House of Commons Hansard #134 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was ceta.

Topics

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

12:20 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I listened with great interest to my colleague, because it is clear that the Prime Minister is the foremost proponent of trickle-down economics in the world today. He believes in this ideology of trade, that if we trade away Canadian steel jobs, we will get something better with the Chinese, or that if we allow the Chinese government to take over Canadian tech companies, it will somehow benefit the middle class. Liberals always invoke the middle class whenever they make a cynical decision.

The government refused to stand up for the farm sector in the CETA negotiations and walked away on compensation, when it knows that dairy farm families are going to take a serious hit. Yet the man they are looking to to deal with Donald Trump, Brian Mulroney, is floating the trial balloon that to keep the Americans happy, we have to get rid of the supply-managed sector in this country. This is who the Liberal government seems to be taking its advice from.

I would ask my hon. colleague why he thinks it is that the Liberals put the ideology of these trade deals ahead of our steel sector, our farm sector, and our tech sector every single time to get any kind of deal it can get with anybody.

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

12:20 p.m.

NDP

Erin Weir NDP Regina—Lewvan, SK

Madam Speaker, that is an excellent question, and I will pick up where he left off, which is to observe that the current government, like the previous government, is blinded by an ideology that says that all of these so-called free trade deals are good no matter what and that we do not really need to worry about the details or the specific trade-offs being made.

It is very true that the Liberal government has made some huge concessions under CETA on supply management and in other areas. One of my concerns is that those concessions are automatically being extended to the United States under Bill C-30, which puts us in an even weaker position in potentially having to renegotiate NAFTA with the Trump administration. I would much rather go into those negotiations without having made these concessions so that we could actually push for the things Canadians want, such as the removal of the chapter 11 investor-state provisions and the removal of the proportionality clause that might limit our options as to where we export our energy resources going forward.

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

12:25 p.m.

Liberal

Mark Eyking Liberal Sydney—Victoria, NS

Madam Speaker, I am honoured to rise in the House today to speak in support of Bill C-30 and the comprehensive economic trade agreement between Canada and the European Union, or CETA.

I would first like to congratulate our new Minister of International Trade, the member for Saint-Maurice—Champlain, on his new responsibilities, and recognize the hard work of our former minister, the member for University—Rosedale, for the devoted time she put in on the trade file. She will still be involved with the trade file as the Minister of Foreign Affairs. I would also like to congratulate the rest of our team. I am sure we will continue to work with the foreign affairs minister and the trade minister to get more trade agreements that are beneficial to all Canadians. As the Prime Minister stated, we are a trading nation. Our GDP relies on trading. We will continue to work hard to make good deals for Canadians.

I would also like to recognize our international trade committee, which I sit on as chair and am very proud of. We do a great job, and we work together. We do not always agree, but we work together. We have put a couple of agreements together which were passed in the House, such as the Ukrainian agreement, which was a big agreement. Of course, we also looked at the CETA, which is here on the floor. We work well together and get things done. We are always thinking about Canadians. We are going to be working on future agreements in the upcoming months, especially dealing with the United States and many of our Asian partners.

CETA is a modern, progressive trade agreement that, when implemented, will generate billions of dollars in bilateral trade and investment. It will provide greater choice and lower prices for consumers. It will create middle-class jobs in many sectors of our society.

CETA is a product of hard work, frank discussions and negotiations, and a calm commitment by our Prime Minister, Minister of International Trade, Minister of Foreign Affairs, our trade committee, and, of course, countless of Canadian public servants who made this agreement come together. When it comes to negotiating trade agreements such as CETA, we have some of the best negotiators in the world. Whether it is WTO or this agreement, whether it is big or small, we have some of the best negotiators. They stand as an example for the rest of the world when we do our negotiations. We are very proud of them and how they work. No matter what party is in government, they work for Canadians.

Canadian exports to the EU are diverse and include a significant share of value-added products in addition to traditional exports. These are resource-based products and commodities, whether they are precious stones and metals; machinery and equipment; minerals, fuels, and oils; mineral ores; aerospace products; and, of course, fishing and fish products. These are some of Canada's top merchandise exports to the EU.

From my perspective in Atlantic Canada, the export sectors that will particularly benefit from CETA are the minerals and mineral products export sector, and the other one which is dear to my heart is agriculture and agrifood. Of course, I think the biggest one in our area is the fishing and fish products sector. We have over 500 small craft harbours in Atlantic Canada, and although we love eating fish, we cannot eat it all. However, the rest of the world wants it, and we want to sell it to them.

When it comes to exporting our products, Atlantic Canada tops the rest of North America. Atlantic Canada is very well positioned in this agreement for the shipment of products from continent to continent. Atlantic Canada is closer than Montreal, Boston, New York, or any other port in North America and South America to Europe. We are very excited, not only about the products that we have to offer Europeans, but also about being able to trade through our ports in Atlantic Canada.

