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.
Kevin Lamoureux Liberal Winnipeg North, MB
How does the member reconcile that the Harper government knew what it was doing? To me, it lost touch with what Canadians really wanted.
The Assistant Deputy Speaker NDP Carol Hughes
I just want to remind the member that he will have his opportunity to answer, as opposed to yelling across the way. He can answer the question now.
Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB
Madam Speaker, it is not correct that I was heckling during that response. I did not heckle, and I want that to be noted for the record.
With respect to what the hon. member said, I could answer his consideration in three words: global financial crisis. That is something the member clearly has forgotten about. It is gratifying to hear that he did not support the previous government. I would have expected as much.
However, here is the reality. Canada went through the worst global financial crisis since the Great Depression. We made timely, targeted, and temporary investments in fiscal stimulus. His party wanted more spending at every stage. The Liberals said more spending and they wanted permanent new spending. We said we needed to be targeted and temporary and focused in the way we stimulated the economy. Everybody agrees except the party opposite. Even the New Democrats supported a motion to this effect. Everyone agrees that Canada was brought back into balance before the election. We had a balanced budget. We came out of the recession earlier than other countries. We did better than other countries.
The member may think what he likes, but he talks about these issues as if there is some equivalency between running a deficit in the 2008-09 period and then the Liberals' decision to run a massive budget deficit in this fiscal period. We are not in a global financial crisis. We are—
The Assistant Deputy Speaker NDP Carol Hughes
Order, please. The time is up.
I want to apologize to the member if I mistakenly pointed him out, but there was some heckling on this side. Members have opportunities to stand to ask questions. As opposed to heckling or yelling when someone else is speaking, I would ask members to please rise to ask their questions.
Resuming debate. The hon. Parliamentary Secretary to the Prime Minister (Youth).
Peter Schiefke LiberalParliamentary Secretary to the Prime Minister (Youth)
Madam Speaker, this morning, I am pleased to be sharing my time with the hon. member for Brampton East.
I am pleased to have the opportunity today to speak on the subject of Bill C-13, which would make a few legislative changes needed to bring us into full compliance with the World Trade Organization agreement on trade facilitation.
The 2015 Speech from the Throne and the Prime Minister's priorities are clear. This government is focused on creating opportunities by pursuing policies that create growth and ensuring that growth produces tangible results for all.
The agreement on trade facilitation, concluded at the WTO ministerial conference in December 2013, is the first multilateral agreement concluded since the creation of the World Trade Organization. It reinforces the important role of the WTO as a negotiating forum for global trade rules. The agreement provides for the modernization and simplification of customs and border procedures by all WTO members.
By playing a key role in the negotiation of the TFA and its ratification, Canada would demonstrate its support for the agreement and the WTO. The TFA supports the government's efforts to promote trade and development and provides another vehicle to increase prosperity in developing countries.
All WTO members agreed to the conclusion of negotiations on the agreement on trade facilitation at the December 2013 WTO ministerial conference and all WTO members will become parties once they ratify the agreement.
Multilateral trade negotiations can sometimes be difficult to relate to the day-to-day workings of business. However, the TFA is not a theoretical agreement; it is about making trade work better for everyone. It is important that Canada move to quickly ratify the TFA.
For traders, the TFA will ensure faster, simpler, and more predictable cross-border trade, translating into lower costs. The TFA's provisions will apply to trade in all goods between WTO members.
As my hon. colleagues on both sides of the aisle have mentioned several times, the WTO estimates that full implementation of the agreement on trade facilitation by WTO members could boost global merchandise exports by up to $1 trillion, including the up to $730 billion in export opportunities it will accrue to developing countries, and decrease trade costs for WTO members by an average of 14%, including an average of nearly 17% for least-developed countries.
The implementation of the TFA will cut red tape, enhance the predictability of trade, and reduce the costs and delays of trading at international borders for Canadian exports. In fact, the WTO estimates that the TFA will reduce trade costs by over 14% on average globally, including 17% for the least-developed countries.
As we know, lowering trade costs can increase trade, contribute to a higher national income and, indeed, reduce poverty. It can drive the growing participation of developing nations and small- and medium-sized enterprises in the world economy. In fact, countries that do more to lower trade costs, for instance, by improving logistics, tend to grow more rapidly.
Here I would reflect on an experience I had. I spent many years working in East Africa. I was able to see how the East African Community, through trade negotiations and the opening up of trade, was able to grow its regional economy significantly. While I was there, I was able to see significant growth of over 10% in Uganda alone, which allowed that government to implement, for the first time, free primary education for its youth. All of this is to say that the opening up of trade can have a very significant impact, not only on small- and medium-sized enterprises and Canadian business but also on developing countries, particularly those in sub-Saharan Africa.
Canada has provided over $65 million in funding for trade facilitation assistance to developing countries since 2008. Canada has also partnered with TradeMark East Africa, contributing $12 million to its integrated border management project, and has provided $2 million in funding for the World Bank Group's trade facilitation support program launched in 2014 to facilitate the implementation of the TFA.
It is also worth noting that Canada is also a founding donor to the Global Alliance for Trade Facilitation, a public-private platform that would support the TFA implementation efforts of developing countries by leveraging private sector expertise, leadership, and resources to achieve commercially meaningful reforms all around the world. Canada is contributing $10 million to the Global Alliance for Trade Facilitation over seven years, from 2015 to 2022.
These lower trade costs, along with enhanced timelines and predictability in the delivery of intermediate goods. It will also drive growing participation by small and medium-sized enterprises in world trade, particularly as the high cost of international trade currently disproportionately affect SMEs, as well as developing nations. SMEs would be better positioned to export their goods once the TFA is ratified.
