Debates of Nov. 22nd, 2016

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

[Jenny Kwan, NDP, Vancouver East, BC]

Madam Speaker, with respect to CETA, the new investor court system would still allow foreign investors to seek compensation from any level of government over policy decisions they feel impact their profits, and foreign companies would have access to special courts to challenge Canadian laws without going through their own domestic courts.

Canada is already one of the most sued countries in the world under investor-state dispute settlement provisions. Canadian companies have won only three out of 39 cases against foreign governments and the Canadian government has lost many NAFTA cases while continuing to be subject to ongoing complaints seeking billions of dollars in damages. The existing investor-state dispute settlement measures have contributed to a regulatory chill, in which government has failed to take action in the public interest that it fears may trigger an investor claim.

Given that this is the case, what the government is now asking us to do is to sign a blank cheque saying, “Trust us, it's all going to be good”. Would the minister sign a blank cheque with his own account in any other circumstance? I think not. If not, why would he ask us to support this?

[Stéphane Lauzon, Liberal, Argenteuil—La Petite-Nation, QC]

Madam Speaker, I would like to thank my colleague for her question.

This agreement will help create jobs in various areas of publishing, music, digital media, and other areas related to culture and talent. I do not really see why we would be sued because it is a good agreement for industries that create direct and indirect jobs.

In fact, when you move a team to put on a show in Europe, for example, there are direct jobs for the artists, and indirect jobs for the support crew. There are also the manufacturers, the technology, and all the businesses involved directly or indirectly in the arts and culture. This will ensure that CETA will be good for Canada.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The first five hours of debate on this issue has expired, and so the speeches from now on will be 10-minute speeches with five-minute questions and comments.

Resuming debate, the hon. member for Sherwood Park—Fort Saskatchewan.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, it is a pleasure for me to rise and debate this legislation. I am sure all of my colleagues are disappointed that it will only be a 10-minute speech, especially the member for Winnipeg North.

I would like to talk first about the deal itself and then make a few general comments about the broader context of international trade. I will also make a few points of refutation.

When it comes to the deal itself, we in the Conservative Party are pleased to support this deal put forward in the House by the Liberals, but which reflects work begun long before they took office. This deal was initially signed under the previous Conservative government. We have had some near misses in recent months, but we are glad to see the deal where it is.

I will cite a few numbers that I am sure have been referenced in the House before. Studies have suggested that this deal could lead to a 20% increase in bilateral trade and a $12 billion annual increase in the Canadian economy. This would be the equivalent of adding $1,000 to the average Canadian family's income, or almost 80,000 new jobs to the Canadian economy. This is some of the evidence of the economic benefits of trade that we have heard.

I have spoken about this before, but I would like to be clear about why trade benefits our country. When we sign free trade agreements, we are creating opportunities for mutually beneficial exchanges between individuals and businesses in different countries. This increases efficiency and allows people not only to specialize in things they can be more efficient in for international markets, but also perhaps creates increased efficiency for companies to specialize in areas that reflect their interests and expertise. This in turn creates increased opportunities for general and economic well-being. That is why our Conservative government was bullish when it came to signing international trade agreements and moving forward with different negotiations.

My colleague from Windsor West listed the trade agreements that our previous government signed, and I think he was suggesting it was a bad thing. The many trade agreements he listed that we had moved forward with are agreements that we on this side of the House are proud of.

The government has talked about the consultations that went on with respect to this agreement. It is important to say that the form of consultations that went on with this deal are similar to those used in other trade deals. It is a bit strange to hear the Liberals talk about the great consultations that happened on CETA but then criticize the alleged lack of consultations in the negotiations on the trans-Pacific partnership. The process the government has followed for consultation and engaging stakeholders is very similar and, at some point, the government may have to reconcile that difference in its opinion. Nonetheless, even though there is some inconsistency from members on the government side, we are pleased to support this important trade deal and hope that the work here will continue.

That said, it is very germane to our discussion today to comment on the broader global environment and how Canada situates itself in the midst of the global trade conversation.

The signing of this deal reflects a certain inertia, in that the government has continued the work done by the previous Conservative government. What we need right now from the government is not inertia, not the continuation of work undertaken by the previous government, but acceleration. We need a government that will respond to the challenges that are happening with respect to the global discussion on trade. We need a government that will respond in a clear and aggressive way with the hope of accelerating and increasing our response, and with the hope of undertaking new trade initiatives that respond to the unique and particular challenges we are facing right now.

That means laying the groundwork for the arguments that we will make. It means working with legislators, with elected governments, with people around the world to make constructive and positive arguments about the benefits of trade. That is what a government should do when going from just inertia when it comes to trade to accelerating our approach to trade for the benefit of Canada economically and socially.

