Debates of Dec. 13th, 2016

Canada-Ukraine Free Trade Agreement Implementation Act

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

Mr. Speaker, I thank the hon. member for sharing more about the Ukrainian culture and the Ukrainian diaspora in Canada.

As this debate continues on Bill C-31, it appears that the implementation of the Canada-Ukraine free trade deal has the support of the speakers I have heard so far. I am only unsure of whether the Bloc Québécois supports it, only because I have not heard its members speak. Certainly the NDP, the Conservatives, the Liberals, and the Greens support this bill.

I wonder if I might be permitted to ask a more difficult question, one for which there may not be an answer.

We are aware that when we speak of the annexation of Crimea, we refer to it as the illegal annexation of Crimea by Russia. We are also aware that the president-elect of the United States is very close to Vladimir Putin and might not characterize it as illegal annexation.

Does the current government have any analysis of how Canada's policy toward Ukraine may be affected by a very Putin-friendly president of the United States?

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Mr. Speaker, I thank the hon. member for the great question, a geopolitical question.

What I believe is that through Bill C-31, we would be strengthening our ties. We have strong cultural ties, but we can strengthen our economic ties and let Ukraine know that we have a mutual bond, that we work together, maybe by helping in training. I know that we have had some of our servicemen and servicewomen out there helping Ukraine. With our ties with Europe with CETA, and with CUFTA, it would give Ukraine more leverage and put it in a stronger position to stop what is going on with the annexation of Crimea. We have to do our part. We have to show it not only through our voices but economically, which would only strengthen its position.

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

Mr. Speaker, today is a wonderful day in the sense that we are debating a free trade agreement with Ukraine. Both economies will benefit. We have identified the cultural connections. It has not been lost on the government. This is an important step, but it also important for us to note that there are still sanctions being put in place. Just a month or so ago, we saw additional sanctions against Russia as a direct result of what has happened over the last number of years.

It is important to recognize the valuable contributions of our Ukrainian community, which has built up many of the communities in which we now live.

I would ask my colleague to further expand on how this trade agreement is just one step in the ongoing good relationship between Canada and Ukraine.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Mr. Speaker, I want to thank my hon. colleague. I know the work he does and how Ukrainian Canadians have touched his community, as they have touched mine.

Right now we have pretty modest growth. With our diaspora of 1.3 million Canadian Ukrainians, our trade right now is less than $300 million a year. The potential is huge. It would not only strengthen those cultural ties but would help both our middle classes. It would help the middle class in Canada grow and have opportunities through the many sectors in which we could trade with Ukraine and the many products and services we could acquire from Ukraine.

This is a tremendous opportunity, one that I think has for too long been lost by Canada not tapping into those diaspora communities. I have to say that Ukrainians must be one of our largest diaspora communities, at 1.3 million people.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, “Canada is a friend, indeed”. Those five words, spoken by Ukrainian President Petro Poroshenko, state a very simple truth. When one thinks of the many kinds of relationships two countries can have, such as enemies, allies, partners, and competitors, none of these words touch as far or as deeply as being described as a friend. However, can countries be friends? That is a great question and one I hope members of this chamber will let me answer.

Before I go down this path any further, I would like to inform you, Mr. Speaker, that I will be sharing my time with my friend from Yellowhead.

One of my favourite authors and speakers, in defining the very term friend, remarked that a friend is a person who will come and get us. He remarked that if he ever found himself locked up in a foreign jail and unduly accused, a true friend would, despite the obstacles and accusations, come and get him and take him home. Despite all the relationships he had built and acquired over a lifetime of business and philanthropic activities, filled with hundreds of acquaintances, partners, co-chairs, and colleagues, only one, perhaps two, would meet the standard of what it would be to be a friend. Sure, many would sympathize and say, “I totally understand your situation, and I wish there was something I could do. Please let me know when you get back stateside”. Ultimately, only a friend would come and get him, no questions asked, no matter what.

Friends will come and get us, no matter what. Friends are the ones who stand at our side during our most difficult times. They will also be there when we need to hear something, even if we do not like hearing it, and especially if we do not like hearing it.

We all know the challenges the Ukrainian people have faced and continue to face right now. Many of us were in this very chamber in September 2014 and heard the very dark assessment given by President Poroshenko that Ukrainian freedoms were being paid for in Ukrainian blood and that it was important for countries like Canada, nay, friends like Canada, to stand fast.

There is no way for Canada to simply come and get Ukraine, nor is there any way to change its geographic locale, which is of such strategic concern that Russia, whether we are speaking of the former Russian Empire, the later Soviet Union, or its current incarnation and administration, simply refuses to leave it alone. However, there are things we can do.

