Debates of Sept. 30th, 2014

Canada-Korea Economic Growth and Prosperity Act

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, earlier in the debate we heard a number of Liberals talking about the fact that the NDP had chosen not to support a majority of the free trade agreements, but I would like to point out some of the reasons that this is different from other free trade agreements.

This is a reciprocal agreement. The Korean FTA does not apply to provincial, territorial, or municipal procurement, unlike other agreements, and it does not apply to or negatively affect supply management of agriculture. As well, shipbuilding is completely exempt.

Those were some of the areas that were very troubling to us in other free trade agreements. Would the member say this is perhaps indicative of our relationship with South Korea, which has been in place since the 1950s?

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

Mr. Speaker, I thank my colleague and friend for his question.

Indeed, I based my speech on the NDP's criteria. I know that the Liberals and some Conservatives have attacked us, saying that this is the first time we have voted in favour of a free trade agreement. I explained why we are in favour of this agreement. Canada has had a good relationship with Korea for many years. Last year, or two years ago, we celebrated the 50th anniversary of diplomatic relations with Korea. This is very important to us and to my constituents. As I said, there are hundreds of Koreans in my riding. This is a free trade agreement with a democratic country that respects the unions, human rights and workers' rights. That is what our party advocates, and I hope that is what our country advocates. Of course we should be entering into free trade agreements with ally countries that share our values.

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

Mr. Speaker, I thank the hon. member for Notre-Dame-de-Grâce—Lachine.

My question has to do with what the hon. member from Hamilton was asking about this agreement with Korea. He may not be right. This is about investment and the possibility of lawsuits for damages following decisions by provincial and municipal governments. I will cite section 8.1.

I only have it in English in front of me, but it says in section 8.1, in relation to scope and coverage of investment, in subclause 3:

For the purposes of this Chapter, measures adopted or maintained by a Party means measures adopted or maintained by:

(a) a national, sub-national, or local government and authority...

This to me means that all levels of government are open to suit by Korea if Korea's investors do not like the provisions of those measures.

Could the hon. member comment?

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

Mr. Speaker, I would like to thank my colleague for her question. I did not have time to get to that, but as I mentioned at the end of my speech, if the NDP were to negotiate a free trade agreement with Korea, some of the provisions would not be included. Some aspects would not exist. We would perhaps have spent more time studying the provision mentioned by my colleague.

That said, we have to consider the benefit to Canada at present. When the Aerospace Industries Association of Canada, the Asia Pacific Foundation of Canada, the Canadian Chamber of Commerce, the Japan Automobile Manufacturers Association of Canada, the Seafood Producers Association of British Columbia, the Lobster Council of Canada, the Forest Products Association of Canada and others too numerous to mention all say that they support the agreement, we have to ask ourselves whether it will benefit Canada.

I would say to my colleague that we would not have included some elements in the bill. However, I believe that Korea will be a very strong ally. We should have free trade agreements with countries that, as I was saying, have the same values as we do. I think that is part of it.

[Colin Mayes, Conservative, Okanagan—Shuswap, BC]

Mr. Speaker, it is a pleasure to stand before the House today to speak about the benefits of the Canada-Korea free trade agreement.

This free trade agreement, Canada's first with an Asian market, would create thousands of new jobs in Canada and provide Canadian businesses and workers with a gateway to Asia, enhancing their global competitiveness.

No government in Canada's history has been more committed to the creation of jobs and prosperity for Canadian businesses and workers and their families than this government. Deepening Canada's trade relationships in dynamic and high-growth markets around the world is a key to these efforts.

I would like to focus on the benefits of the Canada-Korea free trade agreement in relation specifically to small and medium-sized enterprises. Small and medium-sized enterprises, or SMEs, make up the backbone of the Canadian economy. This importance is highlighted in our Conservative government's global markets action plan. In fact, a key part of this government's pro-trade plans is to provide SMEs with new and improved market access so that they can expand and win in the global marketplace.

The reality is that many barriers exist that prevent SMEs from accessing new market opportunities and taking advantage of global and regional value chains, and one of the most significant barriers for SMEs is high tariffs. High tariffs pose a significant barrier for any business trying to break into a new market, but this is especially true for SMEs, which tend to have fewer resources and a smaller market share. As we know, tariff reductions are at the core of the Canada-Korea free trade outcome.

Our Conservative government understands that when SMEs sell more of their goods, they create jobs, so when our free trade agreements bring tariffs down, helping our SMEs compete and win, those free trade agreements create jobs for Canadians.

