Debates of Sept. 30th, 2014

Canada-Korea Economic Growth and Prosperity Act

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I thank the philosopher from Louis-Hébert for his question.

Every country needs to protect itself against the loss of self-governance. The dollar sign should not be put on the economic altar above the best interests of citizens, the very people we are supposed to serve.

When we look at each party's approach to free trade agreements and economic measures in the House, we can see that there will be choices to be made when it comes to choosing a government in 2015. There is indeed a variety of choices; these choices have to do with the development and vision of a society.

We want to do everything we can to serve the Quebec and Canadian public, to ensure that no one is left behind because of a measure we would not have control over.

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

Mr. Speaker, it is my honour to stand today in the House to speak to the Canada-Korea free trade agreement. I am proud of the work done by our Prime Minister, our Minister of International Trade, and truly our government in growing new markets for Canadian employers, because one in five jobs is directly attributable to trade. It is an honour for me to talk about yet another important trade agreement that this government has brought to Canadians and to Canadian exporters.

I am also going to use some of my remarks today to talk about why I am very proud of this agreement in particular, as a Canadian and as the member of Parliament for Durham, for bringing together two peoples who have a deep and rich shared history, although it is only about 70 years long in duration. Our relationship was forged in the battles of the Korean War and has emerged as an important relationship for Canada and Asia. I will dedicate a few remarks to that aspect of the relationship.

Trade promotes dialogue between nations, and it also promotes security. The deals we are negotiating are not just huge wins for Canadian employers, but they are also huge wins on international security and helping make sure that globalization allows all people to benefit. The result will be a mutual dependence between countries on the trade and commerce front and more stability and security for their citizens, particularly in Asia.

This is truly yet another incredible free trade agreement negotiated by our government. The Korean GDP is $1.3 trillion. Korea's economy is the 15th largest in the world and it has roared into that position in the last few decades. It is already Canada's seventh-largest trading partner, which is an important point that we focused on. It is a market of 50 million people, and increasingly, a market that is seeing a middle class emerge in the country, and with that middle class comes the demand for quality of products, particularly food and agricultural products, from a country like Canada. People want to provide the best food in the world for their families, and we are seeing that in Asia, particularly in South Korea.

We are following a pattern of engagement to make sure we also keep the playing field level with our main competitors in global commerce. The European Union negotiated a free trade agreement with South Korea in 2011. The United States negotiated a free trade agreement with South Korea in 2012. We have been at the table pretty much alongside our friends and competitors from Australia. We want to make sure our exporters have a level playing field and the opportunity to grow in an important market. Since the U.S. free trade agreement with Korea came into force, we have seen a reduction of $1.5 billion in exports to South Korea because of the tariff elimination that some of our competitors saw.

We were still able to forge a great deal. We do not rush and make a poor deal on behalf of our exporters. We make sure we stay at the table to negotiate an ambitious and important outcome, and that is where we are at.

A review of this free trade agreement has led to estimates that our exports to South Korea would increase upon implementation of this deal by 32%. That is almost a $2 billion addition to our gross domestic product. When fully implemented, the agreement would remove duties on 98% of tariff lines.

I will go back to what I said at the beginning of my remarks. One in every five Canadian jobs is attributable to trade. Deals like this not only secure those jobs that are there now, but they grow more, because as a modest country in the 33 million to 35 million range, we need to sell beyond our borders.

I would remind the House, particularly people who are just waking up to the benefits of trade such as my friends in the NDP, it is Conservative governments that have granted Canadian exporters access to 98% of the markets that are available to Canadian exporters. Pretty much every trade deal or all of that access is attributable to this government and the last Conservative government. That is a fact that as a free trader I am very proud of. Our exporters, once given a level playing field, can compete with the best. Those are the opportunities, an almost $2 billion addition to our GDP from this deal.

What are the big winners? As parliamentary secretary, I have had the good fortune of visiting parts of this country to talk trade, to talk this agreement and to help industries consider market access to take advantage of these agreements. The big winners are all regions of the country because of their particular products, and I will run through those, but also our agricultural sector. In the years of our best friend and trading partner to the south playing games on the trade front with country-of-origin labelling and things like this, our beef and pork producers needed secure access to a growing market. Korea is big beef- and pork-consuming market. It is only going to grow more. The Koreans want access to high-value, high-quality products, yet we could not get in there.

First, there were regulatory issues that we had to smooth out, but also a tariff rate of up to 72% on beef and beef products. Adding 72% to the cost means we cannot access that market; it is as simple as that. Pork and pork products had a 30% tariff rate with most pork products and processed pork products. The tariff walls that Canada has had in reverse on some South Korean products are trivial in comparison. We are talking about 4% or 5% nominal tariffs that an efficient business can perhaps absorb. We cannot absorb a 30% or 72% tariff rate, so those markets are essentially not accessible. Now they will be.

Another huge winner is a part of the country that is dear to my heart. Atlantic Canada will have immense wins with this deal, and British Columbia as well and potentially the Arctic. Seafood tariffs were another one of those high-tariff ranges, ranging from 16% to 47% tariff rates. That is essentially a tariff wall.

