Debates of Dec. 7th, 2016

Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, there are many concerns over CETA.

Let us focus on agriculture alone, something my colleague is familiar with. Many dairy farmers have been voicing their concerns from the start. The losses to the dairy sector will be monumental.

The Liberals agreed to provide compensation, but it does not even cover the $116 million in annual losses the dairy farmers are currently reporting. The compensation provided by the Liberals is not really a compensation. That money is meant to be invested in very costly modernization. Very few family farms can afford that kind of modernization. In fact, they need investments to compensate for their losses.

What are the Liberals going to do to provide the dairy farmers with better support than this compensation that is contingent on modernization?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Madam Speaker, I am proud of the money that was put on the table by our agriculture minister for our dairy farmers and the industry. The money is not just for the farmers but is also for the industry to help it adapt and grow.

If Canadians like some of the products that are going to come in from Europe, our dairy farmers and processors in Canada are going to step up to the plate and have similar products.

There is going to be an adjustment period, but we have the money available for farmers and producers to help them adjust. There will be mutual benefits for both as we go down the road.

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

Madam Speaker, my hon. colleague spoke about financial compensation for farmers. However, 60% of Canada’s cheese production is from Quebec.

Why is it that under the financial compensation package we are not allocating 60% of the money to Quebec or based on the number of producers per province? Each province is given money on a population basis. About 23% of the financial compensation will be going to Quebec, even though it produces 60% of Canadian cheese.

When there was a problem in the auto sector, all the money was given to Ontario, because that is the province where the auto sector is. When there were problems in the fishery, we compensated people in eastern Canada, because that is where the fishery is. When the prairie provinces had a wheat problem, they were the ones who got the money.

Now Quebec is the one with the problem. Why is Quebec not receiving its fair share?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Madam Speaker, I am well aware of the Quebec dairy industry, and yes, most of the money will go to Quebec because of size and whatever.

Think about the wine industry, and how it developed with NAFTA. The money that was put in by the Canadian government helped it evolve, and look at it now. It has doubled in size. I see the same thing happening with our dairy industry. We are going to help it increase its production and provide better products, so I think we have a good thing going.

[TJ Harvey, Liberal, Tobique—Mactaquac, NB]

Madam Speaker, I am pleased to rise today on Bill C-30, one of our government's blueprints for Canada's dynamic agriculture and agrifood industry.

Agriculture is hugely important in my riding, and has played an enormous role in my life, having grown up on a large farm and having produced myself. After finishing university and coming home, I was farming on my own, learning life's lessons through the farm. I worked within primary agriculture off the farm, and in food manufacturing and food processing.

It has really helped me throughout the years to become the person I am. I would like to thank my parents for giving me that opportunity. Growing up in an agricultural household has played a significant role in my life.

I was a supply-managed egg producer for six years, up until just recently. My wife and I recently exited the egg business. Over the last six years, I have had the ability to learn about a supply-managed system and the challenges and opportunities that evolve because of it. It has afforded me the opportunity in my life to learn those lessons, and to see the opportunity that agriculture offers to allow family operations to transition from one generation to the next, not only within primary agriculture but also through secondary and finished production as well. We can link these easily to CETA.

Canada is a medium-sized open economy. Our economic prosperity depends on an open trading environment. One in five Canadian jobs depends on trade. Canada's agriculture and food exports exceed $60 billion a year. Half the value of Canada's agricultural production is exported, which is why our government strongly supports free trade.

The Canada-European trade agreement demonstrates Canada's continued leadership with regard to the opportunities for Canada's farmers and food processors on the global stage, which has been nothing short of breathtaking. I hope it continues in that same fashion.

I believe CETA will allow agricultural producers to flourish. According to the Food and Agriculture Organization of the United Nations, the global demand for food is projected to increase by 60% by 2050. Much of this demand will come from the growing middle class around the world, which is on track to exceed half the planet's entire population over the next 15 years.

A lot of this production is not going to come from new agricultural operations. It is going to come from the growth that will be sustained through the industry, through people who are able to innovate and accept technology, and grow their businesses through that. This is good news for farmers in my riding and across the country. There is no doubt of the benefits CETA will bring Canada's agriculture and agrifood industry.

We are talking about access to Europe, a region that is among the world's largest market for food. That is why timely implementation of CETA remains a top priority for our government. Since taking government, 99.991% of my constituents believe in the global economy, and our government's efforts to place Canada on the world stage. When we are talking about agriculture in my riding, we are not only talking about dairy. We have a vibrant dairy sector, but we also have a very vibrant beef sector. We also have a very vibrant maple syrup manufacturing sector, so we need to look at the total picture and include all the industries when we talk about trade.

CETA will provide a strong foundation for Canada and the EU to demonstrate leadership on an inclusive, progressive approach to global trade. At the same time, we know that some sectors of agriculture will be impacted by CETA, namely our dairy and cheese producers under the supply-managed system.

