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

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, I did mention trade in the last minute of my speech. In fact, I think I mentioned it twice.

During the time of Stephen Harper, our military was the best equipped it had been since the conflict in World War II. We got Globemasters. We got Chinooks. We got LAVs. We got other planes. We finally got our TAPVs. All those were initiated then. We also got the national shipbuilding strategy. We would not have any functioning vehicles or equipment for the military were it not for the days of Stephen Harper and our past defence ministers Gordon O'Connor and Peter MacKay.

I thank the member opposite for reminding us what a great military we had and how strong it was under the leadership of Prime Minister Stephen Harper.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Mr. Speaker, I enjoyed the speech by my hon. colleague. How does the member feel a free trade agreement with Ukraine, particularly as it defends itself in the ongoing war with Russia, will affect the relationship between it and the conflict?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, Ukraine is under an existential threat. If Ukraine does not defend itself and then does not exist, we will not have the basis for a free trade agreement because there would be no Ukraine. We have to do first things first and make sure it has what it needs to defend itself. We have to send good equipment and good ammunition, not junk to empty out our old garages. It is a good thing people are being strong here and getting that mission started.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, can the member provide her thoughts on the less than 1% spending on defence by Stephen Harper? Was that a good thing or a bad thing?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, during the leadership of Prime Minister Harper, more money was spent on defence than there had been since the decade of darkness. The country is stronger and envied by many because of what we have in our professional military and the women and men who make Canada look good on the world stage.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, we continue to see duplications of events around the world. We have seen what is happening with Israel and Gaza right now.

As it pertains to foreign conflicts and the information out there, can the member talk about how this deal may help the redevelopment of Ukraine going forward?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, if given the chance, trade with Ukraine will strengthen itself and perhaps prevent another invasion by Russia or another entity.

The real problem here is the Communists who run China. This Ukraine-Russia conflict is a wonderful and welcomed distraction for China. Our overarching concern is making sure that Canada is well defended and the world is well defended against greater aggressors yet to come.

[Sophie Chatel, Liberal, Pontiac, QC]

Mr. Speaker, I would like to begin by saying that I will be sharing my time with the member for Nepean.

I have the honour of rising today to support the bill to implement the free trade agreement between Canada and Ukraine. As we have already mentioned, modernizing this agreement not only enabled us to add new chapters, but it also gave us an opportunity to update the existing chapters so as to make them consistent with the highest standards and best practices in regard to agreements.

I would like to begin by talking about the very important, innovative, modern and comprehensive updates that were made to two chapters: the labour chapter, which I will talk about a little later, and the environment chapter. The modernized provisions of the agreement between Canada and Ukraine seek to meet the highest labour rights and environmental standards.

These updates would make the agreement a full and comprehensive modern trade agreement that levels the playing field and ensures that there is sufficient flexibility so that both countries can implement their policy objectives in these areas.

Allow me to quickly give an overview of the nine modernized chapters of the agreement.

With regard to rules of origin and procedures, Canada and Ukraine have agreed to activate and operationalize the principle of cumulation of origin, a principle that allows materials originating in any other country with which Canada and Ukraine have a free trade agreement to have originating status for goods exported under preferential tariffs. The result is that our producers will be entitled to greater flexibility in deciding whether to source raw materials from countries with which Canada and Ukraine have free trade agreements.

I would like to talk briefly about the chapter on digital trade, which is very important and updates the old chapter, which was called e-commerce at the time. Things have evolved quite a bit. This is a good update and provides regulatory certainty for companies looking to engage in the digital economy in both markets.

The chapter now contains ambitious commitments to facilitate the use of digital trade as a means of trade between Canada and Ukraine. The chapter includes commitments relating to cross-border data flows, which are very important, and also data localization, source code disclosure, open government data, and personal data protection.

The modernized agreement includes a chapter on competition policy with new, updated obligations intended to promote a competitive marketplace. This chapter helps achieve objectives for Canada and Ukraine that relate to an equitable, transparent, predictable and competitive trade environment. What does this mean in practical terms? In practical terms, it means obligations that are reinforced by competition authorities with respect to procedural fairness and transparency, and new obligations respecting the identification and protection of confidential information. These new obligations ensure that basic principles like the rights of defendants are upheld during investigations and proceedings.

By the way, I would like to draw special attention to the chapter on monopolies held by state-owned enterprises. This chapter was also enhanced to include important definitions concerning state-owned enterprises and designated monopolies, with updated commitments on transparency and technical co-operation.