Helping SMEs reduce trading costs, as many in the House would agree, would also benefit women in developing countries. The World Bank estimates that 8 million to 10 million SMEs in the developing world have at least one female owner. Studies in recent years have shown just what kind of impact investments in women can have all around the world, particularly in developing nations. Economic growth has skyrocketed when there is significant investment in empowering women to get involved in enterprise and become business owners. There is a reduction in child mortality rates and an increase in education rates. Innovation is strengthened. This ratification would have significant impacts not just for Canada but also for developing nations.
While the TFA's provisions complement those found in the trade facilitation chapters of Canada's free trade agreements, this agreement addresses a broader range of trade facilitation measures, since the TFA is a specialized agreement that reflects the more diverse priorities of all WTO members. The trade facilitation provisions in Canada's free trade agreements have to date focused on Canada's priorities, including transparency, release of goods, risk management, and the advance issuance of decisions on tariff classifications.
These interests are well reflected in the TFA, and because they would apply to all ratifying WTO members, they would serve to advance Canada's interests with countries with whom it does not have an FTA.
The agreement on fair trade facilitation will enter into force when two-thirds of the members have completed their domestic ratification procedures and submitted their instruments of acceptance to the WTO. As of today, 92 of the required members have ratified the agreement on trade facilitation. While there is no specific deadline for WTO members to ratify the agreement, G20 leaders are committed to ratifying the agreement by the end of 2016 and called on all WTO members at the G20 leaders' summit in Hangzhou, China in September 2016 to do the same
Our government is committed to ratifying the agreement as soon as possible, and we encourage all members on both sides of the aisle to do the same.
Colin Carrie Conservative Oshawa, ON
Madam Speaker, I am optimistic to see the Liberals moving ahead with ratification of this agreement, but the parliamentary secretary talked about cross-border trade and decreasing costs, so I was wondering if he could explain a contradiction.
I come from Ontario. We are a manufacturing community. What the Ontario Liberals have done is implement policies that have given Ontario the highest electricity costs for industry in North America. They are bringing in a carbon tax as of January 1, which means that the cost of energy will go up. These policies are now being parodied and mimicked by the federal Liberal government.
Therefore, I wonder if he could explain the difference. On one side, they are saying they are trying to get rid of costs to be more competitive but they are actually putting in policies that are making us less competitive. We have seen this in Ontario with the decrease in manufacturing. How will he explain the differences and the contradictions there?
Peter Schiefke Liberal Vaudreuil—Soulanges, QC
Madam Speaker, with regard to the member's first comment, if he has any provincial concerns I would urge him to contact the representatives that proudly represent him in the province of Ontario.
I will comment, however, on the idea that we are putting barriers in place to economic growth. We have taken a decision to invest in economic growth and were the only party to do so in the previous election. We are going to invest in middle-class families, which we all know are the drivers of the economy, by increasing the Canada child benefit significantly to the tune of $2,300 on average per family. We are also cutting taxes for middle-class families and middle-class income earners who earn between $44,000 and $89,000 a year, putting roughly $500 to $600 back in the pockets of hard working Canadians. We are increasing our support for the most vulnerable seniors to the tune of roughly $950 a year.
I do not know what my hon. colleague across the aisle is talking about when he refers to barriers. If anything, we were the only party in the last election to say that we would be drivers of economic growth. That is exactly what we are delivering on.
Rachel Blaney NDP North Island—Powell River, BC
Madam Speaker, Bill C-13 would change how Canada deals with goods in transit and non-compliant goods, including hazardous products and pest control products. There are several small manufacturing businesses in my riding that work tirelessly to protect their employees and to encourage growth. The NDP wants to see some of these small and medium-sized businesses flourish with agreements like this.
Is my colleague confident that the changes proposed in Bill C-13 will maintain existing health and safety standards for workers who may come into contact with these products?
Peter Schiefke Liberal Vaudreuil—Soulanges, QC
Madam Speaker, I thank my colleague for being a strong advocate for the safety and health of people in her riding. We take that seriously as members of Parliament.
A lot of work and effort is being put into making sure that we are protecting our citizens in these kinds of trade negotiations. The one thing we are focused on, in addition to the concerns that my colleague is bringing to the table, is reducing the barriers that so many SMEs have right now in getting their goods and services across the border. From talking with small businesses in my own riding of Vaudreuil—Soulanges, which not only borders Ontario but is also close to the U.S., the reality is that they are being hit really hard by the excessive trade expenses in trying to get their goods and services into other markets.
I am proud that what we are really ensuring here is a reduction of that burden on small and medium-sized businesses, which currently, as we all know, are suffering all across the country.
Raj Grewal Liberal Brampton East, ON
Madam Speaker, it is a pleasure to have the opportunity to speak today on the World Trade Organization's trade facilitation agreement, commonly referred to as the TFA, and Bill C-13.
Trade facilitation generally refers to the simplification, harmonization, and standardization of the controls governing the movement of goods across national borders. In Canada, this generally covers policies and measures implemented by the Canada Border Services Agency, the CBSA, and partners that operate at the border, such as Health Canada and Environment and Climate Change Canada.
The TFA is designed to make trade faster, cheaper, and more predictable, as a lack of transparency, multiple documentation requirements, and lengthy clearance processes increase trade costs. Global value chains, just-in-time delivery systems, e-commerce, and the fast nature of transactions today require quick and reliable border crossings and clearance processes.
Since simplified trade procedures benefit all trade partners, trade facilitation reforms are best addressed on a multilateral basis. The WTO TFA helps provide a global foundation that will extend trade facilitation, modernization, and its benefits to WTO members once it enters into force.
WTO members started negotiations toward a TFA in 2004, and negotiations concluded in December 2013. This major accomplishment was a major gain for the global trading community and the WTO, as global trade rules were developed to expedite the movement, release, and clearance of goods.
The WTO estimates that trade costs will be reduced by an average of over 14%, including an average reduction of nearly 17% for least-developed countries, and that the implementation of the TFA could boost global merchandise exports by up to $1 trillion, including up to $730 billion for developing countries. Even in the event that some WTO members do not move to fully implement the TFA, the real-world impact will be significant. Mechanisms are in place to assist developing countries to implement the TFA.
