Madam Speaker, it is my pleasure to rise in the House today for my first speech and to speak to the Canada-United States-Mexico agreement. Some people call it CUSMA. In my home riding of Windsor—Tecumseh, we simply call it the new NAFTA. Either way, this trade agreement spells certainty and job security for the 40,000 manufacturing workers and 8,000 agriculture workers in our region, whose companies rely on open and reliable access to the U.S. market.
Two billion dollars in trade crosses the U.S.-Canada border each day, and one-quarter of that trade crosses the Windsor-Detroit border. More than just market access, the new NAFTA means every car made in North America will have 25% more local content. That means more production, more jobs and greater prosperity for our region.
Members should not just take my word for it; the president of the Automotive Parts Manufacturers' Association said that the new NAFTA is “the single biggest boost to the fortunes of the Canadian auto supply sector in our history.” That is why I urge my colleagues in the House to move swiftly and resolutely on ratifying this important trade deal.
I also want to talk about another key aspect of the new NAFTA that would help tilt the playing field even further in favour of Canadian workers like those in Windsor—Tecumseh, and that is the new labour chapter.
Through the new labour chapter, the agreement seeks to improve working conditions and living standards across North America and to protect and enhance basic workers' rights. Trade and labour protections are mutually supportive, and Canada strives to demonstrate internationally that a competitive economy includes safe, healthy and co-operative workplaces. The labour chapter in this new agreement aims to raise and improve labour standards and working conditions in all three countries by building on international labour principles and rights.
The original NAFTA includes a side agreement on labour called the North American Agreement on Labour Cooperation. This new labour chapter is a significant improvement over the original side agreement and is fully incorporated into the new NAFTA. The new labour chapter includes commitments to protect and promote internationally recognized labour principles and rights, including the International Labour Organization's 1998 Declaration on Fundamental Principles and Rights at Work. Most importantly, these commitments are all subject to dispute settlement.
The chapter also includes commitments to ensure that national laws and policies provide protection of the fundamental principles and rights at work, including the right to freedom of association and to collective bargaining. The chapter also includes a non-derogation clause that prevents parties from deviating from their domestic labour laws in order to encourage trade or investment.
Importantly, the new labour chapter has a number of key provisions that support the advancement of fair and inclusive trade. For instance, it includes enforceable obligations to address issues related to migrant workers, forced or compulsory labour, and violence against union members. To address labour rights violations in Mexico, it also includes an annex with specific requirements on worker representation in collective bargaining.
I mentioned the issue of forced or compulsory labour, an odious practice that still exists in many countries. The Canada-United States-Mexico agreement is the very first agreement to include an obligation that would commit Canada as well as the United States and Mexico to prohibit the importation of goods produced by forced labour. This is a milestone provision that could have an important impact on workers around the globe.
Let me give some context.
The ILO estimates that in 2016, approximately 25 million people worldwide were subjected to forced labour, and a disproportionate number were women and young girls. For this reason, our government has committed to addressing forced labour within the labour chapter of the agreement.
While these inclusive trade provisions would largely help workers outside of Canada, the modernized agreement would also help workers here at home. “How, exactly?” one may ask. North American free trade has been an enormous benefit to Canadian businesses, workers and the overall economy. It means more good-quality jobs here at home and more affordable goods and services. The agreement would ensure that trade does not come at the expense of workers' labour rights.
Ultimately, trade is about people. It is about creating the best possible conditions for growth, for jobs and for the prosperity of individuals and working families in their communities.
Let me give an example of how the CUSMA would protect Canadian interests and help to curb the outflow of jobs.
The rules of origin chapter addresses automotive manufacturing wages in North America by including a labour value content requirement. Basically, this means that 40% of the value of a vehicle must be from a plant where the workers earn an average of $16 U.S. per hour or more in order for the vehicle to be considered as originating from a CUSMA country.
This provision, together with the labour chapter provisions on collective bargaining rights, may create upward pressures on wages in Mexico and help to level the playing field for Canadian workers and businesses.
It is important to note that the labour chapter is subject to the dispute settlement chapter in cases of non-compliance to ensure that all obligations are respected. The agreement provides an opportunity for governments to take the necessary actions and measures if prior attempts to resolve the matter through consultations prove ineffective.
The labour chapter allows for complaints from members of the public, including businesses and unions, in cases of non-compliance.
When Canada, the United States and Mexico agreed to further strengthen the labour chapter of the agreement on December 10, 2019, Canada established a new bilateral rapid response mechanism with Mexico that allows Canada to request an investigation into certain labour rights violations by an independent panel of labour experts. This mechanism will ultimately hold covered facilities accountable for the commitments on workers' rights.
The labour chapter is a significant improvement on the original NAFTA side agreement on labour. This robust and comprehensive chapter will bolster existing protections for workers. Workers at home and around the world will benefit from the Canada-United States-Mexico agreement and enjoy better labour standards for years to come.
Let us get this deal ratified.