I am from Cape Breton, Nova Scotia, which will benefit significantly from CETA and the preferential access to the EU market. The EU is Nova Scotia's second-largest export destination and second-largest trading partner, with a large portion of the share coming from my island in Cape Breton. Once in force, CETA will remove the boundaries on Nova Scotia's exports and create new market opportunities in the EU.

In all of the 28 EU member states, they have approved the conclusion of CETA and have signed the agreement or are in the midst of finalizing it. Trade means growth. Trade means prosperity. Trade means stability. Trade makes good friends. More growth in trade creates jobs, which is what we want in Canada.

Nova Scotians will benefit from improving exporting conditions, which will provide us with a comprehensive advantage over exporters in other countries who do not have free trade agreements with the EU. As mentioned in this House already today, the United States tried to pull off a deal with the EU but was not successful. We did, and we were successful. We are very proud of it. We see that Canada is an opportunity for an entranceway into the whole North American market through Canada and the EU.

Nova Scotians will benefit from improved exporting conditions, and, as I stated, it will provide us with a competitive advantage over exporters from other countries who do not have free trade agreements with the EU. Between 2013 and 2015, in Nova Scotia alone, merchandise exports to the EU were worth over $465 million, with fishing and fish products holding the largest share of that, 45% of our exports.

How does all of this translate? Following fish and fish products exports, of course, we have agriculture and agrifood, at 60%. We can grow anything in Nova Scotia. People in Europe love our blueberries. We have great blueberries and apples, and so many different products. We are looking at having more beef in Nova Scotia too. They like grass-fed beef in Europe, and we think we are well positioned in Atlantic Canada to do that. Also on metal and mineral products, the tariffs will go down from 10%. On other exports, such as chemicals and plastics, forest products, and information and communication technologies, tariffs will drop to 12%.

Most of the tariffs that we have to pay going into the European Union are 10% to 15%, which is significant. For instance, just on fish alone, which is over $465 million, if we take the ballpark figure of $400 million, 10% of that is $40 million. That would be the benefit to Nova Scotia just on fish products alone. These tariffs are on the largest exports, such as I mentioned, fish and fish products. Some of them are up to 25%. It is a phenomenally high tariff going into that trade zone, and we are going to be glad it is gone. Through CETA, these fishing and fish product tariffs will drop by almost 96% immediately, and the remaining tariffs will be phased out over three-year, five-year, and seven-year periods.

According to Industry Canada, Nova Scotia exports $5.4 billion worth of goods and services outside of Canada, with the United Kingdom being $121 million; France, $81 million; and the Netherlands, $84 million. Of Nova Scotia's $5.4 billion in exports, $1.2 billion comes directly from lobster and crab. In my riding of Sydney—Victoria, the Neil's Harbour co-op fish processing facility has staff from all over Cape Breton, and many of the staff come from Newfoundland to work in the plant. In 2015, the Victoria Co-op Fisheries purchased about $20 million of product from local fishermen. This spans over 100 miles of coastline; seven small harbours, most of which have between 20 and 25 vessels; and sales worth $26 million.

As with most of the rural and northern communities like Neil's Harbour, in my riding of Sydney—Victoria, the fishing industry is what my constituents rely on for their well-being. Fishing is passed down from generation to generation. Men and women go out to sea for months at a time to put food on their tables and provide fresh fish for the world. CETA will boost the fishing trade in my riding and better the quality of life for hard-working fishers and their families.

In agriculture itself, as I know was mentioned here, beef, pork, and canola are agriculture products that will go to Europe tariff free. It is going to be phenomenal. I sat on the agriculture and agrifood committee.

When all other countries are closing the doors to trade and immigration, Canada is opening its doors. The benefits that will result from CETA are on the fishing and fish products in Nova Scotia and Cape Breton, the Atlantic provinces, and all over Canada. CETA is a modern, progressive trade agreement that could generate billions of dollars in bilateral trade and investment, provide greater choice, lower prices to consumers, and grow the middle class.

I would also like to thank the members of the previous Conservative government, because they worked hard on this agreement. We had to take it across the plate and finish it, but they did a lot of work. I am proud that they are on the committee with us and continue to do good work.

I am open for questions.

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

12:35 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Madam Speaker, I would like to thank the chair of the trade committee for his speech. You highlighted a lot of important things, but I do disagree with a few things you said.

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

12:35 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I would remind members to address their questions and their comments through the chair.

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

12:35 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Madam Speaker, I agree with some of the things that the chair of trade committee talked about, but there are some things I disagree with.

The member talked about how good the blueberries are. We have saskatoon berries in Saskatchewan, and the people in Europe will enjoy the saskatoon berries better than the blueberries. Having said that, however, they are both excellent.

