Mr. Speaker, the government's decision to delist MMT responds to a ruling by a panel established under the agreement on internal trade, AIT.
This panel determined that the Manganese-based Fuel Additives Act was inconsistent with the federal government's obligations under the AIT.
In the light of the government's response to the panel's recommendation, the government also moved to resolve Ethyl Corporation's NAFTA claim and Ethyl Canada's challenge in the Ontario court. Ethyl has terminated its legal actions.
Studies in Canada and the United States are proceeding on the impact of MMT on health and the environment. If subsequent federal government action is warranted, it will act using the Canadian Environmental Protection Act.
The government's right to regulate in the public interest is not in question. NAFTA is consistent with Canada's sovereign right to regulate in the public interest respecting public health, environment and the safety of Canadians.
In the investor state proposals under discussion in the MAI negotiations, Canada continues to favour open and transparent processes which reflect high standards of procedural fairness compatible with Canada's legal practice.
The government's position is clear. Nothing in the MAI would prevent the government from regulating in the public interest. This includes legislation to protect our environment, our labour standards and our health and social services.
In April, together with other OECD countries, Canada confirmed that the MAI must be consistent with the sovereign responsibility of governments to conduct domestic policies and not inhibit the normal non-discriminatory exercise of regulatory powers by governments.
The Government of Canada will only sign an agreement if it protects and promotes our national interests. This includes our sovereign right to regulate in the context of protecting the health, safety and environment of Canadians.