Mr. Speaker, my NDP colleagues and I have many concerns about Bill C-30, An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures.
Since the beginning of negotiations with the European Union to conclude a trade agreement, I have had the impression, like many of my colleagues, that things are being hidden from us. A few years ago, on the occasion of a trip with the Canada-Europe Parliamentary Association, the Canadian delegation, of which I was a member, had the opportunity to discuss this agreement, which was then in the negotiation stage, with certain European parliamentarians, who were very clearly much better informed than we were.
It seems that the Conservative government of the time wanted to reveal absolutely nothing to its parliamentarians, even to the members of its own party. However, the Conservative and Liberal members quickly decided to accept this agreement without even knowing its details. For the New Democratic party, the fact that Canada intends to open its trade borders to Europe is too important for us to contemplate it lightly. That is precisely what the government is asking us to do.
Even though the NDP is in favour of strengthening our trade relations with the European Union, major concerns persist and many questions remain unanswered regarding the proposed agreement. For one, the government is asking us as parliamentarians to ratify an agreement even though certain European states have clearly indicated that the investor-state clauses will have to be amended or removed before the agreement is ratified.
We all remember that last October the regional government of Wallonia prevented Belgium, and hence the European Parliament, from signing the agreement, and then agreed to sign on the condition that it retain its right to refuse to consent to its ratification if its conditions are not met. So we are being asked to ratify the draft of an agreement which is not even final yet, and to disregard the concerns raised on the other side of the Atlantic, even though, at the same time, certain concerns are also being raised in Canada.
We are not going to give the government a blank cheque to finalize the last details of the agreement without being able to examine it in greater detail before it is implemented.
To add to the absurdity of all of this, I would like to remind my colleagues that 42% of Canada’s exports to the European Union go to the United Kingdom. In fact, the concessions Canada made when negotiating this agreement were based on the assumption that the United Kingdom would be a full party to the agreement. However, the Liberal government failed to reassess the net benefits of an agreement with Europe without this major trading partner of Canada’s, which could withdraw following Brexit.
Also, and I would like to talk a little in greater detail on this point, we are being asked to approve an agreement that creates a major breach in supply management and puts many farmers, particularly dairy farmers, in insecurity.
Supply management strikes a market balance. It allows dairy producers to collectively negotiate prices and plan total milk production in order to meet consumer demand. Unlike what is happening around the world, Canadian dairy producers can sell the product of their hard labour at stable prices, which are not subject to market fluctuations. This ensures that Canada’s dairy industry is one of the only self-sufficient agricultural industries that do not depend on government subsidies to survive.
Opening another breach in supply management will mean fewer and fewer guarantees for many products in terms of income stability, and this is particularly true in the case of family dairy farms.
The Conservatives had promised a $4.3-billion compensation package to supply-managed farmers who will be affected by the Canada-Europe agreement and the trans-Pacific partnership.
The Liberal government, for its part, decided to create a $350-million fund for dairy farmers. According to the Dairy Farmers of Canada, that amount is not nearly enough to compensate the industry considering the losses it will suffer under the agreement with Europe:
CETA will result in an expropriation of up to 2% of Canadian milk production; representing 17,700 tonnes of cheese that will no longer be produced in Canada. This is equivalent to the entire yearly production of the province of Nova Scotia, and will cost Canadian dairy farmers up to $116 million a year in perpetual lost revenues.
In other words, the funds announced are not nearly enough to make up for the losses that Canadian dairy farmers are going to suffer under this free trade agreement.
It is important at this time to talk about the situation facing the smallest dairy producers and family farms, which are on the verge of extinction.
I met with Viateur Soucy in June during a protest here, in front of Parliament, calling on the government to protect supply management and farming. The protestors were worried about diafiltered milk coming into the country and the impact of the trans-Pacific partnership and the agreement with Europe on dairy farms.
At 73, he drove his tractor to Ottawa with dairy producers from across Quebec and other regions of Canada. In Nouvelle, in the beautiful Chaleur Bay area of the Gaspé, the Soucys have been running a family farm for three generations. When Viateur, the eldest son of Ovide Soucy, took over his father’s farm with one of his brothers in the seventies, he decided to turn it into a dairy operation, because he saw it as an opportunity to provide his family with a stable income.
History has proven Mr. Soucy right up to now. Significant investments were made in modernizing the farm, the herd, machinery, new fields to feed the herd, and especially in production quotas, which, as we all know, are far from being allocated.
As long as the integrity of the supply management system was maintained, he was guaranteed an income. Mr. Soucy had an opportunity that most farmers do not, that of being able to keep his business in the family. Obviously, it is always easier to find someone to take over if they can be convinced that they will have a stable income if they put in the work, and of course on a farm, that means a lot of work. Mr. Soucy was lucky enough that one of his sons, Mikaël, took over the farm in 2004.
Today, Mikaël is the one who is dealing with the stress brought on by the decisions of this government and the previous government. When we spoke to Mikaël, he was not very happy with the government's decisions. We asked him what he thought of the compensation announced by the Liberals. Unfortunately, I cannot quote exactly what he said here because he was really unhappy.
Basically, he said that the revenue that farmers would lose because of this agreement would seriously impede their cash flow and that asking producers to invest and go further into debt was not a logical solution. He also asked us to ask the government a question. I will quote him here. He said, “I would like to know how long the government is going to string me along. Do I need to sell now or should I wait until my farm is no longer worth anything and I go bankrupt?”
That gives us some idea about his state of mind. Having a stable income is one thing, but once he has paid his overhead and his employee, that is, when he can manage to find one, he does not have much left to pay himself. If his income gets cut even further, what will be left for him? No wonder he is stressed and frustrated.
There are fewer and fewer family farms in Canada. It would be great if we could protect them. The problem is that if we allow a breach in supply management and compensate producers for their losses, this decision could be overturned by a change in government.
Given the number of promises broken by this government, you have to wonder whether someone might wake up one morning and say that the government has changed its mind and is going to withdraw this compensation. Who knows, maybe a lobbyist will pay $1,500 for access to a minister and ask for the whole thing to be cancelled.
If we uphold the integrity of supply management, we avoid all these possible outcomes. When it comes to this agreement, there are still too many unanswered questions and potentially negative impacts on the economy and on Canadians for the New Democratic Party to approve it and support its implementation without amendments.
Maude Barlow, National Chairperson of the Council of Canadians, said, “Given the process could take another five years in Europe, what's the rush here other than another photo op? There needs to be a fuller public consultation process on CETA, just as the government has done with the trans-Pacific partnership.”
What is the big rush?
The Minister of International Trade often says, when talking about softwood lumber, that she wants an agreement, but not just any agreement. Well, that sums up quite well the NDP’s position on the Canada-Europe comprehensive and economic trade agreement. We want a good agreement, but not just any agreement.