When Russia invaded Crimea, Canada was certainly outspoken, and this was epitomized by the former prime minister, upon shaking the hand of Vladimir Putin, telling him clearly, “get out of Ukraine”. The previous government promised and delivered monetary support, non-lethal defensive equipment, and satellite imaging for intelligence support. While I wish to say that all these efforts and more continue, alas, citing budgetary reasons, the current government has cancelled its satellite imaging. That is regretful and something I hope the government will reconsider.

I realize that some members will cite the continuing efforts to apply economic sanctions, and that is good. I encourage the government to do all it can on this front. I would also like to encourage the Liberals not to dismiss the good work of my colleague, the MP for Selkirk—Interlake—Eastman, with his Bill C-267, the justice for victims of corrupt foreign officials act.

With all of that said, I would like to now direct my comments to Bill C-31, an act to implement the free trade agreement between Canada and Ukraine. As we have said, Ukraine has many challenges: invasion; corruption; its fiscal and financial development; and meeting the needs and expectations of its people, who have clearly said, through marches, protests, and ultimately at the ballot box, that its future is to be an open, free economy and society, much like Canada is today.

The challenges are large. Let me read from an international monetary analyst, Mr. Benn Steil:

In April 2013, Ukraine was sporting a massive current account deficit of eight percent, and it badly needed dollars to pay for vital imports. Yet on April 10, President Viktor Yanukovych’s government rejected terms set by the International Monetary Fund (IMF) for a $15 billion financial assistance package, choosing instead to continue financing the gap between its domestic production and its much higher consumption by borrowing dollars privately from abroad. So a week later, Kiev issued a ten-year, $1.25 billion eurobond, which cash-flush foreign investors gobbled up at a 7.5 percent yield.

Everything seemed to be going swimmingly, until May 22, when the U.S. Federal Reserve’s then chair, Ben Bernanke, suggested that the Fed might, if the U.S. economy continued improving, soon begin to pare back, or “taper,” its monthly purchases of U.S. Treasury and mortgage-backed securities. The Fed had begun the purchases the previous September in order to push down long-term interest rates and encourage private lending; their end would mean higher yields on longer-maturity U.S. bonds, making developing markets decidedly less attractive. Investors in Ukrainian bonds therefore reacted savagely to the taper talk, dumping them and sending their yields soaring to near 11 percent, a level at which they would remain for most of the rest of the year.

Ukraine’s financial problems had been mounting over many years, but it was the mere prospect of the Fed pumping fewer new dollars into the market each month that pushed the cost of rolling over its debt—that is, paying off old obligations with new bonds—beyond Kiev’s capacity to pay. Had the Fed stayed dovish, Ukraine could have at least delayed its financial crisis, and a crisis delayed can be a crisis averted. Yanukovych ultimately turned for help to Moscow, which successfully demanded that he abandon an association agreement with the European Union in return. Ukrainians took to the streets—and the rest is history.

Like many countries, it can be difficult to exist in a global market where investment can disappear overnight. The only protection is a thriving economy where domestic industries can build competitive advantage and compete internationally. Forming stronger, long-term, and diversified trade will create jobs and a more sustainable tax base that will help Ukraine.

Whatever members have heard, and despite what the NDP likes to say, Canada knows very well the benefits of trade. I mentioned the importance of the stabilizing effect trade can have on an economy when it expands trade. I mentioned an expanded tax base. When a country has a stable tax base, there are more resources for citizens for health care, schools, important productive infrastructure, such as a new bridge or airport, and quality-of-life infrastructure, such as advanced waste water management or water treatment. It also allows for institutions of the state, like tax collection and a well-resourced legal framework with authorities, that can help tackle institutional corruption and make them more inclusive.

More inclusive institutions are better equipped to help receive and share information with the public through access to information and better public monitoring of elected and other public officials. This creates a more open and productive society, and Canada can help by sharing its experiences.

It is also important for us to see that we have a way to go when it comes to transparency and making sure that corruption is stamped out. One only has to see the damage to the institutions of government, and not just to the Liberal Party's brand, when Canadians can plainly see either preferential access to elected decision-makers or perceived preferential access with cash for access fundraisers.

Let us celebrate our way of life here in Canada, but let us not be blind to our own conduct as we encourage institutional development internationally in countries that seek a path similar to Canada's.

I return to the words of President Poroshenko: “Canada is a friend, indeed”. There is much to support in Bill C-31. There is much promised and made good by the previous government, and to some extent, the current Liberal government as well. However, like a friendship, it never ends until we part ways personally or through death. I would suggest, in answering the question of whether countries can be friends, that yes, they can be. However, until we see the Ukrainian people through these dark days, stand firm with them, share with them our concerns, and help them through this trying time, only then can we say, in response to President Poroshenko, “Canada is a friend in deed”.

