Debates of Sept. 25th, 2014

Canada-Korea Economic Growth and Prosperity Act

[Paulina Ayala, NDP, Honoré-Mercier, QC]

Mr. Speaker, I do not think my colleague quite understood what I said. We can all agree that this sort of thing will take time for a country that was once a dictatorship.

Korea has made great strides. This country survived for years under a system of oppression. We can make comparisons between Canada and Korea, but we are not the same. That is why we need to focus on that. It is true that there are unions in Korea and that is wonderful, but they are still weak compared to those in Canada.

What do the NDP and Canadians expect? We expect to share our way of doing things so that the quality of life of workers in other countries improves. That does not mean that they do not have unions. They do, and they also have legal strikes.

I am not contradicting my colleagues. I am simply providing additional information. What I am saying is that we cannot pretend that we are all the same. We have to understand each country's history. I believe that Canada can do more to improve working conditions. Canadian companies must not be allowed to profit from irregularities. On the contrary, Canada must set a good example for workers.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, it is a huge privilege for me to be able to speak to Bill C-41. The New Democratic Party will be able to support the entire bill. Yes, the entire bill. However, when we get into the details, we will closely examine some aspects of it and will have suggestions for changes to improve the bill or, at the very least, consider potential renegotiations with South Korea on some aspects that could pose a problem.

I have spoken about the investment-protection clauses on a number of occasions since this debate started. The NDP is not the only party to oppose this type of clause. The main opposition party in the South Korean national assembly opposes it as well, which is wonderful news. Once again, despite my repeated questions, the members of the government party in this House unfortunately were not able to tell me—I cannot imagine that they were refusing to answer—whether this is a requirement of the Government of Canada or whether Korea wanted to have this type of clause.

That said, we can all agree on the heart of this debate, which is that the NDP supports this bill. This support is contingent on the status of this bill. It is at second reading and will go to the Standing Committee on International Trade to be studied and debated. Obviously, the NDP's support is very much related to the situation in South Korea. As the member for Honoré-Mercier so eloquently stated, the country now has much more solid democratic institutions. South Korea emerged from a rather repressive dictatorship in 1987. It has much freer legal, social and economic structures. Now there is freedom of speech and the union movement has gained support and legitimacy.

I was looking at some figures from the OECD. In South Korea, the overall unionization rate is around 10%, whereas in Canada it is around 26% or 27%. According to my research, unionization rates are much higher in big Korean corporations—around 40% in the 10 largest Korean corporations, compared to the overall unionization rate. That is good news, but as the member for Honoré-Mercier pointed out, that does not prevent these big corporations from using appalling tactics to suppress union activism. Unfortunately, these tactics led one union leader to commit suicide because of what he saw, what he shared and what he heard from the people he represented.

Fortunately, like Canada, Korea is evolving rapidly. Like my colleagues, I acknowledge that evolution, that march toward a future that we all believe will be much better. That being said, I was really very critical in previous debates on other bills related to other free trade agreements, such as the Canada-Honduras and Canada-Panama free trade proposals. I was really very critical of, among other things, the appearance of moral endorsement of countries plagued by corruption and crime as well as the inequality inherent in the negotiations. We can all agree that negotiations between Canada—a very rich country with some 35 million inhabitants—and very small countries—those with just a few million inhabitants and a per capita gross domestic product that is not in the same league as Canada's—can hardly be called negotiations between equals.

In these cases, we cannot say we negotiated on an equal footing. Nonetheless, with regard to the negotiations between South Korea and Canada, we are negotiating as equals, and that is excellent news.

I must say that it was an honour and a privilege to sit on the Standing Committee on International Trade. Bilateral agreements are not as bad as multilateral negotiations where it is easy to leave out exceptional provisions, specific measures, and to be taken hostage by special interests, as we unfortunately see far too often in many negotiations between two countries. I know that this philosophy is widely shared by my NDP colleagues.