I am happy to report that the Canada-Korea free trade agreement would eliminate tariffs on virtually all current exports from Canada to South Korea. The Canada-Korea free trade agreement would result in the elimination of 100% of South Korean tariffs on industrial goods, forestry and wood products, and fish and seafood products, as well as the elimination of the vast majority of South Korea's agricultural tariffs. In all, once the agreement is fully implemented, South Korea will remove duties on 100% of non-agricultural exports and on 97% of current agricultural exports. This would significantly improve South Korean market access for Canadian SMEs.

To help business owners, the Canada-Korea free trade agreement contains simple and clear rules of origin that would make it easier and less costly for Canadian SMEs to do business in the South Korean market. The Canada-Korea free trade agreement also contains clear and transparent origin procedures that would ensure the effective and consistent administration of the rules of origin so that they do not represent costly barriers to trade.

Non-tariff barriers are a growing concern in international trade. Non-tariff barriers, whether in the form of unjustified trade restrictions or lack of transparency, could seriously undermine gains made in market access. The effects of non-tariff restriction barriers tend to be magnified for SMEs that do not have the level of resources of a large national or multinational corporation. The Canada-Korea free trade agreement contains strong disciplines on non-tariff measures that would help SMEs reap the benefits of this agreement.

For instance, the agreement promotes and requires the use of internationally accepted standards to minimize duplicative certification and testing of products. Moreover, the Canada-Korea free trade agreement would improve transparency with respect to standards and regulatory development by ensuring that SMEs and other companies have access to information such as laws, regulations, and administrative rulings that can affect trade.

I would like to note that these strong disciplines on non-tariff measures are backed up by the Canada-Korea free trade agreement's fast and effective dispute settlement provisions.

The benefits of the Canada-Korea free trade agreement do not end there. In addition, through tariff elimination, user-friendly rules of origin, transparent origin procedures, and reduced non-tariff barriers, the Canada-Korea free trade agreement contains strong provisions that would improve access for services and facilitate business mobility.

With regard to services, Canadian SMEs would benefit from preferential market access in key areas of export interest, including research and development services, professional services, environmental services, and business services, among many others.

In addition, the Canada-Korea free trade agreement would enhance business mobility by giving Canadian business people new and preferential access to the South Korean market by removing barriers to entry, such as economic needs tests. It would also ensure that new barriers in this area, such as quotas and proportionality tests, will not be introduced in the future.

Some of these provisions are the most ambitious that South Korea has ever agreed to in its free trade agreements, and they would allow Canadian SMEs to compete with key competitors in the U.S. and the EU on a level playing field.

Lastly, I want to speak briefly on investment.

Canada already has significant foreign investment in South Korea, including in the automotive, transportation, financial services, and life sciences sectors. The Canada-Korea free trade agreement includes a robust framework of rules that will result in an environment characterized by greater predictability and stability for Canadian firms that already have investments in the South Korean market and for companies that wish to expand their investments or make new investments. This is relevant to Canadian SMEs whether they exist on their own or are looking to partner with larger Canadian firms.

These are just a few examples of how the Canada-Korea free trade agreement would enhance market access for SMEs and make them more competitive in the global market. As we can see, the Canada-Korea free trade agreement is a much needed, high-quality agreement that would bring significant benefits to Canada's small and medium-sized enterprises as well as to Canadian consumers and other businesses.

Our government understands the importance of trade and exports to our economy. Exports are responsible for one out of every five jobs in Canada. The prosperity of Canadians depends on the continued expansion beyond our borders into new markets that serve to grow Canada's exports and investment.

However, this past summer the NDP's critic protested alongside well-known radical anti-trade activists, like The Council of Canadians and the Canadian Centre for Policy Alternatives at an anti-trade protest.

The NDP's record is just as bad and shameful as the Liberal record. During 13 long years in government, the Liberals completely neglected trade. When our government was elected in 2006, Canada only had trade agreements with five countries, the most important two being the United States and Mexico, and that agreement was signed by another Conservative government.

The Liberals took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in the era of global markets. With the free trade agreement with Korea and the historic agreement between Canada and the European Union, Canada will have ratified free trade agreements with 43 countries.

Only our government is focused on what matters to Canadians: jobs, growth, and long-term prosperity. The Canada-Korea free trade agreement is just another example of how this Conservative government is getting the job done.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I would like to thank my esteemed colleague for his remarks. I did not realize that I was a radical activist and that the people who had the decency to vote for me did not have political judgment.

In the case of this agreement, we should not confuse South Korea, a developed and democratic country, with Honduras, where drug traffickers have the upper hand.

