Bill C-282

An Act to amend the Department of Foreign Affairs, Trade and Development Act (supply management)

This enactment amends the Department of Foreign Affairs, Trade and Development Act so that the Minister of Foreign Affairs cannot make certain commitments with respect to international trade regarding certain goods.

Electoral Participation Act

[Luc Thériault, Bloc, Montcalm, QC]

Mr. Speaker, this is not enough to bring down a government.

I would tell my colleague that I hope to get Bill C-282 passed for our farmers before triggering an election. This bill is now in the Senate and is being held up by Conservative and Liberal senators, despite the fact that it was passed almost unanimously in the House. I hope my colleague feels the same way I do.

[Chandra Arya, Liberal, Nepean, ON]

I agree with you. In fact, I recall the committee work during that discussion of Bill C-282.

Mr. Lemaire, on the same line of questions, what are your thoughts?

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

Thank you, Madam Chair.

I want to thank all the witnesses.

Mr. Harvey, I jumped a little when you said that the House hadn't thoroughly studied Bill C-282. First of all, you have every right to come and tell us that you oppose the bill, that it's not a good idea and that the Senate should reject it. There's nothing wrong with that. That's why we're here.

On the other hand, it can't be said that we haven't done a thorough job. We undertook it twice: once during the last parliament and once during this one. Both times, I was one of the two critics in favour of the bill, and we even went on a fact-finding tour around Quebec on the subject.

The latest process, which went further than the previous one, was perfectly normal. First, the bill was introduced at first reading. Then it was debated and passed at second reading. Then it was referred to committee, where we carried out a study over an appropriate number of meetings. We heard from experts and interest groups, some in favour of the bill, others opposed. We heard all possible arguments. We weighed them, then reported the bill back to the House, where it passed on third reading and was sent to the Senate, where it is currently under consideration.

In my opinion, that was a good thing, but not in yours. That's fine, that's part of democracy. But that doesn't mean there hasn't been a thorough review. Of course, you may find that this process is insufficient, but if that's the case, your criticism applies to the process in general because it's the same for all bills. Otherwise, I invite you to consider your words carefully before you speak.

Now, I'd like to ask Mr. Volpe a question.

In January 2023, following a complaint from Mexico and Canada, a panel ruled in our favour concerning a difference in interpretation of U.S. requirements for calculating the regional value content of certain products. The dispute concerned a technical provision of the trade agreement requiring that, by 2025, 75% of automotive parts known as “essential parts” must be manufactured on U.S. soil to qualify for duty-free treatment.

In your opinion, what irritants are still present and could be discussed or even resolved during the CUSMA review?

[Michael Harvey]

Sure.

CAFTA's priorities are as follows: Number one is to open new markets for Canadian agri-food, number two is to uphold the international rules-based trading system and number three is to strengthen trade diplomacy capacity and industry/government collaboration.

The United States is Canada's largest agricultural trading partner by far, buying 59.2% of Canadian exports and supplying 57% of Canadian imports. Canada is the leading agricultural trade partner of the United States when exports and imports are combined.

Canada ranks among Mexico's leading agri-food suppliers. Mexican agri-food imports from Canada reached $2.9 billion in 2022. Mexico's large population, growing middle class, geographic proximity and political stability make it an important market for CAFTA exporters.

The deep integration between the Canadian and U.S. agricultural sectors is largely a question of proximity, but trade agreements and a deep, positive relationship with our American friends and allies are also vital. The Canada-U.S. Free Trade Agreement of 1989, followed by NAFTA in 1994 and then CUSMA in 2020, have dismantled most tariff and quota barriers to Canada-U.S. agricultural trade.

I want to underline that for Canada-U.S. agri-food trade, CUSMA benefits trade investment for both countries through highly integrated supply chains. This includes intra-industry trade for important sectors, with each country exporting products to the other within these sectors. Pork and beef are important examples, as well as grains and feeds. Bilateral trade also covers many semi-processed and finished processed products such as sugar-containing ingredients and food products.

Our supply chains are so deeply integrated that in essence our countries are producing together, making technological advances together and using an integrated transportation system. These are important elements to emphasize when interacting with U.S. counterparts. Napoleon famously said that geography is destiny. This is clearly true for Canada's international trading relationships. Nothing is more important than our relationship with the United States. CAFTA is a strong supporter of diversification of our trading relationships, but the U.S. will always be the most important. In an increasingly uncertain international environment, neighbours and partners like the U.S. and Mexico must be carefully nurtured.