While CETA does offer enormous opportunity for many of our farmers, such as our maple producers, beef producers, and aquaculture industry, there will also be greater access for European cheeses to Canada. Canada has provided additional access to the EU on two specific dairy products, cheese and milk protein substances. New imports of European cheese under CETA will represent 4% of Canadian cheese consumption and 1.4% of milk production overall. The supply-managed system has been preserved under CETA.

The Government of Canada fully supports supply management. In fact, we were the government that created it. That is something of which we are extremely proud. Supply management provides a fair return for farmers, stability for processors, and safe, high quality food products for consumers, something I know is important to many farmers in my riding and to constituents across the country.

We recognize the importance Canada's supply-managed sectors play in ensuring a strong rural economy, accounting for over 25,000 direct jobs and over $34 billion in overall economic benefit to the country.

As my colleague, the hon. Minister of Agriculture, likes to say, Canada has the responsibility and the ability to feed the world. We need look no farther than the innovation that has already occurred within the agriculture sector, and the ability to capitalize on the innovation in the future.

Canada is the fifth largest exporter and the sixth largest importer of agriculture and agrifood products in the world. With our small population and huge production capacity, Canada is today's world leader in agricultural trade on a per capita basis. Trade accounts for one out of every five jobs in Canada. Canada's dairy industry alone generates farm gate sales of $6 billion, and processing sales of $17 billion, and 22,000 direct jobs.

The hon. Minister of Agriculture and Agri-Food and his colleagues continue to consult closely with Canada's supply-managed sector regarding the transition through CETA.

The Minister of Agriculture has met with the Dairy Farmers of Canada, the Dairy Processors Association of Canada, provincial dairy associations from across the country, and young dairy producers. These meetings were very productive with many ideas and fresh thinking. Discussions mainly focused on how to strengthen the sector in the face of domestic and international challenges, and how to transition assistance for new markets under CETA.

Responding to these concerns, the government is committed to putting in place a transition package to help the sector adapt to the new CETA commitments. This government has said from the get go that we need to help dairy producers and processors make the transition when it comes to CETA.

That is why in early November, the Minister of Agriculture announced an investment of $350 million for two new programs to support the competitiveness of the dairy sector in anticipation of the entry into CETA. The government is supporting the continued strength of the dairy sector by helping ensuring dairy producers and processors continue to innovate and improve productivity.

The two new programs identify $250 million over five years for a dairy farm investment program that will provide targeted contributions to help Canadian dairy farmers update farm technologies and systems, and improve productivity through upgrades to their equipment. I have had over two dozen calls from dairy farmers wanting to know the specifics of these programs, when they will take effect, and how they can access these funds.

There will be $100 million over four years for a dairy processing investment fund that will help dairy processors modernize their operations and in turn improve their efficiency and productivity, as well as diversify their products to pursue new market opportunities. These programs will complement the dairy sector's ongoing investment efforts, help in both current and future generations of dairy farmers and processors to remain profitable over the long-term under a strong supply-managed system.

With regard to the allocation of CETA cheese quotas, the government is currently reviewing the results of the public engagement process that concluded at the end of August. The Minister of International Trade's decision will take stakeholder views and interests into consideration before determining how to allocate the new CETA cheese quotas.

The allocation policy for the cheese tariff rate quotas will be finalized following the passage of CETA implementation, legislation, and before the agreement enters into force.

While there are challenges, the Canadian dairy sector remains a progressive, innovative industry. The Canadian dairy farmers are doing a great job of meeting the needs of consumers on food quality, animal welfare, the environment and, of course, great tastes and high nutritional value of Canadian products.

Consumers love Canadian dairy products. Production continues to grow every year. Butter consumption has risen by 10% over the last decade. Yogourt consumption has increased over 60% during the same period, and is expected to continue growing.

Canadian dairy farmers are among the global leaders in their industry when it comes to the environment. Canada's dairy sector has a smaller footprint for carbon, water, and land than most other leading dairy industries around the world.

Today, Canadian dairy farmers are able to produce 14% more milk than they used to 20 years ago, thanks to better genetics, nutrition, and farm management practices. They are able to accomplish this with 24% fewer cows while producing 20% fewer greenhouse gas emissions. That is thanks to advances in animal genetics and nutrition.

Forward-thinking Canadian farmers have contributed to the success of the Canadian dairy industry in many ways. Canadian dairy genetics are exported to over 80 countries around the world, and of course, who can forget our famous Canadian cheeses which are winning top prizes at some of the world's leading competitions.

We all want a bright future for Canada's dairy sector. The agricultural sector continues to create jobs and be a leader in innovation, not only within the dairy sector but across our agricultural industries.

To help build that future, we are investing in science—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member's time is up. Maybe the member will be able to finish his speech during questions and comments.