The implementation of the TFA would benefit Canadian traders by expediting, streamlining, and enhancing the predictability of customs and border procedures for their exports to developing countries, which translates into lower trade costs. The benefits are expected to be most significant for small and medium-sized enterprises for whom trade costs are disproportionately high. The implementation of the TFA by developing countries could help Canada's SMEs increase their export presence in emerging markets, from Latin America and the Caribbean to Africa and Southeast Asia.
The TFA will enter into force once ratified by two-thirds of the WTO members. As of today, 92 of the required 110 WTO members have ratified the TFA. That includes Canada's major trading partners, the United States, the European Union, China, and Japan. The sooner the TFA can enter into force, the sooner the global trade community will be able to reap its benefits.
Canada is already compliant with most of the TFA's provisions. The proposed amendments within Bill C-13 would allow Canada to implement two specific provisions of the TFA while maintaining safeguards on the health and safety of Canadians and the environment. Bill C-13 proposes amendments to six Canadian statutes, which fall under the responsibility of Health Canada and Environment and Climate Change Canada, in order to ensure compliance with the TFA. Bill C-13 would lead to greater consistency in how goods are treated at the border and facilitate the transit of goods through Canada.
More specifically, Bill C-13 addresses two specific TFA provisions: one, article 10.8.1, which deals with the treatment of non-compliant goods rejected at the border; and two, article 11.8, which deals with goods in transit.
Article 10.8 of the TFA requires WTO members to allow importers to return to exporters goods rejected on account of their failure to meet certain health and other technical requirements. It also includes an exemption, which allows a WTO member to dispose of non-compliant goods in alternative ways, where this is provided for in its laws.
Bill C-13 would identify criteria under which non-compliant goods could be either, one, returned or re-consigned, or two, seized, detained, forfeited, or disposed of. The proposed amendments would provide Canada with the necessary authority to take action regarding certain non-compliant goods shipped to Canada, including in order to avoid having to maintain indefinite care and control of non-compliant and dangerous goods.
Amendments designed to ensure compliance with TFA article 10.8.1 are proposed to the Canada Consumer Product Safety Act, the Food and Drugs Act, the Hazardous Products Act, the Pest Control Products Act, and the Radiation Emitting Devices Act.
Bill C-13 would also enable Health Canada and Environment and Climate Change Canada to comply with article 11.8 of the TFA. This provision prohibits the application of technical regulations to goods moving through a WTO member's territory from a point outside its territory to another foreign point; for example, goods in transit.
Currently, certain provisions of the Food and Drugs Act, the Pest Control Products Act, the Radiation Emitting Devices Act, and the Canadian Environmental Protection Act, 1999, prohibit the transit through Canada of certain goods that do not comply with Canadian technical regulations. Bill C-13 would create the legal authority to allow the government to exempt goods in transit through Canada from these technical regulations, thus helping to facilitate trade.
For some of these statutes, conditions would be imposed which, among other things, first, would identify goods in transit that may not comply with Canadian technical regulations in the event that the goods are diverted into the Canadian market and, second, provide oversight on products, such as certain pesticides and pharmaceutical drugs, not captured under the Transportation of Dangerous Goods Act, 1992, which are currently not permitted to transit through Canada but will be, once the TFA is implemented. This oversight maintains safeguards protecting the environment and the health and safety of persons who may come into contact with such goods.
I urge all hon. members to support this bill, which would enable Canada to do its part to bring this agreement into force and ensure that the health and safety of Canadians and the environment remains protected.
Colin Carrie Conservative Oshawa, ON
Madam Speaker, my colleague from Brampton comes from a riding similar to mine in Oshawa. Automobiles are manufactured there too. I paid attention to his speech because he really talked about international competitiveness. Regardless of what some people say, this is the new reality for the world.
I asked the Parliamentary Secretary to the Prime Minister to answer this question and he did not answer—he skirted the question—so I will ask this member, because he did actually bring up something very specific in his speech. He talked about just-in-time delivery, which is important to the automotive sector.
I do applaud the implementation of Bill C-13 because I do think it is something like a step in the right direction, but the Liberals are dithering on the TPP. They are also putting in something called a carbon tax, just as the Ontario government has done, and we have seen those taxes and the high cost of electricity. They have also increased the CPP, which will really affect our competitiveness.
I want to ask the hon. member about these carbon taxes, because we know the Ontario carbon tax will increase the cost of fuel by 5¢ per litre. Could he explain the federal carbon tax and what cost that would put on our manufacturers and our just-in-time delivery? How will they implement it? Will it be a tax on top of the Ontario tax? Will it be a blended tax?
There is a lot of uncertainty. We are trying to get new investment into our province. How would this carbon tax affect our competitiveness?
Raj Grewal Liberal Brampton East, ON
Madam Speaker, I thank my hon. colleague for his question and his passion on climate change and the issues he brought up.
My speech is focused on Bill C-13 and the implementation of the TFA, which I will reiterate is extremely important for Canada. I think we can all agree that the world is getting smaller in terms of e-commerce, just-in-time delivery, and global business.
Any first-year business student across this country, across the world, would be able to tell members of this House that, in order to be competitive in today's economy, we need to have access to emerging markets. We need to have access to simplified procedures. We need to have access to the world's markets to sell our goods and products.
They have to be able to flow easily, but at the same time, we have to make sure we protect Canadians and the health and safety of individuals who come in contact with dangerous goods, and that is exactly what the bill would do, exactly what the TFA would do. It would add almost $1 trillion to the world economy. It would add almost $730 billion to developing countries. This is a good deal. It is important for Canada to implement this agreement.
