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.

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, I listened intently to my colleague, as I try to do most of the time when he is speaking on the floor. I am quite surprised. Given what is going on in Ukraine and the desire of everyone to get this agreement through properly, faster and effectively, I am surprised. Maybe I misunderstood my hon. colleague, but I was hoping that we were going to complete these discussions on Bill C-57 fairly quickly and move it to committee, where we look forward to having a very detailed conversation with other members. Did I misunderstand the comments from the member?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

No, Madam Speaker, the member did not misunderstand. The committee is the right place for going into the details of the agreement. It is an opportunity for stakeholder groups to come before the committee, those that have gone into the weeds of it to see what it would mean for the customs code and what the implications are of expanding certain sections.

What I was referencing is that I would like to hear from more members on the floor of the House as to what their views are. I am sure our House leaders are talking right now, and we will see what they decide to do about when we see this bill at committee and how much time would be devoted to reviewing the specific contents of it. As I mentioned, I am looking at the sections on how goods and services will be treated in the territories occupied by the Russian Federation, which are rightfully Ukrainian territories.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I too am concerned about many of the panels, committees, subcommittees, working groups, expert groups and other bodies, because here in Canada we have a bureaucracy of highly technical issues that sometimes can be an irritant for another country, such as Ukraine. We also know that the government has been terrible in its record on the Canada-Europe free trade agreement, the CETA, for not getting working groups together. We find all sorts of regulatory trade barriers that stop the legitimate trade between Canada and the European Union.

Is the member concerned that, given the record of the government, there could be similar issues if the government continues on its current path on trade?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Speaker, the member is absolutely right. I am concerned because with the Canada-Europe free trade deal that was signed, I do not think Canadian companies have been able to take full advantage of what is in the agreement.

When it comes to agricultural goods, we know that is a sore point with the United Kingdom. I remember that when I was in the United Kingdom travelling for a study by the parliamentary association, it was very difficult to find any Canadian meat products. Markets were very good at selling and showing off British products and products made in Wales or Scotland, but getting our agricultural goods into European continental and non-continental markets should be of great focus. The department should be facilitating this and encouraging our companies to provide goods and services there.

Part of that is about making sure that when we negotiate these agreements, all of the stakeholders in Canada are part of them. In this particular situation, as I mentioned, we are still going through the agreement and trying to find how these different groups work.

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

Madam Speaker, to pick up on my colleague's question, given the war taking place in Europe today, I wonder if the member could provide his thoughts on the messaging that could be sent by the House of Commons in having the bill pass before Christmas, having gone through the system. Would he see that as a positive thing, not only economically but with all the other messaging that could be tied to it?

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Speaker, that is a worthy goal to have on the government benches, obviously. The House leaders, I am sure, are negotiating some type of agreement. If they are amenable to it, I am sure the Conservative House leader will obviously listen, but at the end of the day, I think we can both agree that this chamber, this House, has been clear in our support for Ukraine, the people of Ukraine and the Government of Ukraine as it continues to fight its defensive war against the Russian Federation.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, I am pleased to be here today to speak to something that I think is very important to all of us here in the chamber, the legislation for the modernized Canada-Ukraine free trade agreement. It is my honour to rise in the House today in support of legislation to implement, as quickly as possible, the modernized Canada-Ukraine free trade agreement, or CUFTA, as it is often referred to.

Recently, the Canada-Ukraine bilateral relationship has been marked by Canada's steadfast support for Ukrainian independence, sovereignty and territorial integrity in the face of protracted Russian aggression. Canada has stood beside our Ukrainian allies to support them as they fight for their independence, democracy and freedom. I know they are waiting for this free trade agreement to be done, with much expectation that Canada will finalize it as soon as possible so that we can open the door for further trade with Ukraine to help it in the terrible war it is dealing with. Since the beginning of this illegal full-scale invasion by Russia in February 2022, Canada has committed close to $9 billion in multi-faceted support for Ukrainians, because we know how desperately they need it, and they are eager to see this free trade agreement as well.

Today, we have yet another opportunity to demonstrate our continued support for Ukraine through other means. Bill C-57 would not only offer benefits in the near term but would extend well beyond the strengthening of the foundation on which Canadian and Ukrainian businesses can work together in the economic reconstruction of Ukraine, underpinning the long-term economic relationship between our two countries.

