Debates of Feb. 8th, 2019

Canada-Israel Free Trade Agreement Implementation Act

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, I thank my colleague for his question. He complimented me on my energetic speeches, and I would like to return the compliment.

We should not seek to undo what is working. That is something we need to keep in mind every time we negotiate an agreement. Certain values are very dear to Canadians, and we will ensure those values are honoured. The same is true of the other party. Sometimes we do not succeed, but there are steps we can take to find common ground during these discussions.

Canada and Israel have been partners for 70 years. We should be proud to be carrying on this good work.

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, I am so pleased to speak today on the motion before the House. It calls on the government to take the necessary legislative steps to ratify the modernized Canada-Israel Free Trade Agreement, or CIFTA. I encourage the entire House to support it.

CIFTA is now a modern, forward-looking trade agreement that will better serve the sophisticated Canada-Israel trade relationship, while seeking to ensure that benefits are more widely shared by both Canadians and Israelis.

Our government has said from day one that trade and open markets are vital for Canada's economic prosperity. Earlier, the member for Sackville—Preston—Chezzetcook elaborated on that. Canada is a trading nation, and we know that increased trade means more and better-paying jobs for Canadians.

Why modernize CIFTA if we have already been doing so well? Canada and Israel already enjoy a rich and fruitful commercial relationship. Since CIFTA came into force over two decades ago, two-way merchandise trade between Canada and Israel has more than tripled, totalling $1.7 billion last year. However, as there was room to grow and deepen the commercial relationship, we made changes.

Israel's economy has significant potential and offers diverse commercial opportunities for Canadian businesses, given its well-educated population, solid industrial and scientific base and productive natural resources sectors. By providing expanded market access and more predictable trading conditions, the modernized CIFTA will enable Canadian companies to take meaningful advantage of these opportunities. This is why Bill C-85 is so important.

Israel is a good partner in trade, and we should capitalize on these additional opportunities for business. I will elaborate further on this point by turning to how this agreement will tangibly translate into real benefits for Canadian businesses.

Once the agreement is in force, close to 100% of all current Canadian agriculture, agri-food and seafood exports to Israel will benefit from some form of preferential tariff treatment. This is up from the current level of 90%. That is great for Newfoundlanders and Labradorians in the fishery, and also for people in the agri-food sector. This will generate benefits for Canadian companies in areas such as agriculture and agri-food, including products such as cranberries, baked goods, pet food, wine, fruit and fish and seafood.

Meaningful market access for Canadian agriculture and agri-food processors was a key interest in these negotiations, and the Government of Canada delivered by obtaining unlimited duty-free access for sweetened and dried cranberries, which currently have a 12% tariff; baked goods, which are currently tariffed up to 8%; and pet food, which currently has a tariff of 4%. These important tariff outcomes for the agriculture and agri-food sector place Canada on a more level playing field with exporters from the United States and the European Union, which are key competitors in this sector as we try to build our trading relationship with Israel.

This agreement will also give Canadian companies a leg up on competitors in other countries that do not have a free trade agreement with Israel. In exchange, Canada agreed to eliminate tariffs on certain targeted Israeli agriculture and agri-food imports, such as certain fish, certain nuts, some tropical fruits and certain oils.

I am pleased that the negotiated outcome has the support of key Canadian agricultural stakeholders, including Pulse Canada, the Canola Council of Canada, the Canadian Vintners Association and companies involved in the processing of potatoes, cranberries, soybeans and pet food. I am sure my colleagues from Prince Edward Island and New Brunswick will appreciate that as well.

In Newfoundland, there is a little-known winery in Whitbourne called Rodrigues Winery. It is in area of the province that is shared by the member for Avalon and the member for Bonavista—Burin—Trinity. There, kosher-certified berry wines are produced, and they appear on shelves in Israel. Agreements like these benefit companies like Rodrigues Winery by providing access to the market in Israel and by keeping the trade relationship between our countries strong.

This modernized agreement and the benefits it provides will be an important tool for a sector that makes a tremendous contribution to the Canadian economy from coast to coast. Successful trade provides for good employment opportunities, and with one in six Canadian jobs linked directly to exports, we are deeply committed to growing trade with this nation and expanding the pie for all Canadians.