Questions and comments, the hon. member for Courtenay--Alberni.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, one thing my friend and colleague did not talk about much was that CETA will lead to increased costs of prescription drugs for Canadians.

In fact, Jim Keon, president of the Canadian Generic Pharmaceutical Association said:

A study prepared for the CGPA by two leading Canadian health economists in early 2011 estimated that, if adopted, the proposals would delay the introduction of new generic medicines in Canada by an average of three and a half years. The cost to pharmaceutical payers of this delay was estimated at $2.8 billion annually, based on generic prices in 2010.

When the Liberals were in opposition, they agreed with the NDP that greater analysis was needed, as well as compensation to the provinces.

Will the member opposite explain why the Liberals are comfortable signing-off on CETA without any further analysis of how these increased drug costs will impact the people in their riding?

[TJ Harvey, Liberal, Tobique—Mactaquac, NB]

Madam Speaker, I know the member is very passionate about the subject.

I know it is really hard for members opposite, especially directly across from me, to recognize the benefits of a trade agreement. This is an agreement that we have seen, and not only ourselves but I believe the members opposite farther up the row. They would agree, if we look at the overall, broad concept of the agreement, it is a 100% win for Canadian companies, not only within agriculture but across the board.

When the dust settles and the agreement is completely ratified, everybody in this House will be 100%, completely confident, that we have done our due diligence on this side of the House to ensure that we have signed-off on a very progressive trade agreement with one of the largest, fastest growing populations in the world, and that Canadian consumers and Canadian citizens are going to be able to see the benefits of this agreement for years to come.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, the member knows very well where the NDP stands with respect to the paltry compensation that the Liberals gave the dairy industry, particularly in Quebec.

Another affected agricultural industry seeking compensation from Canada is the vintners’ association. The European Union exports 180 million litres of wine to Canada, while Canada exports only 123,000 litres to the European Union. This openness has our wine producers fearing the worst.

In order to protect wine producers, are the Liberals planning to properly compensate this industry?

[TJ Harvey, Liberal, Tobique—Mactaquac, NB]

Madam Speaker, when we talk about the wine sector in Canada, it has actually flourished under an open market system in which free trade has abounded for a long period of time.

I respect the hon. member's opinions about the dairy sector. I come from a family, where my wife and her parents are dairy farmers. They are very excited about the opportunities that could come from CETA.

If we look at it from a progressive stance of being within the dairy industry, there are going to be challenges as we transition from where we are today to where we are going to go through this open, progressive agreement. However, there are also going to be major opportunities for Canadian business and, specifically, there will be major opportunities for Canada's cheese and milk producers. Not only that, there will also be amazing opportunities for Canada's wine producers.

We are a trading nation. We have openly said that. Canadians are well aware that, given our small population and large land base, we have to be a trading nation. That is something we have done quite progressively over the years. We have used our large land mass, and our ability to innovate and use new technology to grow our businesses in a progressive manner that allows us to be competitive, not only in Canada or North America but on a global scale.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, it is a pleasure to rise in the House today to talk about a very important trade agreement for Huron—Bruce, the riding I represent.

Huron—Bruce is a large rural riding in southwestern Ontario, and to the west of it is Lake Huron, which creates a unique opportunity for agriculture with regards to climate and precipitation. We are also blessed to have some of the most fertile soil in North America. Therefore, when we look at the opportunities for markets for our crops, which have tremendously high yields, this is a great opportunity for us and one that will continue to grow for many years.

Obviously, everyone in the House by now understands the size of the European market, with 500 million people and $17 trillion to $18 trillion in economic activity. CETA will have about a $1.5 billion impact on the agriculture industry here. It will reduce or eliminate 94% of the tariff lines for agriculture, which is an important point to note. We saw this with the Canada-Korea trade deal and other trade deals as well.

When these tariff lines are looked at in a broad spectrum, we may not think they are so bad with 10% here and maybe 14% there. However, some tariffs are quite punitive, with some at 114%. Our farmers cannot then be competitive when other countries have direct access. Therefore, eliminating 94% of the tariff lines for agriculture will be tremendously important. It will really give producers in my riding and across the country an opportunity to really grow this market and to be able to serve the 500 million consumers in the EU.

I consider Huron—Bruce the breadbasket of Canadian agriculture. Just to give members an idea of the size of it, the farm gate receipts of just that part of Bruce County I represent are more than those of all the Atlantic provinces combined. My two colleagues who preceded me talked about the huge opportunity for them in Atlantic Canada and how important it is for that economy, which puts into perspective just how significant it is for the riding I represent of Huron—Bruce.

Before I go into some of the details, I would like to talk about the quality of farm producers that we have in Huron—Bruce. As I said, we border Lake Huron, and we all appreciate the fresh water and the great opportunities it presents. However, the farmers in Huron—Bruce are innovative, aggressive, and they represent the environment. They take the environment into consideration in all they do, and they have great respect for it. Rivers, creeks, and streams flow into Lake Huron. Some of the farmers in Huron County were innovators over 30 years ago with no-till drilling, which has since been proven in terms of soil quality. There are many different workshops and collaborations between the conservation authorities and farm groups to make Huron—Bruce unique in terms of the yields farmers get and their respect for the environment and Lake Huron.