How do we do this in the midst of a global environment where protectionist forces are bubbling? I would argue that things are not as bad as they have been presented by some voices.

This question of bubbling protectionism really started with the Brexit vote in the U.K. There are arguments on both sides of that question, and obviously that is a question for the U.K., not for us here.

However, it is important to acknowledge that many of those who advocated for Brexit were themselves free traders. They were concerned about different aspects of the kind of trading structure that existed in the EU, and more so about the way in which legislative authority has been transferred to sort of a central European organization.

Many of those advocating for an exit, who were ultimately successful, were talking about the importance of the U.K. still having many international trading relations, and in fact they were arguing that they would be more able to sign international trade deals without the stipulations that exist as part of the EU treaty. Again, it is not for me to say whether those arguments are right or wrong, but I think it is incorrect to infer from the Brexit vote that this was a rejection of the idea of international trade. It was not. It was the reflection of a different set of arguments about international trade.

The rolling forward of the Brexit process will create some issues and questions around Canada's relations with the U.K., given that we are now entering into a CETA agreement that includes the U.K. I suspect there will be a very strong interest in the U.K. to sign a comprehensive free trade deal, maybe an even deeper form of co-operation with Canada, and certainly to have ongoing close trading relationships with the EU.

I hope that what we will see is the following through of what was said during the Brexit campaign, which is both sides committed to the idea of international trade.

Of course the challenge that comes from the United States in the current environment is a little different. Although a lot of the evidence, in terms of polling, suggests that there still is a strong commitment in the United States to free trade at the individual level and among many legislators, the president-elect was able to be critical of trade in a specific way in specific markets. I think it is hard to dispute that the message had an important impact on his electoral success.

We need to see, quite realistically, the challenge that is presented by those arguments that are critical of trade—at least critical of certain trade agreements. How do we respond to that, then, as Canada? We need to be clear and forceful in making arguments about the benefits of the open economy.

I will say that we have a Prime Minister who has been quite willing to make arguments internationally about the importance and benefits of an open society, a society that accepts people from different kinds of backgrounds. When he does that, that reflects universal Canadian values, not just the perspective of one individual party. All of us are committed to the idea of an open and tolerant society.

From my perspective, a commitment to the open economy is very much associated with a commitment to the open society. If we believe that people within a given nation state can co-operate together, can work together, can share common values in the midst of diversity, then it follows as well that people should be able to engage in economic exchange across cultural lines, indeed across national lines. A belief in trade, a belief in the open economy is a corollary of the very same set of principles.

I would ask if the Prime Minister, in the midst of talking about the benefits of open society, of co-operation in the midst of diversity, would also be willing to speak about the benefits of the open economy, benefits that we have seen here in Canada, but also benefits that I think we realize exist around the world.

We can be clear in making those arguments to individuals in the United States at a popular level, but also by working with legislators. It is unfortunate that we have a government that thus far has not been prepared to do that, that again has been carrying forward this inertia; yes, moving forward in some cases, not every case, with trade agreements that were negotiated and signed under the previous government, but not really being willing to talk publicly in a clear, aggressive, positive way about the benefits of international trade.

We really need that right now. Given these forces that are out there, given the debates that are happening internationally, Canada, a country that has benefited so much from international trade, can play a leadership role in speaking about that.

I hope we will see a change in tone, an acceleration in tone from the government. At the same time, we are very pleased about this particular trade deal, and I look forward to supporting it.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, to that end, I am sure the member across the way would acknowledge that what we have seen in the last 12 months is a very progressive, aggressive government dealing with the whole issue of trade.

We can talk about the Prairies and the canola, the beef, and the pork, whether it is China or other countries. We can talk about the formalization of the Ukraine trade agreement. We can talk about the bill we have today, which has been in the works for many years and has been, for the last year, the preoccupation of this particular minister to get the job done. We believe we got the job done well and all Canadians will in fact benefit by it.

I would ask for an affirmation from the member across the way that, when we talk about trade, we are talking about the creation of jobs into the future—good-quality jobs, if we get it right. Would the member not agree that the trade agreements that we are talking about today and yesterday, such as with Ukraine and some of the other discussions to which reference was made a minute ago, are in fact a good thing for all Canadians, in all regions of this country? Would he not agree?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, certainly, I would say that this trade agreement, as well as a Canada-Ukraine agreement, are examples of positive inertia. These are cases where the government has continued forward work that was begun under the previous government. We are very glad to see the continuation, in those cases.