I had the honour of being in Korea a few a weeks ago, and I will speak to that in my remarks shortly. We were there a few days before the beginning of Chuseok, which is the Korean thanksgiving celebration. The Koreans were happy to tell us about this and we were talking about the differences between our Thanksgiving and theirs. Theirs is more of an ancestral history event where they go back to the town where they grew up, and it is a point of honour for them to bring a special food to their ancestral home and their family at Chuseok. The most popular food in the last year to two years was Atlantic Canadian lobster. That is a product that already had a 20% tariff rate, yet people were recognizing that the best lobster in the world comes from Atlantic Canada and they were still absorbing that 20% hit. That is going to be eliminated.

I was also fortunate to be at the Halifax Stanfield International Airport some months ago to meet with Korean airlines officials as they sent their second of many dedicated cargo flights to Halifax to take Atlantic lobster back to South Korea, where most was consumed in South Korea or traded in Asia. That is a market we have already been forging, and it will only benefit more from this deal.

Wood and wood products, another major export for us, had tariffs in the 5% range on most wood products and 10% on processed wood products. I have seen first-hand Viceroy Homes, which employs people in both Port Hope, Ontario, and in Burnaby, B.C., a Unifor unionized workplace that has predicted it will double the size of its workforce as a result of South Korea alone. It already had market access as a high-value wood-product company of windows and homes. With the reduction of the 10% tariff, it is now very competitive and it is hiring Canadians because of that.

In Newfoundland and Labrador, frozen shrimp and a lot of crab products have a 20% tariff wall. In Nova Scotia, known for its blueberries, there is a 45% tariff on fresh and 30% on frozen. In Prince Edward Island and New Brunswick, parts of our country known for potatoes and processed potato products, such as french fries, of which I perhaps have had a few too many from time to time, there is an 18% tariff rate, making it hard to be competitive in that market.

In Quebec, maple syrup has an 8% tariff. As for flight simulators, CAE is a company I visited while I was in South Korea to see its investments in that country. On flight simulators there is a 5% tariff rate that will come down. In Ontario, aerospace and rail has an 8% tariff. On nickel products and a lot of refined metal products, there is an 8% tariff. In Manitoba, chemicals have an 8% tariff. On pork, as I said earlier, there is a 30% tariff. I toured the Maple Leaf site in Brandon, which is waiting for access to South Korea. It has made the investments and is ready to do it. It just needs the markets that we are now opening up.

In Saskatchewan, canola oil has a 5% tariff. One of the craziest ones is unroasted barley malt, which has a 269% tariff rate. That is a wall. That is a tariff cage, I would suggest. In Alberta, industrial machinery is at an 18% tariff rate. Once again, Alberta beef, which we just enjoyed here in Ottawa last week, has a 72% tariff rate. We cannot access those markets. In B.C., of course, which has a robust, diverse economy but is also known for its wine, wine has a 15% tariff rate. I know my friend, the MP for Kelowna—Lake Country, is quite keen to see access to that market increase.

This is our first free trade agreement in Asia. As I said at the outset of my remarks, the cultural and historical bonds between the countries make this a perfect partner for our first FTA in Asia because its dynamic economy, which is now the 15th largest in the world, with brand names we all recognize, that opportunity and freedom was secured by Canadians.

There were 26,000 of our young men and women who served in the Korean War from 1950 to 1953, and 516 gave the ultimate sacrifice. When I was in South Korea last month, I was amazed. From schoolchildren to ministers of the government, every one of them thanked us for that commitment 60 years ago. That is the foundation upon which our relations are built. This is a lovely evolution to that relationship now, that we will drop our tariff walls and fully trade as partners.

Many of us took part in the PPCLI, Princess Patricia's Canadian Light Infantry's 100th anniversary just last week on the Hill. There was a wonderful parade, joined by the Van Doos, another proud regiment also celebrating its century. That regiment distinguished itself on the battlefields of South Korea.

In the battle of Kapyong, the PPCLI was one of the few units, the only Canadian unit, to receive a presidential unit citation because its bravery over the course of several days, repelling a communist Chinese advance and saving the lives of Americans, New Zealanders, Australians, and Koreans. They were surrounded. They called in fire on Hill 677, their own position, to make sure they held that line. That is the Canadian commitment to countries such as South Korea and that is why I was so touched to see that first-hand in Seoul.

I also had the honour of joining Minister Park, Korea's Minister of Patriots and Veterans Affairs, at the national war monument and national hall of honour, where our delegation, which included the MP for Haliburton—Kawartha Lakes—Brock and Senator Yonah Martin from British Columbia, laid wreaths at the hall of honour and at the 60th anniversary marker that our government erected when we tried to make sure that our veterans from the Korean War do not think of it as the forgotten war anymore. We have been trying to show them how much we appreciate them. Minister Park laid those wreaths with us and spoke with fondness of the Korean War veterans from Canada he has met over the years.

In the hall of honour and in the war museum, we got to see the spectacular artwork of Canadian war artist Ted Zuber. It was really Korean veterans themselves who raised a lot of the money to hang that spectacular painting by a Canadian artist, a war artist who, incidentally, served in the Royal Canadian Regiment. Now I have named all three of our regiments. His work depicting our service and sacrifice in South Korea is stunning and sits in a place of honour in that war museum.

On a personal level, in Durham, my friend who lives quite close to me, Doug Finney, is currently the president of the Korean Veterans Association of Canada representing those veterans in Canada. I was honoured that he was able to join our government, the Prime Minister and the Governor General at a state dinner just last week at Rideau Hall honouring the visit of President Park from South Korea, the night before the historic signing ceremony for this trade agreement.

We are forged in the history of war and of conflict, but what has emerged is a robust, strong democracy in Asia that is now our gateway into a fast and growing part of the world.