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

Mr. Speaker, I appreciate the comments by the member and especially that he cited what the President of Ukraine had to say on the floor of this illustrious chamber, where he asked parliamentarians to move ahead and try to get the free trade agreement. That is what we are doing here today.

It is encouraging. We have Conservatives, New Democrats, and the Green Party onside and recognizing the value of having a free trade agreement with Ukraine.

Would the member not agree that there are many economic benefits for both Canada and Ukraine and that we cannot underestimate the importance of our Canadian-Ukrainian heritage groups, and even those outside those groups, and their desire to advance goodwill and build a stronger, healthier relationship with Ukraine?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I do hope the member heard my speech, because I think I said many of the very same things. However, I do take the point that there are many Canadians of Ukrainian heritage who would want Canada to live up to Mr. Poroshenko's words.

Again, Canada is a friend indeed, but a friend stands fast when times are tough. A friend tells one what sometimes one does not want to hear but needs to hear. A friend stands with one despite everyone else leaving.

I think for Ukrainian Canadians and those Canadians of Ukrainian heritage, this is the kind of action they want from the current government. They got it from the last government, and I hope the current government is listening.

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

Mr. Speaker, I am pleased that the hon. member again raised the issue of the satellite data from RADARSAT-2 and the cancellation, because it gives me a chance to follow up on the response when I last put the question to the hon. member for Sherwood Park—Fort Saskatchewan.

I have found confirmation, in coverage by the media, of the fact that there were concerns, both operational and contractual, within the Department of National Defence. The information I have is that both the minister of defence in the Harper cabinet and the minister of foreign affairs, as it was then called, objected internally, but the prime minister went ahead.

The evidence that I have from media coverage confirms that it was not just budgetary concerns but operational concerns. Members can find this information in a National Post story, which was headlined, “Red tape forces Canada to stop providing Ukraine’s military with satellite imagery...”.

However, that red tape, when we read the story, is not red tape in the bureaucratic sense, but operational concerns, including from MDA, including the Department of National Defence, which is the reason it was opposed internally to begin with.

I would ask the hon. member to reflect on that. It certainly was not budgetary concerns, but operational concerns, including those of the Canadian military.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I thank the member for her contribution to this place and for raising a number of concerns.

Again, budgetary was named in a number of different sources, and the member has cited a few other ones. I do not necessarily disagree that there might be some operational and contractual issues.

However, I will always go back to this: Leadership means making decisions and making them for the betterment of all. It may cause some concerns operationally, it may cause some concerns financially, but as it has been said many times, we only need one reason to do the right thing, and it is that it is the right thing to do.

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

Mr. Speaker, in response, the concerns are not just whether it is a matter of political will, and on that I agree with the member that we could push through obstacles. However, here is what I understand operationally.

The satellite imagery had to be read by Canadian defence staff and then transferred over to Ukraine, and there was a timeline. As far as I understand from the access to information materials that were obtained by the National Post, because of that lag, Ukraine responded by asking that an operational RADARSAT receiver be put inside Ukraine. However, if we were to do that, and it were to be taken out by a conflict on the ground, we could then lose access to all the RADARSAT-2 data that Canada needs for domestic purposes. Therefore, it was a nationally strategic concern that stopped sending that satellite data and not pressure from Russia.

I do not know if that changes my friend's opinion of the decision.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, again, I do appreciate that there are a number of concerns when someone is taking a decision. Again, there was a point in time where we offered that service to support Ukrainians in their time of need, and it was cut off.

Now it may not have been ideal for a department, it may not have been ideal for the Ukrainians, but it was supportive of them, and it was something that Canada could, and I argue, should do.

[Jim Eglinski, Conservative, Yellowhead, AB]

Mr. Speaker, I am pleased to rise to speak to Bill C-31, the Canada-Ukraine free trade agreement implementation act.

Our Conservative Party supports Bill C-31, as do most parties in this House.

CUFTA was successfully negotiated and concluded on July 14, 2015, by our previous Conservative government. As the Right Honourable Stephen Harper stated, “The Ukrainian people want a western future, a future of prosperity.”