I will just say what we have with canola and China is a temporary reprieve. Let us be clear. The problem is by no means fully solved.

Where I think there is a problem, in terms of a lack of leadership on the open economy, has been the statement with respect to NAFTA, as well as the approach taken with TPP.

I think we need to move forward with trade in Asia. Obviously, it is going to take a different form, given the new attitude of the American administration. However, it is important that we pursue free trade in some form with like-minded countries in Asia and with Japan, Australia, and New Zealand, for example.

We could be clearer about the benefits to North America of NAFTA. I have been critical of the Prime Minister's tone on NAFTA so far. We need to be clear in our communications about the benefits that NAFTA has brought to all of the countries here in North America.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Madam Speaker, I would like to thank my colleague from Alberta for his speech.

One of the things that has disappointed me in the last decade of bringing forward trade agreements is the backtracking on certain commitments and opportunities afforded under the side agreement on environment under NAFTA. The member spoke of NAFTA.

Does he think that the agreement could be strengthened if there were provisions similar to NAFTA, which under article 2 prohibited the parties to the agreement from undermining environmental laws for an economic benefit?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, this is an important question, obviously: how we protect the environment within the trade agreements we have.

Always within trade agreements there are discussions, specifically of environmental protections, and collaborations in terms of how collectively the best balance would be struck between preserving the environment and protecting the economy.

Personally, I am satisfied with the balance as it is struck within this agreement. I think there can be ongoing debate about how exactly that is done.

I know that members in the NDP, I think certainly with sincere motivation, have been critical of some of the dispute resolution mechanisms around that. However, I will say this. We have to have—and it happens within nation states but also within any trade agreement—dispute resolution mechanisms where there can be some adjudication between competing claims of states, of commercial actors, that tries to resolve those differences according to the text of the agreement.

Our approach has always been to recognize the importance of the environment, to recognize the importance of striking a balance. As I said, I will be voting in favour of this agreement. I am satisfied with where it is, in that respect.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Madam Speaker, it is a pleasure for me to rise and speak about this historic agreement. My comments today on CETA will deal with the investor protection section of the agreement. However, before I begin I must comment on the significance, in my opinion, of this agreement to the current global context.

First, as the chair of the Canada-Italy Interparliamentary Group, and as a dual European-Canadian citizen, I must congratulate those who worked on the agreement and acknowledge the judicious and diligent work to complete the deal. Auguri. Félicitations. Congratulations to our Minister of International Trade and the minister's entire team. Canada has a small, open economy, and we are trade dependent. Trade generates growth and good middle-class jobs, and this deal would do that.

At a time in world history when it seems that walls are building around us rather than coming down, and populist rhetoric is providing false hope, the importance of CETA is not lost upon me. This view is from both sides of the Atlantic.

The CETA agreement is a progressive trade agreement that would deliver positive results and opportunities for citizens in the European Union and Canada. In my home province of Ontario, CETA would help drive economic growth and create stable and high-paying jobs for generations. The European Union is already Ontario's second largest export destination and second largest trading partner. Once in force, CETA would eliminate tariffs on almost all of Ontario's exports and provide access to new market opportunities in the EU.

Here are a few simple facts. The EU is Canada's second biggest trading partner after the U.S. and accounts for nearly 10% of its external trade. Trade in goods between the European Union and Canada is worth almost 60 billion euros, roughly about $80 billion to $90 billion Canadian a year. In 2013, European investments in Canada were estimated at 225 billion euros, while Canadian direct investment stocks in the European Union amounted to more than 117 billion euros.

Prior to CETA's entry into force, only 25% of the European Union tariff lines on Canadian goods are duty-free. Upon CETA's entry into force, the EU would remove approximately 98% of its tariff lines. Once CETA is fully implemented, this would increase to 99% of all of its tariff lines.

We should be proud of CETA. It is the most progressive trade agreement ever negotiated. It would help redefine what trade can and should be. It would lead to increased prosperity here in Canada, create well-paying jobs, and help strengthen the middle class. It is also a ground-breaking agreement in opening doors to increased access to the EU market for Canadian companies. CETA sets new standards for trade in goods and services, non-tariff barriers, investment, government procurement, as well as other areas, like labour and environment protection.

Just as important, the agreement would also help facilitate investment, a significant factor in achieving prosperity and job creation. Foreign direct investment, commonly known as FDI, is an important driver of economic growth, with new investment by foreign firms having the ability to provide a boost to national income and to create good, middle-class jobs for Canadians. Foreign investment here in Canada and Canadian companies investing in the EU can also promote trade by facilitating value-chain linkages and improving access to new technologies. Not only would CETA help facilitate foreign investment, but it would set a new bar for investment protection.

