Debates of May 17th, 2017

Foreign Affairs, Trade and Development—Main Estimates, 2016-17

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, I think in general, as the foreign affairs minister, it is not a wise practice to answer hypothetical questions. However, I would like to remind the member opposite that her colleagues are clearly on the record as to what they would do.

The hon. member for London—Fanshawe said during the campaign, “We don't renege on contracts. It's a signed contract and we will honour that contract.” I suppose that position from the hon. member is—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member for Laurier—Sainte-Marie.

[Hélène Laverdière, NDP, Laurier—Sainte-Marie, QC]

Madam Chair, I would like to know also how many export permits the minister has approved since she took office. It will not be possible to get it right now, but would it be possible to get a list of all the countries for which she has approved export permits?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, I have just consulted with my deputy minister, the excellent Ian Shugart, who is sitting here with me. According to my recollection and his, we believe I have signed no export permits, but we will take that under advisement and we will double-check; we have a few hours, but that is what we believe to be the case.

[Hélène Laverdière, NDP, Laurier—Sainte-Marie, QC]

Madam Chair, since I am running out of time, I want to come back to my first question.

Can the minister promise us today that her government will install an independent, impartial, and credible ombudsman to monitor the activities of Canadian mining industries?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, on arms, I cannot resist quoting the leader of the NDP who said, “You don't cancel a commercial accord retroactively. It's just not done.”

I think I have spoken about that in our commitment to corporate social responsibility at some length. I am personally committed to it, as is the government. I do not want to tread on the territory of my colleague, the Minister of International Trade, and he will speak about that further.

[François-Philippe Champagne, Liberal, Minister of International Trade]

Madam Chair, I am very pleased to be here this evening.

I will be speaking for about 10 minutes, Madam Chair.

The Prime Minister gave me a very clear mandate as Minister of International Trade to increase Canadian trade and attract job-creating investors to Canada by expanding the economic opportunities offered to all Canadians. I am proud to say that the government has made significant progress on that front, but a lot of work remains to be done.

There is a growing recognition that when it comes to international trade, business as usual is no longer an option. Many people, especially those working hard to join the middle class, feel that trade and globalization have not worked for them. In response, we have options: protectionism, the status quo, or we can rethink the method, form, and function of free and fair trade in the world.

This government believes that we can do better. It is trade that has helped build this country into a top 10 global economy with the world's 30th largest population. With a population representing about 0.5% of the world population, we represent about 2.5% of global trade. I have been saying around the world that trade is in the DNA of Canadians, so for us, protectionism is not an option.

Likewise, the status quo is unacceptable. It is holding us back while others continue to move forward. Not only do Canadians rightfully expect us to keep pace with global trends in international trade, but they also expect us to actively participate in all trade programs.

If we do not seek the social licence to implement an ambitious trade program, we will succumb to the forces that oppose it.

To that end, our government is pursuing a new progressive trade agenda. At its most basic level, progressive trade is about ensuring that all segments of society can take advantage of, and otherwise benefit from, the opportunities that flow from trade and investment.

In concrete terms, this means that we will give more consideration to the interests and ambitions of smaller companies, especially those owned by women, young people, new immigrants, and indigenous entrepreneurs by bringing them to the forefront so they can realize their full potential.

To help Canadian jurisdictions attract global investment, we will be investing $218 million over the next five years to create the invest in Canada hub, a new federal body dedicated to attracting leading global firms to Canada to support middle-class prosperity by bringing good jobs, fresh capital, and new technologies to our economy.

We will also enhance our trade promotion support to Canadian businesses to ensure that they can take advantage of the opportunities created by trade agreements.

As Minister of International Trade, I play a leading role in promoting the benefits of trade with Canada as well as Canada's attractiveness as an investment location at the international level. In that sense, I consider myself to be Canada's chief marketing officer, of sorts.

Together with my officials in Canada's world-class trade commissioner service, I am pursuing four parallel avenues of action.

First, I am engaging with Canadian firms, especially small and medium-sized businesses, to encourage their participation in international trade while cultivating relationships with our major long-standing exporters responsible for the bulk of our exports to ensure we are aware of their trade development priorities and any market access concerns. At the same time, I am reaching out to high-value foreign investors to promote Canada's attractiveness as an investment location to the highest level within major international business.

