House of Commons Hansard #139 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was co-operatives.

Topics

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

12:55 p.m.

Conservative

Blake Richards Conservative Banff—Airdrie, AB

Mr. Speaker, first, I would concur with the statement that there was work done obviously by both parties. The previous Conservative government did a lot of hard work, a lot of heavy lifting to get us to the goal line, and yes, I would certainly acknowledge the work done by their government, which was able to push it across the goal line. It is a positive thing. We are glad to see that the Liberal government has taken up the work on something that we believed was so important for the economy. As I said during my speech, I certainly would hope their government would seek to do that more often, that they would seek to build on the record and important work that was done by our Conservative government, in particular, with respect to balancing the budget. The member talked about building on some of the work that we did. We left them with such a great position, in terms of the fiscal situation, with a balanced budget, but they just blew it, absolutely blew it, in less than a year. Certainly one would have hoped they maybe would have chosen to follow our example and that work in some of those areas as well, such as balancing the budget, lowering taxes, things like that.

However, at the very least, we can give some credit where it is due. On at least one area of our economy, they have been able to follow some of the work that we have done on some of these trade deals and that is a huge benefit. I just hope they might pick up on some of—

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

12:55 p.m.

Conservative

The Deputy Speaker Conservative Bruce Stanton

Questions and comments, the hon. member for South Okanagan—West Kootenay.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

12:55 p.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Mr. Speaker, in this speech, the member for Banff—Airdrie mentioned, as did the other member, the Canada-Ukraine free trade agreement which we debated last week. Again, that is a trade agreement the NDP could get behind. However, we have some serious reservations about CETA, one being the investor-state dispute mechanisms that would allow international corporations to sue Canadian governments outside the normal court system. Also, there is the fact that it would raise prices of prescription drugs. That would make it not only more expensive for Canadians to remain healthy but would make it more expensive for provincial and federal governments to bring in a much-needed universal pharmacare system which Canadians have been calling for.

I wonder if the member would comment on that.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1 p.m.

Conservative

Blake Richards Conservative Banff—Airdrie, AB

Mr. Speaker, there certainly was one thing I heard the member say that was new and novel, and that was a trade agreement the NDP could get behind. It is nice to hear there is always hope. In one instance, the NDP chose to see something that was good for the economy, for Canadian businesses, for Canadian workers and support it. However, it is not something we often see from New Democrats, which is unfortunate. With Canada being a trading nation, it is so important to ensure there are opportunities for free trade with as much of the world market as possible.

Diversity in markets that we can trade with is key as a country like Canada relies so heavily upon our trade with other countries. In an increasingly global world, there is no question that this is a key thing. It is quite unfortunate that the NDP does not really see fit to support more Canadian businesses and Canadian workers through the importance of trade.

The New Democrats should try to focus on that and think about the jobs and opportunities this creates for Canadian businesses and families. I talked about some of the benefits during my speech about Ukraine agreement and the EU agreement and what it would mean. When we talk about the European Union agreement, I said that it was about $1,000 for the average Canadian family, about 80,000 jobs created for Canadians. Is that not important to the NDP?

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1 p.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, when we look at CETA and all the free trade agreements that come before the House for ratification, a lot of this work was done by a previous government. I am always looking forward to the next opportunities for Canada, next opportunities for my home province of Alberta, of new markets with which we can trade. The mandate letter of the Minister of International Trade talks about modernization of two agreements with Israel and Chile, and about the potential for China and India's future agreements. There are many smaller states that Canada could find opportunity for an export market and importation of goods.

Does the member share my concern that the Liberal government has no plans for future free trade agreements and this may be it? We may not see any new agreements signed or ratified in the House by 2019.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

February 13th, 2017 / 1 p.m.

Conservative

Blake Richards Conservative Banff—Airdrie, AB

Mr. Speaker, the member raises a very key point. I have to give credit where it is due. The Liberal government had picked up on the work we were already doing, which was largely completed. To finish that is good, and I will give credit where it is due. However, I agree with the member that Liberals seem to lack any kind of ambitious agenda of their own in this regard. It seems to fall in line with their view of the economy in general. I do not get a sense they have any plans that would help to grow and build our economy.

Trade is one example. As the member mentioned, Canada has all kinds of opportunities to build on the record of the Stephen Harper Conservative government. I do not get a sense of any ambition on the part of the Liberal government to try to build upon that, beyond what we see here. It seems to line up with how the Liberals view the economy in general. Their tendency is to try to grow government rather than have the private sector grow, develop, and create jobs so Canadians get back to work. Their focus seems to be more on growing government and putting money in the pockets of their Liberal friends.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, the member is quite wrong in his assessment. The government has taken a very proactive approach on trade. We do not need to take lessons from the Harper government, which inherited a multi-billion trade surplus and turned it into a multi-billion trade deficit. We now have an administration that has proactively dealt with important issues. In the Prairies, there is the canola issue, the pork industry, benefits for the beef industry, all through the Minister of International Trade, all of which was done through this administration.

