House of Commons Hansard #77 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was tfa.
Sonia Sidhu Liberal Brampton South, ON
Mr. Speaker, as members know, we went back to Canadians during the campaign and reminded them that our priority is pro-free trade.
We support increased trade with other countries because it is good for Canada. In my riding of Brampton South, I see how businesses and connections from all over the world benefit our economy and families when we are setting Canada's standards high.
I am supporting this bill and all the global work done by the minister on this file.
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
Mr. Speaker, I thank the member for Brampton South for her speech.
Any measure that will help SMEs take on the challenges they face every day is praiseworthy. As my colleague from Trois-Rivières said, not enough of our SMEs are in the export market, so Canada's decision to sign and ratify these agreements is a great thing, especially because the agreements are for SMEs, business people, products, jobs, and workers, unlike the TPP.
I would like my colleague to comment on that. This agreement seems to please investors more than it does the manufacturing sector.
Sonia Sidhu Liberal Brampton South, ON
Mr. Speaker, as my hon. colleague knows, the government supports free trade as we open markets for Canadian goods and services, grow Canadian businesses, and create well-paying jobs. It will also boost our economy and is good for Canadians.
Lloyd Longfield Liberal Guelph, ON
Mr. Speaker, our industry committee is currently studying a manufacturing strategy for Canada. We are looking at pharmaceuticals and cosmetics manufacturers as well as people working in the food industry, and looking at the opportunities to increase exports for SMEs.
Could the hon. member comment on the bottom line improvements that this type of an agreement could give the SMEs when they are trying to develop into emerging markets?
Sonia Sidhu Liberal Brampton South, ON
Mr. Speaker, the Government of Canada completed the legal review of the Canada and European Union comprehensive economic and trade agreement. Our government supports free trade. It is how we open the market to Canadian goods and services, grow businesses, and create high-quality jobs. CETA would remove trade barriers, give unprecedented access to a market of 500 million people, widely expand free trade between Canada and the European Union, and increase opportunities for the middle-class.
Mel Arnold Conservative North Okanagan—Shuswap, BC
Mr. Speaker, I heard multiple times in the member's speech and comments in answer to questions that she supports free trade and her government supports free trade. The trans-Pacific partnership was drafted over a year ago. The government has had over a year to look at it. Liberals say they have been consulting and are continuing to consult. Are they simply going to wait until the U.S. makes a decision on this, or is the Government of Canada ready to approve this free trade agreement, the trans-Pacific partnership, that would open up more access to 800 million people, similar to this agreement?
Sonia Sidhu Liberal Brampton South, ON
Mr. Speaker, our government is working hard toward this, as is Bill C-13. We fully support the bill. The TFA would increase trade by modernizing and simplifying customs and border procedures and lowering trade costs as well.
Luc Thériault Bloc Montcalm, QC
Mr. Speaker, Bill C-13 is basically a technical bill stemming from a World Trade Organization agreement. It will streamline border services' administrative procedures in all 162 member states, making them faster, more transparent, and less arbitrary.
In terms of trade, the impact here will be minimal. Our main buyer is the United States, with which we already have agreements that cover more ground than the WTO agreement. Bill C-13 will remove a number of irritants for exporters whose goods might otherwise have been held up at customs. While such situations can be frustrating for people who get tied up in red tape, they are few and far between.
Certainly some aspects of the bill merit closer scrutiny. Chief among these are the importation of hazardous materials and prohibited pesticides for which less control is not desirable. Nevertheless, we will support Bill C-13 in principle.
Quite frankly, although this bill is large, it is not very substantial. The only thing the WTO member countries could agree on were the technical details. The last WTO agreement was concluded 22 years ago. There have been nothing but obstacles since then. The Seattle round never got off the ground. The Doha round is moving at the speed of a zombie in an unending coma. There is something not right in the world of trade.
The irrelevance of the Bali package, the Marrakesh protocol, and the subsequent Bill C-13 is a testament to that. We seem to be forgetting that behind the multilateral trade agreements was a desire for lasting peace, and a strong humanitarian motivation.