One of the most important things our government did right after taking office was to listen to the constructive criticism from the critics of CETA, both in Canada and in Europe, and to understand some of the legitimate anxieties people, organizations, and governments had. We heard many concerns regarding the investment protection provisions in CETA, and we have worked with Canadians, including industry and civil society alike, and with our EU partners, to address these issues and to prove that progressive trade policy is possible with CETA. Our government fully seized the opportunity and developed a new and improved approach to investment protection provisions.

A significant innovation in CETA is the transformation of the mechanism for the resolution of disputes between investors and states. CETA marks the first international trade agreement that establishes a permanent tribunal to hear claims by investors alleging that states have breached investment-related obligations. I repeat, a permanent tribunal. The CETA tribunal would consist of 15 members appointed solely by Canada and the European Union. Ethical requirements would be central to the process leading to their appointments, including not allowing members of the tribunal to act as counsel or expert witnesses in an investment dispute under any international investment agreement. Members would be appointed for a five-year term that may be renewed only once.

Individual cases will be heard before a three-member division of the tribunal, and those members will be selected on a rotation basis, ensuring that the composition of the division is random.

Such innovations address concerns about a perceived lack of arbitrator independence and will give greater legitimacy to the dispute resolution process. Moreover, as the members of a division hearing a specific case will be in a position to consult with the other members of the tribunal, we expect that the coherence of decisions will be much improved as a result.

In addition to the first-instance tribunal, CETA will establish a permanent appellate tribunal, thereby creating another precedent in international investment law. The appellate tribunal will function in a way similar to the first-instance tribunal. Its task will be to review decisions that are contested by either the foreign investor or the respondent state. In time, the first-instance tribunal and the appellate tribunal will develop a body of decisions that will constitute effective jurisprudence. This, in turn, will create greater legal certainty for both foreign investors and governments. It is very important that we have this.

The innovations made to the mechanism for the resolution of disputes are certainly significant ones, and our government is proud of them, but there are other innovations in the CETA investment chapter.

We have closed the door to provision shopping by clarifying that investors cannot seek to import provisions from other Canadian or European trade agreements through CETA's most-favoured-nation treatment article. CETA encourages the use of domestic courts by suspending the timelines for the submission of claims while domestic remedies are being pursued.

We added an article on mediation to encourage early settlement of disputes without recourse to the CETA tribunal. We have provided CETA with a mechanism for the early dismissal of frivolous claims. We have taken small and medium-sized enterprises into consideration and have added provisions that make it easier for them to access the mechanism for the resolution of disputes. We have made it mandatory for an investor who submits a claim while benefiting from third-party funding to be transparent and to disclose the identity of its funder. Importantly, we have established a committee that will provide a forum for the CETA party to consult on difficulties that may arise regarding the implementation of a chapter and on possible improvements to the chapter, especially in light of experiences and developments in other international fora.

It has also been Canada's long-standing practice to prevent so-called mailbox companies from benefiting from Canada's trade agreements. CETA is no different. To be considered an investor under CETA, a European Union enterprise owned by interests of a third party is required to have substantial business activities in the territory of the European Union. It cannot simply establish a mailbox company in the EU with the sole purpose of gaining access to the dispute resolution mechanism of CETA.

Finally, CETA demonstrates Canada's continued leadership with regard to promoting transparency in the dispute resolution process. Under CETA, all hearings will be open to the public, and all documents submitted to or issued by the permanent tribunal will be made available to the public.

The changes we made to CETA in addressing important issues voiced by Canadians and EU citizens alike represent a starting point in the development of a progressive trade agenda between a progressive Canada and a progressive European Union. This is an agenda that is linked to the government's domestic policy focus on reducing inequality and enhancing inclusive growth through such things as investments in infrastructure and increased child benefits. The idea is to ensure that trade policy makes a more meaningful contribution to this overall agenda and to ensure that trade is done in a way that really works for Canadians and our trading partners.

Canada will continue to seek ways to enrich the economic relationships we have with valued partners with the aim of achieving prosperity for all Canadians. However, it is very important to our government that we ensure that this is done in an inclusive and responsible manner. We are seeing this approach realized in CETA.

I am very proud to stand here and speak to this agreement. I believe it is transformational, and in the context of where we are in modern day history, is very much needed.

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

Mr. Speaker, I appreciate the fact that my hon. colleague has focused on the investor-state provisions. When I have an opportunity to speak at length in the House, I will focus on the investor-state provisions.