We have created the ability to get market access by going around the world, and now we are going to have access to the European market. Canadian companies will want to export their goods to Europe, and companies around the world will be looking at the possibly of getting a facility in Canada because they will have market access in Europe and the U.S. Hopefully, the TPP will go through the House and we will have access to the Asian market as well. It would be a great base for operations.

One thing that concerns me is our competitiveness. We are adding taxes to things that affect our competitiveness. The carbon tax is an example, when it comes to our fisheries. All Canadian fishers will have to pay a carbon tax, which will provide no return for their investment, and this will make them uncompetitive.

Does my colleague not feel that it is important to look at competitiveness with respect to trade agreements when it comes to taking advantage of opportunities and growing the business community here in Canada?

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

12:35 p.m.

Liberal

Mark Eyking Liberal Sydney—Victoria, NS

Madam Speaker, let me talk about the berries first. I think my friend is on to something. We could take those berries from Saskatchewan and Nova Scotia and make a blend with them and call it “Canada's finest”. How does that sound? That would be a good idea. People could mix it with their vodka and gin, and everyone would be happy.

My colleague mentioned a couple of things. He mentioned how Canada could be a point of access to other markets. I am glad he brought this up. I have a window manufacturing company from Germany in my riding. It makes windows mostly for Atlantic Canada, and it does a fine job. The owner is looking at this agreement as giving him an opportunity to go into the U.S. market, depending on the tax rate. It is a fine point.

With respect to the carbon tax and this agreement, Europe already has a carbon tax. Europe is very similar to us with respect to our social structure, our beliefs, and how we treat the environment. This agreement fits well with us and the Europeans because we are like-minded. As with us, they have a tax on carbon and they are environmentally friendly. We are going to meet with Danish MPs on Wednesday, and I think they are going to be fond of our carbon tax.

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

12:35 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I listened with great fascination to my colleague. He is an enjoyable man, who is telling Canadians that the reason the government signed this free trade agreement is to get Nova Scotia blueberries over to Europe. That is one of the more ridiculous examples I have heard, except possibly for the reason given by the member for University—Rosedale, who said that we had to sign it so we could sell mukluks from little stores in Winnipeg to Europe. Do they think we are some kind of political knobs?

I want to thank my colleague for at least wrapping up his speech by thanking Stephen Harper and his policies for laying out the path that the Liberal government is following. At least we heard a bit of honesty from him. His government is following the same trickle-down economic plans of the Stephen Harper government and they are thankful for it. I want to thank him for his honesty. It was a breath of fresh air compared to all the other stuff.

I did not hear him talk at all about the fact that the Liberal government is selling out the dairy sector. At least Stephen Harper put the money on the table, because he knew this was going to be a serious multi-billion dollar hit to our farm families. The Liberal government has not put a dime on the table.

I would like my colleague to move away from blueberries for a minute and tell us what is going to be on the table for our farmers who will be giving up serious market share to the Europeans.

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

12:40 p.m.

Liberal

Mark Eyking Liberal Sydney—Victoria, NS

Madam Speaker, I am not surprised at the NDP. I am not trying to credit the Conservatives for everything. They did do a good job on this agreement, and we finished it up. The NDP is against trade, and I am not surprised.

Your family is from Cape Breton. Your family are fishers—

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

12:40 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I want to remind the member that he is to address his comments through the chair. My family is not from Cape Breton.

There is not much time left, so a very brief answer.

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

12:40 p.m.

Liberal

Mark Eyking Liberal Sydney—Victoria, NS

Madam Speaker, the member should think of his relatives in Cape Breton who fish and how beneficial this will be beneficial to them. Every once in a while, he should go back to Cape Breton and get a taste of reality, and find out what real business is all about.

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

12:40 p.m.

Conservative

Bev Shipley Conservative Lambton—Kent—Middlesex, ON

Madam Speaker, it is always a pleasure, and quite honestly, an honour to stand in this great place to talk about something that has great potential, an incredible potential to create jobs, economic growth, and value for our country.

Bill C-30 is about implementing this great agreement, CETA. I cannot go ahead without recognizing the member for Abbotsford, the former minister of international trade. For six years or so he worked not only with the team on our Conservative side, but also with all members of Parliament to come together on this extraordinary agreement which benefits Canadians from one coast of this country to the other.

I also want to thank the current Minister of Foreign Affairs, who was the minister of international trade, for taking the agreement forward to this point.

As my colleague before me mentioned, agreements do not happen in isolation. Our chief negotiator, Steve Verheul, is an amazing guy in his abilities and the things he accomplishes around the negotiating table. I am from Lambton—Kent—Middlesex. I farmed. I was involved in municipal government. In fact, when I was in dairy, I bought many of the inputs for my dairy operation from Steve's dad, so he comes from great stock.

