Bill C-57

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine

This enactment implements the Canada–Ukraine Free Trade Agreement, done at Ottawa on September 22, 2023.
Among other things, the enactment
(a) sets out rules of interpretation;
(b) specifies that no recourse is to be taken on the basis of sections 9 to 15 or any order made under those sections, or on the basis of the provisions of that Agreement, without the consent of the Attorney General of Canada;
(c) approves that Agreement;
(d) provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of that Agreement;
(e) gives the Governor in Council the power to make orders in accordance with that Agreement;
(f) requires the Minister for International Trade to ensure that Canadian companies operating in Ukraine comply with the principles and guidelines referred to in the Agreement; and
(g) amends certain Acts to give effect to Canada’s obligations under that Agreement.
Finally, the enactment repeals the Canada–Ukraine Free Trade Agreement Implementation Act that was enacted in 2017.

The House resumed from December 12, 2023 consideration of the motion that Bill C-57, An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine, be read the third time and passed, and of the amendment.

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

[Francis Drouin, Liberal, Parliamentary Secretary to the Minister of Agriculture and Agri-Food]

Madam Speaker, I am pleased to rise in the House today in support of this historic legislation to implement the modernization of the Canada-Ukraine free trade agreement.

This is an incredibly important agreement for both Canada and Ukraine, and I would like to take this opportunity to reiterate what this legislation would accomplish.

The Canada-Ukraine bilateral relationship is long-standing, unique and unshakable, and has always been marked by Canada's steadfast support of Ukraine's independence, sovereignty and territorial integrity. Recently, in the face of protracted Russian aggression abroad and rising isolationism here in Canada, Canada's assistance has become even more important. Canadian aid for Ukraine in its time of need has included military, diplomatic, economic and humanitarian support. Trade, an important component of Canada's economic support, should not be overlooked.

The modernized Canada-Ukraine free trade agreement is an important element in our support to our Ukrainian allies. Not only would it help strengthen the bilateral economic ties between our two great countries; it would provide to the world yet another sign of Canada's unflappable support for our Ukrainian allies. This agreement constitutes a measure of support that would not only offer benefits in the near term; it would extend well beyond Russia's illegal and unjustified war of aggression by strengthening the foundation on which Canadian and Ukrainian businesses could work together during Ukraine's recovery and economic reconstruction and, indeed, underpin the long-term economic relationship between our two countries.

We know that Ukraine's economy can benefit from Canadian expertise and investment in key sectors such as infrastructure, resources, energy and finance. This agreement would make it easier for Canadian companies to supply goods and services to Ukraine during reconstruction, as well as to invest and operate in the Ukrainian market with greater confidence while also supporting Ukrainian companies and exporting their goods and services to Canada.

As members are aware, the Prime Minister and Ukrainian President Zelenskyy announced their intention to modernize the trade agreement between Canada and Ukraine in 2019. This was in response to a clause contained in the original 2017 agreement committing Canada and Ukraine to review the agreement within two years of its entry into force with a view to expanding it. While comprehensive from a trade and goods perspective, the 2017 agreement did not include chapters on trade in services or investment. These areas were specifically identified by the review clause as potential additions, without restricting the parties from exploring other areas. As such, this was an opportunity to make this agreement a fully comprehensive one on par with Canada's most comprehensive free trade agreements.

It is toward that goal that our government announced the launch of the agreement modernization negotiations in January 2022. Unfortunately, only weeks after, Russia began its full-scale illegal invasion of Ukraine. As part of our support to Ukraine, Canadian trade officials relayed to their Ukrainian counterparts that they stood ready to proceed with the agreement modernization discussions in accordance with Ukraine's capacity and willingness to do so.

In May 2022, Ukrainian officials conveyed in no uncertain terms that they were ready to initiate and indeed expedite the trade agreement modernization negotiations and that they were eager and determined to move forward to conclude as quickly as possible. Thus, our trade officials got to work immediately with the goal of reaching an ambitious and high standard agreement on a rapid time frame.

Throughout the process, and despite difficult circumstances, Ukrainian officials demonstrated eagerness to reach an ambitious outcome within very short timelines with the aim of facilitating increased trade between our two countries, not just to meet the immediate needs of reconstruction but long into the future. This eagerness is reflective of how comprehensive the modernized agreement is with respect to not only trade in goods but also to the new chapters and provisions for investments, services, labour, environment, inclusive trade and others. In this current context, the new areas covered in the modernized agreement would make it much more than just a trade agreement.