The Koreans I met were truly inspiring. Our first evening in Korea we met with children from H2O Pumassi, who had just two months earlier visited Canada to come and thank our veterans. In fact, in solemn ceremonies, they even washed the feet of some of our veterans. These are children whose parents may not have even born when the conflict took place. Their deep remembrance of our sacrifice is palpable and moving for us. That was our first dinner. They hosted us to show us photos of their trip to Canada. It was truly inspiring.

Many Korean Canadians came here for opportunity, have done well and are now trying to help out back in their home country. Mr. Ron Suh was on the ground in Seoul and joined us for some of the events. He has been working to build bridges for decades as the regional president of the National Unification Advisory Council. It is a position that the president of South Korea asked Ron to fill so that he could work as part of the diaspora toward unification, which is something I think all of us would like to see to eliminate some of the horrors of oppression in North Korea. People who have been building these person-to-person ties between our countries since the war are inspiring.

Similarly, there are South Korean veterans who fought in the war and then immigrated to Canada afterward. They have an association and I have been very fortunate to meet some of these veterans in my travels across the country. They are the living embodiment of the bridge between our countries.

Our work in the national assembly during that visit was to make sure that our friends in South Korea ratified the deal on their side quickly, as we will in the House. I have to thank Minister Park and Minister of Education Hwang; Representative Chung, the speaker of the national assembly who met with us and hosted a meeting; Representative Kim and the trade committee, who we met with us directly to ensure quick passage of this free trade agreement.

We also met with members of their opposition to make sure that events in their country at their national assembly and other things did not interfere with the passage of this important new evolution of our relationship as countries. We met with Representative Woo, the policy chair for the opposition coalition, NPAD.

I thank all of those representatives for the meeting and for helping forge the bonds between our countries.

Durham is an area with a history of a strong and productive auto industry with General Motors in Oshawa. My father is a GM retiree. As the member of Parliament for Durham, I am happy to say that our government has secured an outcome on automobiles that is as strong or stronger than some of the provisions our U.S. friends have. Not only do we get immediate duty-free access to those markets, but we have a permanent specialized dispute settlement procedure for non-tariff barriers.

This is not a five-year dispute settlement such that the U.S. secured in its agreement. We have a permanent dispute resolution so that we can make sure that our automakers have access.

An important point that some of my friends in the opposition like to ignore is that the decision on what vehicle rolls off the lines for our great and productive workforces in Oshawa, Oakville and Windsor is not made at the Canadian subsidiary. That decision is made in Detroit.

How could our government possibly allow our country and those plants to have one less market that they could access? How could we possibly do that? I said to Unifor and representatives of one of the big three that it would be against our national interest. We want to make sure our plants, which are some of the most efficient in North America, have the same market access as their counterparts in the U.S. because they compete for new products to roll off their lines.

I hope that, with my remarks today, I have shown why South Korea is our partner in Asia with our first free trade agreement there. It is a relationship forged in sacrifice, service, and mutual respect. This agreement would be a tremendous win for both countries.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, I listened with intent to my hon. colleague's comments, and he definitely made some good points.

However, since 2012, Canadian exporters have lost about 30% of their market share. When it comes to the EU and the U.S. implementing trade agreements with South Korea, they got preferential access.

I wonder if the member could comment on why the government has taken this long and why it was not able to negotiate as good a deal or a better deal than the U.S. and the EU on that?

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, I did address that direct question in the beginning of my remarks. We are actually following directly on the heels of a lot of those partners, including the U.S., and there has been a drop in exports from 2012 until now, when we have a trade deal close to completion.

The important thing to remember is that, in negotiation, Canada is going to stay at the table until it has a deal that is in the net national interest of all of our exporters in all of our sectors. It would have been imprudent to rush a deal just because the Americans had one. I will tell members why. We needed better outcomes on agriculture, and we secured them. More importantly, on autos, we have a better dispute resolution process for non-tariff barriers than the U.S. was able to negotiate, because we could use their negotiated outcome as a reference point.

Our permanent dispute resolution procedures are far superior, so not only is this a well-timed deal, but it is a better deal.

[Lois Brown, Conservative, Parliamentary Secretary to the Minister of International Development]

Mr. Speaker, my mother was born to parents who had had a first family very early in life. As a result of that first family, I have a cousin who is one of the 516 Canadians who are buried in South Korea.

My cousin was Lance Corporal John Howard Fairman, who died on October 13, 1952. He was part of the Royal Canadian Regiment, and his service number was SM-9462. He was the son of my uncle Howard and my aunt Blanche Fairman.

My colleague here has spoken about the people-to-people ties that we have between Canada and South Korea. I wonder if he has any further comments on how the commitment and service of the Canadian Forces has helped to forge this relationship, which is some 60 years old.

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, I love it when members of this place honour it by sharing those personal reflections and their personal memories of sacrifice. I would like to thank the member of Parliament for Newmarket—Aurora for doing that.

The sacrifice of Lance Corporal Fairman is appreciated today, not only in Canada but in South Korea. The children of Pumassi came to Canada to thank us for the sacrifice of people like Lance Corporal Fairman.

This sacrifice is the foundation of our relationship. From that have sprung cultural, business, and international ties, but it is still the foundation. To see the names in the Hall of Honour was touching, because it was a snapshot of Canada 60 years ago. There were names from all provinces and places in Canada. There were French names and English names. There was diversity. Some of the veterans who died had only just served in the last decade in World War II.