It is vitally important that we ask how this government will ensure that Canada exports not just fish, but high-value-added manufactured goods.

What mechanisms will again spur the industrialization of Canada so that we actually export high-value goods?

[Colin Mayes, Conservative, Okanagan—Shuswap, BC]

Mr. Speaker, taking tariffs off will just make Canadians more competitive, and I really believe that Canadian companies and workers can compete in the global market.

Just to give members an idea, British Columbia trades $1.76 billion a year with Korea. A small item of that is fish and seafood exports to South Korea. There are currently tariffs ranging from 10% to as high as 20% on those exports. They would disappear. That would make our fishery more competitive. It would open the market and maybe even expand the market. That would be a positive thing for Canadian companies.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, the member said that when the Liberals were in government, they had a difficult time with trade agreements.

However, I am looking at the statistics since 2003. For the years 2004 through 2008, on average, we had a trade surplus of at least $50 billion per year. Then from 2008 to 2011 and all the way to 2013, there was only one year when we had maybe half a billion dollars of trade deficit. In all the other years, we are looking huge amounts of deficit in trade.

Would the member agree that the trade agreements they are signing are insignificant and are maybe not doing the job?

[Colin Mayes, Conservative, Okanagan—Shuswap, BC]

Mr. Speaker, history shows that when a country with a strong economy competes in the marketplace in a world economy as it was in 2008, it really suffers, but we will find that the countries that suffer the most are doing most of the exporting to try to get their economy going.

Canada had the luxury of being almost a net buyer of goods and services from other countries, and that was helping those countries recover from the recession that we had in 2008.

However, I can assure members that as we open more markets, it just means that our balance of trade will improve, because Canadian companies are aggressive and are well-equipped to compete in these global markets.

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

Mr. Speaker, certainly in Ontario one of the concerns has always been the lack of reciprocity in the auto markets. Our automakers are a powerful force in the economy here in Canada. We receive competition from the Asian markets, but we have seen in the past a real reluctance to allow us to export a fair share into their markets. We have seen all manner of blocks put up. Meanwhile, we certainly have dealt with a wide array of Asian vehicles coming into Canada.

I would like to ask my hon. colleague what provisions made it possible for us to get access to the Korean market, which has not been the most open in terms of access for automobiles from Canada?

[Colin Mayes, Conservative, Okanagan—Shuswap, BC]

Mr. Speaker, as we go into a free trade agreement with any country, we make sure that those barriers are eliminated and that there is market access.

As we have stated, in the agreement we have an easier mechanism to sort out any challenges that we would see as barriers. I believe we have to have a certain amount of faith in the agreement and have faith that those we are signing an agreement with are going to uphold those values.

The purpose of the agreement is to open up markets to both countries, and I have full confidence that Korea will give Canadian companies access to their market.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I am very pleased to rise in the House today to debate Bill C-41 on the Canada-Korea free trade agreement.

The Liberal Party and I support the initiatives that lead to free trade agreements. There are definitely many advantages to free trade agreements, and it goes without saying that Canada's economy gains strength when markets are opened. That is why we will support the bill to establish a partnership between South Korea and Canada.

We believe that it is important to establish a special relationship with South Korea, since we do more than $10.8 billion of bilateral merchandise trade with this country. Furthermore, South Korea already has free trade agreements with the European Union and the United States, which is an incentive for us to act quickly. We are now playing catch-up. We could end up at a serious disadvantage if we delay an agreement with South Korea even further.

Canada already lost more than 30% of its share of the South Korean market when South Korea signed agreements with the United States, the European Union and Australia. Since negotiations have been going on for nearly 10 years, we sincerely hope that this agreement will take effect quickly. Strategically, we are lagging far behind on markets we should already have access to.

This is the first free trade agreement that establishes an agreement with an Asian country, yet our primary trading countries are Asian countries, including Japan, China and Korea. The government is lacking a clear vision when it comes time to targeting new markets or quickly carving out a space in emerging markets.

The government boasts about signing free trade agreements, as we saw with the last member who spoke, but we have had some significant trade deficits since 2009. The announcement of a free trade agreement with South Korea will not magically fix that situation, as the Conservative government hopes. We think that the government needs to commit resources and make investments to increase trade.

For example, since the free trade agreement between South Korea and the United States was established, Canadian pork producers have lost the Korean market to the United States. This situation is unacceptable. We should have acted much more quickly before these kinds of things happened. Now that the agreement has been signed, this government has the duty to protect these industries and ensure that they regain their market share.