As Ukraine's First Deputy Prime Minister Svyrydenko has explained, this agreement is a way to demonstrate that Ukraine's economy is:

...built on the same principles of respect for workers and the environment as in Canada. This is the first agreement that confirms that Ukraine shares the trade agenda of Canada, the US, the EU, Japan and our other partners. Its text is based on the standards of the Canada-US-Mexico Free Trade Agreement and the Trans-Pacific Partnership Agreement... In this way, Ukraine is joining... countries that share the [same] principles of economic policy. In fact, this is a modern trade and legally binding economic pact with partners who support our security.

This is why this modernized agreement is so important for Ukraine and why, despite truly incredible and daunting circumstances, Ukraine dedicated scarce resources toward that goal and pushed forward this modernization with Canada. Beyond the short-term benefits related to the reconstruction efforts that will be needed, it did so because it recognizes and acknowledges the long-term importance of building and safeguarding an open and inclusive rules-based global trading system, a system that contributes to creating strong and resilient economies and enables long-term growth.

Increasing Canada's trade and attracting investment is a priority for this government as is Canada's continued support for Ukraine, both during and long after the war. For this reason, I urge all members to support Bill C-57 and allow this government to move ahead to implement the modernized Canada-Ukraine free trade agreement on a timely basis.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Madam Speaker, I am wondering if my colleague opposite, in the context of this agreement, will commit right now to talking to the Prime Minister and to his caucus to strongly commit Canada to repurposing seized Russian assets back to Ukraine. Will he commit to ensuring that Canada leads a G7 effort to send back seized assets to Ukraine?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Madam Speaker, I will entertain a conversation with the Prime Minister if she entertains a conversation with the leader of the official opposition to ensure its support of Bill C-57 and its support for Ukraine.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Speaker, this is a very important bill.

The 2017 agreement, which was essentially negotiated by Stephen Harper's Conservative government, was mostly about extending a hand of friendship to Ukraine in the wake of the 2014 Russian invasion. As members know, the negotiations ended in the summer of 2015, just before the election, but the agreement was signed by the current government during the Ukrainian Prime Minister's visit to Ottawa in 2016, and it took effect in 2017. It was negotiated by Stephen Harper's Conservatives, but now it seems as though the Conservatives are no longer on board.

Why is that and what impact will that have?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Madam Speaker, I thank my colleague for his question. He raises a good point. I do not know what happened to Brian Mulroney's party, which believed in free trade agreements. For some reason, the leader of the official opposition decided to no longer support an agenda that promotes free trade, even though the President of Ukraine clearly indicated that he wants Canada to support this free trade agreement. I do not understand what is happening to the Conservative Party in 2024.

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Speaker, let me ask my colleague a question on words versus actions on this. I see a lot of paper and a lot of words, but as far as the actions and supporting Ukraine go, the government has been a day late and a dollar short almost every time.

Will the member commit to actually supporting Ukraine, as he, his party and his government have not done in the past, including returning the turbine when President Zelenskyy said not to return the turbine and cutting off the oil trade that Russia was importing into Canada far later than this party recommended they should, because that is funding the war for Russia on Ukraine?

Will the member commit to actually performing better as far as the real metrics go, as opposed to the paper metrics?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Madam Speaker, we can all strive to do better, and I would encourage that member to do better as well and to support Bill C-57.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I am finding it odd that we have Conservative members who are actually standing up asking about the government's position with regard to Ukraine when, in fact, what we have witnessed is that the Conservative Party has completely abandoned Ukraine on this very important issue of Canada-Ukraine trade. For the first time ever, Conservatives are going to be voting against a trade agreement.

I am wondering if my colleague would not agree with me that there is a possibility of an oozing of hypocrisy and disappointment all in one in regard to the way the Conservative Party today is treating a very important trade agreement.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Madam Speaker, I have to agree with the hon. member. We know that the leader of the official opposition is getting advice on high grocery prices from a lobbyist called Jenni Byrne, but I am wondering if they are now getting advice on foreign policy from Tucker Carlson, who has been a strong advocate in support of Russia.

I just do not understand where the Conservative Party of Canada is going with the lack of support for Ukraine. It is about high time they stand up and support Ukraine and pass this bill as soon as possible.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, it is a pleasure to rise today to speak on Bill C-57, the Canada-Ukraine free trade deal.