While it is clear that there is some improved transparency in the investor-state provisions within CETA, I put it to my hon. friend that we have, in this agreement, not provided for the fairness or independence of the adjudicators. In fact, it is quite bizarre, but it is the case, that under CETA, the adjudicators, the so-called judges, will be able to work on the side as advocates. In the words of Professor Gus Van Harten, from Osgoode Hall Law School, the leading expert on this in Canada:

This last aspect of the revised text...suggests a way has been cleared for the same clubby crowd of investor-friendly arbitrators to dominate ISDS under CETA.

We still have, essentially, a more transparent but nonetheless kangaroo court.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, on the European Union website, it talks in detail about the investment protection system. One of the areas is about the rules that will govern the members who sit on the tribunal. To prevent what is called double-hatting, where a member of the tribunal also works in parallel as a consultant and expert in other investment disputes, this is actually forbidden in the agreement for the entire duration of the member's employment. It is forbidden in CETA.

There are safeguards with regard to the independent investment dispute resolution system. There are rules governing the members of the tribunal. There will be full transparency with regard to the proceedings, and there will be a ban on frivolous claims. I think that is a very strong component of the trade deal, and we need to applaud that and make sure that we state that.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, the Liberal government has been in discussions with the Atlantic provinces regarding the CETA fisheries investment fund. Is the government going to fulfill its commitment to help the Atlantic provinces, with the changes that are made through this agreement to the processing requirements?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, one of the things we need to look at are industries that may be impacted by trade deals. We know that overall, we are better off with trade. We have seen it with NAFTA and other agreements we have in place internationally. We know that trade deals create good-paying jobs, whether it is in services, manufacturing, and so forth. With regard to looking at various industries, we have seen the government step up to the plate and run consultations with the dairy industry. I would conjecture that the same thing would happen with other industries that may be impacted, in this case the fisheries industry on the Atlantic coast.

I grew up in northwest British Columbia. There was a vibrant fishing industry, which has now dissipated somewhat, unfortunately. We need to ensure that when there are losers in trade, they are looked at. We need to get away from just looking at the winners and look at industries and groups that may be impacted and make sure that programs are in place to help those associated industries and geographies.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, what a privilege it is to stand in my place today to talk about a very significant piece of legislation that goes a long way in fulfilling the Liberal government agenda in terms of international trade.

Canada is a trading nation. We are dependent on international trade. If we compare our population to other countries, I suspect that we would find that Canada is more dependent on trade than most countries, especially in the developed world.

As we move forward in the years ahead, it is of the utmost importance that the government of the day give special attention to trade. Trade is what generates hundreds of thousands of jobs, good, solid middle-class jobs. We would like to, as much as possible, create the jobs of the future that will assist in Canada's growth and prosperity in the years ahead.

Since we have been in government, the Prime Minister and the cabinet and my caucus colleagues have done a phenomenal job on the trade file. I compliment the current minister and the parliamentary secretary, who have put in so much time to ensure that we have the bill before us today. It has not been an easy feat.

Canada and the EU began negotiating CETA back in 2009. On August 5, 2014, the parties announced an agreement in principle on the negotiated text. In February 2016, the parties announced the completion of the legal review of the English text of CETA. Progressive changes were required and made to the investment chapter of the agreement during the legal review of the text.

Canadians know full well that this was not a done deal. When we took the reins of power just over a year ago, there was a great deal of work done to keep this thing afloat. We owe a great deal of credit to our negotiators and the minister responsible for ensuring that we were able to get all the t's crossed and i's dotted so that we could debate the bill.

It is not to take away from the efforts of the former Conservative government. We acknowledge the efforts of that administration. I think it bodes well that the government has changed and we have been able to pick up the ball and carry it over the goal line. I think that is a positive thing for all Canadians.

Canada and the EU officially signed the Canada-EU agreement at a summit on October 30, bringing this landmark agreement one step closer to entry into force.

Both Canada and the EU now need to take steps to implement the agreement according to their respective domestic procedures. This is just one of those procedures.

The EU market represents an unprecedented opportunity for Canadian businesses. The EU is the world's second-largest economy and Canada's second-largest trading partner, after the United States. It is also the world's second-largest import market for goods, with annual imports worth more than Canada's GDP.

CETA is a comprehensive trade agreement that will cover virtually all sectors in our nation. Once implemented, and this is what I find quite amazing, approximately 98% of the EU tariff lines, or more than 9,000 tariff lines in total, on Canadian goods will be duty free immediately upon entry into force. That is up from 25%. An additional 1% will be eliminated over a seven-year phase-out period. This is good news for Canadians, no matter what region of the country they live in.