Our government has tried to make sure those veterans did not feel that their conflict was a forgotten war. They actually helped to secure democracy for South Korea in Asia. Look at what that country has done with that. Now, we have the ability to continue that strong relationship through this agreement.

I would like to thank the member for her reflections.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I thank the parliamentary secretary for his speech. In this free trade agreement there are many more things we agree on than not. However, I could not help but think about the people in my region and about my desire to see the forestry industry play a bigger role as a result of this free trade agreement. Although we would be exporting wood, I once bought a fully made Young Chang piano, which was manufactured in Korea.

My question is a simple one. Does the parliamentary secretary believe that his government is doing enough in terms of research and development? An analysis showed that the Koreans spend 4% of their GDP on research and development. Does the parliamentary secretary's government do enough to ensure that we will be in a position to trade value-added products through this free trade agreement, and not simply natural resources?

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, I would like to assure the hon. member that, as I said in my remarks, the wood and wood products sector would be a huge beneficiary as a result of this agreement. That is what we love about this agreement. I am sure the one in five jobs in his riding that are due to trade will see benefits. Wood products have a 5% tariff rate, up to 10% for finished wood products and plywood, those sort of products. I used this example in my remarks, that the finished wood products, the higher value added—so we are getting two levels of job creation from this product—are already accessing that market, because Canadian finished wood products are among the best in the world, but they have a 10% duty.

Viceroy Homes, which is a neighbour of my riding in Ontario and has employment in B.C., would double its workforce in the next 10 years as a result of this new market alone. It has a beachhead in these markets, but that beachhead was made with a 10% burden on its back. We would get these tariffs eliminated. That would only lead to more jobs across Canada, including in the member's riding.

[Gerald Keddy, Conservative, Parliamentary Secretary to the Minister of National Revenue and for the Atlantic Canada Opportunities Agency]

Mr. Speaker, I listened intently to my hon. colleague's speech, and he recognized the contributions that the minister and the Prime Minister have made to this agreement, but he really did not recognize his own. It is high time that the rest of us in the House did recognize the contribution that the hon. Parliamentary Secretary to the Minister of International Trade made to this extremely important agreement.

The reality is that we have about a $1.7 trillion economy in Korea. We expect to boost our trade balance with it by somewhere around $1.7 billion or $1.3 billion. Those sound like big numbers, but my question for the hon. member is very simple. We have a great base level of trade; we have a chance to expand it across all fronts on which we trade with Korea. I think the $1.7 billion number is modest.

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, I would like to thank my hon. colleague for his kind remarks. Certainly I have been able to perform in this role because of the confidence of the Prime Minister and of my minister, but the parliamentary secretary was modest himself. There were big shoes to fill because he was the parliamentary secretary for International Trade, and in his work, particularly on growing a lot of the markets we see being opened to Canadian exporters now, he was a big part of that. His work is deeply appreciated.

Estimates are sometimes hard to nail down. The GDP injection of $1.7 billion to $2 billion as a result of this deal over time could very well be modest. South Korea already represents the seventh-largest trading partner for Canada. It has been going up and I know, Mr. Speaker, because you have been doing a lot of work growing this relationship over time, we are on the fast-track. As I said in my remarks, the emerging middle class in South Korea and greater Seoul, with 12 million people, wants high-value, high-quality Canadian products, particularly food products. I talked about Chuseok and the rush to get Atlantic lobster. There is a desire for beef. E-mart, one of the chains in Seoul, had a sale and test market on Canadian beef and the scores were off the charts. They are demanding top world-quality food from a safe and strong regulatory regime. The member is right that these numbers could be far bigger, which is even more of an impetus to get this deal passed.

[The Acting Speaker, Conservative, Barry Devolin]

Resuming debate, we are at the point, now, where speeches are 10 minutes instead of 20.

The hon. member for Esquimalt—Juan de Fuca.

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I am pleased to stand in the House today to support this Canada-Korea free trade agreement—appropriately, Canada's first in Asia.

Contrary to the incessant rhetoric about our position from the government side, we in the NDP have always supported balanced trade. When evaluating trade deals, we have been clear about the criteria that should be applied. New Democrats believe that, in fact, there are three essential criteria that should be used in deciding whether to endorse any trade deal that is before us.

First is the question of who we should prioritize when it comes to doing business.

If we are going to have special deals in place, who are the partners with whom we should be dealing? This is not just a question of values, like practising democracy and respecting human rights—important as those are—but it is also a question of fair trade. Does the prospective trade partner trade on a fair basis? Is it a nation that ensures fair labour laws and necessary environmental standards are in place at home; or is it a nation engaged in a race to the bottom and one competing solely on the basis of who can pay workers the least and endanger the environment and health of workers the most?

The second criterion is the question of the strategic value of prospective partners to Canada. Can both countries benefit from a trade deal; or is this a case where one will take the other for a ride?

Finally, there is the question of the deal itself. Are the terms of this agreement acceptable for Canadians? Is this a fair deal? New Democrats have consistently voted against trade deals that have unfairly bound Canada to losing deals for decades at a time.

However, when it comes to Korea, I believe members will hear universally from this side that we believe this deal with Korea meets those criteria.

Korea struggled for many years in what proved to be a very painful transition to democracy, but now, Korea has arrived and is a stable multi-party democracy.