There is a whole host of things that happened to get CETA done. One of them was the unprecedented amount of co-operation and involvement that the stakeholders had in developing this agreement. Whether it was the provinces or the territories, whether it was the stakeholders in the commodity organizations, the businesses, if they were not at the table, they were sitting on the chairs right behind it. That is why this agreement has so much appeal across Canada.

The text of the agreement was agreed to in August 2014. We all knew it would take a couple of years for the 28 countries to translate it into something like 22 or 23 languages. We are now at the time of implementation not only here in Canada, but also in Europe, which we understand may be happening very shortly.

What does it mean? As I mentioned, there are 28 countries. It has an impact for Canadian manufacturers, agriculture, education, and for all the stakeholders who were involved in the negotiations. It would provide access to some 500 million people and economic activity of almost $20 trillion. It is estimated it would bring about a 20% increase in bilateral trade, and about a $12 billion increase to the Canadian economy.

For example, it would leverage about $1,000 for an annual family's income, but we have to understand that could be eaten up, because the Liberals keep bringing in new taxes. They just brought in a new CPP tax on employers and benefits. However, it has the opportunity to increase family incomes, and also create about some 80,000 jobs.

When CETA comes into effect, about 98% of non-agriculture trade tariff lines will disappear. For agriculture it will be 94% to 95%. Over a short period of time those tariffs will start to disappear.

One of the great things about trade agreements, and good ones like this one which we negotiated, is that they help to get rid of non-trade tariff barriers, those things that pop up between one country and another which sometimes are not directly related to trade but they become a political inhibitor to moving a product from one country another. For example, a shipment may go over to another country, but all of a sudden, they will find there is something wrong with it and it may be rejected and returned. That is a non-trade tariff barrier, and both sides, whether it is the European Union or Canada, want to try to eliminate as many of those as possible.

As I mentioned, the trade agreement has an incredible amount of potential benefit to Canadians. However, over the past 14 to 16 months, we have sat in this place, and a new government came in, so some of the advantages will take a hit. The Liberals promised that they would balance the budget in four years, but now that seems to have been misjudged by about 32 years. People who are 18 years old today will be about 56 years old before the budget is balanced.

What does that mean? That means that all the young people who are 18 or 19 today will be almost at the age of what someone might call “freedom 55” and are now going to be paying for this extraordinary spending of the government.

When the Liberals got elected they said they would have a $10-billion deficit. However, within a couple of months or so, the amount was out by, I think, 300%. It went from $10 billion to $30 billion. The deficit will be somewhere around $30 billion.

I think the parliamentary budget officer said it would be $20 billion if the government did not spend the money on infrastructure that it had talked about. The Liberals were going to lower the business tax for our businesses, which very much involved CETA.

My riding of Lambton—Kent—Middlesex is all small businesses. Agriculture is the dominant one. Those small businesses not only did not get the tax relief they were promised, but there was an additional tax charge for the Canada pension plan and a new carbon tax.

It comes down to credibility, accountability, and trust.

The agreement has all the potential of going ahead and being good for our families and our businesses, but if the government is going to bring in a carbon tax, in it will negatively affect every individual, particularly farmers, truckers, and businesses in my riding. For example, a guy who is farming fills up his combine every day. At the end of the day, it will cost him another $100 just for the fuel, not including the tractors that he has running beside the combine, and not including the truck. It is the same with the truckers. By the time they fill their trucks with fuel, it is going to cost them another $100 or so a day, when the carbon tax is in full implementation. In Ontario, of course, we have other costs that are a deterrent, for example, our high energy costs.

My point is this agreement has all the potential to help keep Canada the strong economic force that it is.

Agriculture obviously is the key industry in my riding. Whether it is pork, beef, grains, when I was on the international trade committee and the agriculture committee, they told us about the significance of this, as did the dairy sector. We negotiated a true benefit for dairy producers.

I see my time has just about wrapped up. In closing, I will say that we will be supporting this bill as we move forward on the implementation of CETA.

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

12:50 p.m.

Liberal

Scott Simms Liberal Coast of Bays—Central—Notre Dame, NL

Madam Speaker, I have worked with the member and have travelled with him on this particular issue, and I will get to that in a moment. However, I want to address the issue which the member brought up about carbon pricing. The Conservatives seem to be saying that we are the only ones in the world who are doing this right now, that is, carbon pricing to help with the environment, but there is a universal acceptance that all of our current and future trading partners are doing it. I will leave that as it is, because in this case, I think the Conservatives are trying to make something out of what is not there.

In the case of this particular agreement, the member and I have shared the same table in Europe and we have talked about this. We have also talked about a parallel agreement called the strategic partnership agreement, which gives us a baseline of a political union, in a sense an informal political union, so that our ideologies match, and we are fundamentally agreeing with human rights and all other measures before we launch into the commercial aspect of this agreement.