Trade means growth, and more growth ultimately means more jobs. If we want Canada's economy to grow and do well into the future, we need to look at ways in which trade can enhance that.

Canada, as a country, is thrilled that this agreement has been signed. It is a progressive trade agreement with our European partners. It will deliver tangible growth and opportunities for our middle class and those aspiring to be a part of it. As one of my colleagues said earlier day, it is for all Canadians in all regions of our country. This agreement will also provide a strong foundation for Canada and the EU to demonstrate leadership on an inclusive, progressive approach to global trade.

Since being in government, we have taken a very aggressive and progressive approach on the trade file. We can talk about Bill C-13, which dealt with the World Trade Organization, and included 162 countries around the world. This agreement allowed for trade facilitation. It was probably the most significant legislation since the creation of the World Trade Organization. We were able to bring it through and get it out of second reading.

We can talk about another piece of legislation that is not too far down the pike, and that is the issue of trade with Ukraine. Again, we have a very unique situation with a very special partner in the world. It is a country many of us have been following very closely, because of the recent transitions that have taken place in Ukraine over the last four or five years.

I recall vividly the President of Ukraine addressing this chamber. He asked us to come up with a trade agreement, and challenged us to do so. Through the efforts of the previous Conservative government and the current administration under this government, we were able to sign off on that trade agreement. We anticipate seeing that legislation.

We can talk about legislation with these three pieces and, in particular, the one that we are debating today. We can talk about other work that has been done, such as the issues with canola just a few months ago in China, affecting hundreds of millions of dollars. We had a minister working in co-operation with agriculture and international trade, along with the PSs and other departments. We were able to address the issue of canola using science and providing the necessary assurances in Russia, which saved the day for this important commodity, particularly for prairie provinces and my home province of Manitoba.

We can also talk about the increased opportunities through clarification on trade dealing with pork and cattle. Again, the government has addressed all of this within one year.

At the beginning of my comments, I talked about the Liberal government being one of acknowledging the importance of international trade. We are a trading national, and it is imperative we do what we can to ensure Canada is on the right side of trade. Back when Jean Chrétien was the prime minster, as well as Paul Martin, we had healthy trade surpluses, which led to tens of thousands of jobs. However, we inherited a significant trade deficit.

This might take time, but we are prepared to do what we can. Whether it is a manufactured product, an arts product, or a service industry, we have some of the very best in the world and we need to break down barriers where we can. This bill would do that.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I listened to my hon. colleagues talk about the investor-state dispute mechanism, which is problematic for a lot of people.

It would be very appropriate for my hon. colleague to explain his understanding of that dispute mechanism because it would tie the hands of local governments for the minimum local investment and local procurement. This means that in some of the initiatives that the governing party campaigned on, such as economic stimulus by investment and creating jobs, its hands would actually be tied under a dispute mechanism such as this and with the confines of CETA.

I am a little alarmed that the positive aspects of trade are being looked at, which we do not deny, but we are not looking at the shortcomings of this agreement. I would like to hear the member explain that so we are assured—

[The Deputy Speaker, Conservative, Bruce Stanton]

The hon. parliamentary secretary.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I am somewhat disappointed, but not necessarily surprised, that the NDP appears to be wanting to vote against the CETA. It seems to be in the NDP's DNA to oppose trade agreements. I do not believe that is the best way to approach the debate.

We have seen many European countries deal with this issue, and they feel comfortable with this. We have provinces of all political stripes, even New Democrats at the provincial level, that have recognized this as a positive agreement. We need to continuously monitor and go forward with the investor-state dispute mechanism. If there are ways we can modify it, let us hear what the members might have to say in committee.

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

Mr. Speaker, the investor-state agreement is not actually a dispute resolution in the conventional sense that Canadians would understand. It is not about having a trade dispute and going to a dispute resolution. This is investing in foreign corporations superior rights to what Canadian corporations would have under the circumstances. That is why it is so controversial in Europe and why it may not come to pass. There are many more hurdles in Europe to be crossed.

Has the parliamentary secretary's government actually ever given any thought to taking investor-state out of this altogether? We would still have all the trade provisions. We would eliminate the opposition that remains in Europe. There is no reason whatsoever to include investor-state provisions in this trade agreement.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, unless the leader of the Green Party knows something I do not know, to the very best of my knowledge, we have 28 countries abroad that are a part of this agreement, some of which were no doubt fairly persistent on having this as part of the final agreement.

When we have trade agreements, it means we have to take into consideration both sides. In this case, there are a lot of stakeholders involved, the provinces in Canada and the many countries that are part of the European Union. This is what we were able to come up with, and we need to give it a try. We have far too much to lose to not see the bill pass.