As I pointed out in the beginning of my speech, the current free trade agreement raises a number of important questions. I wonder how far Canada pushed for certain clauses or whether it was the Republic of Korea that imposed its will relative to other negotiations.

There was talk about access to government contracts, for instance, provincial and municipal government contracts as well as those associated with crown corporations. Fortunately, that is not part of the agreement, unlike the agreement between the European Union and Canada. Accordingly, we are supporting the free trade agreement.

As a result of what happened with the European Union, we hope that through the negotiations we will get to know all the aspects of this agreement and ultimately vote on it after reviewing what might be improved and offering suggestions.

I talked about protecting investors. Fortunately, we have a relatively open process in this agreement, compared with the much more opaque process we had for other free trade agreements. What is more, either party can withdraw with six months' notice, which is excellent news.

I will use my two minutes remaining to talk about the carelessness of the Conservative Party and the Liberal Party—there is no denying it—when it comes to the choice of partners Canada negotiates with. My Liberal colleagues went to great pains to criticize the Conservatives for dragging out the negotiations for a free trade agreement between South Korea and Canada. However, they are mum on how the agreements with Colombia, Panama and Honduras were fast tracked.

Given the Conservatives' record, we should perhaps not be surprised by this discrepancy. The Conservative Party takes shortcuts and does not take the time to choose its partners. Furthermore, some very close friends of President Putin were not included in Canada's sanctions, which are completely warranted in light of the situation in Ukraine.

In closing, I will draw a parallel to my time on the Standing Committee on Justice and Human Rights. Passing stringent laws, much like signing free trade agreements, is of little value if they are not supported by a strategy and by concrete, robust and consistent means.

That is the modus operandi of the Conservative government. All too often it has become stuck on adopting measures without thinking them through and without supporting their implementation; above all, they are stuck on what I would call a certain magical thinking. I hope that if we adopt this free trade agreement, the means will soon follow, and I hope that the Conservatives will walk the talk, because this is an extraordinary opportunity for both our countries.

[Erin O'Toole, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, once again, as I had said to his colleague, this is a transformative week in the House with the NDP supporting free trade for the first time. I would make note that just yesterday the head of the Unifor union called this deal a disaster from its standpoint, and the member raised some concerns with some of the labour provisions.

I note that the head of the Ontario Federation of Labour also suggested that the announcement of the NDP on minimum wages was really done to hide its support of free trade.

Therefore, have the New Democrats consulted with their supporters in organized labour in Canada in their consultations before making the decision to support this agreement and whether the minimum wage proposal was a concession in that regard, as Sid Ryan suggested just yesterday?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to thank the honourable Parliamentary Secretary to the Minister of International Trade for his question. The NDP approach in general consists of consulting all stakeholders party to a debate, negotiation or bill, which is not necessarily the government's approach. I have sat on three committees and I have seen the very strict selection criteria for witnesses, which is unfortunate. I find that deplorable.

Having said that, I would like to point out to the Parliamentary Secretary to the Minister of International Trade that when it comes to unions, all democratic states allow for freedom of association. I was looking at OECD figures before giving my speech. In 2007, the rate of unionization in Canada was 27% and in the democratic state of Israel, it was 33%.

I would like to bring this figure to the attention of the Parliamentary Secretary to the Minister of International Trade and to say to him that unions are partners of society and the economy, and that they are equal in value to any other partner.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, as I am sure the member is very much aware, the Liberal Party has indicated its support for the proposed Korea-Canada free trade agreement.

Some concerns have been expressed over the last number of years relating to the automobile industry. It is an industry that is of vital importance to our country. It affects some provinces more than others, but it has interests throughout the country in its vitality and ongoing growth wherever possible.

It is great to see this agreement as we have been waiting for it for a number of years.