I thank the member for his work and, by extension, the member for Abbotsford as well.

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

12:50 p.m.

Conservative

Bev Shipley Conservative Lambton—Kent—Middlesex, ON

Madam Speaker, the member and I may even have been elected the same year, I am not sure. In this place we do have differences of political opinions, but we do build great friendships. That is why this country is so strong not only in the diversity of the people we meet but in the diversity of the occupations that we come from.

In this agreement and in every agreement, as my colleague has said, if there is going to be a strategic partnership agreement, we have to make sure, and we want to make sure, we recognize those baseline values of Canadians and of the countries that we build trade agreements with, whether they be human rights or our responsibility to the environment.

In my riding of Lambton—Kent—Middlesex, whether it is the manufacturing industry or the agricultural industry, we are leaders. We can look at the auto industry as leaders in this and see what they have done in their ability to make those great changes in the environment without a carbon tax.

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

12:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, my colleague and I are neighbours, as he is from very close to Windsor where I am from.

He mentioned the auto industry. One of the concerns about CETA is the issue around the fact that European automakers have massive subsidization, as well as state ownership of their auto industry. I would ask the member a simple question related to that. How do we compete against companies, specifically in the auto sector, that actually have state subsidy and ownership, but that are also violating Canadian laws, for example, most recently Volkswagen, with regard to emissions? What should be the quid pro quo for Canadian manufacturing, given the fact that we compete against other national governments and state subsidies, and also violations of Canadian emissions laws?

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

12:50 p.m.

Conservative

Bev Shipley Conservative Lambton—Kent—Middlesex, ON

Madam Speaker, I went over the bridge the other day, and there seems to be massive reconstruction on the old bridge. I know the member has worked hard, because he realizes the amount of trade that goes back and forth over that bridge every day. I believe it is $2 billion every day.

In terms of the auto industry, we always have to be able to compete. Being able to negotiate trade tariff barriers and those tariff lines is an important part for every industry.

Some of the challenges we have in terms of the auto industry and others are those things I just talked about that, quite honestly, the Liberal Party is doing to every family and every business which is going to make it very difficult to be competitive. The member mentioned some of our major trade partners have a carbon tax. I am not so sure about that. Right now we have NAFTA and the United States of America is not going to have a carbon tax.

We are going to have to make sure that our government starts to take away some of the impediments that are in place for our businesses.

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

12:55 p.m.

Liberal

Ali Ehsassi Liberal Willowdale, ON

Madam Speaker, it is a great honour to rise today to participate in this important debate about the comprehensive economic and trade agreement between Canada and the European Union.

Free trade debates are far too often hijacked or sidetracked by hyperbole, misinformation, and knee-jerk distortion of the facts. I still recall being a high school student when our country was immersed in the spirited debate surrounding the free trade agreement with the U.S. in the 1980s, and being struck by the outrageous claims made by the opponents of the agreement at the time.

As such, I firmly believe debates such as the one today are vitally important. They allow parliamentarians to set the public record straight and counter ill-informed misconceptions and simplifications. It is important that we emphatically underscore the comprehensive and progressive elements of the EU trade deal and highlight the tangible benefits that the agreement will provide the Canadian middle class, consumers, and exporters.

Prior to serving as the member of Parliament for Willowdale, I served in both the public and private sectors as a lawyer focused exclusively on international trade law. In that role, I gained valuable first-hand knowledge of the tangible benefits well-crafted trade agreements provided us each and every day. It is from that perspective that I approach today's remarks.

Before I begin, however, I would be remiss if I did not thank the former minister of international trade for her hard work on this file. I would also like to congratulate the incoming minister and parliamentary secretary on their new roles. I am confident they will navigate this file with expertise and great dedication.

Finally, allow me a shout-out to the hard work of countless Canadian departmental officials and negotiators. We owe them a great debt of gratitude for their tireless efforts. In that, I obviously am echoing the sentiments of the member for Sydney—Victoria, who talked about how we had some of the greatest trade negotiators in the world.

As any student of Canadian history knows, our great country in many ways was shaped and founded by trade. To this day, over 40% of our GDP and fully 20% of Canadian jobs are directly tied to exports. This side of the House has long recognized the role of trade in fostering economic growth and creating Canadian jobs, while at the same time recognizing the need for progressive and comprehensive trade deals that truly work to the benefit of all Canadians and all stakeholders.

Our government understands that increased trade leads to economic growth and that economic growth leads to jobs for the middle class. This simple fact, however, is currently under siege. As the world slides toward protectionism and isolationism, a regression apparently favoured by some of my colleagues across the aisle, it is vital that Canada remains an open society and a champion of open global markets.

