Debates of May 17th, 2017

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

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, is the government going to grant market economy status to China?

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

Madam Chair, as you know, as part of our exploratory talks, we are still in the phase where we are consulting Canadians and consulting widely to see about challenges and opportunities that could be offered to Canadians when it comes to potential trade with—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member for Essex.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, I will ask that question again and ask for a yes-or-no answer, please. Is the government going to grant market economy status to China?

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

Madam Chair, I will answer the question as I did before. We are consulting Canadians widely as part of our exploratory talks with respect to a potential free trade agreement with China.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, in the budget there is mention of modernization of our trade remedy system. It is called for widely, in particular since the executive order to tighten up the trade remedy system in the United States.

Could the minister speak to when we can expect to see these changes to the trade remedy system?

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

Madam Chair, as my hon. colleague knows well, this is under the purview of the Minister of Finance, but I am sure this is something that he is considering. As in anything with respect to trade, we will always work to make sure that it is in the best interests of Canadians across the country.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, I will start speaking about China.

A free trade agreement with China would raise many concerns about how Canada addresses China's shortfall on human rights, environmental rights, and labour rights, as well as its record on currency manipulation and unfair trade practices of the kind I mentioned, such as steel dumping and overproduction.

I recently learned about the story of John Chang and Allison Lu. I know that the minister spoke about this case earlier. They are being held in administrative custody in China for an alleged customs violation.

China's heavy-handed response is incredibly troubling. How does the government see Canada moving forward on an FTA with China, as it seems the government is intent on doing, while addressing China's record on human rights and its demand for an extradition treaty with Canada?

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

Madam Chair, human rights are part of the core principle of our foreign trade. I would say the way I do that as Minister of International Trade is actually to promote our progressive agenda.

When I met with our Chinese counterparts, I did mention that when it comes to progressive trade, Canada is looking at the environment, labour rights, and gender equality. That is how we are promoting that. That is something I would say the Chinese side well understands, and we will continue to pursue that. That is our way to make a difference in the world.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, I am pleased that he mentioned the progressive trade agenda, because I think it is something Canadians are curious about.

Can the minister share with us when there will be postings for Canadians to see what they mean by a progressive trade agenda?

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

Madam Chair, I wish that my colleague would have got that by now, because what we mean by progressive trade is to make sure that those who have been historically under-represented in trade can participate. This is about women entrepreneurs. This is about indigenous people. This is making trade real for people.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, what I am asking is when the government will share that with Canadians. When will the government define that for Canadians, not for me here in the House?

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

Madam Chair, from a round table with indigenous people, with women in business, and with youth around the country, I think Canadians understand that very well.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, in 2016, international development assistance stood at a low of 0.26% of gross national income. That budget was frozen in 2017, which in fact is in further decline.

What is the government's plan for reaching the 0.7% that it is committed to?

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

Madam Chair, as you know, we have held a lot consultations over the past year. I can guarantee that our partners do not just want money from the Government of Canada. They also want leadership and good policies. We have shown great leadership with the global fund, and we will do so again on other issues. I look forward to presenting the new policy.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, I would like to go to the TPP for a moment quickly, and ask if the government would commit to scrapping the previously negotiated TPP, as we entered into it very late into the negotiating phase, and if there is to be some form of trade that is being discussed right now, that we would start fresh with a new trade agreement under the new government.

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

Madam Chair, as I said before, when we last met in Chile, this was a meeting about purpose, action, and ambition. As for purpose, we recommitted to have principled open trade and free trade in this part of the world. As for action, we committed that our officials would look at options. That is why Canada showed leadership and hosted people in Toronto. We said we would maintain the high level of ambition.

As I am going to Vietnam, we will look at all options.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, can the minister commit that this will be a new trade agreement?

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

Madam Chair, I am happy to report to Canadians that as Canadians would expect from the Minister of International Trade, I will look at all options.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, I would like to go back to steel, because we really have been studying this in great detail at the trade committee. I would really like to hear from the minister an assurance that the government will get a commitment from China that China will stop unfair steel dumping in our country.

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

Madam Chair, as my colleague well knows, we are working with all major steel producing countries at the G20 and the OECD global forum on steel excess capacity to deal with the root cause of trade friction on global steel markets. I have raised that with our Chinese counterparts and will continue to do so.

[Tracey Ramsey, NDP, Essex, ON]

Madam Chair, I would like to ask the Minister of International Trade if he would agree that all trade agreements going forward should include human rights and environmental and labour rights entrenched into the agreements.