As the Liberal critic for small business, I am aware of the importance of this agreement for Canadian workers. Removing tariffs is often the support small and medium businesses want, to ensure that they have an equal chance of being competitive on the markets. The agreement can only help Canadian companies doing business with South Korea and the many subcontractors involved.

This agreement is even more beneficial when you take into account that the customs tariffs imposed by South Korea are about three times higher than Canada's, and they will be eliminated, on different schedules, once the agreement is in effect. These are small things that will matter a lot at the end of the year for Canadian small and medium-sized businesses.

I am pleased to hear the news for Canadian entrepreneurs who do business with South Korea, but I hope it is not too late for those who would like to enter the Korean market. Indeed, the various competitors from other countries have already become well-established since the signing of free trade agreements that preceded ours.

From another perspective, what concerns me about the free trade agreement between Canada and South Korea is the current situation with the Canadian automobile industry and what will happen once this agreement is implemented. The Canadian and North American auto market has already been significantly infiltrated by Korean vehicles.

About 100,000 Korean vehicles worth $2.6 billion are imported into Canada annually, while Canadian or North American vehicles do not really reach the Korean market. One hundred or so Canadian vehicles worth about $12.5 million are exported annually to South Korea.

Objectively speaking, it would be wrong to believe that free trade will create a balance. The government is really turning its back on the auto industry under this agreement.

In the final agreement summary, only South Korean imports from Canada are mentioned. There is no mention of Canadian imports from South Korea. We can therefore neither compare nor see the scale of the imbalance.

The government has gotten us used to that kind of thing: hiding important information to make it easier to pass bills that might be controversial. My concern is that the gap will only grow wider.

According to Unifor, Canadian auto sector imports from South Korea have increased by 1,010% since 1997. In that sector, the benefits are exclusively South Korea's. A greater number of Korean cars will enter the Canadian market, and it will get harder and harder to compete.

Another important and interesting aspect of the bill we are debating today is that it would not change anything in terms of intellectual property. Since becoming a member of the Standing Committee on International Trade, I have seen how big a global issue this has become. There are increasing demands to improve intellectual property protection, and there is a lot of pressure around that in various agreements.

From negotiations with the European Union to creating a trans-Pacific partnership, there is always disagreement about intellectual property. The surprising thing is that when a country complies with international intellectual property protection standards, a negotiating partner can ask it to do even more than the good things it is already doing, can expect all the parties to an agreement to use the same system. I am surprised but pleased to see that a free trade agreement that respects each country's system can happen.

Will the government be able to respect and protect our own Canadian standards as it negotiates agreements with the European Union and the countries working on a trans-Pacific partnership? It is difficult to tell at the moment, but our preliminary information suggests that the European Union's high expectations regarding intellectual property seem to be finding their way into the final agreement.

Over the course of the committee meetings, we repeatedly heard concerns about increased protection for intellectual property from representatives of various fields, including the pharmaceutical field.

Just this week, since the text of the final Canada-EU agreement was released, Canadians have already expressed concern about the potential increase in costs for drugs, as well as the possibility of higher costs in our health care system. I sincerely hope that their concerns will be taken seriously by this government.

To get back to the bill being debated today, I wish to support it so that it can be sent to committee for further study. I hope that we will have the viewpoints of all the sectors and stakeholders of society in the testimony at committee.

I hope that this agreement will not add significantly to the imbalance we can see in the automotive sector or that the government will at least keep an eye on the health of the Canadian sector.

I also hope that this agreement will help Canadian businesses by fostering more and more trade between the two countries. I think the elimination of trade barriers can only benefit the majority of Canadian businesses.

As I said before, such agreements have significant repercussions on local entrepreneurs. In fact, customs tariffs alone can account for many unnecessary direct and indirect expenses for small businesses.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I thank the hon. member for Saint-Léonard—Saint-Michel for his speech.

He was very silent on an issue that comes up in every free trade agreement. It is something the NDP has many concerns about. I am talking about the settlement of investor-state disputes. This requires the state to compensate a private company for what it would estimate to be a potential loss of profit, because the government is doing its regulatory duty to safeguard the public good.

Do the Liberals agree with this type of provision, which we routinely find in the free trade agreements negotiated by Conservative and Liberal governments?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, that is a great question, but it cannot be answered with a simple yes or no. It is a double-edged sword because some areas of technology require us to intervene pretty much right away. During testimony before the Standing Committee on International Trade, people from the technology sector said that they cannot wait years, as was the case during the softwood lumber dispute, which was dragged through the courts for years. Canadian technology companies like BlackBerry expect disputes to be resolved pretty quickly. They need a system that can hear both sides and reach a verdict as soon as possible.