There are also some tremendously successful companies in Huron—Bruce, which will obviously be dealing with the European Union, and already do. I will mention a few of them.

Gay Lea in Teeswater just made a huge announcement a couple of weeks ago of a $60 million expansion at a time when a lot of jobs are leaving Ontario. It is a co-operative, which I think means a lot. It has hard-working men and women who come to work every day and do a great job.

Also in Teeswaster, we have the Dairy Goat Co-operative. This is a very innovative and relatively new organization, which has really grown.

We have some of the most productive greenhouses in Ontario, and likely in Canada, in Exeter, Ontario.

The Hensall District Co-Operative Inc., whose headquarters is out of Hensall, has grown across the province. It is one of the leading co-ops in North America and continues to innovate and work with farm producers, as well as machinery builders and manufacturers, to really allow the farmers to do what they like and need to do to maximize profits, such as P-N-H Innovations, Thomsons Ltd., Dupont Pioneer, Hayter's Turkey Products Inc., and many pork, beef, and cash crop farmers.

I would be remiss if I did not mention all of the companies in Huron—Bruce that build barns and provide cement foundations and footings. Everything from excavation to building can be done in my riding of Huron—Bruce, which is quite impressive.

I will also mention the farm machinery dealers. Often our farm machinery dealers are not mentioned, but I think they should be. Huron Tractor is a great example, as is Delta Power Equipment, McGavin Farm Equipment Ltd., Hyde Brothers Farm Equipment, and Robert's Farm Equipment, which are located up and down the shoreline. The farm machinery dealers are important because they provide great service and sales to our farm producers, so that when there is a breakdown at 2 a.m. when a farmer is harvesting his or her crop, they are there to make the repairs so the farmer can continue.

With respect to the beef sector, obviously there is beef grown in both Huron County and Bruce County. However, Bruce County is certainly one of the capitals of beef production in Canada. I know that the member for Bruce—Grey—Owen Sound is a former beef producer. There is 64,950 tonnes of Canadian beef there that will have full access to the EU market. It is a huge opportunity. Beef producers will have to make some changes to to really meet the demands of the European market, but over time it will be a great opportunity for farmers to take another look at that specialty market.

With respect to the pork sector, some of the most modern pork facilities in the world are located in Huron—Bruce, as well as some of the most innovative farmers we could meet. I have had a great opportunity through the years to meet with many of them to see how they have grown and innovated in their farm operations. The European pork market is, and was, really the last frontier for Canadian pork farmers. It represents a market of 80,000 tonnes without tariffs. The European Union pork market is a big market, and Canadian pork farmers are going to have a great opportunity. Two-thirds of the pork grown in Canada is exported around the world. This will be a great opportunity. Again, reducing and eliminating these tariffs is what will allow these farmers to finally break through and service these markets, which will have a meaningful impact. We know that across the spectrum, but specifically with respect to pork and beef, the genetics, the quality of our feed, the health and safety, and the treatment of animals is second to none in the world. We have a great Canadian agriculture story to tell, and our farm producers will be able to do that.

Another component I will mention, strictly from an Ontario basis, is access for barley, corn, oats, and soybeans. In Huron—Bruce, corn and soybeans are two of the three large staple crops. Most people would not believe how big the yields are in Huron—Bruce, but it is the climate and soil that contribute to that. Through the years, as this deal rolls out and producers and resellers are able to really get into Europe and meet the needs of all of those markets, it will be a huge opportunity.

I should also mention that in Goderich we have the deepest port on the eastern shores of Lake Huron. It allows a lot of grain and salt to be shipped, although salt is not something that we are talking about here. That port will be hugely important, as will be the rail lines that run in many different directions.

I look forward to any questions, as well as the continuing debate on CETA.

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

Madam Speaker, I was really encouraged by the member's comments, especially with regard to the pork industry. It is an industry that I have personally followed for the last number of years, and the assessment by the member is quite right that the industry as a whole stands to benefit a great deal.

When we talk about trade and the expansion potential of the pork industry, it is important to recognize that the ripple effect is quite tremendous. The Burns Meat Ltd. parking lot, for example, in Brandon is filled with vehicles. Those vehicles are bought in the community, as well as homes. The ripple effect is quite significant, and that is why trade and this agreement are so important.

On the whole issue of timing, would the member agree that it would be wonderful for a bill of this nature to pass before the end of the year, or does it really matter, from his perspective, when the bill passes?

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, we can mark on the calendar that December 7 might be the first time the member and I have ever agreed on anything.