In certain other sectors we have fallen behind. I refer to my home province of Manitoba, for example, and the lost opportunities with relation to port sales. Could the member comment on this? Because of the government's inability to negotiate this as quickly as other jurisdictions, whether it be Chile, the U.S. or the European Union, there will be a cost in lost opportunities. Does the member have any concerns or thoughts that he would like to share with respect to those lost opportunities because of the government dragging its feet on this issue?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, we can certainly shift the topic of the debate to the costs associated with the delays in some rounds of negotiations. However, I would like to take my colleague down another path and ask him to consider the risks associated with blind adherence—for instance, adherence to an agreement whose terms we know nothing about, as is the case with the free trade agreement with the European Union.

Clearly, the Liberal Party has a long history of wilful blindness. Consider the purchase of four used, inoperative submarines, which we are still paying for to this day. When you get involved in those kinds of processes, you have to take full responsibility. I say “full” because haste is a real danger.

As for this free trade agreement, we must remember that the global conditions can be very difficult for a country like Canada. In the auto sector, there is no denying that competing countries like China and Brazil actively support their auto sectors to such a great extent that investment subsidies can reach as high as 60%; this is huge and very costly for everyone and it is preventing Canada from reaching its full potential.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I wish to inform you that I will be sharing my time with the member for Don Valley East.

Mr. Speaker, our Conservative government's top priority is jobs, growth, and long-term prosperity for all Canadians. That is why we are working hard to open new markets to increase Canadian exports and investments in the world's most dynamic and fast-growing economies. This includes South Korea, an increasingly important country that is both a priority market and a natural partner for Canada.

The Canada-Korea free trade agreement, Canada's first bilateral trade agreement with an Asian market, is projected to create thousands of jobs for Canadians by increasing Canada's GDP by $1.7 billion annually and our exports by about one-third over current levels.

The agreement is critical to re-establishing a level playing field for Canadian companies in the South Korean market, where major foreign competitors from the U.S. and the European Union currently benefit from preferential access because of their respective free trade agreements with South Korea.

The focus of my remarks today will be on the centrepiece of the agreement: the elimination of tariffs on virtually all trade between Canada and South Korea. Over 88% of Canada's exports would be duty free immediately and over 99% would be duty free once the agreement is fully implemented.

The potential benefits from such a huge amount of Canadian exports becoming duty free is why we need this agreement urgently. We need to restore our competitive position in the South Korean market, as I noted earlier.

The previous government ignored trade. While this Conservative government has been ambitious on behalf of Canadians, the Liberals offered only complacency. While the rest of the world moved forward, Liberals held Canadian enterprise back through their inattention, inaction, and incompetence.

Fortunately, Canadians have, for almost nine years now, chosen to have steadier, more visionary hands at the helm. We are, under this Prime Minister's leadership, repairing the damage from 13 years of neglect.

Over time, this agreement would result in the elimination of all South Korean tariffs on industrial goods, forestry and value-added wood products, and fish and seafood products. This is great news for workers in B.C., Quebec, Atlantic Canada, and my home province of Ontario, which needs every bit of good news on the economic front that it can find right now.

It would also eliminate the vast majority of South Korea's agricultural tariffs, including in priority areas for Canada, such as beef, pork, grains, pulses, oilseeds, vegetable oil, and processed foods. This would lead to substantial gains in these sectors, given that these are the areas most heavily protected in South Korea.

Allow me to go into detail on how tariff elimination would benefit Canadian exporters and workers in these industries and benefit the communities that depend upon them.

In 2012, 1.8 million Canadians were employed in the production and manufacture of industrial materials, which would include aerospace and rail goods, automobiles, information technology products, metals and minerals, chemicals, and pharmaceuticals. If there is something that can be manufactured, chances are a Canadian is either producing it or working on ways to improve it.

With this agreement, over 96% of Canadian exports of industrial goods would be duty free immediately, more than 99% within five years, and the rest within 10 years.

I want to note the excellent results of particular interest and importance to Canadian exporters in such diverse fields as information and communications technology, aerospace, and rail goods. These are sectors in which South Korean tariffs would be eliminated immediately, creating new opportunities for companies in these sectors to expand their international business while at the same time creating jobs here at home. In the case of aerospace, over 80% of the sector's output is exported. This sector provides direct and indirect employment to 170,000 Canadians.