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, my colleague asked a brilliant question just before his speech in which he juxtaposed all of the Conservative free trade deals, which they have agreed to, signed and boast about on the one hand. On the other hand, we went from a situation of trade surpluses under Liberals and descended into deep trade deficits under the Conservatives.

The NDP might say that free trade deals cause deficits, but I am enough of an economist and a Liberal to think that free trades are good for the economy and should normally lead to improved trade balances.

When the Conservatives sign free trade deals, they should be good for the economy and trade, yet they have descended into massive trade deficits. Is there some other aspect of Conservative mismanagement which, notwithstanding these trade deals, led to huge trade surpluses?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Mr. Speaker, I do not know if that is a loaded question, but I will try to answer it in a non-partisan way as much as possible.

It is one thing to sign trade deals and another thing to follow up on. The world is changing and we see it as one world, a global economy. Leading trade partners in the last number of years are Canada, Japan and Korea. We started negotiating with Korea over 10 years a go. Japan has been negotiating more or less the same period of time. We are one of the last countries involved in TPP negotiations, and that has been going on for years.

Since the Conservative government came to power, we are always last. Signing a free trade deal does not provide us with extra trade. It is nice to say we will sign a free trade deal. The Prime Minister has signed a free trade deal with Europe I do not know how many times, I think at least three or four times in the last six months. However, it is not yet in law because we do not even know what Europe will do. It has not even begun. It just released the text. There is a bit of a disconnect between reality and announcements and what really goes on the business world.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I am pleased to rise today to talk to the Canada–Korea free trade agreement, or CKFTA, specifically the benefits and opportunities created by the agreement for the Canadian beef and pork farmers.

Canadian beef and pork are world renowned and a significant contributor to our national economy. In every region of our country, hard-working beef and pork producers produce reliable and high-quality products that are constantly in high demand. The size of the industry is staggering. By 2014, there were 12.2 million head of cattle on over 82,000 Canadian farms and ranches. In the pork sector, there are approximately 12.9 million hogs on over 7,000 farms.

Our government, along with Canadian beef and pork producers, understands that Canada's prosperity requires expansion beyond our borders into new markets for economic opportunities that serve to grow Canada's exports and investments.

While the United States is a major export market for Canadian beef and pork, diversification and ensuring that Canadian farmers have access to a wide range of export markets for their products is key to their success. That is why our most recent Speech from the Throne committed to expanding trade in the Asia-Pacific region to benefit hard-working Canadians and businesses, especially to our crucial small and medium-sized enterprises and industries across Canada.

South Korea represents a significant market for beef and pork, and there exists much potential for increased Canadian exports. Between 2010 and 2012, South Korea's global imports totalled an average of approximately $1.3 billion annually, while global pork imports were worth an average of approximately $1.1 billion annually. Currently, Canada supplies only a fraction of South Korea's beef and pork markets. Canada's market share is also currently falling due to the competitive disadvantage vis-a-vis the United States and the European Union that benefit from lower tariffs and preferential access due to the FTA they presently have with South Korea.

Specifically, following the implementation of the Korea-U.S. or Korea-EU FTAs, Canada's share of South Korean fresh, chilled and frozen pork imports dropped from 14.2% in 2010 to 8.9% in 2013, representing a loss of export value in excess of $22 million. During the same period, U.S. and EU market share increased from 66% to 76%.

In 2012, following the resumption of Canada's access to South Korea's beef market, Canada's fresh and chilled beef exports to South Korea were valued at around $10 million. However, in 2013, Canadian beef exports declined to $6.7 million as a result of a growing tariff differential, again vis-à-vis U.S. competition.

Our Conservative government is committed to levelling the playing field and opening new markets for high-quality Canadian beef and pork as Canada's first free trade agreement in Asia. The Canada-Korea free trade agreement provides critical new market-access opportunities in a dynamic region where there is significant demand for both beef and pork.

Starting with beef, exports to South Korea of fresh, chilled and frozen beef, which totalled over $43 million in 2002 prior to the BSE outbreak, are in the rebuilding phase following the restoration of access to the South Korean market in 2012. Canada's exports of beef to South Korea reached an average of $5.5 million from 2011 to 2013, while exports of bovine genetics, offal and tallow averaged at over $15 million.