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

Madam Chair, I am happy to report to this House and to Canadians who are watching us that a progressive trade agenda is the policy of the Government of Canada. It will always be there in our trade agreements to promote progressive elements in trade.

[Andrew Leslie, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs (Canada-U.S. Relations)]

Madam Chair, I will be using 10 minutes for my speech, followed by five minutes for questions.

As we have said on numerous occasions, the Canada-U.S. economic relationship is balanced and mutually beneficial. Our economic ties to the U.S. are key to middle-class jobs and growth on both sides of the border.

Our partnership is also critical to Americans. Canada is the number one customer for U.S. exports and we are America's biggest market. Thirty-two states count Canada as their largest international export destination, with nine million U.S. jobs directly linked to trade with Canada. We do over $2.4 billion in trade a day, every single day.

We strongly believe that a whole-of-government and non-partisan approach is the best way to have an impact on American decision-makers and opinion leaders. That is what has happened in this Parliament, and we are all delighted. I will now speak about our key priorities.

At their first meeting in Washington, the Prime Minister and President Trump issued a joint statement that gave a clear indication of Canada's priorities in our relationship with the United States. The statement is a road map to upcoming co-operative projects between our two nations and it focuses on five key areas.

First, the growth of our economy, which includes such initiatives as co-operation on regulation. The Treasury Board Secretariat is leading an ongoing dialogue with American officials to move ahead with co-operation on getting rid of regulations that impede the flow of business. Another initiative is the Gordie Howe International Bridge. The Windsor-Detroit border crossing project is halfway through the bidding stage, and a private sector partner is expected to be selected next spring.

The second is promoting energy security and the environment. This focused area includes and identifies pipelines, and air and water quality. For pipelines, Keystone XL is now approved. The economy and the environment have to go hand in hand. There are several other projects like pipelines or electricity transmission lines that are at different stages for review.

When it comes to air and water quality, Environment and Climate Change Canada is working very closely with the U.S. and broad co-operation continues in some specific problem areas.

The third is keeping our border secure, of course. Entry-exit or, more specifically, Bill C-21, An Act to amend the Customs Act will allow for full implementation of the entry-exit initiative whereby Canada and the U.S. will exchange information on all travellers crossing the land border. We expect implementation by 2018. There will be a thinning of the border with a thickening of the outer perimeter of security.

There was also discussion of pre-clearance, namely Bill C-23, An Act respecting the preclearance of persons and goods in Canada and the United States. Once the bill is passed, both countries will be in a position to ratify the agreement, which will provide a framework for expansion of pre- clearance to cargo. In other words, it will get stuff moving faster.

The fourth area of focus was working together as allies in the world's hot spots, which includes co-operation on NORAD, which of course is essential to our Arctic sovereignty, as well as dominance over our own air space, our military alliance with the U.S., not only through NORAD but also NATO. The steps for modernization are in the government's defence policy review. More news will be announced on that by the Minister of Foreign Affairs and the Minister of National Defence shortly.

There is also the coalition to counter Daesh, wherein Canada is a key member of this 68-member coalition. The minister attended the ministerial meeting in Washington, DC, hosted by Secretary Tillerson on March 22, where the future strategy to defeat Daesh was clearly laid out.

We have also made some specific proposals and taken action to counter the activities, the heinous crimes of Daesh, not the least of which is supporting, through military efforts, but also $804 million in humanitarian aid, to assist the most vulnerable.

The fifth and last area of focus in this thematic scheme is empowering women entrepreneurs and business leaders. We oversaw the creation of the Canada-United States Council for Advancement of Women Entrepreneurs and Business Leaders. The council is committed to removing barriers to women's participation in the business community, and supporting women by promoting the growth of women-owned enterprises.

We are committed to gender equality, the empowerment of women and girls, and the promotion and protection of their human rights. We see women as powerful agents of change, an experience I, myself, have seen in the war-torn lands of Afghanistan. These individuals have the right to be full participants, and influencers in peace and security operations. Achieving gender equality requires changing unequal power relations, and challenging social norms and gender stereotypes. We can lead by example in that regard.

The next issue is with regard to the terms of the engagement strategy.

Since January 20, the Government of Canada and the provinces and territories have been undertaking an ambitious pan-Canadian strategy to get the United States involved. This includes not only the Prime Minister's official visit to Washington in February—I had the pleasure of going with him—but also visits, meetings, and other discussions between the ministers, parliamentarians, and provincial and territorial leaders and their American counterparts, as well as political leaders at the national and state level.