Would the member at the very least recognize that by having a proactive, aggressive agenda on trade, the biggest benefactors are Canada's middle class and those aspiring to be a part of it? At the end of the day, we are trying to give more stability and growth within that middle class, thereby giving the economy greater strength. A healthy middle class means a healthy economy. Would the member agree?

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:05 p.m.

Conservative

Blake Richards Conservative Banff—Airdrie, AB

Mr. Speaker, I would agree that trade is a very key part of creating opportunities. That is why our Conservative government was so ambitious in our trade agreements. However, what is the current government doing? I do not see any new trade initiatives being undertaken. What are they? I did not hear the member mention a single initiative or a single country with which the Liberals were working toward an agreement. As I said earlier, it falls in line with the typical approach of the Liberal government.

The Liberals want to talk in generalities and platitudes about things being important, but when it really comes right down to it, what do they do? Nothing. What are we seeing as a result?

Look at my province of Alberta. Thousands of people are out of work. People are looking for opportunities. They are looking for hope. They are getting nothing from the government. Instead they are getting huge deficits and new tax increases in carbon taxes and other taxes. The Liberals will not grow the economy that way. They need to get to work and do some of the things like creating opportunities.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:05 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, I will be splitting my time with the member for Rosemont—La Petite-Patrie.

Today we are here to talk to this important bill, Bill C-30. I am glad to have a second opportunity to speak to this, the economic and trade agreement with the European Union, commonly known as CETA.

The bill is now on its third reading, having been studied by the Standing Committee on International Trade. This will probably be my last opportunity to speak to this important bill.

In January, I completed a series of 11 town halls on seniors issues. Just so the House understands, when I asked the people of my riding what the most important issue was for them, by far seniors issues were number one. I took the opportunity to travel around the riding. I went to larger and smaller communities to really hear the stories from seniors and from the people who supported and loved those seniors. I wanted to hear about the specific challenges they faced on a daily basis.

Unfortunately, it was a very sad series of town halls. I heard stories about having to make decisions between medication, heating their homes, and feeding themselves. Again and again, I heard of seniors who had no access to the guaranteed income supplement because the process in getting that guaranteed income supplement was a challenge for them. When it came down to the core, the biggest issue was the cost of medication for seniors.

I know this is not an issue that is exclusive to North Island—Powell River. It is all over the country. Seniors are falling more and more behind.

The last time I spoke to this bill, I raised a few issues. The first was the issue of prescription drugs, for which I profoundly care. I mentioned that with the provisions in CETA, consequently the bill would change intellectual property rules for pharmaceuticals. Under this agreement, consumers, including our seniors on fixed incomes, could expect to have their drug costs increase by more than $850 million annually.

In the town halls, a lot of constituents came up afterward and shared stories with me. They also shared stories during the town halls. I remember one woman who told me that she and her husband were in good health right now. They were recent retirees and life felt pretty good. However, when they looked at the future, they realized they had to plan for when they would not be as healthy. Unfortunately, part of their plan included the time when they would have to legally separate, and would have to deal with the fact that the cost of living would become so high due to medication costs and having to put somebody in a care facility. The woman told me that she had worked hard her whole life, but with the increasing cost of pharmaceuticals and cost of living, she did not know how they would make it, even though they saved, they had well-paying jobs, and they had a good pension. The reality for seniors today is one that is leading to more and more poverty.

While in opposition, the Liberals demanded that the Conservatives present a study on the financial impacts on provincial and territorial health care systems and prescription drug costs. In government now, the Liberals are telling provinces and territories that they will cut health care transfers, while pursuing agreements that risk increasing drug costs for provinces and territories. I am very concerned about this.

The reality on the ground is that people will have serious health issues. More and more people will have to go to emergency rooms because they have not taken their medications. I remember one doctor sharing with me that seniors were unable to afford medications so they were going to the emergency rooms every day to get refills. Think of the expense. If the costs go up, the implications will be devastating on our health care system.

I was glad that our great trade critic, the member for Essex, brought up this important issue in the committee. The NDP brought forward amendments to make certain that an analysis of the impact of CETA on pharmaceutical drug costs would get done. What happened? This is an important issue, and our constituents and Canadians deserve to know. There will be little to no debate on our amendments. They were all rejected, showing no interest in fixing the the flaws of the deal or addressing the serious concerns of Canadians.

Jim Keon, the president of the Canadian Generic Pharmaceutical Association, at committee said:

From a cost perspective, as I've said, generics on average now are selling at something like 20% to 25% of the price of an equivalent brand-name product. If you delay for two years, you're paying an extra 75% to 80% on that product for an extra two years. That affects provincial drug program budgets; it affects employee plans; and it affects people who pay out of pocket, and those costs are very significant.

Our seniors, and all Canadians, deserve better.

The former minister of international trade and now global affairs minister was honest about why Liberals have decided to rush this agreement through Parliament. For them, the deal symbolizes an open Canada in light of rising protectionism. I am sorry, but trade with Europe is just too important to get wrong. Canadians expect a good deal, and they deserve a good deal.