In the modernized government procurement chapter, Canada and Ukraine have clarified that they are allowed to take into account environmental, socio-economic or labour-related considerations in their procurements. This means that it is now clear that the agreement does not prevent parties from adopting domestic policies and programs to support initiatives such as green and social procurements.

A big important chapter is the upgraded labour chapter. This chapter is now robust, comprehensive and fully subjected to the dispute settlement mechanism in the agreement. This chapter is important because it aims at improved labour standards and working conditions in the two countries by building on international labour principles and rights.

I want to highlight two very important articles. The first is an import prohibition on goods made in whole or in part with forced labour. The second is 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.

Another very important chapter that I feel strongly about is the one on the environment. It is the most comprehensive and ambitious of all Canadian free trade agreements. For the first time, this chapter includes provisions that recognize the importance of trade and climate policies. Both policies complement one another.

It also includes market-based approaches and climate measures linked to green growth targets. This updated chapter also introduces new sections that deal with worldwide environmental issues that are key to our green transition. It also includes sections on plastic pollution, waste, the promotion of trade in environmental goods and services and the circular economy.

Finally, I will briefly talk about the chapter on transparency, anti-corruption and responsible business conduct. This chapter sets a framework for the promotion of transparency and integrity among public servants and the private sector while increasing the enforceability of anti-corruption laws.

Thank you, Madam Speaker, for listening and for allowing me to list the important improvements made to this key agreement. This improved agreement will now be one of our most modern, comprehensive and innovative.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, I would like to greet my colleague from Pontiac, with whom I am pleased and honoured to sit on the Standing Committee on Environment and Sustainable Development. The hon. member rightly said that this free trade agreement deals with a number of issues, in particular the environment.

We are all aware of the effects of climate change that must be addressed, and since humans helped create climate change, humans must take steps to reduce pollution.

Based on what my colleague knows about what is happening in Ukraine, what should be the main focus of Canada's action to help Ukraine rebuild, from an environmental perspective?

[Sophie Chatel, Liberal, Pontiac, QC]

Madam Speaker, at this stage in the global economy, we are well aware that climate change is intrinsically linked to developing a greener, more resilient and more innovative economy.

This agreement, which is central to this environmental chapter, includes a number of obligations and considerations. I feel it is really going to foster technology sharing to develop this 21st-century economy, so that it is beneficial not only for the environment, but for trade as well.

I think this is one example of free trade agreements. All agreements that are modernized in this way are increasingly innovative in this area, where the economy is linked to climate resilience.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Madam Speaker, as I said earlier in an exchange with another member, we think Bill C‑57 is a good bill and we plan to support it.

My colleague from Avignon—La Mitis—Matane—Matapédia and I have asked a few questions, but we have yet to get any clear answers. Although we agree with the bill, the process by which it is being passed raises some questions, as is the case with many other bills ratifying agreements that have been reached.

In the United States, Congress mandates the executive branch to negotiate agreements. In the European Union, member states play a central role in the negotiations, because they have to ratify them later. It is much the same in most industrialized countries. It is often parliaments that adopt treaties. Here in Canada, it is customary for the government to negotiate treaties and for Parliament to intervene only at the point of ratification, when the provisions are to be included in a bill.

My question is about whether—

[The Assistant Deputy Speaker, Carol Hughes]

The hon. member has taken a lot of time. Other members want to ask questions.

The hon. member for Pontiac.

[Sophie Chatel, Liberal, Pontiac, QC]

Madam Speaker, I thank my hon. colleague for the question. I think I understood it. If I understand correctly, he is wondering why international agreements are negotiated at the government level and parliamentarians only learn about the results of these negotiations.

I think it is important to pay attention to all the consultations that take place ahead of negotiations with a country. There are a lot of consultations and opportunities to provide information to the government when it is negotiating agreements. That is the time for providing information that is pertinent for the negotiations.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Madam Speaker, for the first time in our history, we have seen a free trade agreement that takes into account reconciliation, particularly the rights of indigenous peoples, and reaffirms the parties' commitment to the UN Declaration on the Rights of Indigenous Peoples.

Would the member support, in the future, our country supporting similar provisions within future free trade agreements, namely with the United States?

[Sophie Chatel, Liberal, Pontiac, QC]

Madam Speaker, I think that it is always a good idea to take the best parts of an agreement and include them in new agreements.