GATT played a big part in the decolonization movement and the dismantling of the empires that followed. That is not at all what drives trade discussions these days. Natural resources and manufactured goods currently move freely, with some exceptions. In fact, 85% of all goods move freely without quotas or tariffs. On average the remaining tariffs are 5.5% on all the goods traded on the planet. Essentially, free trade already exists.
When it comes to freer trade, the discussions currently underway are focused on two things. The first is agriculture. It is a sensitive subject. Agriculture is not like other sectors. Most people in developing countries depend on it. When prices skyrocket, people in urban areas go hungry because they are unable to afford food. When prices drop, people in rural areas lose their land because selling prices are lower than production costs. They are at a major disadvantage compared to large American and European farmers who are heavily subsidized. Our producers, who are under supply management and are not subsidized, face the same threat.
In short, unfettered free trade threatens food sovereignty, social peace, and land use, which are also sensitive subjects. This explains why the discussions are so difficult. What is more, we are at the table with a number of ultra-liberal and intransigent countries. These countries are net exporters of agriculture products and want the borders to be thrown wide open. They form what we call the Cairns Group, the same group that is attacking supply management. Canada is among those ultra-liberal countries.
Harmonizing standards has been another focus of many stalled discussions. Countries have always had laws and regulations that reflect their notion of the common good. Some of the more lenient societies, such as the United States and English Canada, are more geared toward free enterprise. Others are more restrictive, with the state setting itself up as the guardian of the people's will and the common good. Those are two opposing models of society. When trade agreements seek to harmonize standards, the problem is that their provisions always end up restricting the state's ability to act.
No trade agreement will ever require universal education. That is not what trade agreements are for. They can place restrictions on states that want to prohibit GMOs, however. No trade agreement will ever say that a 0% tax rate constitutes unfair competition, but a state that intervenes in the economy by supporting businesses whose growth is desirable because they are considered strategically important would be accused of unfair competition.
Given our quasi-free trade situation, trade agreements no longer have much to do with trade as such in terms of customs tariffs and import quotas. What they do is affect states' ability to act for the common good.
They make interventionism or stringent regulations illegal. They codify an economic model and make illegal anything that deviates from it. It is no wonder that everything is blocked. The bulk of Canadian agricultural production is from monoculture destined for export. There is good reason to liberalize the entire agricultural sector and ensure that countries do not have the right to ban GMOs, since Canada is one of the largest GMO crop producers in the world, or require that they be labelled.
I have no ill will toward Canada. I am speaking in Canada's interest and the same goes for government interventionism. Canada has one of the worst records in the world when it comes to supporting its businesses. It invests very little in R and D, so that is normal. Since it has a subsidiary economy, its businesses are not terribly innovative.
Canada also wants very strict agreements that prevent other governments from intervening in the economy and definitions of subsidies that cover everything. In 2016, it is defending an economic model from the 1990s. It is one of the most intransigent countries at the table, and this intransigence largely explains why everything is being blocked at the WTO and why we are discussing such an irrelevant matter as Bill C-13 here today.
I do not take issue with that. That is Canada's prerogative. The problem is that my society does not work like that. We have innovative enterprises in Quebec, homegrown enterprises, and an ownership economy. We have large government institutions that intervene in the economy and regulations that seek to protect the public and defend the common good, but many people do not like them because they see them as barriers to trade.
We are claiming our right to build a distinct society in North America, a society that reflects who we are. Since market forces are pushing more toward uniformity, then we need an active government that enjoys a healthy dose of freedom.
For 20 years, trade agreements have taken their toll: our middle class ended up in direct competition with exploited workers in developing countries. Free to trade everywhere without having to adapt to different regulations, multinationals uprooted their production chains and encouraged tax havens that would allow them to hide their earnings abroad and avoid paying taxes. They stopped contributing to the communal pot, forcing governments to cut services.