There are many other countries that will need to ratify this through their own parliaments, so I will leave the timing alone. I would say the sooner, the better, as it would be great for all producers.

The economic impact on farms is huge. The processing side, the small abattoir side, the processing jobs that go along with that, the transport jobs, and even the servicing of the transport trucks, are hugely important. All contribute. It could be by a factor of 6:1 or 7:1. Whatever it is, it is huge. The farm gate receipts in Huron County alone are nearly $1 billion. If we multiply that out, it is huge for my area.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I have visited the member's riding many times and it is a beautiful spot in Ontario for sure.

I know there are a lot of small communities and working-class Canadians in the member's riding who would be very concerned about the changes that would take place with CETA in terms of the cost of pharmaceutical drugs. Every single Canadian would be impacted by these changes. Twenty-five per cent of the implementing legislation consists of changes to pharmaceutical drugs. We already have the highest pharmaceutical costs of all OECD countries and there is no compensation to be had for the provinces, as the previous government spoke about.

The economic impact would be $850 million annually in terms of additional spending by Canadians on pharmaceutical drugs. I am sure that in the member's riding, like in my own riding of Essex, there are many people who are already struggling day to day to afford the cost of medications.

Is the member concerned that CETA would lead to increased costs of prescription drugs for those in his riding given that Canadians already pay more for prescription drugs than nearly every other OECD country?

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, that is a fair question. I would say to the member, with all due respect, that the provinces and the federal minister need to get at this immediately. It has gone on for far too long. There is a lack of buying power. The federal government and all of the provinces combined have an opportunity to really get tough on the pharmaceutical companies. They play us for fools, as far as I am concerned, and I really hope the health minister steps up.

Here I will speak about the province of Ontario. It is a disgrace in the province that some drugs are not included, such as the shingles vaccine, and that some seniors are covered and others are not. I cannot even list how many letters I have written to the health minister to try to help seniors and people in vulnerable positions with the high cost of drugs.

I will also mention that in Parliament right now, there is a debate with the Liberals about taxing 13.5 million people's health benefits. It is ridiculous.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, Bill C-30 concerns the implementation of the Canada–European Union Comprehensive Economic and Trade Agreement, or CETA.

Trade with Europe is much too important to be taken lightly. It is Quebec’s second largest trading partner. We export about $9 billion in goods and services, and a number of European companies, such as OVH, have set up operations in my riding, Salaberry—Suroît.

The NDP and I want to promote a stronger trade relationship between Canada and the European Union, although there are still major concerns and quite a few outstanding issues regarding this agreement. In Canada, like in Europe, this agreement has sparked a vigorous protest movement. In October, the regional government of Wallonia prevented Belgium from signing on to CETA; it believed that the investor-state provisions could adversely affect them, and several individuals, including some Canadians, also raised alarm bells and said that the matter needed another look. The Walloons agreed to sign on because they managed to retain their right to withhold consent to ratification if the investor-state provisions were not deleted or changed.

Our dairy producers expressed serious reservations about the impact of a massive amount of dairy products arriving on the Canadian market and on the Quebec market in particular. As well, a request for compensation was received this week from wine producers who fear losing their ability to produce here and their ability to sell on the Canadian market.

The Liberal government promised to compensate dairy producers, but this support falls far short of what they would find acceptable. Citizens groups have spoken up about how drug prices will be affected by changes to intellectual property and by generic drugs taking longer to get to market.

CETA is a source of concern for many. As the Dairy Farmers of Canada put it, CETA represents a 2% decline in dairy production, or Nova Scotia’s entire annual production. The dairy industry needs to be compensated for these losses.

The Conservatives had promised a $4.3 billion compensation package over 15 years to supply-managed farmers affected by CETA and the TPP. The current Liberal government decided to establish a fund of $350 million over five years for dairy producers.

The losses sustained by farmers will be permanent; they will not end five years from now. On top of that, the assistance being offered is paltry and not nearly enough to compensate this sector. According to the most conservative estimates, dairy farmers are going to lose $116 million a year.

The $50 million the Liberals are offering will therefore meet only 45% of the farmers' needs each year, which does not even cover the minimum losses that farmers are estimating. The Liberals have not appropriately compensated dairy farmers for the loss of market share.

In addition, the programs the Liberals have put in place are not meant to compensate farmers, but rather to modernize their production systems. The government is, in effect, denying that losses will occur under CETA.

The dairy farmers in my riding are already greatly affected by the diafiltered milk problem. American exporters are getting around Canadian laws by selling their diafiltered milk here. We need to enforce our cheese compositional standards immediately. The future of our dairy farmers, our family farms, and local jobs here in Canada is at stake. Across the country, the agrifood sector employs one in eight Canadians. We cannot ignore this sector when negotiating trade agreements with other countries.

