Debates of Feb. 10th, 2017

Canada-Ukraine Free Trade Agreement Implementation Act

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, I am happy to speak to Bill C-31, the legislation that would implement the Canada-Ukraine free trade agreement. As members may have heard, the NDP supports the bill, and I will be speaking in favour of it.

First of all, I and the rest of my colleagues are very much in favour of strengthening Canada's trading relationships with the rest of the world. We in Canada are a trading nation.

Second, as other speakers have mentioned here today, Canada and Ukraine have a long-standing friendship. It is in both countries' interest to promote peaceful ways to maintain that important relationship.

Third, this agreement will benefit Canadian exporters without negatively impacting important Canadian values, such as labour rights and environmental protections.

Getting back to some general comments on trade, we in the NDP are very much in favour of trade agreements with other countries, as I mentioned and as my colleague for Regina—Lewvan just said. We have supported two of the three bills on trade agreements that have been brought before this Parliament.

We support agreements that actually benefit Canadian workers and the general public, as opposed to CETA, the comprehensive economic and trade agreement with the European Union, which has the investor-state provisions just mentioned and which would raise the cost of pharmaceutical products in Canada. These are things that would not benefit Canadians in general.

I am happy to say that for Bill C-31, the government actually respected the usual practice of tabling the bill 21 days after signing the agreement so that parties could have some time to evaluate it, unlike what it did with CETA, which it tabled at more or less at the same time it signed the treaty.

Bill C-31 would eliminate tariffs on 86% of Canadian exports to Ukraine and would eliminate almost all tariffs on Ukrainian exports to Canada. Many Canadian exporters, including those trading in steel, machinery, agricultural products, such as beef, pork, and canola, and fish, all products Canada excels in producing and trades extensively in, will benefit from the elimination of these tariffs.

We are happy to support this agreement, because it has a strong labour chapter with comprehensive and enforceable provisions. This could really improve labour standards in Ukraine. The NDP obviously likes trade agreements that improve labour standards around the world and generally opposes those that bring labour standards down to the lowest common denominator.

As an ecologist, I am pleased to also see that this agreement has a strong environment chapter, with commitments to not lowering levels of protection. Again, we do not want to join the rest of the world and move things down to the lowest common denominator. We want to bring the standards around the world up to our standards here in Canada.

I, and many others, have been disappointed with several of the major agreements Canada has signed that have investor-state dispute mechanisms. They include CETA, which I just mentioned, and the TPP, which has not come before us but has been debated here. They have dispute mechanisms that allow foreign corporations to sue the federal government, provincial governments, and municipal governments when they bring in legislation to help protect our environment or our social values. Canadians are tired of hearing news stories about legal actions that cost Canadians hundreds of million of dollars because we have chosen to protect our clean air and water.

Canadians are also in favour of provisions that protect some level of local procurement. My colleague for Kootenay—Columbia mentioned that mayors and councils like to buy local and promote local businesses. It is heartening to see that open access to municipal procurements and school board procurements are not part of this agreement.

I mentioned earlier Canada's long friendship and close ties with Ukraine. There are 1.3 million Ukrainian Canadians living in this country. Canada was the first western country to recognize the independence of Ukraine in 1991. This agreement offers an opportunity to strengthen that relationship.

As we all know, Ukraine is suffering tumultuous times and facing Russian aggression on its borders. When the crisis developed in 2014, the NDP firmly supported Ukraine and called on the federal government for more financial aid for Ukraine and stronger sanctions against Russia. This agreement sends an important signal to the world, and to Ukraine and Russia in particular, that Canada supports Ukraine and seeks to promote peace and prosperity in the region.

I would like to conclude with a quote from Zenon Potoczny, the president of the Canada-Ukraine Chamber of Commerce, who said:

This agreement will create additional jobs for citizens in both countries and lay new foundations for trade, growth, and investment. It also sends a very powerful message to the rest of the world that Ukraine is open for business, and Canada again lends a supportive hand to Ukraine.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, it seems everyone today is behind this particular trade agreement with Ukraine.