As well, there are very positive outcomes in the industrial machinery, chemicals, plastics, metals and minerals, pharmaceuticals, and textiles and apparel sectors, where most South Korean tariffs would be eliminated immediately and the rest within five years.

This would mean reduced barriers for these products in South Korea and an improved competitive position for Canadian exports. This is critical to industries such as chemicals and plastics, which export over half of their production abroad.

I would also note that South Korea is one of the world's largest energy importers, and Canada, of course, is a large and stable supplier.

While Canada does not currently export liquefied natural gas to South Korea, this agreement will result in the immediate elimination of South Korea's 3% tariff on LNG, thereby enhancing the prospects for energy exports to Asia from Canada's west coast.

I will now move on to forestry and value-added wood products, another industry that contributes substantially to Canada's economy. Under the CKFTA, 85% of our exports to South Korea would be duty free immediately, including pulp, paper, and some lumber products. Within three years of implementation, 98% of our exports in this sector will be duty free, and the rest will be duty free within five to 10 years. This will help our industry to diversify into Asian markets and to reduce its dependence on the U.S. market. It will also allow value-added wood product exporters in Ontario and B.C. to compete on an even footing with our competitors in the South Korean market.

I saved the best for last. From primary agriculture and processing to retail and food service, the agriculture and agri-food industry accounts for one in eight jobs in Canada and for 6.7% of Canada's GDP. The Canada-Korea free trade agreement will result in significant benefits for Canadian producers and exporters through the elimination of South Korean tariffs on around 70% of our exports in the agricultural sector within five years and on 97% of our exports once the agreement is fully implemented.

This is particularly important for my area in southern Ontario, the Region of Waterloo, and in particular the riding of Kitchener—Conestoga, which I am privileged to have been elected to serve three times now. We are blessed to live in a community where the 100-mile diet is a privilege, not a chore. We are home to Canada's largest year-round farmers' market.

Food processing is one of the largest employment sectors in my area. The farmers I represent will be pleased to know that for beef and pork, we have achieved tariff elimination over periods ranging from five to 15 years. This is the same tariff outcome for beef that the U.S. and Australia obtained in their respective FTAs with South Korea, and it will level the playing field among Canadian, U.S., and European exporters for Canada's top-traded pork lines.

This means that producers and exporters like Conestoga Meat Packers, a co-operative of 160 southern Ontario family farmers, can compete on an equal footing to provide the large and growing market in South Korea with high-quality Canadian meat products. In fact, when I learned that I would have the privilege of speaking to this topic today, I contacted Conestoga Meats directly to get a first-hand perspective on this trade agreement. Conestoga's president, Arnold Drung, states that this agreement will solidify more than 50 jobs at his plant alone. In fact, it is already investing in new equipment and technology that will enable it to ship fresh product to the Korean market. He concluded by saying, “Our congratulations to the Government of Canada on concluding this important agreement.”

This agreement is important to all Canadians farmers, not just pork producers. For other agricultural products, we will receive immediate duty-free access for key Canadian export interests such as wheat, frozen french fries, and fur skins. This agreement will also provide for tariff elimination over time or for duty-free within-quota volumes for a variety of other agricultural products, such as barley, malt, wheat flour, soybeans, canola oil, forages, pulses, blueberries, and many processed foods.

Overall, the tariff elimination package represents a very strong outcome for Canada, particularly given that South Korea's current tariffs are, on average, three times higher than ours. This agreement compares very favourably to what our competitors obtained in their agreements with South Korea.

Despite all the evidence that trade creates jobs, economic growth, and economic security for hard-working Canadian families, there do remain special interests who told us free trade with the U.S. would put an end to our sovereignty, who then told us that NAFTA would bring economic ruin, and who made similar fearmongering statements about free trade with Europe.