Interestingly, for online retailers and service providers, including those in my riding, such as Eclipse Stores, the agreement also includes commitments by Canada and Israel not to levy customs duties or other charges on digital products that are transmitted electronically.

When I first saw this note, I had some concerns about the relevant paragraphs, so I sought some advice from the department regarding what this meant and how it might affect the playing field between local and foreign retailers. I was assured that paragraph 2 in article 9.2 outlines that the moratorium on customs duties applied to digital products transmitted electronically does not preclude a party from imposing internal taxes or other internal charges, such as value-added taxes. I know that is important to some of my constituents.

These are a few opportunities that the modernized CIFTA would provide.

I would like to speak on some of the more important aspects of the government's trade agenda, which aims to ensure that these opportunities are more widely shared among Canadians. This is our inclusive trade partnership agenda.

A priority for this government is our inclusive approach to trade. Simply put, we believe that everyone should benefit from and participate in the opportunities that come from increased trade and investment. We demonstrated that with the Comprehensive Economic and Trade Agreement with the European Union and with the CPTPP, and we are also demonstrating it with this modernized agreement.

The modernized CIFTA incorporates several key inclusive trade elements. These features will help to ensure that economic gains complement important Canadian values and priorities, such as support for environmental protection and labour rights.

I appreciate some of the comments from members on the other side of the House from the New Democratic Party, who raised some issues about extending these benefits further. However, I believe we strike a good negotiated solution in the Canada-Israel relationship.

These trade elements also help to ensure everyone benefits from and can participate in the opportunities that flow from the agreement. The addition of these inclusive and forward-thinking trade elements signals a commitment from both Canada and Israel to create the right conditions for trade in our modern economies.

There are also additional resources for business. In order for the benefits of free trade agreements to be fully realized, Canadian businesses need to be aware of the agreements and the benefits they offer. Accordingly, the Prime Minister of Canada has mandated the Minister of International Trade Diversification to provide support to Canadian businesses to take advantage of the opportunities that flow after trade agreements are signed, including by drawing on resources from across government and from public and private sector partners. In this regard, Global Affairs Canada has mobilized a free trade agreement promotion task force that is undertaking a comprehensive outreach and training program within the business community. Work on these leading agreements is scheduled to take place across Canada in early 2019 so that the task force can focus on the CETA with the European Union, the CPTPP and the implementing legislation that is currently before Parliament.

In addition, Canadian companies can access the free services and export advice provided by the trade commissioner service, the TCS. The TCS helps Canadian companies export by preparing businesses for international markets. I encourage all members of Parliament to encourage businesses that are exporting to take advantage of this service.

Online resources, such as the step-by-step guide to exporting, have also been developed to ensure that Canadian small and medium-sized enterprises from across the country can benefit.

In conclusion, trade is, at the end of the day, about the relationships between people, the opportunity to share in our common prosperity and to work together to create larger, more interesting markets. Canada's strong friendship and partnership with Israel spans 70 years and stretches back even farther, 250 years, to the arrival of the first Jewish settlers to Canada, the first of successive waves of immigrants who would leave lasting and indelible impressions on the fabric of our Canadian society, economy and political landscape.

Today there are more than 350,000 Canadians of Jewish faith and heritage in Canada. They are an important source of information and support in the political and commercial spheres for both Canada and Israel, and they are also good friends. There are also approximately 20,000 Canadians currently living and working in Israel. Such deep ties are important for many reasons. Strong trade relationships depend on people-to-people relationships, which Canada and Israel have in abundance, and they also create peace.

In St. John's East, I grew up just five doors down from our synagogue. People might not realize St. John's has a synagogue, but it does. It once had a very strong and thriving Jewish community, and now it has a strong but smaller one, since, like many other Newfoundlanders, many people have moved away.

My grade nine French teacher, Ms. Frankel-Slama, was one of the best French teachers I ever had, and she is Jewish.

I also want to mention my roommate, Jono Kalles, who organized cultural exchanges between Canada and Israel for many years. I never had the opportunity to go to Israel or Palestine with him, but I have heard other MPs say they had a chance to go so they could make their own contribution to maintaining good relations between our countries.

I would encourage all members to support Bill C-85 to help us accomplish that and a great deal more in the years to come.