To turn our attention to other trade agreements, we have heard comments about some of the ones that have come before the House that the member has not liked quite as well. I wonder if he has any comments about upcoming NAFTA renegotiations and what he would like to see happen.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, again, one of the obvious things I and the rest of my colleagues in the NDP would like to see if NAFTA is opened for renegotiation is the elimination of the chapter 11 investor-state dispute mechanism.

We see news reports of California companies suing Canada or a province for hundreds of millions of dollars because we have chosen to protect our export of water. Things like that really affect Canadians, and that is what we do not like to see in these free trade agreements. We are all about trade, but we would like to be able to protect our environment. When we do, we want to be able to protect ourselves from flagrant litigation by foreign companies against our governments. Not only the federal government but provincial governments, cities, and towns can be sued. That is one of the main things we would like to see changed in NAFTA.

[Dianne Lynn Watts, Conservative, South Surrey—White Rock, BC]

Mr. Speaker, I wonder if my colleague could speak to the conditions in Ukraine. We all support this trade agreement, but how can we help with the Ukrainian refugee issue?

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, as I say, Canada and Ukraine have a long-standing relationship. We want to protect Ukraine. We want to see it prosper and return to a peaceful state.

There are many issues in and around Ukraine, especially with Russian aggression on its borders. Through mechanisms such as this, we can provide some assistance to Ukraine, both financially and by helping Ukraine grow its economy and get conditions within the country back to a stable level. That is how we will help protect Ukraine. It is a very complex, difficult situation, but this agreement is one of the things we can do to help, in our way, to bring peace and stability to that region.

[Sheila Malcolmson, NDP, Nanaimo—Ladysmith, BC]

Mr. Speaker, I would like to ask if my colleague can talk more about the environmental benefits of this trade agreement and also about what is at risk when the Government of Canada signs trade deals in which investor-state dispute resolution mechanisms are included that encourage lawsuits against Canada when our environmental standards are higher than those of the countries with which we sign trade agreements.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, without going into any details, the main provision in this trade agreement is that on environmental protections and standards, there is a commitment to not lower those standards. We would maintain standards where they are now instead of moving down to the lowest common denominator. That is the kind of thing we need to see in trade agreements whenever we sign them with other countries. We want the other countries to at least maintain our commitment to environmental protection.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, I will be sharing my time with my colleague, the member for Beauport—Limoilou.

Today we are debating Bill C-31, An Act to implement the Free Trade Agreement between Canada and Ukraine. Well, it is about time.

This is something our previous Conservative government worked hard to successfully negotiate on July 14, 2015. No government has done more to support Ukraine during its crisis than the previous Conservative government. We were the first G7 country to visit Ukraine following the beginning of the crisis, and ensured the relationship continued to grow and to prosper.

I was very proud and happy to accompany former Prime Minister Harper on this visit to see first-hand the Maidan for myself, to see the area where those brave souls lost their life. It really cemented the need to continue our friendship and leadership with Ukraine in the world.

Now, because of the enormous security and economic challenges still facing the Ukrainian people today, Canada must remain a trusted partner during their time of need.

I come from Oshawa, and I am extremely proud of Mr. Harper and to have been part of the government. I know the impact Ukrainian Canadians have had on the development of Oshawa and our great nation. This is profoundly evident in my home community where Ukrainian Canadians have made immeasurably contributions to the vibrancy of my community.

Over the years, they have built several community halls in Oshawa, like the Dnipro, the LVIV, and Odessa. These are places where weddings, birthdays, and anniversaries are celebrated with all members of our community. These gathering places play an important role in Oshawa's annual fiesta week, for example. This is one of the largest multicultural festivals in Canada, and we have it right in Oshawa.

These are places to experience the Ukrainian culture, dance, and of course their food. There is also St. George the Great Martyr Ukrainian Catholic Church. In fact, if any of my colleagues are around this weekend, they can drop in by LVIV for St. George's annual trivia night this Saturday, February 11, 6:30 in the evening.