The Liberals completely neglected trade and took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets. The last time the Liberals talked about free trade was when they campaigned to rip up the North American Free Trade Agreement. Of course that promise was ignored, as were their promises on child care, reducing greenhouse gas emissions, eliminating the GST, and protecting health care.

Stakeholders from across Canada, in all sectors, have called for this CKFTA to enter into force without delay to secure Canada's competitive position in the South Korean market.

We must pass this legislation quickly so Canadians can access the benefits and opportunities of the Canada-Korea free trade agreement as soon as possible.

[François Lapointe, NDP, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I would like to thank my colleague for his very good speech in the House. However, I would like to talk to him about two things.

I do not know how many of our Conservative colleagues are talking about us being radical. I just want to point out that we support this agreement. We have important and essential values. We must absolutely do business with democracies, and the country's labour conditions must be good and decent, obviously.

Therefore, we support the bill. I want to ask a question that I think is a bit amusing. If we do not support it, what would the hon. member say about us? I am curious to hear his answer. Let us say that we do not support it; what would he say? Would he say that we are monsters or nightmares? However, we do support it. Is that clear for all the members opposite?

My colleague from Beauport—Limoilou brought up something very important. Signing agreements with democracies is all well and good, but moving forward requires that there be a plan. We are still stalled in my riding, meaning that every SME is criticizing the management of research and development funding. This was true three years ago, it was true two years ago, and it is still true now. I hear about it at dinners with business people. We cannot compete with Asia if we do not have strong research and development support. In Asia, they are obsessed with research and development, and new technology.

What does my colleague think about that aspect of the problem?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, my colleague must have been listening to a different speech, because I never used the term “radical”.

When I was preparing my speech and I found out I was in agreement with some of my colleagues in the NDP, I certainly thought I had better check my facts to make sure I was really on the right track.

To my knowledge, this is one of the first, if not the first free trade agreement the NDP has ever supported. It is great news, and I thank the NDP for that support.

Getting back to research and development, our government has shown, time and time again, that our investments in research and development and innovation are second to none.

When it comes to the agricultural sector, which I was referring to in my speech, the farmers in my area are not interested in going to the mailbox to get a cheque from the Government of Canada. What they want is the ability to compete on a level playing field.

Conestoga Meat Packers, which processes 4,000 hogs a day, is owned by the farmers. Farmers want us to invest in research and development that will help them to have traceability for their products as they are marketed overseas, and to assure their customers that they have the highest quality product that is available anywhere in the world.

It is our innovation, our research and development in the agricultural sector, that has helped them to do that.

[Adam Vaughan, Liberal, Trinity—Spadina, ON]

Mr. Speaker, it was nice to hear the member reference the 100-mile diet.

One of the sectors within the 100 miles of the riding that the member opposite represents is the auto sector. That is the one sector that is the most nervous, and worry continues to circle it as we talk about this trade deal.

We support this trade deal, but does the member opposite not realize that, by not supporting the auto sector as strongly as the government could have, the very industries he talks about in his riding may lose customers at home as auto workers may lose their jobs in a very fragile market?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, again, this just shows the kind of fearmongering that was here when NAFTA was signed.

We know that over 80% of the cars we produce in this country are exported. To suggest that by signing this free trade agreement with Korea we would somehow put auto jobs in jeopardy is simply not factual.

We also have some very clear protections in this agreement, which are sometimes referred to as snapback protections. Our protections are much higher than those offered to the U.S. in the Korea-U.S. free trade agreement.

It is pretty clear that, in the negotiations to get this agreement in place, all the due diligence was done. Canada has done a great job of protecting the auto sector. By the way, the auto sector supports this free trade agreement. Across the areas I represent, the auto sector is supportive because it does recognize the many benefits to all of the other sectors, which will benefit all workers in Ontario.

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, I am pleased to have this opportunity to speak today about the Canada-Korea free trade agreement, or CKFTA. This agreement is Canada's first FTA in Asia. It is a landmark agreement for Canada that would create thousands of jobs for hard-working Canadians.