Brian Masse NDP Windsor West, ON
Madam Speaker, I would like to congratulate the member for Brampton East for a very good intervention, which also touched on several complicated issues related to this agreement.
I was also pleased to hear the discussion around CBSA. What I have raised on Bill C-13 is the question of organized crime, and particularly the goods that get into our country. The ports only check 4% of goods that come into our country, and they will be mixed, including now, with new types of materials and other things that are going to other countries.
Organized crime is one of the things that I have been pushing against with a number of different things, including my bill that will be voted on this Wednesday, Bill C-221. The bill would help eliminate $10 billion in organized crime from single-event sports wagering. We have British Columbia, Ontario, and other provinces onside to diminish organized crime in this country.
I ask the member if, in his opinion, CBSA would get enough resources to tackle the potential of organized crime, basically using Trojan horse trade coming in to allow other goods and services of contraband, which should not be coming into Canada, to go to other countries.
Raj Grewal Liberal Brampton East, ON
Madam Speaker, I think we can all agree that there is a delicate balance between making sure goods flow easily, quickly, and efficiently, protecting the health and safety of Canadians, and fighting against organized crime. This is exactly what Bill C-13 would do.
The bill would empower the CBSA and the Government of Canada to fight back against organized crime and ensure that only the products get through that need to get through. This would help legitimate businesses that are participating in the transit of goods in Canada to succeed, and would make it more efficient and easier, so that we help small and medium-sized enterprises benefit from a world market.
Colin Carrie Conservative Oshawa, ON
Madam Speaker, I appreciate having this opportunity to speak on Bill C-13.
This bill is an important piece of legislation, and I urge all of my colleagues to support the ratification power it possesses, because it brings Canada into the fold with the rest of our World Trade Organization partners, which is vital for Canada as we move forward in the new economy.
Bills of this nature simplify procedures, and as has been said in the House before, help cut red tape, expedite the release and clearance of goods, reduce costs associated with processing, which is extremely important for our competitiveness, and make international trade more predictable for Canadians and more predictable for Canadian businesses that want to make new investments and build our economy.
Most importantly, steps to ratify trade agreements need to be taken to avoid putting Canada on the outside of free trade agreements with our WTO partners. This is a very important point. Many countries, including our largest trading partners and fellow NAFTA members, Mexico and the U.S., have either done so or are actively working toward ratifying agreements, particularly agreements such as the TPP. I am happy that we are having this debate. It is important that we ratify the powers in Bill C-13.
I also want to talk about the overall picture. Right now, the Liberals have a very important agreement on the table. If we believe that today is an important step forward, and we want to believe what the Liberals are saying, we have to look at what they are saying but also at their actions, because actions speak louder than words. The reality is that, to date, the Liberals have made no attempt to ratify the TPP agreement. This lack of action by the government is a large risk for the Canadian economy.
The Liberals must realize that trade has the power to grow our economy without spending billions of dollars. That is the commitment we are seeing from the Liberal government. Instead of moving forward on agreements that are on the table in front of them, they seem to be focused on spending billions of dollars. When we look at the Conservatives' approach versus their approach, much of the work on the agreement we are talking about today was done by the previous government. I applaud and support it, but we are now moving forward at an accelerated pace. The government has to take a big picture view of what is going on with the different trade agreements, whether it is the European trade agreement or the TPP.
The Liberals are standing on the largest trade agreement in over 20 years. Stalling on the ratification of the TPP agreement will only put Canada further behind, when Canada should be moving ahead. It is clear that not signing this agreement will damage our economy and reduce the global supply chain, which will ultimately lead to job losses. We have seen the latest numbers. We cannot afford that.
Signing the TPP would send a clear message to Canadian businesses, and this is extremely important, because, first, it would give our exporters the opportunity to prepare and take advantage of preferential market access. Second, it would lower tariffs. I think everyone is in agreement that this is a good thing. Third, it would remove trade barriers. Fourth, and what is very important for the economy of Ontario, it would further integrate global supply chains.
I am the MP for Oshawa. Trade agreements have a lot of implications for my riding. It is the home of the General Motors assembly plant. Today we got some good news; it was able to get an agreement with Unifor. I applaud GM and Unifor for coming to an agreement, because the reality for the business world and labour is that the world will be doing business in a new way.
A really important point for me, as a local representative, is that our NAFTA partners are moving forward to ratify the TPP. The presidents of Mexico and the United States were here, and one of the things they talked about was how they are moving forward to ratify this agreement. If they ratify it and we do not, it is going to be devastating to manufacturing and our local economies. Consider that 80% of Canadian vehicles are made for export. Having access to new global markets, and over 800 million potential new customers, with the TPP is going to be significant.
To put that in context, the European free trade agreement would mean 400 million new customers. This would give Canada exclusive access to both markets.
It is important to take a moment to explain exactly what that means. It means that Canada will be unique in the world. Unique among our trading partners, it will have preferred access to Europe and preferred access to the Asia Pacific. That is 1.2 billion people. That is huge.
What we are seeing from the government is further dithering on the European free trade agreement, which was ready to go under our government. The TPP is ready to go. We see President Obama and the Mexican president moving forward, and what is happening with the Liberal government? It is dithering.
The numbers involved for GDP are $29 trillion. Access to these markets would give Oshawa a competitive advantage in the production of vehicles at our assembly plants. They would be destined for new and existing markets. We are going to have a unique opportunity to manufacture in Oshawa. We will have access to Europe and the Asia Pacific. Therefore, there is a need to connect Canada with the global supply chain. This would allow Oshawa and all of Canada to grow competitively and to continue to show investors that doing business in Canada is profitable.
With access to new markets, Canada would not only benefit from cost savings but would be on par with our fellow NAFTA countries, and this is extremely important. Ratification of the TPP would allow Canada to have the same preferential market access as other TPP countries. Not signing the TPP would make Canada suffer, as these markets would be accessible to our largest trading partners, the United States and Mexico, and we would be out of the deal. Both the U.S. and Mexico would be more competitive, and investment would be driven away from Canada.