Korea's human rights record is generally good—one of the best in Asia. It is a country with rule of law and very low rates of corruption. Even on a topic very dear to my heart, LGBTQ rights, the situation is rapidly improving in Korea, even including movement on transgender rights.

The role of Ban Ki-moon, the UN Secretary-General, as a strong advocate for recognizing LGBT rights as human rights seems to have resonated in his home country, and social acceptance for the LGBT community in Korea is growing rapidly.

Perhaps down the road, as even closer friends, Canada and Korea can give each other a nudge on LGBTQ rights. Equal age of consent, for instance, exists in Korea, though not formally in all provinces in this country and, of course, equal marriage is not yet a reality in Korea.

On the second criterion—is Korea a strategic partner for Canada—as both are trading nations, the answer to this is, clearly, yes. Korea is Canada's seventh-largest trading partner and our third-largest partner in the Asia-Pacific.

In 2012, manufactured goods accounted for more than half the value of Canada's exports to South Korea and, with a GDP that is very high for Asia, about 75% of Canada's, the South Korean population has the resources to consume the full range of products—from technology to agri-food and from consumer goods to culture—that Canada has to offer.

In fact, to maintain our present position in trade with Korea, we actually do need this deal. Canadian exporters have lost 30% of their market share in Korea since 2012, when the EU and the United States implemented agreements and secured preferential access for their companies.

This deal is needed to help Canada level the playing field for Canadian exporters and protect the jobs they provide. It raises the question of why this deal was not prioritized over some of the others that we have had in front of us, in this House, previously. When, in fact, Canada and Korea have largely complementary economies, then that means, in most areas, we will not be in competition with each other.

There are also some great opportunities here. As Korea is rapidly becoming a world leader in renewable energy technology, there are some great opportunities in the exchanges of new ideas on how we reach a sustainable energy future together.

In one area where we do compete, autos, it is important to note that many of the Korean cars coming into Canada are already being manufactured in North America, in the United States or Mexico, so they already enter our markets duty free. Plus, this deal would see the gradual reduction in Canadian auto tariffs, from their current level of 6%, but the immediate elimination of duties on Canadian autos going to Korea.

In fact, I believe this is a balanced deal, even in the one area where we do compete.

I have already entered the realm of the third criterion: are the terms of this deal fair, in and of themselves? My conclusion is that this deal is a fair trade deal.

This deal does not include some of the things I find most pernicious in other deals. As a former municipal councillor, I am very glad to see that sub-national procurement is not part of this deal. We have seen too many agreements come before the House which tie the hands of municipalities and local governments in attempting to achieve their objectives by requiring them to submit to some free trade requirements, which are quite onerous.

We do have some concerns about this deal. We are opposed to the investor state mechanism in this agreement as is the main opposition party in Korea. When the New Democrats form government, we will work to have this provision dropped.

Fortunately, and unlike the Canada-China FIPA, this agreement does not tie the government's hands for 31 years. In fact, if things go wrong, it can be renegotiated or cancelled after only six months.

Beyond the three criteria that we think apply to all deals, there is another reason that Korea is a good candidate for closer economic relations, and that is the long-standing relationship between Canada and Korea. That relationship is not just based on immigration, though as of 2011 were more than 161,000 Koreans were living in Canada with over one-third of those, more than 53,000, living in British Columbia. While Koreans are still not a large community in my riding, they are a growing presence in greater Victoria.

This long-standing relationship is not just based on the large number of Korean students studying in Canada each year, more than 20,000 Koreans, but that makes Korea the fifth-largest source of foreign students in Canada.

I also note that there are more than 100 active exchange agreements in place between educational institutions in the two countries, including agreements with institutions in my riding. Camosun College, where I taught for 20 years before coming here, teaches the Korea language and also hosts Korean exchange students every year. These international exchange students help provide an important element of diversity in the student body at Camosun and, as I know from my own teaching experience, an important value of diversity within the classroom.

This close relationship is also not just a result of a large number of Canadian teachers who have taught in Korea, but there is an amazing number of Canadians teaching in Korea right now. I note that even the current occupant of our chair taught English in Korea. There are some 5,000 Canadians teaching English in Korea right now.

This relationship is not just a consequence of the fact that 2013 marked the 50th anniversary of diplomatic relations between Korea and Canada, but we do have an important shared history in what is sometimes to referred to the Forgotten War; that is the Korean War from 1951 to 1953 and the two-year period when Canada remained in Korea following the ceasefire.

A total of 26,791 Canadians served in Korea during the Korean War, plus another 7,000 served there in the ceasefire in 1953 through 1955. While 5,000 women were recruited and served in the Canadian Forces during the Korean War, only a small number of nurses actually served in the combat zones, while the rest played key roles here at home.

Of those who went to Korea, 516 died in combat, including 378 buried at the United Nations Memorial Cemetery in Busan, South Korea. Over 1,000 more were seriously wounded. These losses had a huge impact on many families in Canada, not forgetting the much greater losses and the enormous scar left on Korean society to this day, a society which remains technically at war in a war which has been largely forgotten.

In Canada, the Korean Veterans Association struggles to keep the memory of those sacrifices alive in the face of dwindling numbers as a result both of the passage of time and unfortunately of illness and death.

Unit 27 of the Korean Veterans Association has remained active in greater Victoria under the leadership of Ken Kelbough as president from 2011 to 2013, and now Ray Renaud as the 2014 president.