The ministers have undertaken an action-centred program that targets 11 key states whose main export destination is Canada and that maintain vital economic links with Canada or have a significant impact on American policy and Canadian interests.

We have already made over 100 visits as part of this effort. Twelve parliamentary committees are planning or preparing to go on visits to the United States in the near future, and I thank them for that. Through these visits, calls, and meetings initiated by Canada's network in the United States, we have obtained the support of over 215 political leaders in the United States.

Top of mind, of course, is NAFTA, something we have already talked about tonight. I know it has been said before, and we are going to say it again. We are ready to come to the negotiating table with our American friends at any time. It has been modified 11 times since its inception. It is natural that trade agreements evolve as the economy evolves. Canada is open to discussing improvements that would benefit all three NAFTA parties.

Should negotiations take place, and we all expect they will, Canada will be, and is, prepared to discuss at the appropriate time specific strategies, but we are not going to expose our cards right now. Quite frankly, we want a good deal, not just any deal.

When it comes to softwood lumber, on April 24, the U.S. Department of Commerce announced it would impose preliminary countervailing duties on certain softwood lumber products from Canada. We disagree strongly with the U.S. Department of Commerce's decision to impose an unfair and punitive duty. The accusations are baseless and unfounded. We continue to believe that it is in both our countries' best interests to have a negotiated agreement as soon as possible with a deal that is fair for both countries.

We have been in constant conversation with our American counterparts. The Prime Minister raises this every time he interacts with President Trump, as does the minister with her counterparts. As a matter of fact, the last time she raised it with her counterparts was yesterday. That is literally hot off the press.

While Canada is committed to negotiating an agreement, once again, we are not going to accept just any deal. We need an agreement that is in the best interests of our industry. We want a win-win.

In conclusion, while we only touched on a couple of the highlights of our engagement on this very broad, complex, and deep relationship, it is clear that the partnership between Canada and the United States has been essential to our shared prosperity. Our trade with the United States is balanced and mutually beneficial. We are its largest customer. We invest more in the U.S. than the U.S. invests in us. We are the Americans' biggest client.

We will also continue to work with all parliamentarians to ensure that we maintain a united front in our engagement with the United States in a non-partisan fashion. The growth of our economy and working well with the United States is not a partisan issue. All members of Parliament are thanked, essentially, for their “all hands on deck” approach.

Canada's relationship with the United States is extensive, highly integrated, and prosperous. Thirty-two states count Canada as their largest international export destination. Nine million U.S. jobs are linked to trade with Canada, and we do over $2.4 billion in trade a day. That is why from the very beginning, our government looked for ways to reach out to the new American administration to advance issues of mutual interest.

It is also important to realize that it has been really a non-partisan approach. I would like to single out, as the minister has done, the interim Leader of the Opposition, the member for Sturgeon River—Parkland, for her fantastic work in Washington. I literally saw her in action now on two different occasions, once at the inauguration and once at another event involving the governors. She was on television. She was able to leverage her Rolodex of very impressive leaders in Washington itself. She was organizing her teams to actually get out there and interact with us. She dispatched a whole bunch of her members of Parliament down to pair off with their Liberal and NDP colleagues. Quite frankly, it was sterling leadership by example.

I would also like to single out the hon. member for Prince Albert, my opposite number, the critic. We have travelled to the United States many times. I find him knowledgeable, experienced, and once again a true Canadian at heart. It has been a pleasure to work alongside him.

I wonder if the minister would please outline her activities and elaborate on our engagement strategy with the United States at all levels and across all sectors.

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

Madam Chair, I want to start by thanking my parliamentary secretary for his extremely hard work on this file. We can all agree that he has been leading an exemplary effort, particularly in parliamentary engagement. I certainly heard a lot of praise for his exceptional efforts when I was in Washington this week from both our own diplomats and our American counterparts. Therefore, I would like to thank him.

There was a bit of joking about the difficulty of the questions from my parliamentary secretary, so I cannot resist reminding the members opposite of a line that I think is attributed to Winston Churchill. Someone once said to him, looking across the House, that those were the enemies across the aisle, and he said, “No, those are my adversaries. The enemies are behind me.” Of course, that is not the case in this House in either direction.

I want to talk a bit about what has really been an exceptional effort by us all to engage with our U.S. neighbours and partners. So far, we have engaged with 220 political leaders, including 11 U.S. cabinet members, 150 members of Congress, and over 35 governors and lieutenant-governors. I do not know how—