When the crisis and aggression began, I was proud to work with the Ukrainian leaders in my community. I was proud to work with my colleague, the hon. member for Selkirk—Interlake—Eastman on the Oshawa United for Ukraine fundraiser at LVIV just a few years ago, where we were able to announce legal aid services for the most vulnerable in Ukraine. I want to thank the community organizers, people like Walter Kish from the Durham Ukrainian Congress, and volunteers like Daria, Darka, and Darlene.

Oshawa has such a proud Ukrainian history. We were home to the first Ukrainian Canadian cabinet minister, Michael Starr, who also served as Oshawa's mayor. MP Starr is remembered by many for his efforts to make the national employment service more humane in its approach to the unemployed, extending unemployment insurance benefits to women and to seasonal workers.

There are many other amazing Ukrainian Canadian families in my riding. Take for example the Lysyk family. They came from Ukraine, and now are some of the most prominent landlords, dentists, chiropractors, and business owners in my community. They have truly worked to build Oshawa into the great city it is today.

As I mentioned, someone like Walter Kish, who works tirelessly to build the Ukrainian Canadian community and create direct links with Ukraine. Whether it is serving on the board of the national or local branch of Ukrainian Canadian Congress, or working to expand the Ukrainian Credit Union, Walter is always working for his community.

We cannot forget community leaders like Carol Shewchuk, who, thanks to her great efforts, raised awareness of the Holodomor and what happened in the past.

Canada truly has a great partnership and friendship with Ukraine. That is why it is so important that all parties are in support of this agreement. It will not only continue to improve our relationship and show our continued support for Ukraine, especially at this time, but will have many economic and social benefits for both our countries. This agreement will not only strengthen the Canada-Ukraine partnership in peace and prosperity, but it will immediately eliminate duties on 99.9% of respected current imports when this agreement comes into force in Canada.

This will also allow Ukraine to eliminate approximately 86% of tariffs on Canadian goods, including industrial products, fish and seafood, and agricultural goods.

In 2011 to 2015, the total bilateral merchandise trade between Canada and Ukraine averaged $289 million per year, and is expected to expand 19% as a result of this agreement.

Canada's GDP would increase $29.2 million under the Canada-Ukraine free trade agreement. Similarly, Ukraine's GDP would expand $18.6 million.

Our exports to Ukraine would increase $41.2 million, which would include gains in pork, machinery and equipment, transport equipment, other manufactured goods, motor vehicles and parts, and chemical products. Under our previous Conservative government, we were also able to export $35.5 million worth of agriculture and agrifood, and seafood products to Ukraine.

This agreement has substantial economic benefits for both Canada and Ukraine. The Canada-Ukraine free trade agreement would have numerous benefits, including preferential market access for Canadian exports, and increased visibility for other commercial opportunities. It would also facilitate enhanced co-operation, improve Canada's ability to resolve trade irritants, increase transparency in regulatory matters, and help to reduce transaction costs for businesses. This agreement also commits both Canada and Ukraine to respect and promote internationally recognized labour rights and principles.

This agreement is the fruition of our previous Conservative government's hard work. On July 14, 2015, Prime Minister Harper and Ukrainian Prime Minister Arseniy Yatsenyuk announced the successful conclusion of negotiations on CUFTA. This agreement reiterated the commitment of jobs, growth, and long-term prosperity, the key pillars of our economic action plan. Our party's pro free trade plan aims to diversify trade and enable companies to benefit from new opportunities abroad.

Having this agreement in place also gives us the opportunity for future business. I know that in my community of Oshawa there are many people in the energy business. We have had great leaders in the nuclear business. Ukraine and Canada also share vast resources, whether through natural gas or oil. In the future, we have a great opportunity for human resources in these technologies to go from one country to the other to learn and promote peaceful energy trade throughout the world.

I am proud to have been part of a government that worked hard to promote free trade in our country, and to be part of a party that believes in the importance of a strong relationship with Ukraine, both economically and socially.

I am proud to support this agreement, an agreement that our previous Conservative government ensured would bring prosperity and growth to both Canada and Ukraine.