[Kevin Sorenson, Conservative, Battle River—Crowfoot, AB]

Mr. Speaker, my colleague talked about the importance of the Canada-Israel relationship. Indeed, since 1997 and the trade agreement put in place between the two, our trade has tripled.

I have had the pleasure of going to Israel in the past. Israel is one of our closest partners in the region and is the only democracy in the region. Actually, I am looking forward to going to Israel tomorrow. Over the break week, we will be doing some work in Israel and meeting with different people.

Israel has one of the best educated populations in the world, a strong industrial base, scientific institutions and natural resources. Because of that, certainly there are opportunities for Canada and for Israel. That is the way trade agreements work. Israel can export some of its industry here, and we can export there.

The member also mentioned agriculture, which is a big part of my constituency. We are always looking for free trade agreements that give our agriculture access. It is another reason this agreement is so important.

Although we support this, we wish it could have been completed a little sooner. We finished and concluded some of the negotiations in 2015. I am not throwing this at the member, but in good spirit, maybe my friend could comment on the four years in between.

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, we have wonderful ties with Israel. Of course, negotiated relationships between countries happen over a long period of time. It is important to always remember that different parties are going to be able accomplish different things with different countries at different times. When I was in Europe in October of 2016, it seemed to me that the time was right for a Liberal Party to help improve the relationship with Europe.

From the member's comments, it sounds like when the Conservatives were in office, they had a very good opportunity to work closely with Israel to help bring this relationship forward. Inter-country relationships happen over decades, and hopefully over centuries. I thank my hon. colleague for the work his party did to bring us to this stage.

I am sure that if the member had allowed some of our other legislation to get through the House more quickly, we could have dealt with this legislation more quickly. However, I am glad to hear that two parties are in favour of it now and that the relationship can be strengthened. I know that we were close in getting the third party there, but as our Prime Minister likes to say, better is always possible.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I listened carefully to my colleague. I congratulate him on his French, which is improving every week.

The Canada-Israel Free Trade Agreement is over 20 years old, as mentioned earlier. At first it was an agreement on merchandise trade only.

I would like to know what kind of prosperity this new agreement will bring to the hon. member's riding in Newfoundland and Labrador.

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, as I just mentioned in my speech, many companies sell their fisheries and agricultural products around the world. I am thinking of Rodrigues Winery in Whitbourne. This winery is not in my riding, but is located nearby in the riding of the member for Avalon. It sells kosher-certified berry wines.

It is not just for those products that we are expanding our business opportunities in Israel. We are also buying Israeli goods. Our two countries are establishing new partnerships, corporations and businesses thanks to these new relationships.

There are many ways to do this, directly through the sale of goods or by strengthening ties between the people and businesses of both our countries.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, as always, it is an honour to join the debate. This is my first opportunity to rise and give a full speech in this new chamber.

It is not a secret that the former Conservative government was a strong believer in trade. Indeed, no Canadian prime minister in recent history successfully concluded as many trade deals as occurred under Mr. Harper. Obviously, that includes much of the current trade agreement with Israel we are here to debate today.

Before I begin my comments, I would like to share a few things about my riding. Central Okanagan—Similkameen—Nicola is a large and very diverse riding. Yes, we have large urban areas, with West Kelowna and parts of Kelowna, but there are also vast rural areas in my riding. Ranching, mining, forestry, fruit growing, and of course, winemaking are just some of the activities my riding is well known for.

The exciting thing is that more trade deals have been created. This opens new markets and creates new opportunities. I can say first-hand that it is rewarding to meet with producers or growers who share with me that prosperous new ventures have been created for them courtesy of new trade deals. This is occurring increasingly. That is why I am excited about and supportive of this new, updated trade deal with Israel and the opportunities it will create.

Let us not forget that trade is a two-way street. There will be new trade opportunities in Israel as well as in Canada. Therefore, rather than talking about the trade agreement itself, let us look at a few of these new opportunities for a moment.

The first question to ask is what is in it for Israel. It is a great question. Did members know that, currently, one of the top exports from Israel to Canada is electronic items? These days many believe that electronics are largely made solely in China, when in fact, Israel has a thriving electronics sector. Optical, photo, technical and medical equipment is a leading export from Israel to Canada.

