NAFTA hockey metaphor.

The new NAFTA is a great agreement for Canada because we acted with resolve at the negotiating table to uphold the interests and values of Canadians. Our professional trade negotiators are, without exaggeration, the very best in the world. They are a group of true hard-working patriots, led by the inimitable Steve Verheul. I would like to thank them on behalf of all Canadians.

I would also like to thank Ambassador Bob Lighthizer. I found him to be a reliable and trustworthy counterpart, even though there were many times when we did not agree. He is someone who has become a friend. I would like to acknowledge his hard work, his professionalism and his willingness to find win-win compromises for our great continent. That made this agreement possible.

I would also like to recognize the efforts of my Mexican counterparts, who showed tremendous commitment, through a change in government, in renewing our trilateral relationship and in reaching a progressive outcome that raises working standards for workers across our shared continent.

Muchas gracias, amigos.

The benefits of this agreement for Canadians are concrete and considerable. The new NAFTA preserves Canada's tariff-free access to our most important market: 99.9% of our exports to the U.S. will be tariff-free. The agreement preserves the dispute settlement mechanism known as the famous chapter 19 in the original NAFTA, which provides an independent and impartial process for challenging anti-dumping and countervailing duties.

Critically, this mechanism is how we Canadians ensure a level playing field with a much larger trading partner. This mechanism is more valuable today than ever, with the WTO effectively paralyzed.

The new NAFTA preserves the general exception for cultural industries, which employ some 650,000 people across the country. These industries are an integral part of Canada's bilingual nature and our linguistic and cultural identity. This was a crucial factor, because those industries ensure that we can tell our own stories, as Canadians, in both official languages.

Our farmers are more crucial than ever to our collective prosperity. Canada and the United States have the largest bilateral trading relationship in the world in the area of agriculture, which is worth about $48 billon annually.

At one point in the negotiations, the United States demanded that we abolish supply management. We refused that demand. This agreement secures the future of Canada's supply management system for this generation and generations to come.

The new agreement strengthens labour standards and working conditions in all three countries. This is a historic milestone with, for the first time, truly muscular and enforceable labour standards. This agreement, for the first time, levels the playing field in North America for Canadian workers.

It supports the advancement of fair and inclusive trade. It addresses issues related to migrant workers, forced or compulsory labour, and violence against union members, including gender violence. It enshrines obligations related to discrimination, including discrimination based on gender, sexual orientation and gender identity.

This agreement modernizes our trade for the 21st century. Critically, it reduces cross-border red tape and simplifies procedures for Canadian exporters. It promotes increased trade and investment through new chapters dedicated to small and medium-sized businesses.

As well, the agreement preserves the provisions on temporary entry for business people. These provisions are essential to supporting cross-border trade and investments. Temporary entry ensures that investors can see their investments first-hand, and that service suppliers can enter the market to fulfill their contracts on-site.

At a time when walls are being built, temporary entry is a critical advantage for Canadians.

Crucially, the new NAFTA also shields Canada from arbitrary and unfair trade actions. For instance, our auto sector employs 125,000 people directly and another 400,000 indirectly through a network of dealers and after-market services. The side letter we signed with the new NAFTA protects this vital industry from any potential U.S. tariffs on automobile and auto parts.

The new NAFTA is great for Canadian auto workers. We see this in new, higher requirements for levels of North American content in the production of cars and trucks. We see it in the labour chapter, which includes key provisions to strengthen and improve labour standards in the NAFTA space.

One of our government's main objectives is to ensure that women have the opportunity to participate fully and equitably in the Canadian economy. The new NAFTA is no exception. The labour chapter includes a non-discrimination clause and addresses obstacles to the full participation of women.

Environmental stewardship is essential to our collective future. The new NAFTA includes a chapter on the environment that will help ensure that our trade partners do not receive unfair economic advantages because they failed to respect the environment.

The environment chapter requires that all the NAFTA partners maintain strong environmental protection and robust environmental governance. It introduces new commitments to address challenges like illegal wildlife trade, illegal fishing and the depletion of fish stocks, species at risk, conservation of biodiversity, ozone-depleting substances and marine pollution.

It also recognizes the unique role of indigenous peoples in the conservation of our shared biodiversity and in sustainable fisheries and forest management. This is a first. For the first time in a Canadian trade agreement, the new NAFTA confirms that the government can adopt or maintain measures it deems necessary to fulfill its legal obligations to indigenous peoples.

We should note that the obligations on labour and environment in the new NAFTA are subject to dispute settlement. This is a major accomplishment. This means any laggard can be held accountable.

In his speech to the U.S. National Governors Association in 2017, the Prime Minister referred to his father's famous metaphor about Canada, of our experience of sleeping next to an elephant. He said that, contrary to his father's phrase, Canada today is no mouse, more like a moose. This negotiation and its conclusion have shown how right he was.

Throughout the formal negotiations and in the months that followed, the Government of Canada has been intent on upholding the national interest. This work continued last year, culminating in a protocol of amendments signed by Canada, the United States and Mexico that strengthen state-to-state dispute settlements, labour protection, environmental protection and rules of origin.

Our government is committed to ensuring that the benefits of trade are widely and fairly shared.

The new NAFTA helps us accomplish that. It promotes progressive, free and fair economic growth. More generally, it strengthens rules-based trade at a time when those rules are in great need of strengthening. It brings back stability to the trade relationship between Canada, the United States and Mexico. Above all, this agreement provides stability and predictability for companies that employ hundreds of thousands of Canadians.

Our focus in bringing the new NAFTA to Parliament has always been on preserving and fostering opportunity for Canadian workers, businesses, families and communities across the country. That is what we achieved, and this is what all Canadians have achieved together. It is something that all Canadians and every member of the House can be proud of. We are all here to serve Canadians.

I encourage all members in the House and Senate to work co-operatively with us to swiftly pass this legislation.

Ways and Means

[Chrystia Freeland, Liberal, University—Rosedale, ON]

moved 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 first time and printed.

(Motions deemed adopted, bill read the first time and printed)