As the first and most ambitious trade deal of its kind, CETA would provide Canada with an unprecedented competitive advantage in an era of short-sighted protectionists. As Mr. Brian Kingston of the Business Council of Canada stated when discussing CETA before a committee earlier this fall:

...Canadian companies will be positioned to take advantage of preferential access...in the large European market. For many small, medium-sized, and large Canadian employers, this will mean new opportunities and, potentially, increased sales. The first-mover advantage will also help to attract investment to Canada. Companies looking to increase sales to Europe through CETA can use Canada as an export platform, and we believe this will attract investment and jobs to communities across Canada....CETA sends a positive and hopeful signal to the rest of the world about the benefits of international economic co-operation and open markets. Since the end of the Second World War, trade has been the principal means by which countries around the world have grown and prospered.

Just as Canadian leadership on the Syrian refugee file and infrastructure spending have served as beacons for the rest of the liberal world, our ambitious and balanced approach to trade provides an encouraging counter to closing borders and closed societies.

To quote a recent article found in The Economist, “Bucking the protectionist mood, Canada remains an eager free-trader...In this depressing company of wall-builders, door-slammers and drawbridge-raisers, Canada stands out as a heartening exception.”

In that spirit, our government recognizes that CETA represents a tremendous and unprecedented opportunity for Canada. The EU, a market of 500 million people and $20 trillion, representing nearly 17% of global GDP, is the world's second largest economy, second largest importing market, and Canada's second largest trading partner. By removing 98% of tariffs between Canada and the EU and by making Canada the first G8 economy with preferential access to the unified European market, CETA would open a range of possibilities to Canadian exporters, businesses, entrepreneurs, workers, and service providers. A joint Canada-EU study, for example, found that CETA would increase Canada-EU trade by 22%, thus providing the Canadian economy with a 0.7% boost in GDP, or roughly $12 billion per year, with similar gains in job numbers and household incomes.

Following a decade of anemic growth under the previous government, we simply cannot afford to walk away from this type of amazing opportunity. To illustrate this, allow me to name just a handful of concrete benefits that would be brought with the implementation of CETA.

First, CETA would allow Canadian goods and services to reach European markets faster and more efficiently through the reduction of border processing times by providing access to advance rulings on the origin or tariff classification of products. It would also provide for the automation of border procedures and the creation of transparent systems to address complaints about customs rulings and decisions.

Second, CETA would mark the first Canadian bilateral trade agreement that would include a stand-alone chapter on regulatory co-operation to promote enhanced regulatory practices. This would include a protocol on conformity assessment that would allow Canadian manufacturers in certain sectors to have their products tested and certified in Canada for sale in the EU.

Third, through mechanisms such as the most favoured nation provisions, Canadian service providers, an ever-growing segment of our modern economy I might add, would benefit from unrivalled access to the European Union, which acts as the world's largest importer of services and represents a market worth an astounding $12 trillion.

CETA is an inclusive and modern trade agreement that would greatly broaden Canadian access to the European markets across a wide range of sectors, from aerospace to agriculture to infrastructure to green technologies, and beyond.

We know Canadians demand trade agreements that not only advance our economic interests but also reflect our values. These are not contradictory aims, but rather mutually reinforcing goals. For example, allow me to outline just a few of the elements that make CETA not only the most comprehensive trade deal ever negotiated but also the most progressive.

CETA includes a robust right to regulate, allowing democratically elected governments the ability to regulate on important policy issues, such as the environment. CETA also includes a strengthened dispute resolution process, which makes the CETA agreement regime fairer, more ethical, and transparent. CETA also includes stand-alone chapters on environmental protection, sustainable development, and labour. Finally, CETA contains explicit safeguards regarding health, safety, and environmental protections, and provides for the necessary exceptions and reservations for social services. Furthermore, nothing in the agreement prevents governments from providing preferences to aboriginal communities, or adopting measures to protect or promote Canadian culture.

If any of my colleagues cannot support this trade agreement, it leads us to wonder what free trade agreement, if any, they would ever support. CETA represents a unique, pragmatic, and progressive trade agreement for the 21st century.

From day one, our government has made it clear that our priority is helping and growing the middle class and those working hard to join it. From cutting taxes for those who need it, to creation of the Canada child benefit, to boosting CPP for Canadian seniors, we understand that a thriving middle class benefits us all. Our approach to trade underscores that simple fact yet again. By finalizing the most important trade deal in a generation, our government has renewed its commitment to Canadian jobs, Canadian growth, and Canadian values.

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

1:05 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Madam Speaker, that was a very interesting speech. The member talked about walking away from opportunity. I agree that we should not walk away from this opportunity, which is huge for all Canadians. In fact, the benefit in this agreement is about $1,000 per family, so we know there will be a distinct benefit there.