Lastly, I am promoting Canadian capabilities in the most promising sectors, namely aerospace, the automotive industry, clean technology, the oil and gas industry, and forestry at major trade shows and trade missions.

My international commitment is also focused on key markets that present the greatest potential for Canada. Now more than ever is the best time to diversify our markets. This includes high-growth emerging markets as well as established trade partners, especially those with whom we have free trade agreements.

Finally, as far as our progressive trade agenda goes, I will be communicating with Canadians to sustain support for the global trading system here at home and to promote awareness of the benefits of trade and investment for Canadians, Canadian businesses, and Canada's economic prosperity. As the so-called chief marketing officer, the Prime Minister has instructed me in his mandate letter to increase the support provided to Canadian businesses to take advantage of the opportunities that flow after trade agreements are signed.

In other words, and my colleagues would join me in this, it is about making trade real for people. Trade deals for people mean better jobs for our middle class, more choice and better prices for our consumers, and a chance for SMEs to export around the world.

That is why Global Affairs Canada created the free trade agreement promotion task force, which is responsible for working with businesses in order to help them identify and reap the benefits of these agreements. The task force has mobilized business associations in order to come up with a new model for promoting free trade agreements so they can ensure follow-up.

Our priority is to promote the Canada-European Union comprehensive economic trade agreement, commonly known as CETA. I am delighted that Bill C-30 received royal assent yesterday, and I am pleased to point out that CETA should be provisionally in effect very soon.

I would like to take this opportunity to recognize the work of my colleagues and members of the Standing Committee on International Trade, who worked so hard to make this agreement a reality for Canadians. It took vision to begin the discussions over a decade ago. Today, all around the globe, it is the right agreement at the right time, not only for Canada and Europe, but also for the entire world.

We are also undertaking promotional activities to support other trade agreements, such as the Canada–Korea Free Trade Agreement, which came into force on January 1, 2016, and as my colleague, the hon. Minister of Foreign Affairs, was saying, the Canada–Ukraine free trade agreement, which is expected to be applied some time this summer. Once CETA is in force, Canadian companies will enjoy unprecedented duty-free access to a market of more than 500 million consumers and a GDP of over $22 trillion.

I often say around the world that Canada soon will have preferential market access to about 1.1 billion consumers. This is a fact that is noted around the world. We are becoming a bridge between the Pacific and the Atlantic. That, with our progressive trade agenda, is being noted around the world. Canada will be one of only a handful of countries that have guaranteed preferential access to both the U.S. and the EU, which together account for nearly half the world's economic output.

For most exporters, the most visible component of CETA is undoubtedly the elimination of tariffs in all sectors. Presently, only 25% of EU tariff lines on Canadian goods are duty-free. That number will rise to 98% as soon as the provisional application of the agreement takes effect and to 99% once all of the tariffs have been phased out. Over 9,000 tariff lines will be duty-free when the provisional application takes effect. This will create opportunities for people in the Maritimes, Quebec, Ontario, Manitoba, Alberta, Saskatchewan, and across the country, including the territories. All Canadian communities will benefit from this agreement, the most progressive agreement Canada and the European Union have ever negotiated.

[Pam Goldsmith-Jones, Liberal, Parliamentary Secretary to the Minister of International Trade]

Madam Chair, last year the former minister of international trade worked extremely hard on CETA. Her parliamentary secretary travelled from coast to coast to coast to conduct consultations with Canadians.

This year the new minister and I have met with indigenous groups in Winnipeg, auto manufacturers and furniture importers in Toronto, women business leaders from Montreal, and lobster fishers in Atlantic Canada, for example.

Canadian businesses of all sizes and in all sectors across the country are poised to take advantage of the EU market of half a billion customers. Can the minister please tell the committee and Canadians how CETA would benefit middle-class Canadians and their families?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, I would like to thank, first, my parliamentary secretary, who is doing an outstanding job, and again, take a bit of time to thank colleagues on the other side of the aisle. This is a whole of Canada effort that, as I said before, will benefit Canadians across our nation.

I would like to take the opportunity to thank publicly the former minister of international trade, now our distinguished Minister of Foreign Affairs, for her extreme leadership, leadership that was needed, leadership at a time when we needed to make sure we put CETA back on track.