We need to be talking about some of the serious concerns with CETA so we can make a better deal for Canadians, because this is about health care costs. This is about medication. I have heard too many stories from health care providers talking about seniors and other people splitting their medication in half, not taking the full dosage. If the costs go up, this means people will not be getting the medication they need to take care of themselves.

I support deepening the Canada-EU trade relationship in order to diversify our markets, but there remain significant concerns that need addressing. Once again, when in opposition back in 2014, Liberals decried the limited time to study this agreement. In their dissenting report, on p. 47 they wrote, “The brevity with which this committee has dealt with this agreement should be of concern to anyone interested in let alone concerned about the CETA.” Where is that language now? Why are we not taking the opportunity to do that very important work of looking at just the parts that we should be seriously concerned with, the parts that would have huge ramifications on Canadians?

Maude Barlow said, “Given the process could take another five years in Europe, what's the rush here other than another photo op?” Is this the reality? I do not know, but Canadians deserve a good approach, not just a fast one.

The biggest roadblocks to CETA's ratification by all the EU members are a referendum in the Netherlands, opposition from the Bundesrat in Germany, and the European Court of Justice examination of CETA. Therefore, let us take the time to figure out the issues, mitigate them, and get it right. I am afraid the Liberals do not see this reality, and for them it is like a big show.

I saw and heard some shocking truths from the seniors of North Island—Powell River. These are not unheard of across Canada, where seniors are facing multiple challenges. It is a great honour for me to have the new role as critic of seniors issues. I am really proud of the work that the communities I represent have done in educating me about what those particular concerns are around seniors' challenges. Right now, we are not seeing that follow-up with the funding for home care so seniors can stay in their homes and get the support they desperately need. It saves money. It is good for the health and well-being of people who built our country. Now we are seeing CETA, which would have huge impacts on their health care and getting the medication they so desperately need.

Canada really has to take a moment and ask the government why it is okay for seniors to be put in a position where they cannot afford the medication they need, when they are making choices between household expenses, like food, power, and heat, and medication.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:15 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Mr. Speaker, I am trying to understand the NDP's position, which is not terribly clear.

In the past, the NDP has opposed most free trade agreements, with a few exceptions, including the agreement with Jordan, for instance.

Why would anyone oppose an agreement that will allow trade with the European Union, the world's second largest economy?

Does the NDP not want Canadian businesses to increase their bottom lines and create jobs? Moreover, this would result from an agreement that promotes a new progressive trade agenda, thanks to its chapters on environmental protection, sustainable development, and labour.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:15 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, its is very important that we take a moment to reflect on the fact that there are serious concerns. We are not saying absolutely no, but we are asking why we are not taking the time to look at these real concerns and make sure that we are doing it right.

This trade agreement is so important. We need to get it right. We need to make sure that we are looking at parts of it, which should make us all think about it seriously, such as making sure that there is an opportunity for pharmaceuticals to be less expensive, and making sure that we are looking at the investor-state provisions.

In NAFTA, we were the most sued country of the three. These are serious issues, because the taxpayer is going to pay to address these issues.

This is about really digging deep. It is about making sure that we do it right. It is making sure that we take the time to do it right, and that when we sign an agreement, it is something that brings the opportunities but does not sell away too many things for Canadians.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:15 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Mr. Speaker, I always find it interesting when NDP members talk about getting more consultations, if we can talk more, or if we did this or that. At the end of the day, when we do all of that, they are still are not in favour of the deal.

The reality is, NDP members will never be in favour of a deal like CETA. They look at all the negatives in it. Even though every province is comfortable with the pharma side of things, even though in NAFTA we had $5.3 trillion worth of investment and only $140 million in ISDS pay-outs, they would still see that as a negative. Therefore, it does not matter what we say, as they will just view CETA or any trade agreement as negative.

My question to the member is: What would it take for the NDP to actually say, “Yes, this is a good deal”?

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:15 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, I think I said it very clearly in my speech. We need to make sure that we are looking at the realities. So many people are falling behind. When we are increasing the cost of medicine, it is big issue for the people we serve across this country, and we need to look at that.

The member's argument is that the provinces are fine with it. Well, constituents of mine do not know how they are going to make ends meet. Therefore, we really need to be talking to the people who will have the physical impact.

The other reality is that we need to look at the investor-state provisions, and we need to make sure that we fix some of these. This is not about being anti trade. We have demonstrated repeatedly and supported trade agreements. However, we want to make sure that this is the best trade agreement for Canadians that it can possibly be, which means that we take the time to do it right. We are just encouraging the government to do that.

The reality is that 28 EU member states have to ratify this agreement. Therefore, what is the rush? Why can we not have the discussion? I do not see what the rush is. Let us make sure that we look after Canadians and we take the time.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:20 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Mr. Speaker, I thank my friend for North Island—Powell River for her speech, especially in her new role as the NDP critic for seniors and really underlining the effects that increased pharmaceutical costs will have on our low-income seniors.

My question concerns Canada's dairy sector. The previous government offered Canada's dairy farmers $4.3 billion in compensation, but the Liberals have changed it to a paltry $250 million over five years.