I look back to this summer when we had a number of Ukrainian interns on the Hill working for many members of Parliament from all different sides of the House. We could see in their eyes and in their souls that they were looking for a future for their country. They were here to learn about democracy from us. They came to our offices and we shared stories and developed a trust and respect between the members of Parliament and these interns. My intern Mariia was an inspiration and the model of a young Ukrainian youth looking to the future. I was so proud of them. I met with the whole group of 30-something one night and bought them pizza. We sat and had pizza, pop, and maybe the odd beer. We had great discussions and developed relationships. It made me so proud of my heritage. I am from Ukraine. My grandparents are Ukrainian on both sides. I am wearing a Ukrainian tie today. I see that some of my colleagues across the floor are wearing Ukrainian dress. I appreciate and thank them for that.

CUFTA is consistent with the previous Conservative government's economic action plan 2015, which committed to jobs, growth, and long-term prosperity. This bill supports the Conservative Party's pro-trade plan, which aims to diversify trade and enable companies to benefit from new opportunities.

Once in force, this agreement would eliminate 99.9% of the tariffs on current imports from the Ukraine to Canada, and 86% of Ukrainian tariffs on Canadian products, including such things as industrial goods, wood products, and fish and seafood products. This would benefit both Canadian and Ukrainian exporters and consumers.

Between 2011 and 2013, my part of the country, western Canada, on average exported about $80 million annually to Ukraine. Some of the top exports from western Canada included frozen hake, bituminous coal, reservoir tanks and similar containers, parts of boring or sinking machines for drilling, air compressors and other similar equipment, seeders and planters, and that which I think is most important, frozen pork. Why do I think frozen pork is so important? It is a staple food that Ukrainians like. I grew up with pork, probably more so than beef. On any given day, if you offer me a steak or a barbecued pork chop, I will leave the steak and take the pork. I see my heritage must still be with me.

Upon entry into force of the agreement, Ukraine will immediately eliminate tariffs on 75% of the tariff lines for industrial products, with a further 24.8% to become duty-free over seven years, making it 100% duty free in seven years.

According to Canadian government officials, the total back-and-forth trade between Canada and Ukraine averaged $350 million between 2011 and 2013, and slowed drastically during 2014, as Ukraine was dealing with a political upheaval and armed conflict in southern and eastern parts of the country.

The provisions of the agreement on free trade between Ukraine and Canada provide the deepening of trade and economic co-operation, including trade in industrial and agricultural goods, intellectual property protection, and regulation of public procurement.

The free trade agreement does not impact Canada's ability to maintain its existing supply management policy, as Canadian over-quota tariffs for supply management goods, being dairy, poultry and eggs, are excluded from the tariff concessions.

Total bilateral merchandise trade between Canada and the Ukraine averaged $289 million between 2011 and 2015. In 2015, it expanded by almost 20% as a result of the implementation of this trade.

Canada's GDP will increase by $29.2 million under CUFTA and the Ukraine's GDP will expand by $18.6 million.

As a result of this agreement, Canada's exports to the Ukraine will increase by $41.2 million. Canada's export gains will be broad-based, with exports of pork, machinery and equipment, transport equipment, other manufactured products, motor vehicles, parts, as well as chemical products leading the way.

The Ukrainian market offers many opportunities for Canadians, Canadian businesses, and investors in areas such as aerospace, agricultural equipment, information and communication technology, agriculture and agrifood, fish and seafood, and mining equipment.

The agriculture and agrifood sector employed over 530,000 people in 2014 in Canada and accounted for close to 3% of Canada's GDP. Canada is the world's fifth largest exporter of agriculture and agrifood products. Our agriculture exports to the Ukraine averaged almost $30 million between 2011 and 2013 each year.

The majority of Ukrainians who came to Canada in the late 1800s and early 1900s settled in western Canada and became farmers. They farmed the area and opened up the land. They homesteaded. It was not only Ukrainians. Germans, Italians, Dutch, and many others helped to open up Canada and make it such a prosperous agricultural nation.

Today, there are approximately 1.3 million Ukrainian descendants, the second largest population of Ukrainians in the world other than Ukraine itself. Many members said in the House that we would need to be friends but we are almost closer than friends in a lot of cases. We are family. When we talk about 1.3 million Canadians with ties to the Ukraine, we are talking families.

In 2015 alone, bilateral trade between Canada and Ukraine increased 14%. That shows that we have been growing every year since this agreement was first looked at.

Canadian exports include pharmaceuticals, fish and seafood, and coking coal. It is important to know that we both export and import coal.

It is also important to note that the Canada-Ukraine free trade agreement will generate opportunities for Canadians and Ukrainians. It will create new job opportunities. Ukrainian immigrants came here to prosper and open up this great land of ours. Now more than ever it is time for Canadians to help Ukraine prosper and grow.