The CKFTA also represents a watershed for the Canada-Korea bilateral relationship.

No government in Canada's history has been more committed to creating jobs and prosperity for Canadian businesses, workers, and their families. Deepening Canada's trading relationships in dynamic and high-growth markets around the world, like South Korea, is key to these efforts.

Trade between Canada and South Korea is already significant, with two-way merchandise goods of just under $11 billion last year and two-way investment approaching $6 billion.

The agreement is expected to significantly boost bilateral commerce and, in turn, economic growth in both countries. On our side, the projection is that the CKFTA would increase Canada's GDP by $1.7 billion annually and our exports by about one-third over current levels. Those are significant numbers.

Most importantly, the Canada-Korea free trade agreement would restore a level playing field for Canadian companies in the South Korean market, where foreign competitors including the U.S. and the EU are already enjoying preferential access due to their respective FTAs with South Korea. For Canada this was a crucial consideration as we have seen our exports to South Korea fall sharply, particularly in the wake of the Korea-U.S. deal that was implemented in 2012.

The enhanced market access and regulatory commitments would be on par with the best treatment provided to any foreign companies, including from the U.S. and the EU.

Turning to investment, while Canada and South Korea enjoy a well-established relationship, there is considerable scope for expansion above current levels—about $5 billion in South Korean investment in Canada and $534 million in Canadian investment in South Korea.

Canada benefits from greater foreign direct investment. Canadian foreign direct investment in South Korea would improve our access to South Korean markets, technology, and expertise and enhance the competitiveness of Canadian firms in Asia.

Greater South Korean investment in Canada would stimulate economic growth and job creation here at home, providing new technologies and increased competition in the Canadian marketplace, ultimately benefiting Canadian consumers. In addition to financial services, which I mentioned, key sectors that stand to benefit from the agreement include automotive parts, transportation, and telecommunications.

Yet despite all the evidence that trade creates jobs, economic growth, and economic security for hard-working Canadian families, the NDP, together with its activist-group allies, is and always will be ideologically opposed to trade.

Just as bad are the Liberals who, during 13 years in power, took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets. The last time the Liberals tried to talk seriously about trade, they campaigned to rip up the North American Free Trade Agreement.

The investment chapter of the CKFTA provides strong disciplines against discriminatory treatment as well as protection from expropriation and access to independent investor-state dispute settlement.

These and other provisions would put Canadian investors on a level playing field with their competitors in South Korea and provide investors from both countries with greater certainty and transparency and protection for their investments, while preserving the full right of governments to regulate in the public interest.

Canada has also maintained its ability to review foreign investments under the Investment Canada Act, and decisions made under the ICA could not be challenged under the agreement's dispute settlement provisions.

In the area of government procurement, now a $100 billion-plus market in South Korea, the FTA would give Canadian suppliers access to procurement by South Korean central government entities for contracts valued above $100,000. This would put Canadian suppliers on an equal footing with U.S. competitors and in a more advantageous position relative to key competitors like Japan and the EU.

Strong intellectual property rights provided for in this agreement would complement access to the South Korean market for Canadians who develop and market innovative and creative products. New protection for geographical indications “Canadian whiskey” and “Canadian rye whiskey” would secure the national brand recognition for Canadian distillers in the South Korean market.

The intellectual property outcomes would also be also covered by the FTA's dispute settlement procedure, which would give Canadian copyright, patent, and trademark owners an additional layer of protection in the South Korean market.

Our Conservative government understands the importance of trade to our economy. It represents one out of every five jobs in Canada and accounts for 64% of our country's annual income. We are proud of our record on trade because of the benefits trade brings to Canadians in all regions of our country and in all industries.

To put it simply, the Canada-Korea free trade agreement is a historic initiative that would strengthen our trade and investment ties across the Pacific, increase the prosperity of both countries, and result in job creation and enhanced opportunities for Canadian and Korean businesses, particularly small and medium enterprises, as well as investors, workers, and consumers.