We are both lucky enough to call Vancouver Island home, and a lot of our constituents have great concern over food security and food sovereignty. We also have some small-scale cheese producers. I wonder what the member can tell the House about the impact this very little compensation will have on the small-scale cheese producers on Vancouver Island.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:20 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, I have the privilege of having not only cheese and yogourt producers but also dairy farms in my riding. They definitely came to me with this and talked about their specific concerns.

Again, the reality is that these industries create good-paying jobs in our communities. The industries are small but vigorous, and they work hard every day. It is unfortunate and very hard on these industries when we see the lack of funding that is there for them.

I will continue to work with them, but this is another issue where the government really needs to take some accountability and realize that we need to keep these businesses strong. They mean a lot in our small communities.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:20 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I am very pleased an honoured to rise in the House to speak to this important bill. Indeed, the bill relates to an important trade deal, or free trade agreement, with the European Union. We appreciate how natural it seems for Canada to enter into much more intense and closer trade relationships with the European Union, and for a number of reasons. First of all, Europe is a natural trading partner for historical and cultural reasons. Furthermore, several European countries have legislation that is similar to ours or often even better than ours when it comes to environmental protections, collective bargaining, workers' rights, and where unions fit in society and in the economy.

We should realize that, of course, we need to have a free trade agreement with the European Union and increase our trade relationship with the EU. I agree. However, this deal is so huge that it needs to be negotiated properly. We will not accept just any deal that is reached hastily or under pressure, simply because the Prime Minister and members of his cabinet want a good photo op with some nice handshakes that they can post on Facebook. It is much more important than that.

As my colleague pointed out earlier, we should have taken the time to properly review this free trade agreement, which, I would remind him, was negotiated in secret under the previous government, the Conservative government. At the time, the process was heavily criticized by the Liberals. However, in their usual fashion, the Liberals started to change their tune once they came to power.

I would cite a recent example to to argue the importance of proper trade with Europe. On Friday, I was in my colleague's riding, Rimouski-Neigette—Témiscouata—Les Basques. We visited a small business called Utopie MFG, in Saint-Narcisse, near Rimouski. The business employs about 30 people. It makes alpine skis and snowboards. I had no idea how these things were made. I learned some amazing things during our visit. Every ski is made by hand with hardwood. This company's chief competitors are Austria and China. There are only two businesses that manufacture alpine skis in Canada, this business in Saint-Narcisse and another in Whistler. It is important for them to have access to the European and U.S. markets.

In every small community, there are entrepreneurs who are starting up businesses, innovating, and making new products, and who need the opportunity to export their goods to foreign markets.

We want Utopie MFG to be able to sell its skis in the United States, Europe, and anywhere in the world where there is snow. That is why we need a good free trade agreement, and we must not rush into it as the government is currently doing. I would add the Liberals are exceptionally gifted when it comes to using words to say the opposite of what they mean.

Once in power, the Liberals copied the free trade agreement negotiated by the previous Conservative government. It is the same free trade agreement, but it has suddenly become a progressive agreement. It is the same thing but they have tacked on the word “progressive”. Given that it comes from the Liberals, it has magic powers. Abracadabra. I would like to be able to do that with my kids at home. It is the same as what we had before. This agreement is a threat to many of our economic sectors, including cheese producers, who will see 17,000 tonnes of European cheese enter Canada, without having any protection and receiving only a pittance in compensation.

I also went to the Saguenay last December. We visited Fromagerie Blackburn, a family cheese company that started out as a dairy farm. Its cheeses have won prizes in Europe. The company is currently expanding, but growth could be stalled by the massive arrival of European cheese if we do not provide the protection and assistance the company needs.

How can the government abandon our cheese producers who have also been growing for years in Quebec? Thirty years ago, people were eating cheddar cheese and that is about it. There were no other types of cheese available, besides the kind eaten on toast in the morning. However, today, there are dozens of great cheese producers across Canada, particularly in Quebec. How can the Liberal government abandon them and offer them almost nothing in the way of compensation? That is a concern for us. My colleague also mentioned it in her speech earlier.

Another concern is the fact that this agreement with Europe deals with intellectual property and the associated definitions, which will impact the price of prescription drugs. The progressive Liberal-Conservative agreement will delay the introduction of new generic drugs in Canada by three and a half years. Big pharma will obviously be thrilled, but this will directly impact those who need those drugs.

According to estimates, the yearly cost of drugs in Canada could increase by $850 million to $2.8 billion. That will have a huge impact on the people who need those drugs and who do not have good private insurance, since few provinces provide public insurance. Canadians are the ones who will have to bear these costs at a time when they are already struggling to pay their bills and make ends meet. It has to be said: the Liberal government does not care that this agreement will benefit large pharmaceutical companies to the detriment of seniors, the sick, and people with disabilities.

There is another very fundamental thing that concerns us about the free trade agreement with Europe. We have talked about economic sectors, exports, and the cost of drugs, but there is a dispute settlement mechanism in the free trade agreement with Europe that is extremely dangerous for our governments and even for the quality of our democratic life. Think chapter 11 of NAFTA, only in the free trade agreement with Europe.