Other major exports include machinery, plastics, stone, precious stones and pharmaceutical products. This is on top of edible fruits, nuts, citrus peel and melons. This is all part of a fairly diversified group of products and commodities.

From the Canadian perspective, what do we export to Israel? Industrial machinery is one of our largest exports, followed closely by aircraft and aircraft parts. We also export to Israel our fair share of electronic items and scientific and precision instruments.

We also have emerging agricultural trade. Our top agricultural exports are wheat, corn and lentils. I have spoken with many people from Israel who are always delighted to share with me how much they enjoy chickpeas from some of our prairie provinces, with Canada being the leading source of that staple. In addition, Canada's fish and seafood exports to Israel include fish fats and oils, scallops, mussels and lobsters.

From a provincial perspective, Quebec, Ontario, Atlantic Canada, Manitoba, Saskatchewan, Alberta and B.C. all currently have some level of trade activity with Israel. This was built on the previous agreement and the work Mr. Harper did to bring our two countries together. This new version of the trade deal will only increase that further.

I have to pause here for a moment. In my view, as much as this is a mutually beneficial opportunity for Canada and Israel, I feel I must point out the obvious. This deal, once ratified, will make it easier for a winery in the Okanagan to directly sell to a customer in Israel than to one in Ontario. It will be easier for an Okanagan winery to ship to Tokyo, Texas or Tel Aviv than to Toronto or Alberta.

That we, as a Canadian people, continue to ignore internal trade barriers should trouble all of us, on all sides of this House. I do not want to make this a partisan issue, but we really need to start making some progress on internal trade.

Getting back to the agreement with Israel, I will close by indicating that I strongly support this agreement. I am always excited for the opportunity that new markets create for producers and for small business owners in my riding and elsewhere in Canada. We know that when Canadians can compete, when they have the chance to compete on the world stage, we can produce world-class results and win.

I will be strongly supporting Bill C-85. I would like to thank all members in this place for their contributions to the great Canadian success story of trade on the international front.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I want to thank my hon. colleague for his speech and for laying out the areas that he finds troubling with regard to economic health. As he probably knows, the NDP put forth some amendments that would address other troubling aspects, such as human rights issues.

I am wondering if the member and the Conservatives supported those amendments.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I would gladly answer the question if I knew the answer. I did not follow the discussions at committee. I would best leave it for members to decide what they can infer from Hansard.

That being said, the NDP continues to talk about human rights and issues germane to the region of the Middle East. It is important that we always keep the perspective that where we can improve situations and conditions for all people, we should do our fair share and speak up on it.

However, the NDP continues to support flip-flopping back and forth with different positions on Venezuela, which is in a crisis situation. The New Democrats go after people for discussing opening up stronger ties between Canada and Israel, an existing agreement. I wish the NDP would actually focus on the big challenges of the day, in terms of human rights in Venezuela, and not continually switch positions, depending on where the political winds are blowing.

I will say again, members should always be concerned about human rights. We should strive to work together to rise as humanity towards a sense of dignity of persons in all places. It is a little rich for the NDP to constantly be nitpicking on one issue when it is totally out of line when it comes to the Venezuelan people and their rights.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, it is always nice when we see some similarities between the Conservatives and the Liberals. We could say the Conservatives voted against the middle-class tax cuts and they voted against the tax increase to Canada's wealthiest and so forth, but today, as I have heard from many Conservative members, they are talking very positively about trade. That is something that has been fairly consistent between Liberal and Conservative governments.

We could argue on another day about who has actually signed more trade agreements. History will show that it is the Liberals, but we will save that argument for another day.

I have a question for my colleague across the way. Would he not concur that when we talk about the importance of trade, and Canada is a trading nation, we need to have that trade? Having these revised agreements and new trade agreements, what we are really doing is giving more strength to those sectors that get involved in international trade. That, thereby, generates jobs and a healthier economy in Canada. That means it is better for Canada's middle class. Would the member not agree?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I would like to thank the member opposite for his leading question. Sometimes when he speaks, I think there is a greater distance than more than two and a half sword lengths. In fact, sometimes I think he is asking questions from Disneyland, most likely from Fantasyland. Some of the things he has said are just not kosher with reality.