We can continue to repeatedly deal with these obstacles, pretend that the rounds of negotiations are not moving as slowly as zombies, and discuss austerity measures, such as those set out in Bill C-13, or we can start fresh and consider how trade can become a real instrument for progress for humankind, not just for multinational corporations; consider how producing while destroying the environment or exploiting children is a form of unfair trade; and consider how the diversity of peoples and their economic and regulatory models contribute to the world's wealth.
I know that I am not in the right country to say these things and that Canada is too attached to the 20th century and its development model. However, I also know that my country, Quebec, would resolutely choose the 21st century, social progress, and sustainable development because they are in our best interest.
In the meantime, I will discuss Bill C-13 in the Parliament of Canada in preparation for the day when my people will be able to take control of these debates. Then everything will be different.
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
Mr. Speaker, I congratulate my colleague from Montcalm for his speech. He obviously knows a lot about this topic. We are lucky to be able to learn from his expertise.
I would like to ask him whether it seems obvious to him that, during all this time, the people who are discussing and developing these major contracts between investors are seeking to secretly influence governments. Rumour has it that the TPP could be ratified very soon.
Are there not major issues on which Quebec must stand and be counted? I am thinking about the unbelievable Netflix clause that would mean that we could not intervene in the delivery of what are commonly known as over-the-top services on the Internet. These types of hidden clauses have a huge impact on culture and perhaps even on agriculture.
I would like to hear what my colleague has to say about that.
Luc Thériault Bloc Montcalm, QC
Mr. Speaker, far be it from me to claim to be an expert. I would like to thank my honourable colleague for saying that my speech was well researched.
While I can say we will support the principle of the bill and then find, in the clause-by-clause study, where the devil is hiding—because they say that the devil is in the details—my point is not to have an arrogant attitude toward Canada or believe that it should not protect its interests. I just wanted to show in an objective and structured way that there are two competing economies in Canada.
There is the branch plant economy, as we saw with Rona. In Canada, all guidelines, all parameters are set by Bay Street, in Toronto. Quebec, however, has developed an owners' economy. Therefore, it is hard to understand why we are so attached to our head offices.
Canada and Quebec have two different and competing economies. In fact, they are objectively different. When, this country speaks, instead of Quebec, about international agreements with such organizations as the WTO, it is not protecting Quebec's interests.
David Graham Liberal Laurentides—Labelle, QC
Mr. Speaker, I have a question for my colleague. He obviously does not believe in Canada.
If, as he wishes, Quebec were independent, how would it engage in that kind of trade at that level? Would it have the power to do that?
Luc Thériault Bloc Montcalm, QC
Mr. Speaker, I have no doubt that, as soon as Quebec is no longer subordinate to the federal Canadian state, it will have no trouble taking its seat at various international tables and speaking on its own behalf.
When that happens, we will stand up for our farmers and supply management. We will not send others to speak on our behalf. I talked about the Cairns group. I am appalled at the way they attack supply management, the way Canada lets them speak on our behalf, and the fact that Canada is even part of the group, given the need to protect supply management. It comes as no surprise that, a year after this government was elected, our farmers are still waiting for it to keep its promise.
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Mr. Speaker, the government firmly believes that trade can help us achieve our development goals by creating new economic opportunities and increasing productivity and growth in Canada and around the world.
The high cost of international trade disproportionately affects developing nations, especially the least developed countries. Our government is focusing on initiatives that can both support global growth and reduce poverty, including the ratification of the World Trade Organization agreement on trade facilitation. This agreement, also known as the TFA, aims to facilitate the cross-border movement of goods by cutting red tape. It will simplify the documentation required to clear goods at the border and the procedures used by border agencies. Faster, simpler, more predictable border procedures will lead to lower costs for traders.
Governments, meanwhile, will benefit from more efficient border procedures, fewer opportunities for corruption at the border, and improved revenue collection. Lower trade costs can increase the volume of trade, help increase national revenues, and reduce poverty. Countries that are making efforts to reduce trade costs, for instance by improving logistics, generally enjoy more rapid growth.