Importantly, the Canada-Korea free trade agreement would eliminate high tariffs that serve as a barrier for increased Canadian exports. Specifically, the 40% tariff on fresh, chilled and frozen beef cuts, as well as the 72% tariff on some processed and prepared beef, will be eliminated within 15 years. Tariffs of 18% on most beef offal will be eliminated within 11 years, while tariffs on beef fats and tallow will be eliminated upon entry into force of the free trade agreement. In addition, the 18% tariff on embryos will be eliminated upon entry into force.

Beef stakeholders from across the country have unanimously and publicly supported this agreement. These include the Canadian Cattlemen's Association, the Canadian Meat Council, Manitoba Beef Producers, British Columbia Cattlemen's Association, Alberta Beef Producers, Saskatchewan Stock Growers Association and Beef Farmers of Ontario. Martin Unrau, past president of the Canadian Cattlemen's Association, said, “This announcement means Canadian beef will be able to compete for meaningful access in the South Korean market”.

Canada's export of fresh, chilled and frozen pork to South Korea reached an average of $138 million from 2011 to 2013, while exports of processed pork, pork offal and fats reached $9 million during the same period. Although Canadian pork farmers are already exporting to South Korea, high tariffs remain for many of the pork products they produce. Thus, there is remaining significant untapped potential for this industry to export to South Korea, potential that can only be accessed through a tariff elimination pursuant to the Canada–Korea free trade agreement.

Under the agreement, the 22.5% and 25% tariffs on fresh, chilled and frozen pork guts will be eliminated within five to thirteen years. The 18% to 30% tariffs on most processed and prepared pork will be eliminated within six years. As well, the 18% tariff on pork offal will be eliminated within five years, while the 3% tariff on pig fats and oils will be eliminated upon entry into force of the Canada–Korea free trade agreement.

In addition to the industry associations mentioned above, key pork stakeholders across the country have publicly voiced their support for the agreement, including the Canadian Pork Council, Canada Pork International, Éleveurs de porcs du Québec, Alberta Pork, Maple Leaf Foods, Olymel, HyLife Foods, and the Canadian Agri-Food Trade Alliance.

This agreement also recognizes the integrated nature of this industry in the North American economy. It provides the rules of origin that would allow these world-class products to benefit from preferential treatment in South Korea. This is important as it allows Canada to continue to compete with other exporters of beef and pork to South Korea, including the United States and European Union, competitors that have benefited from lower tariffs since the implementation of their own respective free trade agreements with South Korea.

Take what Michael McCain, president and CEO of Maple Leaf Foods, said, “This agreement is a major win for Canada's agri-food industry”.

Shamefully, 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 always ideologically opposed to trade. Just as bad are the Liberals, who during their 13 years in power completely neglected trade. The Liberals took Canada virtually out of the game in trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in the era of global markets.

In these uncertain times our prosperity depends on our ability to take advantage of economic opportunities in emerging markets. Not only would the Canada-Korea free trade agreement provide robust outcomes for Canadian beef and pork farmers, but it would allow Canada to level the playing field with key competitors and reverse the decline in beef and pork exports to South Korea.

Our government understands the importance of trade to our economy. It represents one out of every five jobs in Canada and accounts for more than 60% of our country's annual income.

Any delay in ratifying this agreement would place Canadian farmers at a further disadvantage against their competitors, and Canadian jobs and opportunities. As Australia is nearing the implementation of its own FTA with South Korea, there is even a greater urgency for Canada to implement the Canada-Korea free trade agreement and gain preferential access as soon as possible so as to establish an even stronger foothold in this most important export market.

In order to support Canadian farmers and expand their export opportunities, the Canada-Korea free trade agreement needs to be passed now. This would create jobs and opportunities and contribute significantly to Canada's long-term economic growth and prosperity.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I thank my distinguished colleague for his remarks.

One element of his speech really stood out: he referred to this government's most recent throne speech. I clearly remember that in the last Speech from the Throne, the government said it was going to prohibit companies from charging customers a fee for paying their bills through the mail. We are still waiting for that.

Therein lies the problem. We are always waiting for this government to do something positive for Canadians, and I mean for people, not just corporations. That is the crux of the problem. Since this government came to power, the manufacturing sector has lost 500,000 jobs. We would like to know what the Conservatives plan to do with this agreement, which could be very good, to ensure the return of Canada's industrialization and to ensure that Canada is not merely a source of raw materials.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, this is the government that brought in close to 1.2 million net new jobs since the global recession. This is the government that reduced taxes for families and provides some $3,200 in additional benefits to the average family.