Our security relationship, border management and the management of key trade infrastructure cannot be separated from the trading relationship. As a country, we must manage North American relations holistically. CAFTA members can play a useful role in the team Canada approach by working with our U.S. counterparts to underline the importance of CUSMA to them. U.S. farmers and producers are politically relevant, including in key swing states.

Finally, I wish to emphasize the need to avoid unnecessarily provoking U.S. trade negotiators. CAFTA firmly believes that Bill C-282, which would prevent Canadian negotiators from discussing tariff quotas in supply-managed industries, is sending a warning signal to U.S. interest groups in key states. We call on the Senate to reject Bill C‑282, which has not been thoroughly studied in the House of Commons.

I look forward to answering your questions.

Thank you.

[Steve Verheul]

I mentioned a little earlier that in the review of CUSMA, it won't really that much impact, in my view, because Bill C-282, as you mentioned, talks about opening access. Every indication I've heard from the U.S. is that they're content with the access that was negotiated in the CUSMA. It's just about where that access goes and how the allocation of import quotas is done. Currently, it mostly goes to processors.

I've not heard that the U.S. is going after further tariff reductions or further tariff quota expansion, so I'm not sure it's going to be an issue.

[Chandra Arya, Liberal, Nepean, ON]

Thank you, Madam Chair.

Madam Chair, I'm sure all witnesses are aware of a bill currently passing through the Parliament of Canada, Bill C-282, that bars the minister of trade from concluding any free trade agreement that results in opening access to the supply-managed sector. Basically, it makes supply management non-negotiable.

I'll start with you, Mr. Verheul, because of your background in the negotiations of many trade agreements that Canada has signed with many other countries.

Right now, it has passed second reading in the Senate. I was hoping it would die in the Senate, but apparently it's still alive in there, so it may even get passed and it may even get royal assent. If that bill becomes a reality, what impact do you think it will have during the review of CUSMA?

[Steve Verheul]

Well, I'm not sure it will be a significant concern for the U.S. in the current context, because both of the panels that they took against Canada had to do with allocation policies for quotas under the tariff rate quotas.

Bill C-282 talks about prohibiting increases in tariff rate quotas and reductions in tariffs. Those issues aren't really under discussion between Canada and the U.S. when it comes to the dairy concerns that the U.S. has. Their concerns are about the allocation policy. Setting aside what Bill C-282 may imply for other negotiations, I don't see it coming up in the review, because that's not the target of the U.S. at this point.

[Kyle Seeback, Conservative, Dufferin—Caledon, ON]

Mr. Verheul, I'm sure you're familiar with Bill C-282. It was passed by Parliament, but I'm certainly not a supporter of that piece of legislation. I think it's another trade irritant with the United States that could cause trouble in a CUSMA review. If that bill receives royal assent, do you see that as irritating our American trading partners as we get into this CUSMA review and something that they would raise in a renegotiation?

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

I would like to clarify that Bill C‑282 deals with the supply management system in general, not just the dairy sector.

In your presentation, you mentioned Bill C‑282, which is currently before the Senate. Are you calling for its swift passage before the CUSMA is reopened?

[Daniel Gobeil]

No. I would tell you that in the last three major free trade agreements, the one with the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, and the CUSMA, the dairy sector conceded nearly 9%. Given the 18% concessions we're being asked to make right now, it's clear that this model is at the limit of what's acceptable, which is why it's so important to defend Bill C‑282 to limit dairy sector concessions.

[Daniel Gobeil, Vice-President, Dairy Farmers of Canada]

Thank you, Mr. Wiens.

Mr. Chair and esteemed members of the committee, thank you.

I want to begin by acknowledging the support given by all parties to protect Canada's supply management system for many years.

As you know, concessions have been made. Mr. Wiens alluded to this. Canada's milk producers also thank you for the compensation that has been paid to producers.

However, there is no doubt that an agricultural model of concessions accompanied by compensation is not viable for us as entrepreneurs. It is in this sense that we must respect supply management.