As I said before, Canadian exporters will benefit. Canadian consumers will benefit. Canadian workers will benefit. This is a good agreement for both Canada and Europe.

[Pam Goldsmith-Jones, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Madam Chair, we know that a lot of focus is on Europe, with CETA, and also on the Asia-Pacific and fast-growing markets like China, Japan, and India, but there are also markets in the south where the government could develop beneficial trade relations. The Mercosur group, formed of Argentina, Brazil, Paraguay, and Uruguay, is a good example of these countries with which we could pursue a free trade agreement.

In 2011 and 2012, under the previous government, trade talks on Mercosur began, but unfortunately, they stalled. It was great to see the leadership of the Prime Minister when he visited Argentina in November and spoke about the importance of renewing trade talks between Canada and Mercosur. The four members of Mercosur have a combined GDP of $3.2 trillion and a population of 260 million. Bilateral merchandise trade between us totals nearly $8.1 billion. We are very glad to see leadership on this file and a path forward.

I wonder if the minister would explain how a formal free trade agreement with Mercosur could benefit Canada's middle class.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, there is no doubt about the ambitious trade agenda Canada has today. There has never been a better time to be Canada and to be ambitious. We have the social licence to have an ambitious trade agenda, because we invested in Canadians, we invested in middle-class families, we invested in infrastructure.

However, when it comes to Mercosur, I will just highlight how it is important. That is why we launched public consultations. We want to hear from Canadians across the nation and hear about the benefits and the challenges they see.

Mercosur, for those watching at home, and I am sure there are many, comprises Argentina, Brazil, Uruguay, and Paraguay. This is an amazing market of 260 million people, with a strong middle class.

We are not only looking to the Atlantic, we are also looking south. We are looking at the Pacific alliance, and we are also looking at the Asia-Pacific.

My job as the Minister of International Trade is to make sure that Canadians across the nation have access to the most important markets in the world.

[Pam Goldsmith-Jones, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Madam Chair, tomorrow is Vyshyvanka Day, uniting Ukrainians all over the world.

Would the minister tell us how the Canada-Ukraine free trade agreement will bring us closer together?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Madam Chair, I would like to thank my colleague for her question.

As the hon. Minister of Foreign Affairs mentioned, the bonds between Canada and Ukraine are those of friendship. We are connected not only through personal relationships, but also through the free trade agreement that was recently signed by the Ukrainian president and is currently going through the stages of our Parliament and democratic institutions.

I would like to reiterate that trade can be a force for good in the world. We are making an effort to promote human rights in Ukraine and help that country, but signing an agreement like this shows that trade can be a force for good because it gives Canadians and Ukrainians the opportunity to work together in a more beneficial way.

[Dean Allison, Conservative, Niagara West, ON]

Madam Chair, I thank members for the kind comments about the foreign affairs committee. I think we have done some good work. I also want to recognize the chair, the member for Kenora, who has done an exemplary job chairing the committee.

I am going to ask questions and get responses in my 15 minutes.

My first question is for the Minister of International Development and La Francophonie.

Earlier this year, The Globe and Mail had an article written by Robert Greenhill, entitled “Canada is not back when it comes to global aid— [as a matter of fact] it's far back.

He stated:

...the first Liberal budget actually had lower support for development (26 cents per $100 of national income) than the average of the Harper government (30 cents). On this track, the [Liberal] government will end up with the worst commitment to development of any Canadian government in the last half-century....

Considering the statistical facts, does the minister still think Canada is back when it comes to international development?

[Marie-Claude Bibeau, Liberal, Minister of International Development and La Francophonie]

Mr. Chair, I thank my colleague for the question.

Absolutetly, I believe that there is no doubt that Canada is back on the world stage and on the international development scene. We conducted a major consultation over the past year, and 15,000 people from 65 countries took part. Most of the participants were Canadian, of course.

People asked us three things. Naturally they asked us for more money and a more direct contribution, but they also asked us for leadership and good policies. We have already demonstrated our leadership on several occasions. I will give just one example, that of the global fund. Through that fund we brought together our international partners and raised $13 billion to put an end to tuberculosis, malaria, and AIDS. They asked us for good policies. I look forward to presenting in the House my new policy, which will be focused on women and girls.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Chair, I thank the government for the commitment to the global fund. It is something this side of the House supported and I think it is something we can all support. I think they do a good job, so I am thankful about that.