I remember many times hearing my grandfather talk about what it was like in the Ukraine and why he left. He left because there was no chance to succeed. He heard there were opportunities in Canada and he came here. I am proud to say that from the descendants of my great-grandparents there are close to 1,000 of us from two people. That says a lot in just a little over a century.

We had great opportunities. The Ukraine has struggled over the last few years but it is on the right road to democracy. It is looking for our help in trade and we must help. Young Ukrainian entrepreneurs working with young Canadian entrepreneurs can grow each other's economies.

Our Conservative Party supports Bill C-31, the Canada-Ukraine free trade agreement implementation act, that was successfully negotiated by the previous government and supported by the current government and most members of the House.

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

Mr. Speaker, the Canada-Ukraine free trade agreement appears to have the support of all political parties in the House. We have yet to hear from the Bloc but I anticipate that the two members will hopefully support what is a great agreement.

My question to the member relates to the importance of trade to our country. Economically, Canada's middle class benefits immensely when we have trade. Canada is a trading nation and will benefit economically from this trade agreement.

Could the member provide some additional comments with respect to the benefits of enhancing Canada's special relationship with the Ukraine that goes beyond economics between two great nations?

[Jim Eglinski, Conservative, Yellowhead, AB]

Mr. Speaker, this goes so much further than the trade agreement we sign here. I spoke earlier about our House having Ukrainian interns working with members of Parliament from all parties. They came here to learn about democracy and the best way they could become future leaders for their country. In speaking with many of them, I learned that not only had they come to Canada, but that some had been to the United States, England, and France as well. There is a general sense that they want to learn, and we must give them that opportunity. The Canadian parliamentary intern program with Ukraine is one that our government should support and I would like to see it supported financially because it needs help.

[Wayne Stetski, NDP, Kootenay—Columbia, BC]

Mr. Speaker, my grandfather and grandmother on my father's side, the Heshka and Stetski clan, all settled around Yorkton, Saskatchewan, and we still go back every five years for a family reunion. There is nothing better than a feast of petahe, holubsti, and kielbasa.

The NDP will be supporting the bill. It is a very important increase in the positive relationship between Ukraine and Canada and a much better bill than CETA in many aspects. Because of the importance of the relationship between Canada and Ukraine, does the member think that the Liberal government could be doing even more?

[Jim Eglinski, Conservative, Yellowhead, AB]

Mr. Speaker, government could always do more. Exactly what we need to focus on is assisting Ukraine in times of need. People there are being threatened by the Putin regime and I believe our military support must remain. Maybe we need to increase some of the support for training, etc., that we give the military. I believe government can always do better and we must look at ways of doing better.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, my colleague from Yellowhead has been a wonderful addition to the House over the last couple of years and it is always wonderful to hear those personal experiences. Some of the decisions we make in the House do have an impact, not only in our communities but also on our family histories. I really appreciated my colleague's remarks about the parliamentary internship program and what an impact it has had.

When the president of Ukraine was here a few years ago talking about how important the Canada-Ukraine relationship was and looking for support, was that shared among the younger people whom the member had the opportunity to work with? Could he talk about the impact that the Canada-Ukraine relationship and this trade agreement will have on the next generation of Ukrainian people moving forward?

[Jim Eglinski, Conservative, Yellowhead, AB]

Mr. Speaker, we had our discussions the night that we sat and had some pizza and the odd beer. They were afraid that the funding for their country was drying up and were hoping that Canada would support and continue its program of support, because they found it so beneficial to the development of their future. My colleagues on all sides of the House who belong to the Canada-Ukraine Parliamentary Friendship Group feel it is very important that government supports the group with funding.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I will be splitting my time with my esteemed colleague from the beautiful Lac-Saint-Louis.

I am thankful for the opportunity to speak today on the topic of the Canada-Ukraine free trade agreement and the benefits it would provide to Canadians and Ukrainians. I am proud to speak in support of this free trade agreement on behalf of the riding of Davenport.

In my riding of Davenport, believe it or not, there used to be a fairly significant Ukrainian community centred around the Ukrainian school and two churches. Most of the Ukrainians have now moved away to Etobicoke or Mississauga, but the churches, the school, and the memories still remain. The school was called Saint Josaphat's. I used to attend it in grade school, but, sadly, it is now closed. My father was Ukrainian, which is where I got the name Dzerowicz, and my mother is Mexican. I feel very blessed and lucky to live in a country where I can be both a proud Mexican Canadian and a proud Ukrainian Canadian.

Today, I stand in my Ukrainian shirt as a proud Ukrainian Canadian to talk about something I am so excited about, the Canada-Ukraine free trade agreement. It is a blessing for me to be able to strongly support this agreement. I believe that strong economic ties will be mutually beneficial for both countries, as well as in so many other ways, including helping Ukraine continue to strengthen its financial systems, develop its economy, strengthen its civil society, and combat things like corruption that have plagued Ukrainian society for far too long.