This is not a new deal. This is an expansion of the free trade agreement. We have been dealing with free trade with Ukraine for a very long time, so this is not new, something that has just popped up that we have not seen. We knew it was coming, and it has been worked on explicitly to make sure it is the very best that it can be.

I am referring to the modernized CUFTA, of course. The modernized CUFTA is a comprehensive high-standard agreement that, once implemented, will not only support Canadian and Ukrainian businesses but will also deepen commercial linkages, enhance co-operation, provide for increased transparency in regulatory matters, support inclusive trade and help reduce costs for businesses. That is very much what this free trade agreement is about, and it is very important that we understand it all.

One of the key outcomes of the original 2017 agreement was the market access that it gained for Canadian and Ukrainian produced and manufactured goods. If ever a Ukrainian needed help with a free trade agreement, it certainly is today.

As of January 2024, all tariff elimination schedules will be complete and over 99% of Canada's exports to Ukraine will be eligible to enter Ukraine duty-free. That is a very important aspect of this free trade agreement. This will make Canadian goods more competitive in the Ukrainian market, and vice versa, which we very much want. It will be especially valuable as we move toward reconstruction, economic renewal and longer-term prosperity for Ukraine.

Thanks to the CUFTA, Ukrainians will be able to enjoy more high-quality Canadian goods, such as frozen meats and fish, fruits and vegetables, other consumer goods, and essential services. Meanwhile, Canadians will be able to enjoy the Ukrainian goods and services that we all enjoy, to help with the cravings and needs of the many Ukrainians living in Canada.

There are a multitude of brands from Ukraine that have proved themselves to be good additions to the Canadian market over the last many years. The CUFTA helps us broaden our horizons and support the Ukrainian economy, especially in these challenging times. I know they are very excited and looking forward to this bill's passing.

Throughout negotiations, both sides demonstrated an eagerness to reach an ambitious and high-standard agreement with the aim of facilitating increased trade between our two nations, not just to meet the more immediate needs of reconstruction, which are great opportunities for Canadian companies to go to Ukraine and help in the rebuilding process, but long into the future. This eagerness is reflected in how comprehensive the modernized CUFTA is with respect not only to trade in goods but also to investment services and inclusive trade. The CUFTA helps make the reconstruction process transparent and sustainable. Also, this agreement is the first FTA addressing anti-corruption provisions.

Canada has always been there for Ukraine since its independence in 1991, and this new agreement is yet another opportunity for Canada to make itself visible in Ukraine and to lead by example. As a result, the modernized CUFTA would not only maintain the preferential market access gained in the original FTA for merchandise exports and imports, but would also support new opportunities for expanded commercial ties between Canada and Ukraine in the context of reconstruction efforts and well beyond. These benefits have led to strong support for this agreement by key stakeholders, including the Canada-Ukraine Chamber of Commerce, representatives of which were recently on the Hill and expressed their desire to see this FTA continue.

Sectors of strategic importance to Ukraine's recovery include infrastructure, renewable energy, financial services and oil and gas, which are all areas where Canada has strengths. Furthermore, Canadian companies have indicated an interest in pursuing opportunities in Ukraine in the areas of defence and security, energy, ICT and agriculture, and are positioned to engage when and where the circumstances permit.

According to the latest estimate by the Ukrainian side, since February 2022, more than 37% of the total damage in Ukraine falls on residential buildings, another 24% on infrastructure and 8% on assets of enterprises and industry. According to Ukrainian and international analysts, Ukraine will turn into the largest construction site in the world after this war ends. The modernized CUFTA would support Canadian businesses as they position themselves to respond to these interests, taking into account the scope of the market that Ukraine has. It is time to use that window of opportunities.

Prior to the negotiations, the government conducted public consultations with Canadian stakeholders on what they would like to see in a modernized FTA with Ukraine. The initiative received strong support from stakeholders, indicating that modernization of the CUFTA would enhance the competitiveness of Canadian firms in the Ukrainian market, among other benefits.