I will be sharing my time with the hon. member for Calgary Nose Hill.

First of all, I want to start by saying unequivocally that the Conservatives support Ukraine. I want to say it again, because there has been a lot of misinformation from the other side. Conservatives stand with and unequivocally support Ukraine as we always have.

In 1991, it was a Conservative government that was the first western country to recognize Ukraine's independence, and it was under the Stephen Harper government that the initial Canada-Ukraine Free Trade Agreement was negotiated. Therefore, we already have a free trade agreement. I think the discussion today needs to be about what should be in the agreement and what should not be in the agreement.

I also want to share with the House my personal support for Ukraine. When the war first happened and people had to flee, the Liberal government failed to send planes to rescue them. It created a bureaucratic, two-month process to obtain papers to get here. I hired extra staff in my office and worked with local organizations and with people on the ground in Ukraine to bring 200 families to Sarnia—Lambton, to find sponsor homes for them, to get jobs and English training services for them, so, unequivocally, I support Ukraine.

However, let us look at the Liberal record. Initially, when President Zelenskyy asked to please not provide a turbine to Russia so that it could fuel and fund its war machine, the Liberal government sent the turbine. It allowed Canada to supply detonators for mines that are being used to blow up Ukrainians. How in any way is that support? Ukrainians have asked Canada for our LNG to replace the Russian fuel they were using, and Canada refused. That is something that ought to be in this agreement, but it is not. Also, although the Liberal government promised the surface-to-air missiles over a year ago, they still have not been delivered. Clearly, there is a problem in terms of the Liberals listening to what Ukraine is asking for because none of that is in here. Instead, the Liberals decided to put carbon tax language into this agreement.

The Conservatives have negotiated over 50 trade deals, and all the trade deals that have ever been negotiated with Canada have never contained any of that language. Why was it necessary, since Ukraine already has a carbon pricing mechanism on industrial emissions? It is minor, but certainly for Ukrainians who are trying to recover and to win a war, the last thing they are going to need is to be put under the same regime that Canadians are suffering under, which has driven up the cost of food, home heating and all of those things. Ukrainians definitely do not need that.

I want to highlight a couple of other things that are ongoing. Of course, we have always supported Operation UNIFIER to provide aid, but there is more that Canada can do. Ukraine is asking for munitions from Canada, but the Liberals voted against the Conservative motion to send them. They are still delaying sending the kinds of munitions that would actually help Ukraine to win this war.

When we talk about the Liberals' record, it is clear that they want to seem to be updating a trade agreement that already exists without actually putting into it the things that the partners would need. I think the crux of the matter here is that they also refuse to fix the bill.

When the bill went to committee, the member for Dufferin—Caledon brought numerous amendments that would have helped this proposed act. First of all, we agreed that if the Liberals removed the references to carbon pricing and carbon leakage, then the Conservatives would willingly support this agreement, but the government has refused even though, like I said, Ukraine already has made its decisions about what it is going to about carbon tax. It is a sovereign nation and has every right to do that. We should not be putting that into a trade agreement.

The member also brought in an amendment that would provide energy trade and nuclear technology like small, modular reactors. This is really important. There is an energy crisis and an energy opportunity going on in Europe right now and every time they come and ask for our help, Canadians, who want to help, are surprised to see the Liberals refuse.

Germany wanted to give us $58 billion for our LNG. They said there was no business case for that, so Australia took that deal. The Netherlands wanted to do a deal with us, and we said there was no business case, so Qatar took that deal. Japan also wanted to deal with us. The list goes on and on of opportunities where we had the wherewithal to really help, and we refused.

All those amendments that were brought here have been turned down. I do not know why they would not accept one that talks about nuclear technology. That is very green technology. It should fit in with what the Liberal government is proposing to do.

The other amendment they voted against is really troubling. It was an amendment to increase defence supplies to donate to Ukraine. Ukraine is running out of munitions, and we have a lot of munitions that are not currently being used across the country that could be repurposed and sent. However, the Liberals voted against that amendment, as did the NDP. It is the NDP and the Liberals standing together to not support Ukraine. I really do not understand how they can stand up every day and not know their own record on not giving Ukraine what it needs.