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, I am very pleased to rise today to speak to this very important matter before the House. Bill C-31 is an act to implement the free trade deal with Ukraine. Canada is blessed to have such strong trade deals with many of our international colleagues around the world, and this is certainly no exception.

I am very proud to be part of the Conservative Party, which during the past 10 years it was in office signed many bilateral and multilateral trade deals, such as the one with the European Union, which we were very pleased to see pass at report stage earlier this week. We look forward to this important bill progressing to third reading next week.

I am also very pleased to be a member of a party whose government negotiated the trans-Pacific partnership, which, I must say, is a true testament to the hard work of my friend and colleague, the hon. member for Abbotsford, who spent many years as the international trade minister negotiating these important deals on behalf of Canada. I wish the member well as he recovers. I am very proud to serve in a caucus with the member for Abbotsford.

The issue at hand today is Bill C-31, the Canada-Ukraine trade agreement. This is an important deal, because it further strengthens our relations in that important region. The Conservative Party has always been a true friend to Ukraine. Conservatives have always stood for Ukraine in the international world. In fact, it was a Conservative prime minister, Brian Mulroney, who was the first to recognize the Ukrainian government after the breakup of the Soviet Union. Our country is well remembered in Ukraine, and my party has certainly done great work in negotiating the Canada-Ukraine trade deal.

This bill would bring the opportunity to open new markets for Canadian manufacturers and producers, certainly in the agricultural community as a whole. I am very proud to represent the great riding of Perth—Wellington, which has one of the strongest agricultural communities in this country. There is a strong beef and pork sector in my riding, and it is always looking to expand markets. I am proud to stand to speak on behalf of the farmers in my riding, who are really working hard to expand markets.

I am going to leave it there. I wanted to say how important this trade deal is for Canadian farmers, businesses, and exporters. I hope we will continue to expand our markets and that all members will support Bill C-31.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, I am pleased to take part in the debate on Bill C-31, an act to implement the free trade agreement between Canada and Ukraine.

I want to take a moment to talk about the history of humanity, which will hopefully yield some insight into the notion of free trade. What is trade, essentially? According to the Canadian Oxford, a well-respected dictionary, trade is the exchange of goods between peoples.

That is an interesting first take on what free trade is. When two individuals meet to trade something, no matter the period in history, whether they barter or anything else, they exchange one commodity for another. That is trade.

I consulted the dictionary again to look up the meaning of free trade. It says that free trade is a theory, an economic doctrine whereby exchanges are free from obstacles and international transactions are free from protectionist intervention.

The free trade doctrine was formulated in the eighth century. It was also discussed by physiocrats such as David Hume and Adam Smith and in the writings of Mr. Ricardo and John Stuart Mill, where it is explored in greater detail. To those authors, the freedom of nations to trade is founded on the international division of labour, where each nation specializes in the production for which its aptitudes are greatest and where production is most cost effective. This theory underscores the positive effects of competition, which allows consumers to get products of the best quality at the lowest price.

Here is what we know about free trade. Theorists apply this concept more to international relations, but I would like to apply it to any form of trade without restrictions, whether at a national, international, or community level, or between two individuals. My colleagues will understand my logic.

I asked myself what we, human beings, have been doing for thousands of years, if not trading freely. If we look back at the Neolithic age, it seems to me that any men who ever met would know right away that they were going to trade products.

Even this spontaneous trade between tribes or individuals involved a certain degree of expertise, similar to the definition used by philosophers which states that free trade seeks to divide work sectors between different countries based on their skills and expertise, as well as their resources, of course. I am sure we can all agree that Canada will never have much expertise in growing bananas, for example, because we do not have the right climate to do so.

It seems to me that free trade has always happened. That is my argument. Being an evolutionist, I believe that we have been trading freely for millions of years. Long before we had countries and borders, humans traded with one another. In short, free trade is definitely not a modern or post-modern construct.

Nevertheless, I went and had a look at protectionism. The definition in the Canadian Oxford Dictionary is this: the theory or practice of protecting domestic industries. Trade tariffs are imposed in order to protect the local economy from foreign competition.

That is exactly what we are worried about right now, for example, with the hon. President of the United States, Mr. Trump, who is talking about potentially imposing tariffs and thus moving forward with a form of protectionism.