It has been estimated that $200 million was lost in 2015. A farmer might lose $1,000 a week. The Liberals promised farmers that they would resolve the issue of diafiltered milk, but they have not lifted a finger so far. I am still waiting for news from the government, who is supposed to be helping farmers across Canada, as well as those in my riding, Salaberry—Suroît.

Trade relations also have to be based on equity between the partners and carried out in compliance with laws and regulations. CETA is worrisome in this regard as well. The investor-state provisions will allow foreign companies to challenge Canadian laws without going through our domestic courts.

There is so much uncertainty here that we have no idea how we can even appeal such claims or how members of the tribunal will be selected. We know full well that the companies will be able to hire foreign workers without a labour market impact assessment.

Municipal, provincial, or federal governments will no longer be able to require local employees be given priority without risking a trade challenge. Canada is already being sued and has won only three out of 39 cases against foreign investors in Canada. This is rather disconcerting.

In other words, any decision taken by any level of government could end in compensation for foreign companies. Canada is already one of the most sued countries under ISDS. This legal system has not been fully defined. We cannot give the Liberals carte blanche on this. There are many very important elements that could compromise our industries and our values.

The Liberals keep repeating that they cherish Canadian values. That is not evident in this bill. They are trying to ram it through. We even heard a member say that this bill must be passed before the end of the year. Knowing that 28 EU countries must ratify it and that this could take up to five years, why the urgency?

Why did the committee move a motion in camera to prevent those wanting to submit a brief from doing so? The committee is preventing everyone who will not appear as a witness from submitting a brief. In terms of transparency, accountability, and responsibility with respect to consultations, the Liberals are falling far short. Furthermore, they are not answering questions from farmers, wine producers, and producers from the east and the Maritimes who earn their living from the fishery. That is very troubling.

We cannot make an informed decision, for there is still much we do not know about the investor-state provisions. The Liberals also have not explained how they will protect environmental, health, and security regulations from foreign challenges.

The European states clearly indicated that this agreement would not be ratified unless the investor-state provisions were removed. Once again, the Liberals have not provided any information on this. Will they change these regulations? Will they provide a bit more information? As I said, there is a lot of uncertainty here.

The government is leaving us open to a situation where the agreement cannot be ratified by some countries in the European Union.

Let us talk about health. The changes set out in CETA may increase the cost of drugs for Canadians. The agreement will change the intellectual property rules regarding drugs. This will increase the cost of drugs by over $850 million a year, because it will take longer for generic drugs to reach the market.

Since Canada's population is aging, we will need access to drugs. This is just one more hardship for our seniors. There is no guarantee that they will be able to make ends meet since they are already struggling to put food on the table and get access to health care. Now, they may have to pay more for their medication.

The Canadian Federation of Nurses Unions has also warned that these regulations could make it more difficult to bring down prices with a national pharmacare program.

For all these reasons and more, I cannot vote in favour of this bill.

I hope that the Liberals will do the responsible thing and consult experts, reconsider some of their positions, and make informed decisions so that we sign an agreement that is truly fair to all workers and all Canadians.

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

Madam Speaker, I always find it interesting whenever we engage in debate on the issue of trade with my New Democratic friends. I know it has been suggested in the past that the NDP will not be supporting this agreement. Could the member provide any clear explanation about why, outside of the pharmaceutical issue, the NDP members feel so passionately about voting against CETA?

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, let me say again that this is a super-important agreement because we know that they are Canada’s second largest export partner. However, we need to take an approach that involves as little risk as possible. We must be able to respect workers, health, anything concerning the environment and the rights of the public.

As for the investor-state mechanism, as I said, a lot of information is still missing. We do not know how certain decisions could be appealed or who will sit on arbitration panels. We do know that we were sued 39 times under NAFTA. This means that Canada is the country that has been taken to court the most and we have no way to defend ourselves. We cannot hand the Liberals a blank cheque.

In my riding, the Liberals offered dairy producers $250 million in compensation, while the Conservatives had offered $4.3 billion. How is it that, all of a sudden, this industry is not so important to the Liberals anymore, even though they claim to defend supply management? There is a lot that does not add up.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Madam Speaker, I want to acknowledge the work done by my colleague, especially concerning dairy farmers.

I am sure I will not be able to change her mind about the agreement with Europe. In fact, that party has some rather restrictive views when it comes to trade agreements with other countries. However, with respect to dairy producers, the member has indeed just raised a very important point, and I would certainly agree with her.

In my riding there is a dairy producer who has invested $1.5 million in his farm. The compensation provided by the government supposedly for innovation to help producers get through this crisis would mean he would get about $5,000 a year. This is not an amount of money one can leverage into investments of $1.5 million.

What does the member think that the government should have done to protect dairy producers under this agreement?

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Madam Speaker, I want to point out that with regard to trade agreements, we supported Bill C-13, which was just introduced and which will move forward. This means we are capable of really thoroughly analyzing international trade proposals.