In conclusion, I would argue that Korea is the best prospective trade partner the government has presented to the House. Who better to trade with than a developed country that is a stable democracy with high labour and environmental standards? Who better than a country that is the world's eight largest importer? Who between than a country with whom we have a long-standing series of close relationships? Who better as a partner than Korea with which Canada has had this relationship for the past 50 years, including blood shed in a common struggle?

Who better than Korea? Few nations I can think of. That is why I am proud to stand in the House and support Bill C-41.

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

Mr. Speaker, as I said last week, we were quite amazed that the NDP had discovered the importance of trade. It is not hard as one in five jobs come from it.

In the three principles the member discussed, I am trying to contrast those alongside some of the comments his colleagues have made with respect to the South Korean trade deal. The member for Windsor West and the member for Parkdale—High Park suggested that we should not do a deal with South Korea.

How did the NDP forge consensus on South Korea being, on his second pillar, one of those strategic countries? It certainly runs counter to what several of his colleagues have suggested in the House.

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I believe there is a question of timing here, as we often hear from members on the other side. They take old quotes from before the time we were actually discussing the deal in front of us now and try to bring them forward.

If the hon. member were to look at what we have had to say about the current deal, he would find there is a great deal of unity on this side of the House.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I listened with great interest to my hon. colleague. For many Canadians, when they think of Korea, they think of the fact that many of our uncles and fathers served there.

On September 1, the 100th anniversary of the Princess Patricia's Canadian Light Infantry took place in the town of Elk Lake. The Princess Pat's came there to celebrate Jack Munroe, who saved people in the porcupine fire, who was a founder of Elk Lake and who fought Jack Johnston who was heavy-weight champion of the world. Jack Munroe was also a vaudeville star and a professional football star. He was also the first Canadian to set foot in France in 1915 with the Princess Patricia's Canadian Light Infantry. That is a historic fact.

As we were there with the veterans, we counted, and it was the Princess Pat's who were in first in the first world war, in first in Sicily, in first in Korea and in first in Kandahar.

What does my hon. colleague think about our tradition of remembering the people who served our country?

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, with a bit of regret, we were a bit slow in recognizing Korean veterans. It is only very recently we completed the Korea Veterans' National Wall of Remembrance in the Meadowvale Cemetery in Brampton. That was 2013.

Then this summer we added a tribute in black granite in Burlington to the ships of the Royal Canadian Navy that sailed to Korea.

While World War I and World War II had larger conflicts with many more Canadians involved and have occupied our memories more, recently we have turned to those sacrifices and made some good steps in honouring those who served in Korea.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, the NDP is regularly attacked and criticized for not supporting economic agreements with other countries. Could my colleague tell us in a few words why it is important to avoid acting like the Conservatives, who support any old economic deal with countries like Honduras and Colombia, or acting like the Liberals, who give a blank cheque to the Conservatives for any economic agreement?

[Randall Garrison, NDP, Esquimalt—Juan de Fuca, BC]

Mr. Speaker, I will use the example I talked about when we dealt with the question of Honduras, which has an absolutely awful human rights record and has the highest murder rate for transgender people anywhere in the world, in contrast to Korea, which is making great strides toward protecting the rights of all Koreans.

We have to look at the deal in the context of which of these nations is striving to achieve the standards and values that we all hold important.

I was one of those who was very firmly against a deal with an unelected government of Honduras, with a terrible human rights record and with very little to offer Canada. I am not sure why we were prioritizing that relationship at all. In contrast, Korea has a democratic government, a good human rights record, complementary economies and great opportunities for Canadians, plus these long-standing relationships with students and people teaching in Korea.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I appreciate the opportunity to talk about one of the historic agreements that Canada has embarked upon and what it means in the creation of jobs and prosperity, not only for the individuals in Canadian businesses but for individuals and their families as well.

I am pleased to talk about the Canada-Korea free trade agreement and the effects it will have on our economy.

My riding is Lambton—Kent—Middlesex in southwestern Ontario, so I am likely going to focus a little more on the particular area of southwestern Ontario. However, in Ontario in general, Ontario's exports to South Korea were an average of about $516 million. When this agreement comes into force, Ontario's key exporters and providers will see a significant amount of new opportunities. Exporters to South Korea will benefit not only from markets that open, but from non-tariff provisions as well. These provisions will ease regulatory barriers, reinforce intellectual property rights and make open, transparent rules for market access.

Today, colleagues will be speaking, and from what I understand, we are going to see consent to support the agreement, which is good.

I want to also direct my comments and appreciation for the Minister of International Trade, who spends so much time not only travelling but with his colleagues across the world to make agreements like these come into place. In this case it is South Korea.

A little while ago we heard the Parliamentary Secretary to the Minister of International Trade speak. He spoke in depth about the trade and benefits that would be seen, not only by Canada but also the reciprocal benefits for South Korea. He spoke with compassion that comes with the history of why Canada and South Korea were able to make such a strong agreement that would give Canada, in some cases, such preferential treatment.

We have talked about the Korean war and its effects on Canadians. Because of our government wanting to recognize that significant conflict, these tributes have been made across Canada to recognize our veterans who died in that conflict.

This agreement will not only improve market access, but it will also look at the interests of Ontario in many areas. We think about agriculture, minerals and metals, but in many cases we do not think about aerospace, medical devices and clean technology. We are a leader in the environmental aspect of clean technology. We have food manufacturing, information, communications technology and life sciences. Canada and Ontario are leaders in these areas. It will also improve access to professional services with Ontario, with greater and more predictable access to a diverse South Korean market.