What really concerns me is the fact that the Liberal government is taking that $1,000 out of the pockets of families and spending it elsewhere. More payroll taxes and a carbon tax are the types of things that make our business community uncompetitive. Even though businesses have gained market access to sell all over the world, to Europe in this situation, if they cannot produce effectively and efficiently in Canada at a price that people will pay, then they will have to look at the location of their businesses, which maybe is not in Canada.

While the Conservative government was very active in pursuing market access and keeping taxes low, why are the Liberals doing only half of a deal? If they are so concerned about the middle class, why do they not let the middle class keep that $1,000 and allow businesses to have a competitive field in Canada, so they can take advantage of the market access they will receive?

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

1:05 p.m.

Liberal

Ali Ehsassi Liberal Willowdale, ON

Madam Speaker, we are very much concerned about the middle class and the economy. For that very reason, despite what my learned friend is telling us, we have cut taxes for the middle class. We have provided benefits under the Canada child benefit program. We understand we have to help the middle class. Therefore, I cannot agree with some of the things to which my friend has alluded.

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

1:05 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, my region has seen raw log exports go up tenfold in 10 years. The government has just removed a 25% tariff for ferries to be built in Canada so they can be built in Poland and Turkey. The Coast Guard is now looking to refit, for the first time ever, outside of Canada. CETA, for the first time, will legally allow foreign-owned vessels and foreign crews to transport goods between Canadian ports, which is known as cabotage. This will cost us 3,000 really good Canadian seafaring jobs.

When I talk to the people in my community about free trade, they get pretty nervous about it. They feel like our resources and their jobs are disappearing for free, and no one is looking out for them. Part of a parliamentarian's job is to safeguard jobs in communities, especially coastal communities, where jobs have disappeared.

In the previous Parliament, the Liberals agreed with the NDP that there were many outstanding concerns with CETA. Now the Liberal government is ignoring these legitimate concerns. Will the member stand up for coastal British Columbians and people who are worried about cabotage?

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

1:05 p.m.

Liberal

Ali Ehsassi Liberal Willowdale, ON

Madam Speaker, in response to my friend across the aisle, I will remind him of the debate on the Canada-U.S. Free Trade Agreement in the 1980s. He will recall that, at the time, a lot of critics of that agreement told us the sky was falling on our heads. Unlike my colleague, every time I have spoken with constituents about free trade, I think they have understood full well that trade means jobs, better wages, and something of which we should take advantage.

We are now talking about a market of 500 million people, a market worth $12 trillion. Canadians are happy to see that. They want us to improve our export sector.

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

1:10 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, it is true that in the debate about NAFTA, the single biggest damaging feature of NAFTA never got mentioned in the debate, which is chapter 11. That same sleeper element of investor-state agreements rests within CETA in Bill C-30.

Has my friend actually studied the effect of foreign corporations having the right to bring multi-million dollar cases against Canada for actions we take that are not in the interest of protectionism, but are all about the protection of health and safety, and the environment?

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

1:10 p.m.

Liberal

Ali Ehsassi Liberal Willowdale, ON

Yes, Madam Speaker, I have examined chapter 11. The member can rest assured that not only NAFTA but the CETA provides government sovereign powers to protect the environment. There is nothing in these agreements that undermines the government's ability to introduce progressive environmental policies.

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

1:10 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, it is a pleasure for me to join this debate. If you will indulge me briefly, I know that my soon to be four-year-old daughter is watching at home, and I want to wish her a happy birthday on her upcoming birthday.

With respect to the subject at hand, this is a very important agreement for those of us alive today, and indeed for future generations, in terms of the economic opportunities and prosperity it will create. However, I want to speak to the non-economic arguments for free trade in my remarks today.

We speak often, and many good speeches have been given, about the economic benefits of free trade. Maybe I will have a chance to return to that in the questions and comments period. One of the things we have discussed less and that we should remind ourselves of is that free trade is not just about the economic benefits it creates but also about the opportunity for community that is facilitated by economic exchange, with community among nations, and for the benefits that creates in terms of creating a more peaceful world, and also facilitating more open societies. I believe that open and pluralistic societies should also include economic openness in their understanding of societal openness, and that the kind of openness that is created through free trade reinforces a broader spirit of openness.

In that vein, I want to introduce for members a bit of the history of, as I see it, trade in the European Union and how that relates to the agreement that is in front of us today.

John Maynard Keynes, I would argue, is one of the most abused economists in that he is often used as a justification for positions that he did not take. John Maynard Keynes was at the peace agreement at Versailles in 1919. He was there advocating his view that the peace needed to be more generous to Germany but also that it needed to focus on different issues. Many of the powers in Europe at the time were focused on a conversation about borders and security, which entailed an assumption that there would be ongoing competition among nations with respect to things like territory. Keynes' view was that there needed to be a reorientation of the discussion, that rather than this kind of zero-sum game over territory there needed to be a focus on economic prosperity. He thought that having free trade within Europe was critically important because it would create the conditions for a cohesive community, for a community of nations working and prospering together, despite following immediately on the heels of a catastrophic war. This was a very prescient point. He argued that a focus on borders, on security only, without emphasizing the economic dimension, could well create the conditions for what had been history for hundreds of years in Europe, which was ongoing conflict and the harsh and negative manifestations of competition. He advocated free trade. He also advocated a credit program similar to what was brought in after the Second World War in the form of the Marshall Plan. He was quite prescient insofar as he understood that the heavy demands for reparation would lead to inflationary policies. They would lead to inflation as nations tried to respond to the requirements that were put on them.