Most economic gains from the TFA will flow to developing countries, since developed countries, including Canada, already satisfy the vast majority of the TFA provisions. The TFA will also help promote economic diversification in developing countries.
Implementing the TFA could help developing countries broaden the range of products they export and the new markets they can enter. According to the World Bank, the number of new products exported by less developed countries could increase by up to 35%.
Developing economies will need technical assistance and help in strengthening their capacities for implementing the TFA reforms and taking advantage of the opportunities it presents for reducing poverty. The TFA allows developing countries to implement it according to their capacities and to outline what they need in terms of assistance. It also requires WTO members to provide practical support for addressing those needs.
The World Bank found that the return on investment generated by trade facilitation projects was among the most profitable development efforts. According to the World Bank, reducing obstacles in the supply chain and accelerating administrative procedures at the borders can increase GDP six times faster than eliminating tariffs.
Canada is in a good position to provide that aid. From 2010 to 2015, we invested nearly $47 million to support trade facilitation through bilateral, regional, and multilateral programs. For example, Canada provides $12 million in trade facilitation aid to the Trademark East Africa integrated border management initiative. That represents approximately 10% of the project's total funding.
This initiative considerably reduces delays at the border and trade costs between members of the East African community, namely Kenya, Uganda, Tanzania, Rwanda, Burundi, and South Sudan, by creating a single customs territory and supporting improvements to border and customs management practices.
Before this initiative was launched, many declarations had to be made at the border of each East African country. Customs clearance and the payment of custom duties could not be completed until the goods arrived at their destination. As a result, customs clearance was a very slow process. This trade facilitation initiative helps integrate customs procedures through automation and the creation of single border crossings. East African ports are now open 24 hours a day, seven days a week. As a result, the average cargo clearance times have gone from three days to eight hours in that region. Such results could lift millions of people out of poverty.
The implementation of the TFA could produce similar results in other places. The full potential of this agreement will be reached once it comes into force.
The agreement cannot take effect until two-thirds of the WTO members have ratified it. To date, 81 of the 108 WTO members that need to ratify the agreement have done so. The legislative amendments set out in Bill C-13 will allow Canada to ratify the TFA and bring it into force as soon as possible.
I strongly encourage all members of the House to support Bill C-13 to allow Canada to do its part and reap the benefits of this agreement.
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
Mr. Speaker, I would like to thank my colleague for her speech.
Given her knowledge of what SMEs experience, specifically those in retail, can she help us gain a better understanding of how the measures in this bill will actually benefit Quebec or Canadian exporters?
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Mr. Speaker, I would like to thank my colleague for his question.
In fact, I have worked with SMEs and in retail. This agreement will definitely help SMEs from across Canada export their goods to these countries. It is the first multilateral agreement concluded since the World Trade Organization was established in 1994. It is a very good agreement. It is a fine victory for multilateralism. I thank the member for his question.
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, when we look at the World Trade Organization and what it has been able to accomplish, this agreement is probably the most significant of its accomplishments since its inception. As such, I think that passing it through the House of Commons and then ratifying it would be a wonderful endorsement for the world organization of trade. Would she not agree that is an important reason for us to do that, because as a nation we believe in trade?
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Mr. Speaker, I would like to thank my colleague for his question.
Canada is a trading nation. Yes, this agreement will benefit us. It will facilitate trade and modernize and simplify customs and border procedures by reducing tariffs on trade.
Everything about this agreement is positive, and I believe that all parliamentarians agree that this will speed things up. I am very pleased with it. Once Canada has ratified the agreement, the other G20 countries that have not yet done so will quickly follow suit. I am very proud of Bill C-13 and I invite all my colleagues to support it.