The agreement would also provide predictable and non-discriminatory rules for our investors and ensure that investments benefit from greater protection in the South Korean market. Suppliers from Ontario would also benefit from preferential access to procurement by South Korean central government agencies for contracts that would be valued above $100,000.

There will be strong provisions in the agreement, such as on non-tariff measures. That is a critical point. When we talk about developing trade agreements, we need to talk about effective dispute settlement provisions for non-tariff measures.

As was said earlier, particularly by the parliamentary secretary, the benefits for Canada in terms of those dispute settlement provisions in this agreement will give strong reference to Canada, should those issues ever arise. We often look at how that would work for Canada in relation to the examples of Europe and the United States. What we have is a stronger agreement with South Korea than even Europe or the United States have. That is not in all areas, but they are comparable, and in some areas we are preferred.

Let us talk a bit about the industrial goods sector, which accounts for about 12% of Ontario's GDP. It affects about 525,000 workers in Ontario. Once this agreement is in place, 95% of tariffs on industrial products will immediately go away. This is going to be a huge benefit to Ontario and to the industrial sector. Unlike in the United States, where they will go in three to five or 10 years, the majority of ours will go right at the start.

In terms of the Canadian Manufacturers and Exporters, most of us in this House recognize the name Jayson Myers, who is its representative. He said:

Our Free Trade Agreement with South Korea is...a first step in gaining more open access for Canadian exports.... this agreement should make Canada an even more attractive destination for investors and manufacturers, create jobs and opportunities for Canadians and level the playing field for Canadian businesses making them more competitive on the global stage.

I want to also touch a bit, as others have, on the automotive sector, which will benefit from this agreement. It looks at going beyond the traditional North American markets and reaching into South Korea. It will provide a level playing field for competition for our auto industry. In fact, in terms of this agreement, Canada got preferential treatment over the EU and the United States, particularly around accelerated dispute settlements. Our agreement between Canada and the South Korea government will have an expedited dispute settlement agreement provision.

I want to get to an area that is close to my heart, and that is agriculture and the processing part of agriculture. As we know, the agriculture and food processing industry is a significant driver in Ontario, with some $44 billion in GDP generated by that industry alone. Almost one-third of that $44 billion comes from agriculture and food processing. As well, the total agriculture-agrifood system, which includes primary agriculture, processing, food services, retail, and wholesale accounts for almost 12% of jobs in Ontario.

Since the implementation of Korea's free trade agreements with the U.S. and EU, Canada's share has dropped significantly, which is the other reason this agreement is so important to get into place now. This agreement will eliminate tariffs, in whole or in part, on 86% of current agricultural exports. This duty-free access will give Canadian products, particularly beef and pork, preferential access to the South Korean market.

We know that there are other products in Ontario, and those are our great wines. This will take away that 15% tariff on our ice wine, something that is unique. The 20% tariff on Canadian rye whisky will also disappear. Spirits Canada has been very supportive of that.

We are looking forward to getting the agreement signed by January, because it is not only good for Canadians as a whole but is good for Ontario and Lambton--Kent--Middlesex.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I would like to thank the hon. member for his speech.

The NDP will support this agreement, not because it is a free trade agreement, but because we think that it is reasonably worth supporting.

Obviously, some aspects of the agreement bother us. No agreement is perfect. For example, there is a mechanism for settling disputes between private companies and the government.

Could my colleague tell me whether he is comfortable with the idea that a state or a government could be partially limited in what it can do because of a dispute settlement mechanism? Can a private company have the upper hand on its own government and prevent it from doing what it wants to?

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I had a little trouble with some of the translation. I do not want to answer the member's question wrongly, so I am wondering if he could give a summary and maybe I could pick up the translation a bit better. Maybe it is a problem with my hearing piece.

[The Acting Speaker, Conservative, Barry Devolin]

Questions and comments. The hon. member for Saanich--Gulf Islands.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I am very troubled by this legislation. I do not know if the Green Party is going to be alone in opposing it. Maybe the Bloc Québécois will join us, and we will have a mighty force of four.

It occurs to me that this deal is not going to be in Canada's best interests, and I say that because I am concerned about the investor state provisions and because of Korea's history of robust economic policy and its success in continuing to expand the trade deficit the EU and the U.S. were experiencing even after the EU and U.S. concluded deals with Korea.

Korea manufactures high-value exports, particularly cars, and has a frankly brilliant, but difficult for competitors, trade strategy, with the government of Korea working strongly with its private sector. It leaves us in a situation where we can see on the record that neither the U.S. nor the EU were able to close the gap in their trade deficits with Korea after signing deals. In fact, those gaps widened.

Could the hon. member tell me why he thinks Canada will be any different?

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, the hon. member touched on the auto industry. When the United States and Europe signed agreements with South Korea, their exports to South Korea doubled.

Our auto industry supports this initiative. Last year Ford Canada had the largest exports to South Korea in its history.

The companies and individuals who support this deal belong to chambers of commerce. Perrin Beatty, for example, told us that he saw first hand how Canadian companies were losing their footing in markets in other countries. Some were even making the difficult choice to shut down their marketing offices.

A free trade agreement between Canada and South Korea will help our businesses and will increase growth opportunities across our industries, industries such as ag-food, aerospace, infrastructure, energy, and chemicals, and the list goes on.

We have a list of industries, companies, and organizations that all support this deal, because it will give Canada a great opportunity not only to expand its markets but to expand its investments.