During the interwar period, because of a lack of emphasis on the economic dimension, we had serious inflation, we had a decline in trade, and that really set the stage for the rise of totalitarianism and subsequent conflict. Keynes saw these things coming, which is why right after the First World War he wrote a book called The Economic Consequences of the Peace, where he specifically made this argument about the relationship between peace and trade.

Right after the Second World War there was finally a recognition of some of the insights that Keynes had advocated. What he had proposed in the aftermath of the First World War, what he had proposed in terms of freer trade, as well as a credit program to help European nations get back on their feet, was implemented. This was the basis for the European Union coming out of the Second World War, the sense that a community of nations, especially a trading community, would help ensure peace in Europe.

There are various other factors that contributed to the period of peace that has existed since the Second World War in Europe, but in general, we can see the wisdom of emphasizing the economic dimension and realizing that free trade creates the conditions for greater peace. This was Keynes's insight, and it is behind a lot of arguments for freer trade today.

I am not worried that in the absence of this deal we are about to have some kind of military conflict with Europe. However, the point is, as we pursue the expansion of trading relationships between nations, and as part of larger trading blocs, this establishes the conditions in which individuals can focus their passions on economic matters, and there is not the focus instead on the kind of territorial competition that historically was the basis for a lot of warfare in Europe.

This was the insight, and this is why coming out of that discussion we can see the importance of trade based on that history for two principal reasons: one, that we have a more peaceful world; and two, that there is this relationship between an open economy and open society. A society that is open to economic exchange is also one that is going to have a greater sense of solidarity with people in other countries.

In terms of this connection with peace, it is a fairly obvious point, but economics is not a zero-sum competition. Canada doing better economically does not mean someone else is doing worse economically. In fact, all of the nations of the world can do better economically together. This is really the advantage of what one might call the valorization of economic success. It is not that economic success should be seen as the most important thing in life, but to the extent that our polities are oriented towards trying to improve economically, those are the kinds of improvement that do not put us into conflict with other states. In other times, in other places, the primary objectives were seen as being territorial expansion, which obviously creates inevitable conflict, because control of territory is a zero-sum game. Also, warfare becomes more economically costly when there is economic interdependence and exchange between countries.

For Keynes to make these points right after the First World War, I think we can see that we was right to make those points. We can also understand why many in his own time would have been immediately skeptical. Why are we immediately jumping to the discussion of economics rather than looking at the factors that brought us here? Actually, highlighting trade even in the midst of a conflictual world, even in the midst of present tensions, I think is necessary for creating conditions that will build and ensure a lasting peace.

I want to speak to the relationship between an open economy and an open society. It is fascinating to me that there are members in the House and voices elsewhere who believe very much in an open society and the importance of people from different kinds of backgrounds living together, working together, yet when it comes to economic exchange between people from different kinds of communities and different nations, all of a sudden, that is a problem. It strikes me that there is this clear inconsistency between advocating for open societies, pluralistic societies, but on the other hand always being pessimistic about the prospects of people from different kinds of national communities trading together.

I am really perplexed by that, especially when we consider that pluralism and multiculturalism are facilitated by trade. The ability to trade with other places really helps facilitate the kind of diversity that we have. Also, by the way, the diversity that we have, the open society we have, creates opportunities for trade, because we have people here who have close connections with nations all over the world. This creates renewed opportunities for economic exchange around the world that benefit our interests.

These are some of the clear non-economic benefits that come with trade and that are associated with these kinds of trade deals. Because of this, I think it is important for Canada to be a strong voice on the world stage for the open economy. For those of us who believe in the value of peace and open societies, we should also be strong advocates for open and free trade, because that creates the conditions under which nations can prosper together, can see their success invested in the success of others, and indeed develop a deeper sense of solidarity.

In my remaining time, I want to follow up on some of the comments I have just heard in the debate because we have had some interesting comments from the government members, talking about the importance of opening ourselves up to competition. We have members of one party, the NDP, who do not want to open us up to competition. I get that impression from the kinds of comments that the New Democrats make.

Madam Speaker, am I out of time? I will have to come to that later.

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

1:20 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I am sorry about that. I should have given the member the one-minute mark.

Questions and comments, the hon. parliamentary secretary to the government House leader.