The previous Conservative government laid the groundwork in a negotiation process to ensure that Canadians would prosper as a result of trade relations that were freshly established in these markets, because it is the new way of doing business.
A report released by the Office of the Chief Economist from Global Affairs Canada includes important observations on what the TPP would do to benefit Canada as well as on the consequences if Canada does not sign this important agreement. I would like to take a moment to go over some of the benefits.
First of all, there would be a boost to Canada's GDP of 0.127%, generating a GDP gain of $4.3 billion by 2040.
The TPP would liberalize barriers to trade and provide estimated tariffs savings of $428 million per year for Canadian exporters.
Auto companies, which currently do not have access to Japan on an equal playing field, would now have that access. This is something auto companies have been asking for for years.
The most significant benefit would be a $1.1 billion export increase to Japan, with exports of pork, beef, and wood products leading the way.
Canada cannot afford to remain on the outside. Not signing the TPP would lead to GDP losses of $5.3 billion. Canadian automotive production and investment would both decline by 4%, and the way it would affect our global supply chain would be catastrophic.
Canadian beef exports to Japan would fall by more than 66%, and pork exports to Japan would drop by 13%.
Canada's exports to TPP countries in 2014 accounted for 81.1% of the total value of Canadian exports, totalling $759.4 billion.
In conclusion, my message is simple. Today we are looking at Bill C-13, and that is a great opportunity, but we must also ratify the TPP. Canadians, especially businesses, deserve the advantages and opportunities the TPP can offer. The significance of trade cannot be ignored by the Liberals.
Canada cannot fall behind, especially now, and especially when trade has the power to significantly increase the total GDP of Canada without spending billions of dollars, which seems to be what the Liberals are obsessed with doing.
I want to take this opportunity to encourage my colleagues here in the House to support any of these agreements that facilitate trade.
I want to bring up an important point I have been trying to get the Liberals to address today. On one side, they seem to be talking about increasing business and increasing trade, which I think everyone agrees is a good thing, except maybe the NDP. On the other side, the Liberals are bringing in policies that are hurting our competitiveness internationally. I wanted to talk a little about that.
When we are talking about trade agreements, we are talking about the competitiveness of Canada versus other parts of the world. Recently the government brought in changes to the CPP. This is something I have been talking to my business community about.
What the Liberals are proposing to bring forward would cost Canadian businesses up to $2,000 per employee. Let us put that into perspective. General Motors has 3,000 employees in Oshawa. If we do the math, that is a significant increase in cost for doing business in Canada. It would also mean that individual Canadians would have to match that. Now we are talking about $2,000 for the employer and $2,000 extra that employees would have to put into this plan that many will not have access to.
We want to talk about the competitiveness of our energy policies. I have brought up the example of Ontario. We have seen what the Ontario policies are doing to our competitiveness in the manufacturing field. Right now, Ontario is so worried it has backtracked somewhat on its electricity policy, because it has realized how much of a concern it is.
We are looking at a policy that has basically contributed to the loss of 300,000 good-quality manufacturing jobs in Ontario. The federal Liberals are supporting these policies moving forward in Ontario and are parroting its policies and bringing them into the federal jurisdiction.
That leads to the next issue I need to talk about. I need to get clarification today from the Liberals. I want to talk about the carbon tax.
We know that the people we compete against the most, Michigan for example, do not have a state carbon tax. Texas does not have a state carbon tax. Texas has a cost of energy that is 75% less than it is in Ontario.
The Prime Minister and the Minister of Environment and Climate Change have been very clear that they are actually going to be bringing in a carbon tax federally. I do not think the uncertainty of this can be overemphasized. Companies, when they are making investments in our economy, are making investments over a 10-year or 15-year period. Instead of getting certainty from the government, all they are getting is uncertainty.
The only certainty companies are getting is that it is going to cost more to do business. We are talking about the CPP costs, energy costs, and carbon taxes. It would drive up the cost of everything. What we are talking about in our factories is increased costs for heating factories. We are talking about increased costs for food in our factories. We are talking about the electricity going into these factories. Individual Canadians will be paying more. Basically, this is a tax on everything.
It really affects our competitiveness. On one side, the Liberals are saying that they want to be competitive. As I said, Bill C-13 is a great step forward. However, we need to address the other side. What domestic policies are the Liberals putting in place that are killing our competitiveness? On this side of the House, we think we have to look at these policies in conjunction.
Moving forward, this whole idea of economic policy needs to be addressed. We cannot just farm one section out, and say for trade we are going to move forward on positive things in that regard. Other countries are doing that as well.
It is the domestic side of the equation that the Liberals seem to be ignoring, to the point where this is going to make manufacturers and businesses in our communities less competitive internationally. Even with the good work moving this forward, the Liberals need to take a step back and do some work at the other end on domestic policies.
One of the things I would like to see moving forward within the next couple of months is certainty coming out of the Liberal government. As I said, this debate we are having today is a good thing, but what about the TPP? What is the government going to do to move that important agenda forward? Companies that are making business decisions right now do not have any certainty. That is a major thing and they may not be choosing Canada.
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, I listened closely to what the member was saying. He spent a great deal of his time talking about the TPP and encouraging the government to break its word to Canadians by making some sort of a decision prematurely. The Prime Minister made a commitment to Canadians to review the TPP thoroughly. He asked members of Parliament on all sides, but particularly members within our caucus, to do our homework on this particular agreement and I look forward to the debate on that. The Prime Minister is encouraging us to speed up on it.
Bill C-13 is a ratification of an agreement with over 160 countries participating in it, and they are encouraging us to ratify it. The United States ratified it in January 2015. It was negotiated back in December 2013. Why does my colleague believe that the Conservative government was not able to do what the United States did? The member drew a comparison to the TPP. Why was the Harper government not able to bring it forward in January, February, or March of 2015? The member will correct me if I am wrong but I do not believe the United States has signed off on the TPP.