Protectionism has always been around. The Conservative Party of Canada was once in favour of protectionism. It depends on which way the wind is blowing. It is a matter of historical and political circumstance.

That being said, for the past 30 years, the Conservative Party has been the ultimate champion of free trade. I think that is a good thing because, as I demonstrated earlier, free trade has always existed from a philosophical perspective.

However, protectionism can be dangerous when it is fully applied because then the market is controlled by the government. In its milder form, this state is referred to as socialism, and in its more extreme form, it is referred to as communism .

The implementation of any type of trade system that is not free trade takes us in a rather dangerous direction. What is the best way to control populations? As I already mentioned, people have been trading with each other for millions of years. When governments were formed and kingdoms established, they quickly discovered that the best way of controlling people was to control the trade they were doing with each other.

What I am trying to say is that free trade has always existed, it is part of the very ontology of humanity, and we therefore should not be afraid of it; quite the contrary, we should celebrate free trade as a form of absolute liberty and an inalienable human right.

To come back to the bill, it is absolutely impossible to oppose, because it implements the free trade agreement between Ukraine and Canada. In fact, just a few years ago and under our government, Canada signed 45 free trade deals, for instance with Peru, South Korea, and the European Union. I could go on and on, but I cannot remember all the countries off the top of my head.

Furthermore, under the incredible leadership of the Right Hon. Brian Mulroney, we also created the largest free trade platform in the history of humanity, namely, NAFTA, an agreement between Canada, the United States, and Mexico.

We believe that the Canada-Ukraine free trade agreement is certainly a very positive way for us to show support for that great country, which is home to Kiev, the cradle of Russian civilization. That probably explains the tension between Russia and Ukraine, and that is why our support for Ukraine is so important. After all, history is such that Ukraine is now an independent country.

Let us explore why it is good for us to trade with Ukraine. I will speak from a monetary perspective, never mind international relations. Ukraine's GDP, its purchasing power, is $339.2 billion U.S. annually. The per capita GDP is a little more bleak at $7,900 U.S. That is why Ukrainians are certainly going to benefit from our free trade agreement with them. We are certainly going to contribute to increasing GDP to the benefit of every inhabitant of Ukraine, which will be excellent for them, their families, and their quality of life.

The population of Ukraine is 45.2 million, which is 10 million more than Canada's. By all accounts, we have similar population profiles. Their exports and imports account for 82% of the GDP, at the exchange rate.

Finally, Ukraine is a large exporting country like Canada and that may be because it is a bread basket nation, just like Canada is. Ukraine has always supplied wheat, oats, and other grains to the Soviet Union, or modern-day Russia, and to many other countries in the European Union, I imagine.

Ukraine is Canada's 75th largest merchandise trading partner out of 200 countries in the world. That is not bad, but I imagine that it could reach 50th or 40th place with this agreement, which will also help increase its per capita GDP. That was Ukraine's profile.

I have a very interesting document here that gets into the nuts and bolts of what trade with Ukraine would look like on a day-to-day basis. Bilateral trade between Canada and Ukraine averaged $289 million from 2011 to 2015. That should go up by 19% once this agreement comes into force. Once the agreement is in force, Canada and Ukraine will immediately eliminate tariffs on 99.9% of their imports. That is sure to be good for Canadian and Ukrainian exporters and consumers.

Oh my goodness, here is something interesting. Canada's GDP will rise by $29.2 million. That is not peanuts. Similarly, Ukraine's GDP will go up by $18.6 million. The really wonderful thing is that, in terms of international relations, this free trade agreement with Ukraine will bring that country into the fold of our great federation. Canada has more international agreements, whether commercial or military, than any other country. It is as simple as that. Any country that wants to feel even a little bit at ease at the UN wants Canada as a friend.

Not only will Ukraine be more comfortable in terms of its international relations and its relationship with neighbouring Russia, but it will also not be losing out either. We are going to increase our GDP by only $10 million more than Ukraine, which will see its GDP increase by $18.6 million. That is a fairly balanced relationship.