Stakeholders specifically identified pursuing stronger trade rules, increased transparency obligations, expansion of the agreement to cover services and investment, and inclusive trade as priorities. I am pleased to confirm that the modernized agreement before us reflects these aims and more.

If I may, I will now say a few words about the modernized agreement, highlighting some of the benefits and opportunities it presents for Canadians and Ukrainians with an overview of the new chapters that have been added.

First, the agreement includes a dedicated new chapter on cross-border trade in services. This includes provisions on the recognition of professional qualifications that will facilitate trade in professional services, which is strategically important for both parties in a knowledge-based and digital economy.

Ukraine is a land of world-class talents who are ready to contribute their knowledge and expertise to the common good. The new CUFTA would allow these professionals to focus on their work and what they can do best, not on the bureaucratic ping-pong that can drain the needed energy and enthusiasm from all parties involved.

The agreement also includes a new chapter on investment that would replace the Canada-Ukraine Foreign Investment Promotion and Protection Agreement. Featuring updated provisions on investment protection, the new chapter also ensures that investment obligations operate as required.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, I am glad to see that some government members are defending Bill C‑57. When one has negotiated something, it is important to stand behind it.

This brings me to my question. In Quebec yesterday, the Parti Québécois unveiled its year one budget, projecting that Quebec has the financial capacity to be an independent country. I wonder how my colleague, as a member of the governing party, would feel about negotiating a free trade agreement with Quebec once it becomes independent, so that our two nations can engage in mutually beneficial economic exchanges.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, I believe we will continue to negotiate on behalf of Canada. My Canada includes Quebec, now and forever.

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

Madam Speaker, I am a supporter of all trade agreements and of increasing Canada's trade.

However, one of the things that has happened with previous trade agreements is that we have not harmonized the specifications that Canada has. For example, with CETA, they can ship to us, but a lot of times we cannot ship to them. The same thing happened with the CPTPP.

Could the member comment on how we are going to make sure that the same thing does not happen with this particular agreement?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, we all want these agreements to be successful. We want to make sure that everything has been put in place.

There have been extensive discussions and negotiations for a long time on this agreement, as with other agreements. I am quite confident, given the importance of this agreement, that the right steps will be in the legislation and that it will move forward as quickly as it possibly can.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, any time we talk about Ukraine, I want to send my thoughts and love to the people of Ukraine.

I want to thank the Comox Valley Ukrainian Cultural Society in my riding that is doing a lot of advocacy for Ukrainians who are here in Canada and helping those who are in war-torn Ukraine now.

All treaties limit a nation's freedom to legislate. This free trade agreement includes provisions to ensure Canadians can still pass laws to protect the environment, promote gender equality and protect labour and indigenous rights.

Could my colleague speak about how important these provisions are in all free trade agreements? We saw the Conservatives sign free trade agreements that did not allow those provisions and actually overrode indigenous rights and constitutionally protected rights here in Canada.

Could my colleague speak about how important those provisions are to ensure that Canadians are protected?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, every agreement that goes forward must have all of those requirements. I would like to see that entrenched as much as possible in every piece of legislation that we do. Any work that we do with other countries around the world should be concerned with what the human rights impacts are and how we protect the environment, as well as the indigenous communities.

We have an opportunity to put that in legislation, and I think it should be in all the documentation that we do.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I asked this question of a member who spoke earlier. I would like to ask this member specifically, given the Liberal government's track record on trade when it comes to setting up panels and committees for technical working groups. As we have seen on CETA, the Canada-European free trade agreement, many of those industry panels have not even met. That means Canadians have not been able to trade with reciprocity, the way we would with other countries.

Does the member agree that the Liberal government has a poor track record? Given the fact that we are dealing with a smaller country, can the member tell us whether or not that will actually take place?

I am concerned, because I want to see Ukraine have access to Canadian markets and be able to make the most of our trade relations.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, every time a free trade agreement is set up, there are always challenges to move things along.

Certainly with the war in Ukraine and the terrible things that have been going on there, it is crucially important that we get this right. A number of discussions have been ongoing in order to make sure that Bill C-57 is accurate. It will go to committee, where there will be further discussions.

I look forward to it being very successful for Canadians, as well as for Ukrainians.