On the flip side, we have great opportunities in this country. We have a long relationship with Israel, but let us also note that this newly revised agreement will also include services and Canada will actually enjoy a surplus. There is about a $60-million surplus that we have received, where our Canadians get a chance to go and travel to Israel and share their Canadian know-how.

Who benefits the most from that? Sharing cultures is always important, but it is our young people who oftentimes get sent on overseas contracts to work in different areas. They benefit not only culturally from that and economically, but from creating better ties. Let us be mindful that when we trade, we create bonds, and eventually that is how we create a more peaceful world.

In closing, I will offer an olive branch to the member opposite and say that trade is good for all sides concerned.

[Kevin Sorenson, Conservative, Battle River—Crowfoot, AB]

Mr. Speaker, I really enjoyed my colleague's speech. First of all, as far as the New Democratic Party's question, I think Canadians need to know that before any free trade agreement is ever signed, regardless of which party is in, human rights is one of the main essentials, where we recognize certain human rights. There indeed have been some foreign free trade agreements that have not proceeded because of that.

However, what I liked about my colleague's speech was that he went through, province by province, showing how with this small democracy but a very important partner in trade and ally with Canada, how every part of our country exports to that country. Indeed, we are an exporting nation. Whether we grow it or take it out of the ground, we are an exporting nation.

I think the member spent a little too much time on his riding and the wine. I say that tongue-in-cheek because he is always representing his constituency. I want to thank him for laying out so clearly how agreements like this benefit Canadians and Canadian business.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, it is always helpful to hear various views in this place and again, I heard a number of times in this debate that Canada is a small and open economy and needs to be out there winning. I would hope all parties would say that when Canadians get out there and compete, we can succeed. That is something in which we should take great pride.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, first of all, I would like to question some assertions made by my colleague from Winnipeg North. I know he has a lot of experience in both his provincial and the federal levels and he has a good sense of history. This is why I want to remind everyone that in 1988, it was the first time that Canada had an opportunity to accept or refuse a trade deal. It is very sad for me to remind my hon. colleague that at that time the Liberal Party totally opposed the free trade agreement. Thankfully, Canadians were wiser than the Liberal Party and I hope that nine months from now, it will be the same case.

However, to the hon. member, why should Canada support such a great trade deal?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I thank the Conservative member for continuing to talk about the importance of free trade for the country and for the whole world.

The use of trade builds bridges. It also creates economic growth, so that we can start to work on societies and make them stronger. I want to thank the member for the nice question and again ask this place to continue to work on it within our own country in terms of internal trade.

[Kevin Sorenson, Conservative, Battle River—Crowfoot, AB]

Mr. Speaker, on the first trip I made to Israel, one of the things that really stuck in my mind was the incubator projects. They were almost like greenhouses, where they brought people together to come up with innovation and new ideas that they would be able to develop in their country and then export around the world.

I was challenged by the way they would bring people in, scientists or those in electronics or innovation, and how then they would commercialize it and send it out around the world.

The member talked about health care and the delivery of medical devices. Why is that so important to Canada? How is a free trade agreement going to benefit us in that area of health care?

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, most people would join me in saying just let me go, but I certainly appreciate the member of Parliament's question.

There are a number of Canadian firms that are developing next-stage technology. There is a huge number in digital health where there may be some extra collaborations. Let us be mindful that innovations that have come from Israel, whether it be desalination or other agricultural processes, do get imported and the practices are utilized here in Canada, but also the innovations we have in Canada can go there. Again, it is not just trade and economic growth. There are opportunities for the extension of quality of life, by sharing what we know.

[The Deputy Speaker, Conservative, Bruce Stanton]

Is the House ready for the question?

[Some hon. members]

Question.

[The Deputy Speaker, Conservative, Bruce Stanton]

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

[Some hon. members]

Agreed.

On division.

[The Deputy Speaker, Conservative, Bruce Stanton]

I declare the motion carried on division.

(Motion agreed to)

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I would ask for unanimous consent to see the clock as 1:30 p.m.

[The Deputy Speaker, Conservative, Bruce Stanton]

It is the pleasure of the House to see the clock as 1:30 p.m.?

[Some hon. members]

Agreed.