I do not understand how a progressive agreement can give companies the option of suing a government or a level of government for making regulations that could jeopardize their future profits. Talk about belt and suspenders. Companies make plans to invest. If a government makes a decision that is in keeping with the will of the people or to protect public health, public safety, or the environment, those companies could take legal action against that government before the trade tribunal and demand compensation for the loss of expected future profits.

That is handing over tremendous power to corporations and big companies to the detriment of democratic choices made by the elected representatives of the people. This kind of dispute settlement mechanism subverts democracy. That is extremely dangerous, and the NDP will never stand for it. We will never agree to giving big companies that kind of power. It happened with NAFTA. Canada was sued several times. It cost us millions of dollars, and we do not want to make the same mistake again with the European Union.

We are not the only ones saying so. People in the European Union share our concerns, including in Germany, the Netherlands, and of course in Belgium, where the Walloon Parliament stood up and set conditions that had to be met before it would accept the Canada-European Union free trade agreement.

People like José Bové are also concerned that the agreement is going to weaken environmental standards and social programs on both continents, whether here in Canada, with respect to pork or beef production, for example, or in Europe, with respect to accepting oil-related products that produce a lot of greenhouse gas emissions, which goes against the philosophy of people from the European Union right now.

This deal is dangerous, and we should have taken the time to study it properly.

These are the reasons the NDP will be voting against Bill C-30, knowing full well that a good free trade deal, a good trade agreement with Europe, would be in our interest. However, we cannot afford to mess this up, which is what the Liberal government is doing.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:30 p.m.

Liberal

Frank Baylis Liberal Pierrefonds—Dollard, QC

Mr. Speaker, I have a question for my colleague about extended pharmaceutical patent protection.

He mentioned extensions of three or three and a half years. However, from what I understand, it is two years. I would like some clarification on that.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:30 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, we could double check. According to the information I received, it was three years or three and a half years for changes to the definition of “intellectual property”. However, even if it is two years, that would still have an impact on the price of drugs, which is what we are concerned about.

I want to take this opportunity to say that when the Liberals were in opposition, they asked the Conservative government to conduct an impact assessment on the provinces and their pharmacare budget. I wish they still maintained that position. Now that they are in power, I would like them to conduct that impact assessment.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:30 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Mr. Speaker, I am trying to understand the NDP's position, which is fairly unclear.

Why are they against an agreement that will allow free trade with the European Union? Does the NDP not want Canadian businesses to be able to boost their sales and create jobs?

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:30 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, yes, we want our companies to be able to grow and export so that they can create jobs. We need to diversify our exports because we are very dependent on our American neighbour. However, we do not want to go about it in just any old way. We cannot accept the dispute settlement mechanism included in the Canada-European Union free trade agreement because it puts too much power in the hands of big companies, large corporations, to the detriment of Canadians, our elected officials, and democratically elected governments. That is a major problem for us.

I would like to know what my colleague has to say to Quebec cheese producers who will have to bear the brunt of the arrival of 17,000 tons of fine cheeses from Europe every year. The Europeans have protected approximately 200 types of cheese by giving them a controlled designation of origin. In this free trade agreement, the Liberal government did not protect any Quebec cheeses by giving them a controlled designation of origin.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:35 p.m.

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Mr. Speaker, my colleague spoke about the investor-state dispute settlement mechanism that is included in chapter 11 of NAFTA.

Here is a real-life example. Suppose, under NAFTA, that an American multinational wants to invest in building some sort of plant in Mexico. The local government conducts an impact assessment and realizes that, if that plant is built, it will pollute the groundwater. However, because of the chapter on dispute settlement, the local government will not win a dispute, even though its citizens' drinking water will be polluted by the plant. The company will win because it might lose money. That means that the governments cannot protect their citizens or the environment. For example, Canadians may see their environment harmed by large corporations because of a similar clause in the agreement with Europe.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:35 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I thank my colleague from Hochelaga for her comments.

She is absolutely right. That is the basic problem with free trade agreements. They give a huge amount of power to major corporations and are detrimental to our interests, our neighbours, and the people in our communities. My colleague's example of the plant in Mexico highlights that.

I have another example. An American company is currently suing the Canadian government for $250 million because the Government of Quebec placed a moratorium on oil and gas exploration in the Gulf of St. Lawrence to protect ecosystems. This company is now suing our governments. Taxpayers could end up being out of pocket just because we want to prevent pollution in the St. Lawrence River.

That is exactly what the NDP is rejecting, and that is why we will be opposing Bill C-30.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:35 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Mr. Speaker, I am pleased to rise in the House today to speak to Bill C-30 to implement the comprehensive economic and trade agreement between Canada and the European Union and its member states.

Before I start, I would like to pass my thanks on to my colleagues, the member for Abbotsford, the member for Battlefords—Lloydminster, and former Prime Minister Harper, for their hard work in bringing this about.

