Madam Speaker, I appreciate the opportunity to speak this morning about an issue that is very important to Canada, to Ukraine and to the constituents in my riding of Etobicoke—Lakeshore. Of course, I am speaking about the free trade agreement between Canada and Ukraine. We are not here debating carbon pricing.
It is my honour to stand today in support of the legislation that would implement the modernized free trade agreement between Canada and Ukraine. As was mentioned already, the modernization exercise for the CUFTA has not only allowed for the addition of new chapters but has also provided an opportunity to update previously existing chapters of the agreement and to reflect the most recent practices in the field of international trade agreements.
Important updates I would like to highlight right from the start are those made to the chapters on labour and the environment. The modernized provisions would commit Canada and Ukraine to the highest standards on labour rights and environmental protection. These updates would help make the CUFTA a fully comprehensive modern trade agreement that levels the playing field while ensuring sufficient flexibility for parties to pursue crucial public policy objectives in these areas. Please allow me to give an overview of the nine modernized chapters of the agreement.
On the matter of rules of origin and origin procedures, Canada and Ukraine agreed to activate and operationalize the principle of cumulation of origin, which would allow the materials originating in other countries that Canada and Ukraine both have free trade agreements with to count toward the originating status of goods exported under the agreement's tariff preferences. The result is that the materials originating from, for example, the European Union; the European Free Trade Association members, which include Switzerland, Liechtenstein, Norway and Iceland; Israel and the United Kingdom can be taken into consideration when determining whether the final product qualifies as originating under the agreement and thus benefits from preferential treatment. Concretely, it would give producers greater flexibility in sourcing materials from countries with which Canada and Ukraine both have free trade agreements.
The new digital trade chapter of the modernized agreement is a significant update from the previous e-commerce chapter commitments to improve regulatory certainty for businesses seeking to engage in the digital economy in both markets, as well as those specifically looking to engage in cross-border digital trade between Canada and Ukraine. The chapter now contains ambitious commitments to facilitate the use of digital trade as a means of trade between Canada and Ukraine. It includes commitments relating to cross-border data flows, data localization, source code disclosure, open government data and personal data protection. On this last item, it is worth noting that, for the first time in any of Canada's trade agreements, a provision has been included prohibiting government authorities from using personal information collected from private organizations to discriminate against a person on grounds such as race, gender, sexual orientation, religion or political opinion.
The modernized agreement now includes a stand-alone competition policy chapter with updated and new obligations to promote a competitive marketplace. The chapter furthers Canada and Ukraine's objectives toward a fair, transparent, predictable and competitive business environment. This is notably done through enhanced obligations for competition authorities on procedural fairness and transparency, as well as new obligations for the identification and protection of confidential information. These new obligations provide assurance that fundamental principles, including the rights of defendants, are guaranteed during competition law investigations and enforcement proceedings.
The monopolies and state enterprises chapter has also been upgraded to include important definitions for state-owned enterprises and designated monopolies, as well as updated commitments on transparency and technical co-operation.
In the modernized chapter on government procurement, Canada and Ukraine have clarified that they would be allowed to take into account environmental, socio-economic or labour-related considerations in their procurement processes. This means it is now clear that the agreement would not prevent parties from adopting domestic policies and programs to support initiatives such as green and social procurement. The updated chapter also includes a new article to ensure integrity in procurement processes by committing parties to have legal or administrative measures in place to address corruption in government procurement. Finally, the updated chapter also facilitates greater participation by Canadian and Ukrainian SMEs in government procurement.
The upgraded labour chapter in the agreement is robust, comprehensive and fully subject to the dispute settlement mechanism of the agreement. It aims to improve labour standards and working conditions in the two countries by building on international labour principles and rights. Two particularly notable articles were added: an important prohibition on goods made in whole or in part with forced labour, and a stand-alone article on violence against workers. This chapter confirms that Canada and Ukraine are fully committed to the highest labour rights standards and agree to co-operate further in the field.
The modernized environment chapter of CUFTA is the most comprehensive and ambitious ever achieved in a Canadian free trade agreement. For the first time, the chapter includes provisions recognizing the importance of mutually supportive trade and climate change policies, including market-based approaches and trade-related climate measures to achieve green growth objectives. The modernized chapter also introduces new articles to address key global environmental issues, such as plastic pollution and waste, and promotes trade of environmental goods and services and the circular economy. The chapter is reflective of Canada and Ukraine's leadership on trade and environment issues, and of our joint commitment to strengthen our co-operation in the area long into the future.
Last, the new transparency, anti-corruption and responsible business conduct chapter significantly builds upon and improves the 2017 version. It provides a framework for promoting transparency and integrity among public officials and the private sector, while advancing enforceability of anti-corruption laws. Therefore, the new chapter furthers Canada and Ukraine's objective of open and transparent international rules-based trading system that also promotes measures to prevent and respond to corruption. The chapter also includes a new section to encourage responsible business conduct for internationally recognized standards, guidelines and principles.
I thank the House for the opportunity to describe the significant improvements that were made to the existing chapters of the 2017 agreement through this modernization exercise. I believe I have made it clear that these upgrades would be instrumental in making the agreement a modern, fully comprehensive and responsive free trade agreement.