We want to mention one thing: in addition to the 3.9% of the market that was conceded to the Americans, other important rules were requested, including a ban on Canada exporting any dairy products to all world markets. It's unique for an agreement between three countries to prohibit one of its signatories from exporting anywhere on the planet. At the moment, we're not hearing about a potential reopening of the market for three main products—skimmed milk powder, protein concentrates and infant formula—but, if there is a reopening and if Canada expresses an interest in such a reopening, it's obvious that the sector will have to take this very important element into account.

With that, thank you again. Bill C‑282 is still on the drawing board in the Senate committee.

Mr. Wiens and I are available to answer any questions you may have about this ongoing matter.

World Milk Day

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, this Saturday is World Milk Day. From skim milk to lactose-free milk to chocolate milk, this beverage will always be a comfort food. However, because of market share surrendered in past agreements, about one in five pints of milk will eventually be imported from abroad.

That is why the Senate must pass Bill C‑282 as soon as possible. Our dairy farmers do not want to beg for temporary compensation for permanent losses. They want to work hard to make a decent living and provide us with quality milk. Our public policies must be designed to serve the interests of the public and safeguard our own food security, not please foreign interests.

It is time to stand up. Our farmers are passionate about dairy production, committed to a sustainable future and proud of what they have achieved together, and they are calling on the Senate to act quickly. Let us all celebrate World Milk Day together.

Supply Management

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, this afternoon, the Senate will vote on the future of Bill C‑282 and supply-managed sectors in advance of upcoming international negotiations.

We are asking members of the Senate to respect the House of Commons' solid vote at third reading and to vote in favour of sending Bill C‑282 to committee.

Protecting supply-managed producers also means protecting their relevant suppliers and the entire agricultural ecosystem for the good of agricultural production as a whole. It means ensuring that our rural areas have a stable, prosperous and dynamic population.

Most of all, supply management is about our people delivering a high-quality, home-grown product for our people. That is how we ensure our food security.

We ask that members of the Senate vote in favour. The economies of our rural areas and villages depend on it.

Softwood Lumber

[Kyle Seeback, Conservative, Dufferin—Caledon, ON]

Madam Chair, the trade minister has not participated in this debate. It was not her who led off debate for the government. It shows us how important this issue actually is for the government, that the trade minister does not lead off debate on a simmering eight-year softwood lumber dispute.

It is worse than this. We have declined as the United States' trading partner, but we also have continuous own goals in the trading relationship. We have to look at things like Bill C-282, the supply management bill. That did not win us any friends in the United States, and now the Liberals are saying they are going to unilaterally impose a digital services tax, which the United States is adamantly against.

We have declined as a trading partner because of the incompetence of the government to manage the trading relationship. The Liberals bring in all of these trade irritants, and they wonder why they cannot resolve this dispute. It all goes back to the incompetence of the government, the incompetence of the Prime Minister and the incompetence of the trade minister. They are the people who are responsible for this, no one else. The buck stops with them.

I would love to see the Prime Minister come and contribute to this debate. I would love to see the trade minister come and contribute to this debate, but I suspect I will not, because it is actually not important for them to do so. That is what is causing all of the job losses we are seeing. We have gone from 33% market share down to 26%, and that is old data. That is actually from 2022. It is probably worse. We are probably down to 24%.

This is haemorrhaging jobs in British Columbia, Alberta, Quebec and the Maritimes, and the government's response is to not have the minister lead off debate and to talk about its team Canada approach. It is not doing anything. It will not do anything. Even the Liberals on the trade committee know it will only be resolved by Prime Minister-to-President negotiation. Unfortunately, we are snookered, because our leader has nothing to offer on this.

Dairy Farmers

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I rise today to highlight the presence of dairy farmers from across Canada, and especially those from Quebec. They are on the Hill for the day to attend meetings with parliamentarians.

Our entrepreneurs are proud to offer the public their product at a stable and reasonable price that allows them to earn a decent living from their trade. That is why they are asking parliamentarians to support Bill C-282 to ensure the sustainability of supply management, and they hope the Senate will pass the legislation quickly.

Defending this system will help guarantee our national food security while protecting our model of regional agriculture on a human scale. This predictability allows farmers to invest in research and development, thereby constantly improving their productivity, the quality of their products and their environmental footprint.

I thank dairy farmers for getting up every morning to supply us with high-quality milk. We always enjoy their delicious products.