I want to start with the obvious. Trade is good. Trade makes markets better. Trade lowers prices for consumers and gives them more options. Trade does not make life better just for wealthy Canadians; it makes life better for all Canadians.

I am always proud to stand in this House to defend agreements and legislation that make life better for Canadians. I spoke to Bill C-30 at second reading back in November. In that speech, I spoke to four points about why I am supporting the agreement. I want to expand on a few of them today.

First, as I mentioned, trade is good for Canada. A more competitive market means Canadians have access to the best products, at the best prices. Lowering or eliminating tariffs on goods that we import for our own consumption means that the price we pay for these goods will drop.

Again, I will always stand up to defend policies that lower prices for my constituents, and for all Canadians.

Trade agreements help Canadians from both perspectives: consumers benefit when we have lower prices and producers benefit when they can have greatly expanded markets to sell their goods.

Farmers in Alberta can now sell their products to not only people in Ontario, Quebec, and B.C., but once CETA passes, basically duty-free to Belgians, Germans, the French, and every other country signatory to this agreement. The EU represents some 500 million people, with almost $20 trillion in economic activity. The EU's imports alone are worth more than our entire GDP.

If we want our producers to grow, we must ensure they can access newer, bigger, and hungrier markets. When our producers have more customers, they need more workers to fill that demand. I do not think I have to remind members in this House that we could use a few extra jobs in Alberta right now.

CETA is projected at a $12-billion annual increase to our economy. I know $12 billion can be an abstract number, but a $12-billion increase is equivalent to adding $1,000 to the average family income each and every year, or 80,000 jobs.

Some of those jobs will help my constituents in Edmonton West and the constituents of colleagues across Alberta.

CETA will help Alberta grow, access new markets for our goods, and will help Albertans access products at lower prices.

For our producers, the EU is already Alberta's fourth-largest export destination and our third-largest trading partner. The EU currently imports over $2 trillion annually, of which Alberta makes up $1.4 billion. We have just .07% of the European market. We have plenty of room to grow. Alberta's main exports to the EU include high-value items as well as resources, such as nickle, turbo-propellers and other machinery, cereals, medical instruments, cobalt, electrical machinery, mineral fuel and oil, services, wood pulp, inorganic chemicals, meat, animal feed, grains, seed, fruit, plastic, vehicles, pharmaceuticals, beverages, iron and steel products, and animal products.

For our consumers, nearly 100% of all non-agricultural products will be duty-free and nearly 94% of all agricultural products will be duty-free.

Once in force, CETA would eliminate tariffs on almost all of Alberta's exports and enable Alberta's job creators access to new market opportunities in the EU. Eliminating tariffs on almost of all of our exports means we would have more competitive pricing to offer to the more than 500 million new customers. It is like moving our lemonade stand from a neighbourhood street corner to Times Square. The potential for us is enormous.

CETA would also provide Alberta exporters with a competitive advantage over exporters from other countries that do not have a free trade agreement with the EU. That is like moving our lemonade stand from the neighbourhood street corner to Times Square where our competitor is stuck in a location with no traffic and higher costs.

On the day CETA's provisions enter force, 98% of Canadian goods would be duty-free. For agriculture and agrifood products, almost 94% of EU tariffs on Canadians goods would be eliminated, rising to 95% once all phase-outs are complete. This duty-free access would give Canadian agricultural goods, including beef, pork, and bison, preferential access to the European market.

I know some of my colleagues have this stereotypical image that Albertans are all ranchers and cowboys. I hate to play into that stereotype, but I cannot pass up this opportunity to remind the House how important beef is to the Albertan economy and what CETA means to this. According to the CBC, because of CETA, Canada is poised to supply about 1% of all the beef needs in Europe under this new pact. That would mean $600 million for Alberta, $600 million in new business, $600 million in new jobs.

As well, the following industries in Alberta would benefit. The first one is metals and minerals. Alberta's metals and minerals sectors include natural gas, conventional oil, coal, minerals, and the oil sands. More specifically, Alberta's metal refinery and mineral sector is a foundational industry that allows for infrastructure development as well as energy and natural resource production in Alberta. It generated 28% of the province's total GDP in 2011, and employs more than 181,000 Albertans, creating employment opportunities that provide some of the highest earnings in the Alberta economy. Exports of metals and minerals currently face tariffs as high as 10%.

There is agriculture and agrifood. Alberta has more than 50,000 farms with crop and livestock production. They produce an abundance of world-class agriculture commodities. The agriculture and agrifood sector employs nearly 76,000 Albertans and contributes 2.5% to the GDP. Between 2010 and 2012, the exports of agriculture products to the EU suffered tariffs of over $35 million. That is $35 million that can be reinvested in the economy, jobs, and productivity improvement.

There are forest products. The forest products sector employs nearly 19,000 Albertans and represents a significant component of the economy. Forest product exports to the EU average $62 million and face up to a 10% tariff right now. These barriers would be eliminated under CETA.

There is advanced manufacturing. Alberta's advanced manufacturing industry employs more than 28,000 people. Between 2010 and 2012, Alberta's exports of advanced manufacturing products to the EU averaged a quarter of a billion dollars, which face tariffs as high as 22%. Industrial machinery, one of Alberta's key advanced manufacturing exports to the EU, faces tariffs of up to 8%.