What is the Canada-Ukraine free trade agreement? It is a modern, high-standard agreement that includes chapters in a breadth of areas, including trade facilitation, government procurement, intellectual property, competition policy, transparency, and anti-corruption. Once fully implemented, this agreement would not only support Canadian and Ukrainian businesses through preferential market access but also deepen trade linkages, further strengthen Canada's bilateral relationship with Ukraine, enhance co-operation, provide for increased transparency in regulatory matters, and help reduce transaction costs for businesses.

As in all of Canada's free trade agreements, the cornerstone of the Canada-Ukraine free trade agreement is new and enhanced market access for Canadian-produced and manufactured goods. Once the agreement is fully implemented, 99.9% of Canada's current exports will be eligible to enter Ukraine duty free. This would make Canadian goods more competitive in the Ukrainian market. Importantly, it would put our exporters on a level footing with European companies who are already benefiting from the EU's free trade agreement with Ukraine, and lead to new opportunities for Canadian business. It would also put Canadian exporters at a decided advantage relative to most of the rest of the world, which is not lucky enough to have an free trade agreement with Ukraine.

Let me elaborate on this point a little further. On the first day the Canada-Ukraine free trade agreement enters into force, Ukraine would eliminate tariffs on approximately 86% of current Canadian exports to Ukraine. This means that Canadian exporters will see a huge immediate benefit from this agreement. The balance of Ukraine's tariff reductions and eliminations would be phased in over periods of up to seven years.

Speaking of specific products that would benefit, the Canada-Ukraine free trade agreement would eliminate tariffs on all industrial products and the vast majority of agricultural exports to Ukraine. For example, Ukraine would eliminate tariffs on industrial machinery, which currently faces tariffs of up to 10%, as well as plastic articles and cosmetics, which currently face tariffs of up 6.5%. In terms of agriculture, this agreement would eliminate tariffs of up to 20% on fish and seafood products, including on caviar substitutes, which would be duty free on the first day the Canada-Ukraine free trade agreement enters into force.

Alongside Canada's fish, seafood, and industrial goods producers, Canada's leading agricultural producers would also benefit from the Canada-Ukraine free trade agreement. I do not have time to go into all of the examples in all of the agricultural areas that would benefit from this agreement, but once this agreement is fully implemented, tariffs of up to 30% on key Canadian agricultural goods would be eliminated. This would provide Canadian agricultural producers with the same market access opportunities as their European counterparts, and be an advantage over most other competitors.

I have spoken at length about the goods market access benefits of the Canada-Ukraine free trade agreement, so let me now turn to other ways that the agreement would help Ukraine. Not only would it help its economy tackle some of the issues that it has been trying to reform, such as corruption, but it would also help it to build its economy and financial sector, with a huge emphasis on small and medium-sized businesses.

Canada has taken a comprehensive approach to economic assistance that supports the stabilization, reform, and growth of the Ukrainian economy. Since January 2014, Canada has committed over $543 million in additional assistance in support of stabilization, reform, and growth. This includes $400 million in the form of a low-interest loan to help stabilise Ukraine’s economy during the implementation of the democratic and economic reforms. It also includes $143 million in bilateral development assistance to support economic reform and economic growth in Ukraine.

Backed by the private sector, our support for economic reform aims to promote more inclusive growth, investment, and job creation in order to reduce poverty. Our support for economic growth aims to bolster local economic development and make small and medium-sized enterprises, or SMEs, more competitive.

Canada sent more than 65 experts to provide specific expertise in the short term and sectorial support in the long term in crucial areas such as: fighting corruption by hiring and training lawyers at the national anti-corruption bureau; assisting in restructuring the finance minister's office; and assisting in trade by supporting the design and implementation of an export development office.

Canada's assistance is consistent with Canadian objectives for the free trade agreement with Ukraine, namely fostering economic opportunity, both in Ukraine and in Canada, and raising the standard of living for our citizens.

As demonstrated around the world, trade is often a key driver of economic development and helps all trade partners generate absolute gains. Canada is committed to providing practical assistance to help Ukraine benefit from this free trade agreement with Canada. This initiative aims to strengthen the ability of Ukrainian SMEs, especially SMEs owned and operated by women, to export and attract Canadian investments.

Small businesses have made a huge contribution to job creation and economic growth in Ukraine. They are able to adapt quickly to changing economic conditions, including for example new business opportunities with Canada. Increasing their participation in trade, their ability to attract foreign investments and comply with international standards, and their productivity will help foster inclusive and sustainable economic growth in that country.