There are a lot of missed opportunities in Bill C-30 concerning the agreement with the European Union. As for anything related to dairy production, clearly, what the Liberals are offering is completely inadequate. They say they consulted those affected. Dairy producers were very vocal on several occasions to let them know that this was completely laughable. They are going to lose 2% of their production under this agreement. Dairy producers have been a real bargaining chip for a number of years now. There needs to be enough compensation to at least cover the $116 million per year loss. This is the bare minimum. We need to at least compensate them for that.

In the area of agriculture, wine producers are also seeking compensation because 180 million litres of wine will be coming in from the European Union. That is troubling as well. We have asked the Liberals to support the wine industry.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Nanaimo—Ladysmith, The Environment; the hon. member for Carlton Trail—Eagle Creek, Transportation; the hon. member for Calgary Confederation, Health.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Madam Speaker, as my colleague from Salaberry—Suroît just said, we on this side of the House believe that trade with Europe is too important to be taken lightly.

If we look at all the flaws in the agreement before the House, we see that indeed, the government did not do its homework. It should do its homework before introducing such a bill.

We have concerns about some of the aspects of the bill. In fact, the same concerns have also been raised in Europe. Of course, the issue of financial compensation for dairy farmers affects Quebec, Ontario, and farmers in western Canada.

The Conservatives were planning to provide financial compensation that would have eased the transition for farmers and those working in supply management.

If we look at what the Liberals are offering, we see that the Liberal Party members who were elected in dairy farming regions did not defend the interests of the farmers. The financial compensation they are offering is a drop in the bucket. The farmers are going to need a lot more than that if we are to move forward with this agreement.

It is very clear that there are problems with this agreement. When we look more globally at how both of the old parties have approached trade issues over the past decade and a half, we can see that there needs to be a much more progressive fair trade approach when we talk about these trade agreements.

As members are well aware, we are now living under a record trade deficit. It was bad under the Conservatives; it is even worse under the Liberals. Obviously there is something that is not working when we see a larger and larger trade deficit over the course of the years. What does that mean? We are certainly seeing a debt load for the average Canadian family that is increasing as well; a debt load that increased substantially under the Conservatives and is even worse under the Liberals.

When we look at what the result has been over the past 10 or 15 years, particularly in the manufacturing sector, we see that under the Conservatives we lost over half a million good manufacturing jobs. These are family-sustaining jobs. These are the kinds of jobs that people can work at during the day, come home, feed their family, and think about investing in the future. These are family-sustaining permanent jobs in the manufacturing sector. The Conservatives lost over half a million of them over the decade that they were in power.

Now, the Liberals came with the idea that they would take a different approach, and indeed they have not. We have seen further hemorrhaging of over 30,000 good manufacturing jobs, the kinds of family-sustaining jobs that Canadians depend on, over the course of just the last year alone.

We have seen under both parties an approach that, when we look at their economic files and their approach on trade, has not been to the benefit of regular working families. We have to ask why it is that both the previous and current governments seem to say that they have trade as a priority and have managed not only to provoke real problems with this particular agreement, as we saw in Europe just a few weeks ago, but have managed over time to lose so many good, family-sustaining jobs and at the same time put us at the worst level Canada has ever been in terms of trade deficit.

Part of the answer to that question is the emphasis of both governments on exporting raw logs, raw bitumen, raw minerals. We have seen the value-added sector evaporate and we have seen manufacturing jobs destroyed because we have governments that just want to ship raw materials out of the country. They do not want to provide the value added, to have Canadians make things, which has always been the hallmark of Canadians. Canadians are proud to make things, and we do it very well. I come out of the manufacturing sector myself. I was a factory worker, and I believe strongly that the quality that Canadians produce is the best in the world. Yet we have seen just over the past decade and a half under successive governments, and it does not seem to matter whether it is a Liberal or a Conservative government, a gutting of those types of jobs that used to sustain communities right across the country.

We have had some of my colleagues, like the member for Essex and the member for Salaberry—Suroît, very articulately talk about the problems with this agreement. How is it, when we go back to the issue of trade, that there is a broader problem with how successive old-party governments have approached trade issues? I want to put out a few of those problems in the few minutes that are left to me.

First off, both governments, Conservative and Liberal governments, seem to forget about regular working folks. We have seen that with the destruction of the manufacturing sector. They want to export raw goods, rather than having Canadians do what we do best, which is make things.

Second, both parties reject the fair trade model. We have not seen Liberals or Conservatives, at any point, bring forward some of the fair trade models that we have seen around the world that have been effective. Mercosur is one example, where they actually have poverty alleviation as part and parcel of the trade agreement. At no point, have we seen, from either of the old parties, any reference to fair trade.

Third, we look at the export supports. As a former trade critic I can speak to this. I met with trade commissioners in various parts of the world, in Europe and in South America, and there is not even a budget, often, for trade commissioners to even buy a cup of coffee for a potential client of Canadian goods or services.