One thing that the NDP does not understand is that companies employ Canadians, so if we give market access to Canadian companies we can improve their chances of employing more Canadians. If we give market access to Canadian farmers we are allowing them to take advantage of higher prices, so they too can expand their operations and have a better quality of life.

I wish the NDP would get this. Those members just do not seem to understand what trade really means for Canada.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I think that what my Conservative Party colleague fails to understand is that we are voting in favour of a free trade agreement with South Korea. I do not see what there is to criticize about that.

However, I have a question for him about something concerning at least 100,000 workers with well-paid jobs in Canada. The concern has to do with the automotive sector and Korean cars. We want to know what is the government's plan for protecting the car manufacturing sector in Canada and for supporting these jobs in light of the Korean competition. What does the hon. member's government propose for defending Canadian jobs?

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, here is one thing I find very interesting about farmers. When farmers make money, they buy things. They buy vehicles, cars, trucks, tractors, and combines. They reinvest in their farming operations. Where are those jobs located that make those types of products? They are in Ontario in the manufacturing sector. Therefore, as we strengthen the agricultural sector, thus we strengthen the manufacturing sector that provides input into the agricultural sector.

I think if NDP members understood that, they would vote more aggressively on more free trade agreements.

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, the smears by my colleague across the way do not really bother me because I know that the entire Conservative Party has gotten into the habit of reciting and reading House briefing notes.

The Conservatives say that the NDP does not understand certain things, but I will provide an example of things that they do not understand. Korea used to manufacture Toyota Corolla replicas on old assembly lines bought from the Japanese. The quality was questionable. Today, the Koreans are at the forefront of the automotive industry because they developed serious industrial strategies and invested in research and development.

Would it not be nice if our government learned a thing or two from the Koreans?

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, one thing a free trade agreement does is bring in forced rules for both parties to follow, so that they understand what they can or cannot do. Of course, patent protections and licence agreements fall into those types of rules.

Again, I will come back to the Canadian farmers and producers that I talked about here today. They look at this agreement for the benefits. They understand what can happen when a market gets shut down, such as what happened to our beef producers when the U.S. closed the border due to BSE, or the country of origin labelling and the frustration they have been experiencing with that. They get it. They understand that the more market access they have around the world, the more chance they can sell all the products they produce.

When farmers are looking at marketing a cow, they may look at marketing steaks to Canada, parts of the beef to the U.S., and different parts to Asia and the Middle East. They need a variety of markets to take the different types of cuts that come from a cow.

Of course, these are the types of advantages they get from a free trade agreement. They can efficiently use the entire animal and sell what they can, most of the product and byproducts, to the variety of markets that have these different needs and desires.

It is the North Korea, or rather the South Korea free trade agreement—I was thinking the NDP was supporting the North Korea free trade agreement, which we have not done, which is why I was kind of confused when NDP members supported this agreement. I thought they must have heard the word “North” instead of “South”, but it is actually the South Korea free trade agreement.

This is a really good agreement for Canadian farmers and producers. I think everybody should get behind it.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, the NDP does not usually rise in the House in support of a trade agreement, a free trade agreement with another country. In the past, we have been rather skeptical. We are still skeptical, because we are critical thinkers and we want trade agreements to benefit our economic sectors and workers, and to protect and defend our jobs. That being said, we are also aware that we must diversify our exports.

Canada and Quebec have always been nations of traders. Ever since we traded with the aboriginal peoples when we arrived, traded furs and dealt with our neighbours to the south, the Americans, we have always worked in production and commerce. We know that this is part of our economic and social fabric and that, today, we need to provide our goods and services to the whole world in order to keep thousands of jobs in the country and to sell our products, be it in Africa, Japan, Europe or China. We are aware that this is key to the economic well-being of our workers in all our economic sectors. However, we must consider and assess each trade agreement on its own merits and what we will or will not gain from it. We must ask ourselves certain questions every time we sign a treaty with another country.

The NDP determined that the trade agreement with South Korea had more advantages than disadvantages for many economic sectors. I will come back to that, but I must say first and foremost that we conducted a careful study to assess the benefits, the losses, the costs and the profits. I would like to point out that, unlike the Liberal Party, which gives the government a blank cheque by voting in favour of any free trade agreement without considering its contents, we think that we must do some serious work and determine whether it is truly advantageous for our businesses and the workers they employ. There are some very interesting things in South Korea's case.

We believe that we should always ask ourselves three questions before signing a treaty. For the most part, the Conservatives have botched these negotiations, which are not always to our advantage. That is why we have opposed these agreements many times in the past. In some cases, it was because we came out on the losing end; in others, it was because we were signing agreements with governments that had abysmal human rights records. Sometimes, the governments were linked to crime or there were politically motivated murders of union activists. For example, we were very concerned about the Conservatives' free trade agreement with Honduras, which we refused to support.