Once again, this shows how Canada is, without question, one of the greatest trading nations in the world, since this agreement is more beneficial to us than the other party. We always come out on top. Even NAFTA was a winning situation for us.

The value of Canadian exports to Ukraine will increase by $41.2 million a year. The expected gains for Canada will vary and will come from the export of pork, machinery, and equipment. That is great news for Quebec, which is the largest exporter of pork in the world. It exports a lot of pork to China, but now it will also be able to export it to Ukraine.

Manufactured goods, vehicles, parts, and chemicals will also be exported. This agreement will therefore also be good for the auto sector in southern Ontario, a region that has been struggling since the 2007-08 crisis. What is more, in the past five years, there has been a significant drop in the number of manufacturing jobs in Canada. This free trade agreement will definitely help increase the number of jobs in that sector.

It is important to remember that the Conservative government is behind this free trade agreement. All the Liberal government is doing is making the implementation agreement official from a legislative standpoint. The Conservative government is the one that initiated and negotiated the agreement with the Ukrainian government at the time.

Since I am running out of time, I will say that we fully support this free trade agreement. To end this Friday on a positive note, for once, I can say that I am proud of this government, which made a good decision regarding this free trade agreement.

Let us now see what it will do to stand up to the superpower to the south, where rising protectionist sentiments threaten our economy. As I said in my earlier philosophical musings, protectionism is incompatible with the absolute freedom of each and every being on this wonderful planet.

Thank you, Mr. Speaker, for the opportunity to speak today. I look forward to doing it again.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, I would like to thank my colleague from Beauport—Limoilou for his speech.

It is obvious that issues surrounding trade agreements can be very complex. Connecting philosophy and practical application is no small feat. Congratulations to the hon. member.

Earlier, my colleague read the definition of “free trade” from the dictionary. Could he tell us which word comes after “free trade” in the dictionary?

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, I wish my memory was that good. I do not know which word comes after “free trade” in the dictionary. I assume the hon. member knows which one it is, even if he is asking me. I sure would like to know.

[Dianne Lynn Watts, Conservative, South Surrey—White Rock, BC]

Mr. Speaker, I want to thank my colleague for talking about the work the Conservative government undertook in regard to free trade. We had 46 trade agreements, and initiated the one before us today. To have all parties support this is really quite an accomplishment.

My question is about the tariffs that will be removed on some of the items. We look at what is going on south of the border with the reopening of NAFTA. Could the member speak to the impacts for Canada of reopening and renegotiating NAFTA?

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Mr. Speaker, we have to be aware that the impacts might be numerous, wide-ranging, and certainly scary, if not problematic, for our economy, for the well-being of all Canadian citizens, and certainly for the residents of my riding. That is why I call upon the government to not just try to publicly seem to be doing a good job. Some of its ministers went there a few days ago to chat with different secretaries of the administration.

Our Prime Minister should try to be more responsible and confident. He should stop just giving us talking points, which is completely pathetic, and tell us that he will see the President of America and ensure that all of our interests will be safeguarded.

[The Deputy Speaker, Conservative, Bruce Stanton]

Is the House ready for the question?

[Some hon. members]

Question.

[The Deputy Speaker, Conservative, Bruce Stanton]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Deputy Speaker, Conservative, Bruce Stanton]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Deputy Speaker, Conservative, Bruce Stanton]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Deputy Speaker, Conservative, Bruce Stanton]

In my opinion the yeas have it.

And five or more members having risen:

Pursuant to Standing Order 45, the recorded division stands deferred until Monday, February 13, at the ordinary hour of daily adjournment.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Speaker, there have been discussions among the whips and pursuant to Standing Order 45 (7) I ask that the recorded division on the third reading of Bill C-31, an act to implement the Free Trade Agreement between Canada and Ukraine currently scheduled for Monday, February 13 be deferred to Tuesday, February 14, at the expiry of the time provided for oral questions.

[The Deputy Speaker, Conservative, Bruce Stanton]

Accordingly the recorded division is further deferred to Tuesday at the conclusion of oral questions.