[Scott Simms, Liberal, Coast of Bays—Central—Notre Dame, NL]

Mr. Speaker, the reason why we called it comprehensive in the beginning was the involvement of the provinces as stakeholders in this. So much will be within their jurisdiction that they have been brought on board. I give credit also to the opposition for this. When the Conservatives were in government, they were a big part of bringing in the provinces, which we have continued.

There have been successful examples in the past, such as the Rio conference on environment, not so much with Kyoto, and also some good conversations with NAFTA.

By doing this now, we have created a new way of trade partnership that involves provinces. Going forward that would be essential.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, my colleague brings up a good point. There is so much support for this document that goes beyond the national levels of government. Provinces have been a part of this agreement, and it might even be somewhat unprecedented. I do not know that for a fact.

I do know there has been a lot of reaching out by the different stakeholders, and we have come up with a fantastic agreement that will see more jobs being created, better trade, and a better relationship between Canada and the European Union.

I would encourage all members to support it, and for the Greens and the New Democrats to reconsider their position. This trade pact is worth supporting.

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Speaker, it is a privilege to stand in the House today to speak on behalf of CETA and Bill C-30, the Canada-European Union comprehensive economic and trade agreement implementation bill.

Canada is an exporting nation. From the voyagers to the Hudson's Bay Company to the cod fisheries of our east coast, Canada has been a place of abundant natural resources that have been harvested for exports.

As a grand nation that spans the Atlantic and the Pacific Oceans, that was united by bands of steel through our national railway, our identity as Canadians has been shaped by our export economy.

Whether it is beaver pelts, cod, grain, beef, minerals, oil and gas, or cars and trucks, all these products helped build our great nation into the prosperous land we call home today.

For those who might be hesitant to support CETA, here are some contextual facts about the importance of exports to Canada, the country we love and serve.

International trade represents more than 60% of Canada's gross domestic product. One in five Canadian jobs is linked to exports. This means there would be three million fewer jobs without international trade, and that is a big deal. This then would drive up Canada's unemployment rate to more than 25% if we were to all of a sudden stop exporting tomorrow.

Clearly our shared prosperity as a nation is very dependent on opportunities to get our goods to international markets, which is why it is so important for us to enter into free trade agreements.

This is why the Canada-EU free trade agreement will give Canada unprecedented access to 500 million EU customers. The size of the European Union's combined economy is $18 trillion, an economy that Canada's businesses will now have barrier-free access to. The European Union is the world's largest importing market for goods, with annual imports that are worth more than Canada's total GDP. The European Union is already the fourth-largest export market for Alberta agriculture after the United States, China and Japan.

A joint Canada-EU study that supported the launch of negotiations concluded that a trade agreement with the EU could bring a 20% boost in bilateral trade, and a $12 billion annual increase to Canada's economy. This represents the economic equivalent of adding $1,000 to every family's income or almost 80,000 new jobs to the Canadian economy.

CETA is in fact good news for our country.

The Canadian Agri-Food Trade Alliance estimates that when fully implemented, this trade agreement could result in $1.5 billion in new Canadian agrifood exports to the EU. When this trade agreement comes into force, 98% of EU tariffs on Canadian goods will be entirely eliminated.

Every region of Canada stands to benefit from the opportunities contained in this agreement. Of course I am very interested in my riding of Lethbridge.

Lethbridge is a hub for agricultural exports, from grains and oilseeds, to poultry and beef, the fertile soil of southern Alberta provides an abundance of food that is available to be sold around the world. In conversations with many of my local agricultural processors, I have heard overwhelming optimism and support for the CETA agreement. Traditionally, EU tariffs on agriculture and processed food products have been quite high, particularly on products such as beef, pork and wheat.

Canada has also faced many non-tariff barriers in the European market. This is why the elimination of tariffs and non-tariff barriers creates fantastic opportunities for Canadian agricultural producers, again, particularly affects my riding.

This agreement establishes a joint committee that will ensure that sanitary and phytosanitary measures to protect human, animal, and plant life do not unnecessarily harm trade. This is very important. This body will determine which certifications and standards should be deemed as equivalent. These non-tariff barriers have been the primary obstacles that in the past have stopped Canadian agricultural exports.

Our Conservative caucus will be paying close attention to the non-tariff barriers and will be holding the present government to account with regard to advocating on behalf of our Canadian producers.