Colin Carrie Conservative Oshawa, ON
Mr. Speaker, my colleague is right. The Americans are moving forward with the TPP. Mr. Obama was right here in the House. The Mexican president was here as well. We have an agreement on the table and the current government seems to be happy with just following the lead of other countries.
This is the most important trade agreement in 20 years. It is going to benefit Canada and place Canada in a unique position. The member has seen the recent numbers about the economy. We left the Liberal government with a surplus. The parliamentary budget officer has said that the government's policies moving forward are unsustainable.
I talked about the importance of moving these agreements forward. I do hope that members on the other side agree that we move this agreement forward as quickly as we can. We have been clear. We support the legislation moving forward today but it is not only about today. It is about moving forward over the next few months and the TPP is an important part of it.
Domestic policies are important too and none of the Liberals have addressed this issue, which is important for manufacturing communities here in Ontario. What about the domestic policies that are now making us less competitive internationally? It is all fine and dandy that this agreement is moving forward here today, but the Liberals are dithering on the TPP. We can all see that. They seem to want to consult on this forever, but there are real impacts to real Canadians who work in real industries.
I would like to see the TPP brought forward as quickly as possible. The Liberals are in government now and they like to bring up issues about the past. I would like to see one Liberal today address the domestic policies, which have the exact opposite intention of the trade agreements and make us less competitive because of carbon taxes, high energy costs, and things like doubling the CPP. This really hurts small businesses and their opportunities to be competitive in our country.
Karine Trudel NDP Jonquière, QC
Mr. Speaker, as we said earlier, we support Bill C-13 at second reading. It will be important to ask questions in committee, especially since this is a measure that could help small and medium sized enterprises.
I would have liked the government to do more, including lowering the tax rate. That is a broken election promise that is going to cost SMEs millions of dollars.
Does my colleague think that the government should do more to bring developing countries together, be it through trade or development assistance?
Colin Carrie Conservative Oshawa, ON
Mr. Speaker, I want to thank my colleague for the insight of her question. She brought up the fact that one of the things that the Liberals promised was lowering taxes, and it seems to be a promise that the Liberals do not have a problem breaking.
The member asked whether Canada should do more. That is why I am very passionate about moving forward with agreements such as the TPP, because moving forward with agreements such as the TPP gives our businesses and our Canadian reputation the ability to get out there. As for human rights and rights inside the countries that we do these trade agreements with, we have seen historically that one of the best ways to get better human rights around the world is to get involved with these countries, do business, have their people come here and give us a bit of information, and we go there to give them a bit of information. It is a win-win when we have these different types of agreements.
Right now, Canadians have seen the economic challenges brought forth by the new government. We have seen, sadly, that there has been an overemphasis on spending. What was it this year? Was it a $30-billion deficit or something like that? The Liberals like to say they have made certain promises. Let me just see. They were talking about a very small deficit for a very small period of time. I think they said $10 billion. That is their idea of small; I do not know where that came from. However, it is now $30 billion.
My colleagues over there say that during the economic downturn the Conservatives had an increase in deficit; that is true. However, during the economic downturn, the Liberals wanted more. I was here in the House when they were arguing, saying that we were not spending enough. Now, within six months the parliamentary budget officer, not the Conservatives or the NDP, is saying that the way the Liberals have turned the country is unsustainable. Six months is all it has taken.
Should we be doing more? Absolutely, and one of the ways we can do that is with the bill that we are debating here today, but also looking at trade moving forward such as the TPP, and I will also bring up the European free trade agreement. We have to move forward on these things. It does help people when you raise them up. Economic advantages and economic growth to individuals really work toward helping them, but also toward spreading the values of human rights that Canadians hold so dear.
Alex Nuttall Conservative Barrie—Springwater—Oro-Medonte, ON
Mr. Speaker, being in a riding in an area that has such a heavy reliance on manufacturing and has a heavy reliance specifically on auto manufacturing and discussing some of the domestic policies that are making our economy and our manufacturers less competitive, which policies in particular can you identify that you have seen pushing our economy in that direction? Perhaps you can comment on this.
I would also like to note the loss of 39,000 small businesses last month alone, the loss of 40,000 manufacturing jobs this year alone, and the effect these domestic policies are having on that.
The Assistant Deputy Speaker Liberal Anthony Rota
Before the hon. member answers, I just want to remind all the members that when they say “you”, I am sure they do not expect the Speaker to answer the question. I am sure they mean for the hon. member to answer the question. I just wanted to clarify so that the hon. member knows who is answering that question.
Colin Carrie Conservative Oshawa, ON
Mr. Speaker, I want to thank my colleague for this extremely important question, but also for all the work he has done for manufacturers. He is doing something positive by bringing awareness to the actual policies that are killing jobs in his community and in my community. As he said, 39,000 small businesses were lost. There are huge losses in manufacturing.
At the end of the day, this is about Canada's and Ontario's competitiveness. This is where the big contradiction is in the House today. I would like to address three important domestic policies that are killing our ability to compete internationally. Number one is the Liberal changes to the CPP. This is $2,000 more per employee that business owners are going to have to pay, $2,000 more than individuals.
Second is carbon taxes and the uncertainty that is totally the responsibility of the Liberal government. We have this horrible carbon tax in Ontario, increasing the cost of heating, electricity; and just-in-time delivery of fuel, at 5¢ per litre more. Now the federal government wants to add on top of that.
The third thing I want to talk about is the high energy costs. What scares me is that we have lost 300,000 jobs in Ontario because of these irresponsible policies. Moving forward, in the next few months the federal Liberal Party is parroting these exact policies that have killed so many jobs. We are starting to see those effects. We need to ensure that domestic and international policies jive and that we are all working toward the same goal.