Alberta is a major producer of chemicals and plastics. It employs 11,000 Albertans, an important part of exports to the EU, with exports averaging just under $100 million a year. These exports currently face tariffs of up to 6.5%. Again, these would be eliminated.

In addition to beef and agriculture products, CETA would also provide for increases in eligible trade for products with high sugar content. This stipulation would enable a company like PepsiCo, which has a large bottling facility in Edmonton's west end as well as other parts of Alberta, to continue to ship its products abroad and find new customers in new markets duty free. The stipulation for sugary products would also help local Edmonton start-ups, such as JACEK Chocolate Couture, which opened in Sherwood Park last year, and has now expanded into Canmore as well as downtown Edmonton. It will help it to hire new employees and reach a massive new market base.

CETA will open up markets for our burgeoning alcoholic beverage companies, which products are very well known to members of the Alberta Conservative caucus. There are over 50 breweries in Alberta, including favourites like Big Rock, Alley Kat, and Yellowhead. There are distilleries like Eau Claire Distillery, which makes gin and vodka from only local Alberta grains, and Park Distillery, based in Banff, that makes a vodka with glacial waters from the Rockies.

Closer to my home in Edmonton, there is Red Cup Distilling in Vegreville. I am wearing the button today supporting Vegreville. There is also the Big Rig Craft Distillery in Nisku, by the Edmonton airport, where people can get brum, which is basically rum made with sugar beets instead of sugar cane. I want to note it's called brum and not rum, so as not to run afoul with the rum lobby. If the all-powerful rum lobby is watching on CPAC today, please note I called it a brum and not a rum.

Edmonton is home to many head offices of world-class companies that are said to grow, compete, and win with access to this huge new market. PCL Construction has finished Rogers Place in downtown Edmonton, the finest hockey and event arena in the entire world. Stantec engineering, Booster Juice, and Weatherford are all based in Edmonton.

Edmonton is also renowned for its start-up culture, and many new enterprises will benefit from increased access to markets and added IP protection. TappCar is a ride-share company that has gained ground by working with municipal governments rather than circumventing local laws. Drizly is an app that arranges liquor deliveries. Should it expand to the Parliament Hill area, I am sure that sales will spike massively. My wife's personal favourite is Poppy Barley shoes, which has grown from a small, shared office space downtown to Edmonton's famous Whyte Avenue, with pop-ups in Toronto.

Edmonton also boasts having three of the top fifteen start-up companies in Canada, as named by Metabridge. The first is LoginRadius, which does customer analytics and serves over 1,000 businesses worldwide. There is Mover, a company that handles cloud file migration. The third company is Showbie, which helps teachers, schools, and students get connected across technology platforms.

Edmonton's bread-and-butter business, the oil and gas sector, stands to benefit tremendously from CETA by increasing market access to our oil and gas products. The Prime Minister wants to phase out oil and gas, but CETA represents a grand opportunity for Canada's job-creating and economic-driving industry to capitalize on new customers.

Supplier diversification is one of the European Union's top energy priorities. Currently Russia has 31% of the EU's oil and gas import market share, making it first. Canada has just 1% of the market share, placing us 26th. It is well known that Russian President Putin uses his country's oil and gas reserves as a weapon. Given that Russia supplies almost one-third of the EU's oil and gas, this position is strong. The EU needs to diversify, wants to diversify, and Alberta has plenty to offer. Not only will this create wealth and jobs in Alberta and the rest of Canada, it will help to free Europe from the bullying and blackmail of the Russian president and deprive him of his desperately needed revenues that he uses to threaten our democratic allies. The Right Honourable Stephen Harper famously told Putin to get out of Ukraine. CETA will help us get him out of Europe's oil and gas business.

As CETA reduces and eliminates tariffs across the board for oil and gas products, Canada and Alberta are well poised to fill the gap and become a crucial energy ally. This is an opportunity that we should not pass up, and frankly cannot pass up. The government may perhaps one day support energy east, and then we can ship Alberta oil to Quebec and New Brunswick for refining and stop sending jobs and billions of dollars to despotic regimes like Saudi Arabia.

Beyond energy, free trade helps foster greater co-operation between our democratic allies. We strongly support international trade initiatives that strengthen the bonds with friendly countries, increase economic productivity, and drive prosperity and job creation.

The world is full of uncertainty, and prior champions of trade and co-operation are retreating. This comes at an unfortunate time for Canada. Our country has the fastest-growing population in the OECD, and the west has the fastest-growing and youngest population in Canada. We have products. We have workers. We have the businesses. We will continue to have more people and more products over the next few years, and we need places to sell these goods.

CETA is an opportunity for us to secure access to the largest single market in the world at a time when other countries are retreating. Not only will this agreement help to give our job creators access to growing and demanding markets, it will give Canadians a head-start advantage over our competitors who are retreating from the global marketplace.