The member talked about the international assistance review. I know it is part of your mandate letter that the government will look at consulting. I know you have been consulting. You have also talked about releasing a report, yet we have not seen anything. It is hard for us to hold the government to account if we do not actually know what commitments are being made. I know there has been a lot of rhetoric on the commitments to the most vulnerable people. When will the government release the international assistance review?

[The Assistant Deputy Chair, Liberal, Anthony Rota]

Before we go to the minister, I want to remind the hon. member to address his questions through the Chair and not directly across the floor. I know it is kind of a nice collegial atmosphere, and it is not hard to go across the floor.

The hon. minister.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Mr. Chair, we are indeed finalizing the international development policy for release before the summer. I will summarize into three basic points what we heard during all these consultations and what will be found in this policy. First, we have human dignity and human rights. Then we have the emancipation of women, which is an extremely important issue. When we invest in making women agents of development and peace, that changes things. Finally, we have the importance of working with local communities and building up their means. These points that were brought forward during the consultations will certainly be reflected in the new policy.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Chair, Canada has been a leader when it comes to maternal and child health. We have certainly been a leader on nutrition. We have been a leader on child mortality and on a number of other things. We have also led when it comes to accountability and transparency with our development dollars. We have always kept in mind that continued support for fundamental life-saving programs, such as global nutrition and vaccination, is essential.

In terms of new areas of focus and where the Liberals are going, I am hoping that we are going to continue to focus on the things Canada has developed an excellent reputation for around the world. We have seen the fact that the lives of children have been saved over the last number of years. Are there plans to divert funds away from global nutrition and vaccines?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Mr. Chair, I can assure my colleague that nutrition and vaccination are important components of our international aid policy. Actually, we are very proud of the organization that used to be called Micronutrient Initiative and is now known as Nutrition International. This is a Canadian initiative that we are very proud of and will continue to support. One of the programs we are supporting is the special project for the nutrition of adolescent girls.

With respect to vaccination and other major topics for which Canada is known, we will ensure that all of our partners find the best way to include women and strategies to empower them in their programs.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Chair, there have been some recent announcements. I know that the minister announced $100 million in funding to small and medium-size Canadian organizations. It was announced earlier this year that there would be $650 million for sexual reproductive rights. Other monies have been announced. Given the fact that the budget has remained pretty constant or has actually decreased, which organizations will be losing out?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Mr. Chair, my colleague will be pleased to know that we are continuing with the maternal and newborn child health initiative. In fact, we have enhanced it with that additional $650 million to make sure we look after the health of mothers and newborns together with all aspects of sexual and reproductive health. This is one way to get our existing partners involved and help them provide a broader range of services.

Regarding the $100 million over five years for small and medium-sized Canadian organizations, the goal is to establish a variety of partnerships. We also want to re-engage with Canadians because communication has been lacking there in recent years. One way to do that is to work with small organizations. We are targeting a certain kind of partner that will deliver projects that are in line with new policy priorities.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Chair, my question now is around the DFI, the development finance initiative. With regard to that, can we expect shared ministerial oversight between trade and development, or which one will it fall under? It is falls under Export Development Canada right now.

If there is shared oversight, what types of communication and management mechanisms will be harnessed to enable policy coherence between development and trade?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Mr. Chair, after conducting an in-depth analysis of the situation concerning the development finance institute, the DFI, we concluded that it would be best to establish DFI as a subsidiary of Export Development Canada in the interest of effectiveness and efficiency, given that EDC has expertise that we can leverage.

This Export Development Canada subsidiary will have its own board of directors and its own CEO, guided by a mandate focused on development. We know that Export Development Canada legally reports to the Minister of International Trade, but we work together and are complementary. I can guarantee that DFI's mandate is truly to ensure positive outcomes in development with private investment.

[Dean Allison, Conservative, Niagara West, ON]

Mr. Chair, will the DFI be guided by a mandate letter to formalize the authorization? When can we expect this mandate letter to be delivered to EDC?