All other trading nations invest in export supports. They put money into providing product supports and product publicity. In Canada, we asked the question a few years ago and found out about $13 million globally was spent to support all Canadian products. If we look at Australia, they invest half a billion dollars in the same area. The European community spends many times what Canada spends, just on its wine sector. The Americans, just in their beef sector, spend many times what Canada spends for all products and services.

Both of the old parties have simply not understood that exports are not just signing an agreement; it is very much having people on the ground providing support for those products coming from Canada.

Another problem has been the lack of due diligence from both governments, whether Conservatives or Liberals, it has not made any difference. There is no really intense economic analysis prior to signing these agreements. There is certainly no due diligence. Committees are just supposed to push it through without any due regard to what the actual impacts are afterward, and there is no evaluation after the fact, either. We have trade agreements that largely benefit other countries. When we actually look at who benefits as we sign each of these agreements, imports from those countries tend to grow and exports from Canada, not necessarily. In some cases, yes; in some cases, no; in all cases, there has not been due diligence.

As my colleagues have pointed out, there seems to be a saying “no” to manufacturing, saying “no” to value added, saying “no”, as we have seen, to dairy farmers and the supply-managed sector, with the Liberals cutting over 90% of the compensation that should have been due to those dairy farmers and the supply-managed sector.

Yet, at the same time, there is a “yes” to lobbyists; particularly, lobbyists who are pushing for intellectual property extensions that increase the price of drugs on the Canadian markets, in the Canadian health care system.

If the old parties had done their homework, they would understand that adding $850 million onto the cost of drugs, in the Canadian health care system, is simply not a good idea. We need a better health care system, not a worse one.

And, of course, there is the investor-state dispute settlement mechanism that has created such a reaction in Europe. Of course, this is something that most countries have backed away from. Canada, under both of the old parties, whether Liberals or Conservatives, continues to push investor-state, even though most people around the world would disagree with that approach.

There are reasons why this agreement has had so many imperfections and there are reasons why we have a record trade deficit and a record debt load on Canadian families. It strikes to the heart of how these parties govern. They do not govern in the interests of regular families. I would suggest that has to change.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I thank my colleague for his wonderful speech and for his work on the trade files in previous Parliaments. He certainly has been an asset to me in helping me in my new role. I want to talk about what he spoke about, around working-class people.

There is another section of working-class people who will be impacted dramatically in CETA and that is those who are in the maritime jobs sector. CETA will for the first time legally allow foreign-owned vessels and foreign crews to transport goods between Canadian ports, which is called cabotage, and will open up domestic dredging contracts to foreign suppliers. CETA will lead to the immediate loss of approximately 3,000 Canadian seafarers' jobs. These are high-quality, well-paid jobs.

The industry as a whole supports over 250,000 direct and indirect jobs. Foreign boats will bring in foreign workers with no requirement for LMIAs. These workers can be paid as little as $2 an hour. We are going to be permitting more foreign flagged vessels and we are going to hurt yet another sector, but unfortunately, the Liberal government does not want to speak about the impacts of this deal and address them so that we can get it right.

Does the member agree that these are serious concerns that deserve parliamentarians' consideration before we rubber-stamp this agreement?

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Madam Speaker, I would like to praise the member for Essex as a very strong member of Parliament who is actually a bit of a canary in the coal mine saying to the Liberal government it should not be ramming through this bill, they should be examining the implications of it before they sign off or ram through something that is going to have negative impacts on so many Canadian jobs.

The member for Essex does a wonderful job of standing up for her constituents and standing up for all Canadians and I would like to praise her for that work. She raises the issue of cabotage. The Liberals have absolutely no idea because they did not do any of the economic analysis or impacts before they rushed through this Conservative agreement. They have no idea what the actual negative impacts are. We have already talked about the dairy sector. We are talking about cabotage. We are talking about a whole range of areas where the Liberal government has not even done its homework. How many jobs will be lost in these sectors?

The question has been asked consistently and yet the Liberals have been unable to answer because they have not done their homework. They do not actually know. I think this as good as any other reason should mean rather than ramming this through, they should be going to a full analysis before any parliamentarian votes on something like this.

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

Madam Speaker, in fairness to people who might be watching this, they should be aware of the fact that traditionally New Democrats do not vote in favour of any trade agreements. They might mention one or two in which through a voice vote there might have been an occurrence or an implication that they might have actually voted possibly, maybe, who knows. The bottom line is that they have not been behind a trade agreement.

We need to recognize the many countries that have seen the value of this trade agreement. Many provinces, many stakeholders who are onside with this agreement see the value because they recognize the importance of Canada being a trading nation. Overall, this agreement is good for Canada. It is good for Canada's middle class and those aspiring to be a part of it and every region of our country will benefit by this agreement.

Outside of the New Democratic Party in the House of Commons, could the member indicate if there is any other government in Canada that actually opposes CETA?