We are confident that the Canada-Ukraine trade and investment support project will provide the technical assistance needed by the selected SMEs to comply with global standards and better take advantage of the opportunities offered by the Canada-Ukraine free trade agreement, which will benefit consumers and businesses in Canada and Ukraine.

Investment and competitiveness lead to economic growth, and equitable and sustainable economic growth allow Ukrainians and Canadians to take advantage of the benefits of trade and a strengthened bilateral relationship between the two countries.

I strongly encourage every member of the House to support Bill C-31 as well as the ratification of the Canada-Ukraine free trade agreement when the time comes.

I urge all hon. members to support the swift passage of Bill C-31, which will allow the government to move forward with the implementation of the Canada-Ukraine free trade agreement and allow Canadians to start benefiting from this agreement.

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

Mr. Speaker, I wonder if the Liberals are trading the same vyshyvanka among different members or if there are multiple ones.

I would ask the member about the discussion we have had throughout the day on satellite images and sharing them with the Ukrainian military. We all agree about the importance of Canada's strong relationship with Ukraine. Unfortunately, under the government, a decision was made to stop providing those important satellite images that the Ukrainian military was using in its fight against Russian-backed terrorists in Ukraine.

I want to try to understand why the government did that, and if the member thinks it would be a good idea to start providing this kind of support to the Ukrainian military again.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, this vyshyvanka came right from Ukraine. It is mine and has not been traded with anyone. I cannot be a proud Ukrainian Canadian without owning my own vyshyvanka. I am very proud to have it.

On the member's question, trade agreements more than just mutually benefit our respective economies. They are also about forming stronger relations in a number of different areas, such as security, defence policy, and other foreign affairs issues. It is working together in a number of different ways.

From the time we were elected and came into office just over a year ago today, our government has stood very firmly in support of Ukraine. We have provided assistance in a number of ways, not only helping to support its economy, and this free trade agreement is one example, but also doing everything we can to support it on the ground, helping to build its forces and a stronger democracy.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for her speech. I would like to mention to her that the NDP will be supporting this bill. I hope she will be pleased.

I would also like to ask her whether the government is doing anything to foster trade. Having as many free trade agreements as possible is a good thing. However, our businesses sometimes face technological or technical barriers that may limit their ability to export.

Is the government being proactive and investing in exporting to ensure that it is easier for our businesses to export and to do business around the world? That is the role of free trade agreements, but there are other barriers to exporting besides tariffs and taxes.

Is the government also working on supporting exporting and trade in order to help our businesses export their goods around the world?

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I am delighted to hear the NDP will be supporting the bill.

I began my speech by saying that this agreement was more than just promoting freer trade and eliminating tariffs. I also said that it would include a number of elements that would talk about trade facilitation, competition policy, intellectual property, and government procurement. There are a lot of regulatory changes in there.

We are a free-trading nation, and our government has been very active in supporting that value and belief. We also engage with a number of key stakeholders to ensure our companies continue to have freer trade around the world. A number of key stakeholders are supportive of this agreement, such as the Canadian Chamber of Commerce, The Conference Board of Canada, the Business Council of Canada, and the Canadian Manufacturers & Exporters. We engage with them all the time to ensure that beyond even this trade agreement, we continue to help our companies become competitive internationally.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, I am happy to have the opportunity to speak today on the topic of Canada's progressive approach to trade.

Globally, there are trends of growing populist backlash against international trade and globalization more broadly, while at the same time increasing protectionism. In addition to what we have seen in recent months from political campaigns in the U.S. or the Brexit referendum result in the UK, the World Trade Organization and other international institutions published a report in November that noted that G20 economies introduced 85 new trade-restrictive measures between mid-May and mid-October 2016.

At an average of 17 new measures a month, this is a slight decline over the average of the previous review period. However, this number remains high and coupled with the slow rollback of existing trade-restrictive measures means that we are seeing a steady accumulation of such measures.

This growing protectionism is an issue of global concern, and it is especially problematic for a trade-dependent country such as Canada. Canada is a medium-sized economy competing in the global marketplace. As such, free and open trade is integral to our economic success.

The Government of Canada is determined to ensure that Canada is well-positioned to take advantage of the opportunities of international trade that are so important for Canada's continued economic prosperity. Implementing the Canada-Ukraine free trade agreement is an important step in that regard, because free trade agreements, or FTAs, are important tools to access the benefits of trade. FTAs provide transparent and predictable rules for Canadian companies doing business abroad, and ways to deal with problems when they arise. They create and maintain level playing fields in foreign markets, and they reduce or eliminate tariffs or other barriers.