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, I am pleased to address the House today, to be back in the House of Commons, to see all my colleagues again, and to know that we are all sitting in the House together at the same level, men and women alike. We do not need to look up to the gallery to see whether women or other people are sitting there.
I am very pleased to speak to this bill. Extraordinarily, we strongly support this bill introduced by the current government, as it is about the economy. It is about developing our economy here in Canada, and about free trade. Anything that promotes free trade, economic prosperity, anything that helps our businesses produce more and export more freely, and brings foreign investment to Canada, is a good thing, a good idea, which must be developed and supported. That is exactly what we are doing today by showing our support for Bill C-13 currently on the table.
I would like to begin by saying that, basically, the purpose of this bill is to implement the agreement to facilitate trade between various countries that was concluded by our Conservative government, that of the Right Hon. Stephen Harper, at a meeting held in Bali a few years ago. We were not the only ones involved. Over one hundred countries concluded this agreement. However, every legislature in each of those countries must also implement the agreement, and that is what we are doing right now.
This bill serves as a reminder of the history of free trade in Canada, and I would like to talk a bit about that before getting into the substance of Bill C-13.
Canada is an exporting country because of its size and our extraordinary assets, including our natural resources and our universities, which year after year produce excellent people to work in our businesses and industries and conduct high-tech research. With a population of over 30 million people, we may be relatively small in number, but we are rich in character and proud of it. Clearly, all countries, but Canada in particular, must rely on exports to fully develop their economies.
In that respect, I am reminded of more recent free trade issues. I could go back as far as the last century, but let us talk instead about the issues encountered in more modern times. Canada signed a milestone free trade agreement with the United States in 1988. That was a momentous occasion and a turning point in Canada's economic development. We opened our doors wide to export our products. Where would Canada be today if we had not signed that free trade agreement? Let us remember that it too was signed only after a long political debate. To put it mildly, some people had concerns about free trade in the beginning. Fortunately, now that some time has passed, today we see that the free trade agreement has had a positive impact, thanks to people's goodwill and especially their open-mindedness. We are fortunate to have signed that agreement.
Perhaps some members understood what I meant when I said that people needed time to warm up to the idea. Some members may remember that during the 1988 election campaign the Liberal Party, which is currently in power, expressed serious reservations about the agreement, even opposed it outright. A few years later, the Liberals finally recognized that it was a good thing.
These are the facts. It is important to mention that the Right Hon. Brian Mulroney, who was behind the 1988 free trade agreement, had also expressed some reservations previously. In 1983, during the Conservative Party leadership race, leadership hopeful John Crosbie, former Newfoundland MP and minister, championed this revolutionary and extremely important idea of free trade between Canada and the United States. During that same leadership race another candidate, Brian Mulroney, expressed very serious concerns and said that it was like a mouse laying beside an elephant. We would be crushed and and nothing good would come of it.
We have to admit that, back then, Prime Minister Brian Mulroney's views had changed. Thank goodness we had this great leader in Canada, at a critical time for our economy, who made the agreement and its ratification possible. Members will recall how unusual the political landscape was back in 1988, particularly in my province of Quebec.
There were people who were sovereignists through and through. I will not call them separatists because that can have a pejorative connotation. Social democrats including Jacques Parizeau, Bernard Landry, former leaders of the Parti Québécois, and former premiers of Quebec came out in favour of free trade. They were strongly in favour of the free trade agreement. They spent their entire lives as social democrats and sovereignists and even they saw the economic benefits in the agreement that were essential for developing our country and Quebec.
That is why we sometimes saw a surprising alliance between right wing federalists, Conservatives, and so-called left wing sovereignists, like Jacques Parizeau. They worked side by side for the free trade agreement. I do not want to get into too much regionalism, since we are all Canadians, but some might say that the whole thing succeeded because of Quebec. It was Quebec's support for the Conservative Party that allowed the free trade agreement to be ratified in 1988.
Events and history proved the Mulroney government right, so that was good. When the government of the Right Hon. Jean Chrétien came to power, there was good reason to have some concerns about the development of free trade in Canada. Fortunately, those who in the past had said that the agreement was no good and they would tear it up instead maintained it and even expanded it, with the famous agreement between the three amigos, namely Mexico, the United States, and Canada. As a result, what had begun as the cornerstone of Canada's economic development, in a more contemporary setting, in 1988, was expanded into an agreement between Mexico, the United States, and Canada.
Without going into too much detail, it was about a year ago that negotiations were concluded for the trans-Pacific partnership. Once again, Canada is lucky to be part of that agreement because it represents an extraordinary opportunity for our economy. It should be noted that when we talk about free trade, we are really talking about exports. We are talking about goods that are manufactured here in Canada, by Canadians, and sold in other countries. It is about money from other countries invested here in Canada to pay our workers' wages. There is nothing more lucrative and more profitable for our economy than exports. In fact, one in five jobs in Canada depends on exports.
That is why we are so proud to see how important, how very essential this is for our economy, particularly in light of the following figures: $54 billion for exports of materials for transportation; $48 billion for exports of mineral products; $26 billion for exports of electrical machinery and equipment and parts thereof; $19 billion for exports of base metals; and $18 billion for exports of products of the chemical industries. That is what export, free trade, and economic development are all about. That is what creates wealth in Canada, and that is why Canada is an exporting nation. It must continue to be an exporting nation, and we must do everything we can to open even more doors around the world so that everybody everywhere can enjoy the quality of Canadian products made by us, by Canadians.
I also want to say that circumstances can shift, people's thinking can change, and some who were once against free trade may now be in favour of it. So much the better. What really matters is the end result, and that is why we strongly support this government's Bill C-13.
I would like to talk about this bill, which would see Canada ratify the agreement on trade facilitation. I will start with some background. In August 2004, the World Trade Organization opened negotiations to hammer out three essential facets of free trade. The first was to improve developing countries' access to today's competitive markets. That is essential. It is fine to say all the right things about helping our friends, about how we are all citizens of this planet, about how we have to help people in developing countries.