Another troubling thing they voted against was an amendment to have the Business Development Bank of Canada support projects in Ukraine to develop its own munitions manufacturing capacity. I think that would have been a concrete way that Canada could have helped. We are already sending billions to everyone in the world. Who needs it more than Ukraine that is currently at war with Russia, which is a threat to the whole western world? I have no idea why the Liberals will not give the Ukrainians what they are asking for. That is really the discussion that we are having for.

We already have a free trade agreement. We are going to do trade with Ukraine. Conservatives are dedicated in supporting Ukraine, but we are not going to force a carbon tax regime to make things worse than they already are. We will let Ukraine deal with whatever it wants to put in place with its sovereignty. Meanwhile, we want to give Ukraine what it is asking for. It is asking Canada to help with LNG. It is asking Canada to help with munitions. It is asking Canada to help with financial aid to support projects to rebuild its nation. Those are the kinds of things that should be in a free trade agreement between Canada and Ukraine if we want to modernize the one that is already there, but they are not.

We continue to see, in my riding, the difficulties that Ukrainians are having when trying to rescue other people who are coming here. As the ravages of war are advancing, there are still people who want to come, and the Liberals have not made that process any easier. I think if they really want to help Ukrainians, they should recognize that there is a huge need.

There is need in other areas where we could be of help. We have a lot of armoured ambulances, for example. We are not using them. We have replaced them, but the other ones are still there. They need an oil change maybe and a new set of tires. Those are the kinds of things we could be sending to Ukraine. They are hauling people around in broken-down cars because they have no ambulances left. Those are the kinds of things I think we should be thinking about.

I will wrap this up where I started. Conservatives unconditionally support Ukraine. We stand with Ukraine. That was clear from 1991 when we recognized its independence. It was clear when President Zelenskyy was here asking for our help. My colleague Candice Bergen stood in this place and unequivocally said that we support Ukraine. Our current leader has said that we unequivocally support Ukraine. That is the record. That is the correction of the misinformation and disinformation from the members opposite. We need to help Ukraine.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, the member who just spoke is wrong. President Zelenskyy came to Canada last September to sign a trade agreement. That was why, during a time of war, he came to Canada. It was to sign a trade agreement. He asked parliamentarians here, all of us, to support the Canada-Ukraine trade agreement, as did the Ukrainian Canadian Congress, as did 1.3 million people of Ukrainian-Canadian heritage and others. They want all members of all political parties to get behind it and to vote in favour of this legislation.

Why have members of the Conservative Party chosen to abandon Ukraine when Ukraine has asked for the support of this legislation?

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, the member opposite is wrong. Conservatives absolutely support Ukraine. We have absolutely said that if the language about carbon pricing is removed from this agreement, we would sign on and would like to add a few more things that Ukraine is asking for, like LNG, like munitions, like some of the ambulances that we have and extra equipment. Things that were seized that belonged to Russia would be an advantage to Ukraine.

There are a lot of things we would like to do, but we certainly do not want to inflict a carbon tax on it that is already doubling costs in Canada and causing unaffordability.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I would like to thank my colleague from Sarnia—Lambton for her speech. I want to start by saying that, in her speech, my colleague mentioned that the Conservatives support Ukraine unconditionally and that they are not against Ukraine, contrary to what people are saying. That is not entirely true. At least, that is our perception.

Everyone knows that the Conservatives are all about perception. The perception is that they are voting against this bill simply because it mentions carbon pricing, which goes against their current ideology. That is very unfortunate, because they are voting against the good things that this agreement will do.

That said, my question is about something else. There is a fight against corruption in Ukraine. The Ukrainians have made a firm commitment to fight corruption. Canada has made the same commitment in this agreement, notably in article 15.14. However, there were no mechanisms to encourage co-operation or monitor progress.

My colleague from Saint-Hyacinthe—Bagot presented the only amendment to Bill C-57 that was adopted in committee. This amendment ensures that we will be able to fight corruption together, as this is going to be a major issue during post-war reconstruction.

Despite the Conservative's opposition to Bill C-57, I would like to know what my colleague thinks about fighting against corruption and the tools we need to do that.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, I do not think that the Liberal government can fix anything at all when it comes to corruption, because they are experts in the matter.

We have signed many agreements with other countries and none of them mention the carbon tax. Why does the Canada-Ukraine agreement now talk about that? I do not know. We would support the agreement if any mention of carbon pricing were removed and replaced with something else.