[Isabelle Morin, NDP, Notre-Dame-de-Grâce—Lachine, QC]

Mr. Speaker, I am delighted and very proud to rise in the House today to speak in favour of Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea. I would like to congratulate the minister for his work on this file.

The vast majority of Koreans who live in Quebec live in my riding. I speak with them a lot, and I take part in many of their activities. This agreement was a frequent topic of conversation in recent months. They are proud that such a free trade agreement has been concluded with Canada. They are very happy. This Thursday, I will be in Montreal with them to celebrate the Republic of Korea's national day. I am sure that we will have some very rewarding discussions about this agreement.

This will be the first time that the NDP will vote in favour of a free trade agreement because the NDP has a very rigorous position on this. We use three key criteria to support or reject this kind of opening up of markets, which will be the focus of my speech.

First, the proposed partner must have utmost respect for democracy and human rights, as well as adequate environmental and labour standards. The partner must basically share Canadian values. If those criteria are not met, the country must be on its way to meeting them.

Second, we look at whether the proposed partner's economy is of significant or strategic value to Canada. Finally, the terms of the agreement must be satisfactory.

In this case, the NDP feels that this free trade agreement has net benefits for Canada. I will address these benefits sector by sector in my speech.

The reason why we have been opposed to most free trade agreements, whether under the Conservatives or in the past, is that the environmental, human rights and labour law criteria were not met. To me and my party, entering into a free trade agreement with a country is a lever that Canada can use to raise the standard of living of people in the country. South Korea is a very democratic country with a high rate of unionization. It upholds human rights and is quite advanced in green technology.

Since its transition from a dictatorship to civilian rule in 1987, South Korea has become a vibrant, multi-party democracy with a very active trade union movement. South Korea's economy made it possible to industrialize the country and raise the standard of living of the Korean people.

Two years ago, I travelled to Asia with some of my colleagues in the House. We went to Thailand and Cambodia. I found that the standard of living in Asian countries is unfortunately not adequate sometimes. The leaders of those countries must raise the bar, because the world is becoming more industrialized and is developing more and more positively. That is why Canada must do its part on the world stage. I am glad that we are signing an agreement with a country that is well aware of that.

South Korea is currently ranked 15th on the human development index, the highest ranking of all East Asian countries. South Korea has introduced social programs and sound rule of law. It has low levels of corruption and provides high access to quality education. South Korea has the highest level of post-secondary education participation in the OECD. That is quite impressive, and I congratulate them.

Furthermore, Korea has emerged as a world leader in renewable energy and green technology. Canada could increase its trade with Korea in this important sector. Canada should be thinking more about the green economy and renewable resources. Perhaps we could learn from Korea.

The right to unionize is very important to us, and Korea allows that. Here, convenience store owners are going out of business because they are not allowed to unionize. In contrast, Korea is trying to encourage people to unionize and have good working conditions, specifically humane working conditions, and decent wages. We are very proud of that aspect of Korea.

We are still wondering if this proposed partner's economy is of significant and strategic value to Canada. As I said earlier, Korea is Canada's seventh-largest trade partner and its third-largest in Asia, behind China and Japan. Canada already does a great deal of trade with those countries.

In 2013, Canadian exports to South Korea were valued at $3.4 billion, while South Korean exports to Canada were worth $7.3 billion. Canada and Korea already do a fair bit of trade. Canada imports roughly the same amount from Korea as it does from the United Kingdom. Our exports to Korea are about the same as what we export to France. Thus, it is already a reliable market.

South Korea is an important player in Asia's global supply chain. In fact, South Korea is the gateway to Asia. A free trade agreement will allow Canada to potentially discover new markets through this country.

However, there is a caveat. Right now, Canada and South Korea have complementary markets. To date, the two countries have not developed the same specialities.

Many sectors have already indicated that they are in favour of this free trade agreement, including some very significant segments of the manufacturing industry. For example, the Aerospace Industries Association of Canada has indicated that it will benefit from the agreement. Bombardier, in my riding, is also very happy about the agreement. The Aluminum Association of Canada and the Mining Association of Canada, which represent heavy industry, have said that this is a good agreement. The agreement will certainly be good for wood products. By all accounts, Canada will be able to export many forestry products. Canada will also have to expand its agricultural sector. The food processing, seafood and high-tech sectors have already indicated that they support the free trade agreement and that it will be beneficial for them.

The terms of a free trade agreement are the third criterion the NDP uses to determine whether it will support that agreement or not. For example, what will the agreement do for jobs in Canada? It will level the playing field for Canadian workers and Canadian businesses that export their products to South Korea. Ever since the European Union and the United States signed free trade agreements with Korea, Canadian exporters have been losing market share. We are going to try to gain it back.

Every year, Korea's tariffs are reduced for European Union and United States exporters. Right now, tariffs are costing Canadian producers hundreds of millions of dollars a year. We are going to try to recover that money.

Since I only have a minute left, I cannot talk about all of the sectors that I wanted to. Personally, I support the agreement. Had the NDP negotiated this agreement, we would have made some small changes. My colleagues spoke about the automotive industry, which may be affected. Parliamentarians will be responsible for discussing this situation and finding measures to help that industry. The automotive industry provides good jobs, and we must make sure that those jobs are not lost. I admit that I am a bit concerned about that.

I would like to state once again that I will vote in favour of the agreement and that I am proud of it. I am now ready to answer my colleagues' questions.