Canadian stakeholders from across Canada have called for the CKFTA to enter into force without delay to secure Canada's competitive position in the South Korean market. We must pass this legislation to implement the CKFTA so that Canadians can access the benefits and opportunities of this agreement as soon as possible.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, this is my question for my Conservative colleague: Canadian exporters have lost 30% of the market since 2012, when the United States and the European Union implemented free trade agreements with South Korea. The two nations gained preferential access for their companies. Why was the government so slow to act, and why did it end up with an agreement that is not as good as the one that our other two economic partners got?

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, if my colleague looked closely at the agreements between South Korea and the EU and the U.S., he would find that our agreement is in fact much better in terms of all the different aspects of the duties and implementation.

On the implementation, as my colleague said previously, these negotiations take time. At the same time, we have been negotiating with Europe as well as India and a number of other deals, and so this agreement took its place in priority to be completed.

We are here now, we are at the place where the agreement is ready. We just need to ratify it here and get on with it.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I would like to pick up on the question that was just posed.

Since the current Prime Minister was first elected, this file has been on his desk. The government had the opportunity to move forward in negotiations with South Korea, but chose to make it low profile in terms of trade. There were other trade agreements the government put a higher priority on, whether they were with Guatemala, El Salvador, Nicaragua, or other countries.

Why does the member believe that the current Prime Minister put such a low priority on South Korea, considering the other countries that I have referenced, which I will reference again when I get the opportunity to speak? Why was there such a low priority on South Korea?

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, while my colleague thinks this was put on a low priority, that is his perspective, not ours on this side.

We have been working diligently with the negotiators to make sure the deal was acceptable to us and beneficial for Canadians. All Canadians across every province of this country would benefit from this. The negotiations went on to achieve that, and that was the time it took to actually get it here to be ratified.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, while Korea obviously has a much stronger democracy and human rights record than countries the government has signed agreements with, such as Honduras, New Democrats are still opposed to the investor state provisions in this agreement. However, unlike the Canada-China FIPA agreement, which ties the government's hands for 31 years, this agreement can be renegotiated or cancelled after six months. Therefore, we see that as a positive thing because we disagree with the investor rights provisions of this agreement.

My question for the member opposite is this. Considering that the Canadian government did not get the same protections that the U.S. was able to secure, what is the government going to do to ensure that Canada's auto industry can benefit from this agreement?

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, I thank my colleague for her comments on the agreement and I appreciate her support for the bill.

Certainly, there are provisions in the agreement to support the auto industry. They are mainly to do with the auto parts that are involved. This agreement would allow them to be manufactured in Canada, hopefully, at some point and benefit the workers here. Therefore, this is a positive statement in terms of Canada and Korea with regard to the auto industry.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, my question is related to investor state dispute settlements. I think my colleague mentioned that it would put both investors at the same level. A couple of states, even Germany, just talked about the Canada-EU trade deal, saying that these kinds of dispute settlements are not beneficial for the people and the state.

I am wondering what makes it so important in every single trade deal the government has negotiated to include dispute settlement in its basic principles. What is it that makes it so important for Canada to include a dispute settlement agreement in every single one of the trade deals it has negotiated?

[Joe Daniel, Conservative, Don Valley East, ON]

Mr. Speaker, that is a very good question from my colleague. Clearly, in any agreement there are going to be disputes. There are interpretations of the text in a particular field or segment of the marketplace and clearly those differences need to be resolved. That is why every deal has a dispute settlement process. This one in particular, I believe, is one of the better dispute settlement processes, which allows disputes to be settled quicker than in some of the other agreements.

[The Acting Speaker, Conservative, Bruce Stanton]

Before we resume debate, I will let the hon. member for Winnipeg North, who will be next up, know that we only have 10 minutes remaining in the time allowed for government orders today. He may be intending to go longer than that and if so, he will have time remaining when the House next resumes debate on the question. I will give him a signal in the usual course, a couple of minutes before the end of government orders at 5:30 p.m.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the heads up on that. I will probably have to continue tomorrow. Fortunately, I will be here tomorrow.