Don Davies NDP Vancouver Kingsway, BC
Mr. Speaker, I would like to take a bit of a different tack. When we talk about trade, Canada is signatory to international treaties that restrict Canada's trade in endangered species. There is an upcoming meeting on the Convention on International Trade in Endangered Species. Some countries want to tighten the restrictions on the trade of ivory coming from endangered species, including elephants. I understand that Canada may not be taking a positive position on that. I wonder if my hon. colleague would care to comment on that.
Does she believe the Government of Canada should participate with other countries and agree to the bans on trade of products from endangered species?
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Mr. Speaker, I thank my colleague for the question.
I would say that Bill C-13 will streamline tariff agreements and help countries party to them.
Tracey Ramsey NDP Essex, ON
Mr. Speaker, I thank my colleague, who is on the trade committee, for her wonderful speech today. My question has to do with the CBSA.
It has been brought up numerous times at the trade committee that there are issues at our borders. Bill C-13 speaks to that as it will require more safeguards in place at the border because we are talking about some dangerous products that will be travelling through those borders. Therefore, I would like to ask my colleague if she believes that the CBSA requires additional support to make our borders more efficient and secure.
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Mr. Speaker, I thank my colleague who, like me, is a member of the Standing Committee on International Trade.
We are definitely looking closely at certain aspects of border crossings. Today, in committee, we talked about certain things that were happening at customs. However, that is not really what we are talking about here. Some products could move within Canada, but what we are talking about here is making things easier for other countries, helping them export, and helping our SMEs get into other countries.
Deepak Obhrai Conservative Calgary Forest Lawn, AB
Mr. Speaker, it is a pleasure to rise in the House to speak to this bill for the important reasons I will outline in my speech.
First, let me say that I started in the House 19 years ago next to the curtain and I am right back beside the curtain, starting another journey.
Coming back to the issue, during the period of time that I was the parliamentary secretary for foreign affairs, for international human rights, and for international development, one of the reasons that I went around the world was to promote international trade for Canada. The previous Conservative government worked very hard to make free trade one of its priorities, because it recognized that being a country rich in natural resources, as well as innovation, with a small population, free trade agreements with other countries were extremely important for the country to prosper. As such, Conservatives are very proud to have been associated with a government that saw the need for free trade agreements.
My colleague, the former minister of trade, now the member for Abbotsford, signed the treaty at the WTO, which we are now talking about in the House for implementation purposes. This is a technical bill that, again, follows a process in which we need less bureaucracy and more space to carry out international trade.
In today's international world, we see that protectionism is rising. We have seen that south of the border with both candidates talking about protectionism, yet all indications are that NAFTA has been positive for all countries. Even with regard to CETA, today the Minister of International Trade issued a statement in Europe that there are still a lot of areas to cover. There is a lot to cover on the free trade agreement with India. Nevertheless, this is what the government should focus on. It should ensure that our negotiators continue to be aggressive in finding more markets for our products in this country.
As we face the downturn in both the oil and resource industries, but most importantly the oil industry, it has had an impact right across Canada and it is having even more of an impact on my province of Alberta, where there is story after story of people losing their jobs. These days, when I travel through downtown Calgary, it is amazing to see the streets so empty and the business towers becoming empty downtown. This has a serious impact on our country. We need to understand that while we are a very big country with different resources in different parts of the world, each is interdependent on the other. We should not forget that.
We should also remind people like the mayor of Montreal, Denis Coderre, and everyone else, that ultimately the prosperity of Canada is the prosperity of Montreal, as well as Quebec. He does not live in an isolated city. The provinces tend to work together to help each other represent Canada. That is important. We never distinguish what one province or another is doing. Rather, we talk about what Canada as a whole could provide to the world in terms of not only trade but other aspects related to trade, and we have been very successful in doing that.
However, we are now facing a crisis at this time. Pipelines have not been built. Even the NDP government in Alberta, as a matter of fact, is raising the issue of getting our natural resources to tidewater. Yet, very interestingly, the situation is arising where we need to create an environment, which this bill would do, to ensure that Canadian companies have the opportunity to fairly, and I repeat the word “fairly” very strongly, compete around the world.