For the grains and oilseeds producers in Lethbridge, this agreement would completely open up a market that was previously blocked by very high tariffs. Here are some examples of the EU tariffs that would be eliminated for grains and oilseeds producers once the agreement is fully implemented: the $114-per-tonne tariff on grains, including oats; the $122-per-tonne tariff on low to medium-quality common wheat, a product that currently sells for only $225 in the EU; the $120-per-tonne tariff on barley and rye; the tariff of up $190 per tonne on durum; and the tariff of 9.6% on oils, including canola oil, a crop that currently sells for $540 a tonne in the EU. All of these tariffs would be eliminated by the CETA agreement. Alberta Barley estimates that an additional $100 million in grains and oilseeds exports would result from signing CETA.

Lethbridge also has a sugar beet industry and the Rogers Sugar refinery plant is very nearby. The Canadian Agri-Food Trade Alliance estimates that this agreement would boost exports of sugar-containing products, such as sugar beets, by $100 million per year. Again, that is excellent news for the producers in my riding.

Canada is also a major meat exporting country, a significant amount of which is produced and processed in southern Alberta. The Canadian Meat Council reports that Canada currently exports $1.3 billion worth of beef, $3.2 billion worth of pork, and $5.7 million worth of bison. Sixty-five thousand Canadians depend on this industry for their job each and every.

For the agricultural producers in my riding, 94% of goods would be tariff-free once CETA is signed, sealed, and delivered.

Lethbridge is also a hub for the Maple Leaf Foods processing plant, which, of course, is processing pork, to a great extent. The Canadian Pork Council has projected that for specific cuts of pork, this deal could create sales of $400 million per year. This is excellent for the pork producers in Lethbridge.

Lethbridge is also home to a large number of beef producers in Canada. In fact, we are known by the nickname “Feedlot Alley”.

Canada has some of the greatest beef genetics in the world and our breeds are known for their excellent quality of meat. Canada has world-leading safety systems, including complete traceability of each and every animal.

Once CETA is fully implemented in three to seven years from now, 65,000 tonnes of beef would be allowed to flow into the European markets duty-free, which would represent more than $600 million in new exports.

That said, reaching an agreement on the equivalency of phytosanitary measures is absolutely critical for this agreement to benefit the producers in my riding and the producers across this country. Phytosanitary measures is simply a fancy way of saying “measures to protect human and animal health in the farming process”. Because of our different climates and the different scale of industry, Canada uses different methods from the EU to ensure the safety of meat. These methods are backed by the latest science and technology. The challenge for the government in negotiating this agreement would be to ensure that science-based equivalencies are negotiated before this agreement comes into full effect.

In summary, this trade deal is excellent news for Canadian exporters. It would create jobs, it would help to grow our economy, and it would increase Canada's standing on the world stage.

I am thankful for former Prime Minister Harper and the members for Abbotsford and Battlefords—Lloydminster for all the work they did in the previous government to negotiate and seal this deal through to it signature.

The farmers, agricultural businesses, and exporters in my riding of would enjoy a more prosperous future because of CETA.Lethbridge

[Scott Simms, Liberal, Coast of Bays—Central—Notre Dame, NL]

Mr. Speaker, I have been here awhile and have been going through CETA for quite some time, from the time I was in opposition in the third party.

I always knew that it had great benefits for the agriculture industry, so I want to thank the member for her speech because I did not realize how much was involved here, the metrics around some of this, in terms of canola, rye, barley, grains, and oilseeds. I think two examples alone caught my attention: sugar beets, at $100 million per year; and pork, at $400 million per year alone. It is a substantial amount of growth that could be achieved through this agreement.

I am from a seafood area and the numbers are similar, though probably not to the same level as pork, but nevertheless the metrics are much the same.

For most of the producers in western Canada right now, what do they need in order to transition toward a much larger market, or is there much transition involved?

I am just trying to get a grasp of some of the difficulties there could be for them to transition to getting that amount of product over to Europe, including transportation from Alberta?

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Speaker, we need to ask what our producers need to get their goods to market. Producers in my riding are incredibly resilient individuals. They are incredibly innovative individuals. They started their businesses from scratch and grown them to be quite large and quite successful. More than anything else they really need the government to sign, seal, and deliver this deal and then get out of the way.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I was listening to one of the member's colleagues yesterday, the member for Battlefords—Lloydminster, and then earlier today to my colleague from Richmond Cove, and they both reflected not just on some of the positive aspects of this trade deal but also the exploitive nature of this deal. Canada has high standards and as far as trade markets opening up for us is concerned, it goes the other way. I am wondering if the member understands that.

Yesterday her colleague said that we need to even out labour standards and regulations across the board. I would like the member's insight. Does she think we should lower our standards, or should other countries raise theirs to meet our existing standards in these markets that we are now saying are threatened and, hence, the need for compensation?