Question number one: Does the proposed partner respect democracy and human rights, and does it have adequate environmental and labour standards?

Question number two: Is the economy of the proposed partner of significant or strategic value to Canada and our exporters? We are a nation of traders, therefore exporters, and we are trying to diversify our exports. Opening up a new market can be a very attractive prospect, but does it have a significant strategic value?

As they say, the devil is in the details. The third question is the following: Are the terms of the proposed agreement satisfactory?

According to the NDP's assessment, the trade agreement with South Korea is positive and satisfactory overall. Why?

I have been involved with unions and the defence of public services. I believe that protecting our public services and procurement for various levels of government is vital when governments have to make purchases or provide services. In the proposed agreement with South Korea, there is absolutely nothing that affects procurement for various levels of government.

Our public services are not at all affected by any aspect of this trade agreement. It really affects only the private sector. That is very important to me and to the people I represent. The agreement proposed today does not pose any threat regarding the privatization of public services, but we have serious doubts about the proposed agreement with the European Union. We still have not been given any details or seen the text of the agreement.

This is a fundamental value for me and for many progressives and social democrats. Some safeguards are in place in the private sector. Agricultural production, a supply managed industry, is not subject to this agreement. That is good news for most producers and farmers in Quebec and Canada, and we are very pleased about that.

First, this agreement does not privatize anything or attack any public services, which is a good thing. Second, we are concerned about the dispute resolution mechanism as it now stands.

Every trade agreement contains a dispute resolution mechanism for the two partners, in case a company deems that it has been treated unfairly with regard to its investments or its production capacity, for example.

One of the mechanisms in this agreement is not what the NDP or the main opposition party in South Korea would have negotiated.

It is clear that, next year, when the NDP takes office, we will sit down with our South Korean partners and review this dispute resolution mechanism to ensure that companies will not be able to take legal action against a government or a level of government over future loss of profit. This seems undemocratic to us and we are particularly concerned about it. We want to resolve this issue.

We are able to live with this agreement as it stands because it contains a clause that allows us to terminate our relations or a dispute with six months' notice, unlike the trade agreement with China, which ties our hands and is binding for 31 years. This clause protects us and it protects our workers and businesses in Quebec and Canada.

We can live with this, even if we are concerned about it and it seems undemocratic to us. We want to renegotiate with South Korea when we take office.

Third, we are concerned about support for the automotive sector in this agreement. The agreement has some huge benefits for a number of economic sectors, including the forestry, aerospace and agriculture sectors, and I think we have everything to gain. This will enable us to increase our exports and sales to South Korea, the 15th biggest economy in the world, which has 50 million inhabitants with purchasing power similar to that of Quebeckers and Canadians. It is a very attractive market in which to sell our products.

However, we also know that this country produces a huge number of automobiles. There are 100,000 good jobs in Canada—not in Quebec anymore—in the automotive sector, and we encourage the Conservative government to adopt measures that will support the jobs in Canada's automotive industry.

We do not think that the existing 6% tariff really protected us from exports coming from South Korea, especially since they had plants in the United States, and later Mexico, so that 6% tariff did not exist.

However, we are concerned about the potential increase in the number of South Korean cars coming into the country. We would like the government to be more proactive about protecting and defending the automotive industry to protect these good jobs.

I remind members that this agreement will help our farmers and our aerospace companies, such as Bombardier, which is why the NDP will support it.

[Jeff Watson, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, the member, like his colleagues, continues to bring up the auto industry.

I would remind the member that before he was a member of Parliament, this government introduced the first national auto strategy, a four-pillar auto strategy, in 2008, with former Minister of Industry Jim Prentice. This resulted in a significant number of investments in the Canadian auto industry, some of the most recent being in Ford in Oakville. These are good, high-paying jobs, as the member will well know.

The auto strategy, particularly the auto innovation fund, focuses on two key elements. One is the types of vehicles, and the significant investments that will go with them, and technology that will meet very stringent fuel economy standards by 2025. The second is the requirement that companies bring green research and development to facilities. When we reopened the Essex Engine Plant in 2008, for example, Ford was required to build a major engine research facility there, which is employing Canadians for the next generation of jobs and platforms.

We renewed the auto innovation fund in 2013. That member voted against it, and so did his colleagues. In 2014, we added $500 million to that fund, which he voted against.

What further automotive support does the member plan to vote against?