This is why the issue of supply management comes to mind. We have to be very careful when supply management is involved that we do not sell our country to other foreign countries that are trying break into our market. We must ensure there is a level playing field for our farmers. I am, of course, talking about the supply management that will be part of the free trade agreement that we are signing, the TPP, and everything else. It is critically important that the government, through the implementation of this agreement, get that message.
I am glad the Liberals are implementing this agreement, but I guess they have no choice. However, as I listen to other Liberal MPs, it seems like suddenly they have discovered free trade and that this bill is something on which they had been working. As we know, the current government came into power not even a year ago, and it is now mostly implementing many of the positive aspects that the previous government had done around the world.
It also surprises me that, now, after environmental targets, the Liberals are going to go back to what we had said would be the targets. Therefore, it was amazing when the current government came out and said that Canada was back. Canada was always back.
On this agreement, all due credit goes to the Department of Foreign Affairs and International Trade officials who worked very hard. It was a privilege for me to work with them for the last 10 years. I recognize their expertise and dedication in working toward this objective. This is what they have been doing. Therefore, when the government raises the idea that nothing existed before the Liberals came into power, that is absolutely wrong. My colleagues on the other side need to recognize that we work together as a country. We work together on these issues to ensure we give Canadians what they are looking for, which is clearly very important in this part of the world: jobs and the economy.
The economy comes first, which is why the carbon tax, from my point of view, is a regressive situation. A tax tends to slow the economy down. When we are trying to meet targets, a whole problem arises out of this thing, which is that we cannot create an environment where Canadians cannot work freely, innovate, and carry on what we have been doing for years in our country.
My party is in support of the bill, but the former minister of trade and the previous government should have full credit for working this out there, signing free trade agreements, and working to ensure we have a regime in our country and an environment where our businesses can go out and take the world on, because we are first class in the world.
Kyle Peterson Liberal Newmarket—Aurora, ON
Mr. Speaker, like the member for Calgary Forest Lawn, I am also very close to the curtain, and I do not know where I will be in 14 years. Who knows where he will be in a couple of months, but we appreciate his comments today.
I would like to make something clear. I do not think that anyone on this side or anyone in the government is taking credit for this being a Liberal initiative. The Prime Minister was in Turkey last November saying that we were going to quickly ratify this agreement. Therefore, clearly in November we could not possibly take credit for something as we had just been elected.
I do acknowledge the good work that his friends on that side of the House have done, and the good work of the member for Prince Albert, the member for Battlefords—Lloydminster, and the member for Chatham-Kent—Leamington who sit on the international trade committee with us. They have all contributed well to the international trade debate.
If Bill C-13 passes, could the member elaborate on what it will mean for the people of Calgary and how this will perhaps help the economy there and his constituents?
Deepak Obhrai Conservative Calgary Forest Lawn, AB
Mr. Speaker, the hon. member did ask me a good question, but I thought the answer would have been “thank you very much”. However, he has asked me to elaborate.
The most important thing in Bill C-13 is that it would take away the red tape. There is a great amount of red tape in international trade, including within our country. The bill works toward reducing it through the WTO, which would force other countries to do that too. Therefore, we could carry on with a level playing field and fewer hurdles for our people in red tape.
I remember going to Vietnam and other countries that wanted to be part of the WTO. We taught them and trained their officers on how to do this, because they had no expertise. Nevertheless, Bill C-13 would make it easier for countries to trade with each other, which is good for everyone.
Robert Aubin NDP Trois-Rivières, QC
Mr. Speaker, for five years now I have been listening closely to my hon. colleague's speeches. I am quite familiar with his rhetoric on the economy.
My question is simple. Given all the measures that were put in place by the previous government, how is it that Statistics Canada is telling us that only 10.4% of SMEs, which let us not forget create the majority of jobs in Canada, succeed in moving into export market? Is that because the old Conservative measures fell flat or because the cuts at Statistics Canada prevent us from getting reliable figures on which we can agree?