While trade is crucial to the Canadian economy, however, it is also important to Canada and Canadians that trade is inclusive and is not conducted at the expense of important values. That is why the Minister of International Trade is working with Canadian and international partners on the development of a progressive approach to trade to address the concerns of citizens and organizations regarding trade and globalization more generally.

Trade, immigration, and international openness are more and more commonly identified as the cause of economic hardships and inequality. Globally, people are feeling powerless and anxious in the face of unceasing change. The issues are not just about trade. Globalization and the technology revolution have created wealth and opportunities for many, but parts of the middle class and those working hard to join it feel they are falling behind.

These apprehensions are not entirely unfounded. For example, Credit Suisse found that the top 1% of wealth holders owned just over half of the world's wealth; the bottom 50% combined owned less than the top 1%. Furthermore, 71% of world's adult population has a net worth of less than U.S. $10,000.

Our government believes we cannot turn back the clock on globalization and that we should not turn our backs on trade. Increased trade can actually raise living standards, create more jobs, increase prosperity and help to strengthen the middle class, when it is done with the right overall objectives in mind. If Canada and other countries start closing borders, we will find ourselves in a less prosperous and more insular, fearful world.

This is one of the reasons that our government is pursuing a progressive approach to trade in collaboration with our like-minded partners around the world.

A progressive approach to trade seeks to advance higher standards of living and foster sustainable and inclusive economic growth. It includes an emphasis on transparent and inclusive approaches whereby the government is committed to a consultative process on international trade that allows all segments of our society to contribute and be heard. It also ensures government can pursue broad, societal objectives without facing obstacles imposed by trade agreements. The government firmly believes that governments should defend the best interests of their citizens, particularly the most vulnerable.

In addition, a progressive approach to trade also ensures government's continued right to regulate for strong rules on food safety and consumer protection, in addition to world-class, publicly funded health care and other public services. This approach will more effectively promote labour rights and result in stronger environmental protection. It will also include a more progressive approach to investment dispute resolution that is widely recognized as fair, open and impartial, including exploring the establishment of a multilateral approach.

The government is still in the early stages of developing this new progressive approach to trade, but we can already see some real results. This includes advancing the Canada-European Union comprehensive and economic trade agreement, CETA, toward ratification and implementation, on which the Minister of International Trade has worked tirelessly with her EU and member states counterparts. These results also include the work before us in the House today to implement and help bring into force Bill C-31 to implement the Canada-Ukraine free trade agreement.

The Canada-Ukraine free trade agreement is a modern, high-standard agreement that once fully implemented will provide new opportunities for Canadian businesses, deepen trade linkages, provide for increased transparency in regulatory matters and help reduce transaction costs for businesses.

This agreement will provide Canadian companies preferential market access for exports of goods, as well as preferential access to procurement opportunities in Ukraine at the central level. It also includes commitments on non-tariff measures that will help to ensure that market access gains are not undermined by unjustified trade barriers; trade facilitation designed to reduce red tape at the border; and protection and enforcement of intellectual property rights, which will allow Canadian IP right-holders to do business in the Ukrainian market with increased confidence.

The Canada-Ukraine FTA also includes provisions to address the needs of 21st century economies. An electronic commerce chapter obliges both Canada and Ukraine to not levy customs duties or other charges on digital products that are transmitted electronically, for example. In addition, the Canada-Ukraine FTA incorporates several key progressive trade elements to help ensure the economic gains are not achieved at the expense of important Canadian values and priorities.

The agreement contains robust provisions in the areas of labour, environment, transparency and anti-corruption, as well as protections for the government's right to regulate in the public interest. It also supports our foreign policy objectives by strengthening Ukraine's commercial ties to western nations and supporting Ukraine's economic reform efforts. This will complement the support we have committed through bilateral assistance and low interest loans to help Ukraine stabilize its economy.

I support the Canada-Ukraine free trade agreement and all the benefits it would bring to Canadians and Ukrainians. I urge all hon. members to support the bill. I heard in the House this morning that all major parties seemed to support it, which is good news for both Canada and Ukraine.

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

Mr. Speaker, it is important that all major parties agree about the importance of passing this trade deal and a deeper economic integration between Canada and Ukraine.

In my speech earlier, I mentioned a number of areas where I thought Canada could do more to help Ukraine. One is to support the Magnitsky Act and do more for human rights inside of Russia. Another is to return to a policy we had under the previous government of providing satellite images to support the Ukrainian military.

Does the member agree that the government can and should be doing more to support Ukraine, and what he thinks of those specific proposals?