However, they should have access to our products and vice versa. As of 2004, the intention was to open markets to developing countries, cut red tape related to trade, and reduce tariffs. In some cases, the cost of the paperwork exceeded the savings that could be realized with trade agreements between different countries. That does not work.
Fortunately, the WTO began examining the issue in 2004. Finally, in December 2013, the Bali package, incorrectly named the “paquet de Bali” in French, was agreed to. The Bali agreement covered the three aspects I just mentioned. They were committed to paper and then everyone was asked to enshrine them. This occurred on November 27, 2014, with the Protocol of Amendment.
Here, in Canada, a proposed trade facilitation agreement was introduced on May 13, 2015, by my colleague from Abbotsford, the former minister of international trade, whom I would like to salute. Not so long ago, he was seated on my right, here on this bench. It is always very pleasant to have neighbours on our right, even though I think I am not much to the left of my colleagues.
I would like to say, from my seat in the House of Commons, that the member for Abbotsford made a major and exemplary contribution to Canada's economic development. Canada should be grateful to the hon. member for Abbotsford, who signed historic agreements that are vital to Canada's economy. He is from British Columbia, a part of this country that I am discovering more and more. We are lucky to be MPs in Ottawa, because it gives us the opportunity to discover our beautiful, vast, and productive country.
On May 13, 2016, the member for Abbotsford, the former minister of international trade, introduced a sort of set of instructions for the agreement on trade facilitation. I am pleased to see that the current government is continuing that work by introducing this bill to implement the agreement on trade facilitation. It is a rather long bill.
The bill makes many technical changes. Amendments must be made to the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act of 1999, the Pest Control Products Act, the Canada Consumer Product Safety Act, and the Safe Food for Canadians Act.
The list of amendments is long, but they are necessary to allow Canada to reach its full economic development potential. More specifically, amendments must be made to two provisions of the trade facilitation agreement, namely article 10.8, which deals with the treatment of goods that are rejected at the border because they do not comply with certain health and other technical requirements, and article 11.8, which prohibits the application of technical regulations to goods moving through a WTO member's territory to a point outside its territory, or in other words, goods in transit.
I prefer reading, rather than speaking off the cuff, because these details are very technical. It is better to rely on good notes, to know what we are talking about.
Basically, the bottom line is that this will give Canada access to more countries, and it will make it easier for all countries to do business with one another. It will also help ensure the safety and security of the products traded, give developing countries greater access to trade, and give our exporters access to those emerging markets, which, in the past, were often overlooked, but now must be part of the equation.
We are glad that, in 1988, we concluded an agreement with our largest trading partner, the United States. We are also happy that those agreements have been expanded to include all of North America. Bravo.
We are pleased to see that, over time, whether it was under the leadership of the Right Hon. Jean Chrétien or the Right Hon. Stephen Harper, all governments came together to open our markets and help our businesses export their products.
While it is true that we have a fundamental difference of opinion and specific concerns about each other, one thing that unites us and brings us together is the issue of free trade. Free trade is synonymous with economic development.
This is why the legislation is very important and we deeply support the bill. We will study it, line by line, to ensure that everything is all right, but the purpose of the bill is to open our country to new markets and to create jobs.
Basically, this agreement will boost exports from developed economies from $310 billion to an estimated $580 billion per year. Global exports could rise by nearly 3%, and 21 million jobs could be created worldwide.
That is the kind of potential we need to cultivate and evaluate carefully. As we said earlier, we have to get used to this and recognize the need for an open-minded response to new challenges. While we may have had reservations about the quality of what developing countries are producing and how they produce their goods and services, there is no denying that the best way to help these countries achieve higher standards is to trade with them.
Furthermore, as many historians would agree, trade is the reason that we have not had a world war in nearly 75 years even though, unfortunately, wars do break out around the world from time to time. Countries are working together and trading with each other.
General de Gaulle, who was not against European countries working together, said that this was one of the fundamental factors for ensuring national security and peace in Europe. General de Gaulle certainly knew what he was talking about, having suffered the horrors of the First World War and led his country in a honourable fight during the Second World War. This man, who fought fiercely against the Nazi enemy, reached out to Germany and all the other countries, including Italy, in order to work with them. That was the first global move toward international trade. It was legendary and now countries can help each other advance their development.
I can assure hon. members that on this side of the House we are in favour of this bill. We will work very hard and conscientiously on it and carry on the excellent work done by the hon. member for Abbotsford, under whose guidance previous agreements were concluded, bringing us to the introduction of Bill C-13 today.
David Graham Liberal Laurentides—Labelle, QC
Mr. Speaker, if my colleague from Louis-Saint-Laurent had started wearing glasses at an earlier age, he might have taken a slightly different political path.
I appreciate my colleague's support for this important file. My question is this: if this file is so important, why did the Conservatives take so long to introduce it in the last Parliament?
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, I have taken note of my colleague's comments about my glasses and I will reciprocate in due course.
Seriously, in international affairs, we must take the time to do things right. If we rush things, if we do them willy-nilly, we run the risk of painting ourselves into a corner.
Personally, I am very proud to be a member of a political party that has done its utmost to ensure that our country has access to an even bigger market. I am very proud to belong to the political party that signed an agreement with Pacific Rim countries. Consequently, today, Canada is one of the countries, if not the country, that is party to the most agreements with other countries. I am very proud to have fought one year ago, under the leadership of prime minister Stephen Harper, who signed the largest number of agreements with other countries in Canada's history. Yes, I am very proud that, under the leadership of the member for Abbotsford, we signed that agreement and that we are now doing what is required to enshrine it. We are doing this so that our workers, exporters, businesses, SMEs, and creators of wealth have access to a larger market.