This is an interesting issue, a very important issue to debate, and it is with pleasure that I rise today to speak to the bill.

I like to think the Liberal Party has been very consistent over the last number of decades in regard to the importance of trade. Canada is a trading nation. We are very dependent on our exportation and importation, but it is our exportation that has really enabled us to have the type of lifestyle we have in comparison to any other country in the world. We need to trade with other nations. With this particular agreement, I was quite encouraged with New Democrats recently making a decision, and it is a somewhat historic decision, to support a trade deal, so I commend them on that.

Having said that, over the decades we have been very supportive because we recognize the immense and tremendous value that trade has for each and every one of us, no matter what region of the country we live in. Finding where we can assist and help facilitate that trade is something that is very important for us. In the last couple of decades, there has been a movement toward signing and trying to accomplish trade agreements between different nations. Ultimately, this is in Canada's best interest. It is one of the reasons we take this file very seriously. We want to support, in principle, the government moving forward and signing a trade agreement.

Having said that, I would suggest the Conservatives on the other hand have been a little boastful in the wrong places. I am always amazed by every Conservative who speaks to this particular trade agreement, one would think there is a direct funnel or email blast that goes out to every Conservative member of Parliament and whoever does their speeches, which comes directly from the Prime Minister's Office, because they are so consistent with what the Prime Minister wants them to say about this particular agreement, trade in general, jobs in general. There is no variation. This is because the Prime Minister's Office has such a tight grip on the Conservative members. I am sure they must realize that often what they are talking about is simply not true. One would think that they would not say it if they knew it was not true, but they go ahead and say it anyway. It is almost as if someone from the PMO is monitoring what is being said inside the chamber, and the member gets a little star beside their name if their speech contains one of those PMO spin points. It is truly amazing.

I have asked the question on several occasions specifically in regard to the Korean deal. The Conservatives like to stand on a pedestal and say they are the first, or they have accomplished something that the Liberals could not and how wonderful they are, “Please assist us in patting ourselves on the back for a job well done”. That is the type of attitude.

Let us put it into a proper perspective for all those backbenchers, the minions that receive that bulk email blast that comes directly from the Prime Minister's Office. This is what is not in that email. I would suggest they might want to listen to it.

It was back in 2003 that Korea, not Canada, made the decision that they wanted to progressively pursue trade agreements with other nations.

[An hon. member]

The Liberals should have done that.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member from across the aisle heckles that the Liberals should have acted on it. My colleague from Montreal is right, we did.

Paul Martin acted on it within the year. Within the year, we had action being taken by the Paul Martin government, because the Liberals recognized it, as we had in the past. It is not unique. When we talk about the other countries, whether it is Honduras, and I made reference to El Salvador, those are all agreements. Yes, the Conservatives did sign on the line, but they were actually initiated under Paul Martin or Jean Chrétien. However, the Conservatives will still take the credit. That is fine; they did sign them.

Getting back to Korea, in 2003, Korea had this ambitious road that it wanted to go on in terms of free trade agreements. The Paul Martin government acted on it right away. What did the current Prime Minister do with it? He did not even put it on the back burner. He took it completely off the stove. He did nothing on the file. It sat for years. Then, all of a sudden, the United States signed up. The European Union signed up with Korea. Now, all of a sudden, we have a government that says, “No, no no. We are negotiating this agreement and we want to have a free trade agreement with Korea”. It is somewhat late to get a little anxious.

What has happened because the government fell asleep on the job? It is not only the U.S. and the European Union. Even countries like Chile and Peru beat Canada to the punch, and we have a huge vested interest.

I come from the province of Manitoba, where the pork industry is a very important industry. I can tell members that pork sales have been lost because of the Conservative government's incompetence and inability to be able to come up with an agreement with South Korea in a more timely fashion—

[An hon. member]

The hog farm moratorium.