Even after all of these benefits I have discussed and talked about, CETA's detractors argue that the costs outweigh the benefits. They will say that CETA gives too much power to corporations and will allow them to sue governments for compensation if they change policies. The argument is callously thrown around as a holistic and negative point. It is just an assertion.

According to a summary in The Globe and Mail, CETA opens up a new process called the investment court system, or ICS. The ICS essentially acts as a permanent tribunal to handle complaints brought by businesses. Canada and the EU have hailed the ICS as a breakthrough offering a high level of protection for investors while fully preserving the right of governments to regulate and pursue legitimate public policy objectives, such as the protection of health, safety, and our environment.

It is perfectly legitimate for businesses that act in good faith and set up shop in new countries because of a trade agreement to be able to protect themselves from arbitrary changes by the host government. If governments agree to and sign a trade agreement, they agree to be bound by the provisions of that trade agreement with some exceptions. It is unreasonable to make governments the sole power holder in this arrangement.

If we expect companies to come to Canada, to do business in Canada, to create work for Canadians, and create wealth for our country, we must be able to guarantee them some modicum of stability and predictability, or at least grant them some recourse if a future government makes arbitrary changes that violate the provisions of that trade agreement. This is a two-way street, and businesses do not deserve less protection just because they are creating jobs, making investments, and earning profits.

At the same time, it is also important that governments are able to react to changing circumstances and create legislation that is good for Canadians in the event that exceptional circumstances arise. This is why CETA has built in provisions to protect both business and government.

I want to note here that Canadian investment in the EU was almost a quarter of a trillion dollars as of 2014. That is Canadian investment that will also be protected from the whims of a changing political landscape in Europe.

The Consider Canada City Alliance is a partnership with 12 of our largest cities. These cities represent 63% of Canada's GDP and 57% of our population. They work to increase investment in Canada and grow trade opportunities.

Our own highly respected Edmonton Economic Development Corporation is part of this coalition. Michael Darch, president of the CCCA states:

We see Canada moving toward creating the largest trading and investment block in the world. The cities that comprise the Consider Canada City Alliance account for 63% of Canada's GDP fully understand that our economic prosperity is built on global trade and investment....

Modern commerce is much more than moving goods across the borders. It is about financial and knowledge-based consulting services, digital commerce and entertainment, and the freedom of movement for the skilled workers who are creating the 21st century global economy.... CETA addresses these and many more opportunities. Canada is demonstrating leadership in building the agreements necessary to protect our economic future and guarantee access to prosperity for all Canadians.

The Consider Canada Alliance has listed its top five reasons for supporting CETA. Number one is “dollars and sense”. It “will increase Canada-EU trade by 20% and boost Canada's economy by $12 billion..”.

Number two is “unparalleled market access”. “Once...CETA comes into force...investors in Canada will have assured preference access to both NAFTA and the EU” with nearly one billion customers combined and a GDP of over $35 trillion.

Number three is “enhanced investor protection”, as I just mentioned. “CETA will provide Canadian and EU investors with greater certainty, transparency and protection for their investments.” Again, I note, Canadians have invested a quarter of a trillion dollars in the EU. That is Canadian investment that will be protected from the whims of a changing landscape in Europe.

Number four is “easing of investment restrictions”. “The net benefit review threshold under the Investment Canada Act will be raised from the current $600 million to $1.5 billion, following CETA's entry into force.”

Number five is that it “signals open trade, not closed borders”. “While populist movements in some developed countries appear to be antagonistic to expanding trade agreements, Canadian cities are welcoming aggressive investment interests from across Europe and around the world during investment missions conducted in partnership with Federal [and provincial] colleagues.”

Again, I repeat, trade is good. Trade lowers prices and enables competitive and valued Canadian businesses to expand, hire new employees, and prosper in a globalized world. Trade helps strengthen ties with our allies. We will always support international initiatives that nurture greater co-operation between Canada and our friends overseas. Free trade allows billions of dollars in Canadian exports to reach new markets and ensures that European goods flow into Canada at competitive prices for our consumers. Free trade will help Alberta's businesses grow and prosper at a time when Alberta needs it most.

I am proud to support this agreement that will help Alberta's small and large businesses, Albertan consumers, Canadian industry, Canadian producers, and that will deepen our long-standing ties between Canada and Europe.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:55 p.m.

Liberal

Karen Ludwig Liberal New Brunswick Southwest, NB

Mr. Speaker, with the rise in protectionism, I wonder how my colleague opposite would respond to what impact not ratifying CETA at this time may have on our economic stability as a country, as well as jobs across Canada.

Canada-European Union Comprehensive Economic and Trade Agreement Implementation ActGovernment Orders

1:55 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Mr. Speaker, I think it would be a disaster if we stepped away from this right now. We all see what is going on with the U.S., with Brexit, with countries throwing up borders, walls. I do not want to exaggerate issues, but this is exactly the issue that helped to cause the first major depression, with countries immediately throwing up protectionist walls. If we make a stance and say that protectionism is good and open borders and open trade are bad, we are going to drive this country into a ditch. It will be decades before we can recover.