House of Commons Hansard #13 of the 43rd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was nafta.
The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Liberal Alexandra Mendes
It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Sherwood Park—Fort Saskatchewan, Health; the hon. member for Edmonton Riverbend, Health; the hon. member for Victoria, The Environment.
Francis Scarpaleggia Liberal Lac-Saint-Louis, QC
Madam Speaker, I wish to acknowledge that today's debate is taking place on the traditional territory of the Algonquin people.
When our government was elected in the fall of 2015, the world was a very different place. There was a certain degree of stability. There was a consensus that the principle of multilateralism was the ideal recipe for keeping the peace between nations and supporting free international trade to ensure greater prosperity for as many countries and people as possible.
Needless to say, the world has changed a lot since then. It has moved in the opposite direction. In the new international political context, as a country, we have suddenly been forced to cope with the need to return to the negotiating table to overhaul one of our most important agreements with the two countries that share the North American continent with us. That agreement is NAFTA, the North American Free Trade Agreement. We succeeded. We successfully negotiated something that was far from a foregone conclusion. We negotiated as equals with the most powerful economy on the planet, our neighbour and friend, and a tough negotiator, the United States.
I want to congratulate the Deputy Prime Minister, the then minister of foreign affairs, for her perspicacity, her determination, her poise under pressure, her tactful words at critical moments, her dignity and her diplomatic skills throughout the process.
I also want to congratulate the Prime Minister, who stepped in at the right times with firm and focused remarks to make it known that Canada would not capitulate to the United States.
We negotiated hard and successfully in the Canadian way. We were confident and firm but always respectful. We were true to our nature and to our reputation around the world. We were friendly but determined to stand up for Canadians and Canada's economic interests.
Canadians have a right to feel proud of our success in the NAFTA 2.0 negotiations, which were crucial economically, intense and not always linear. I think that is obvious.
In the time I have left, I would like to touch on a few key aspects of the new trade deal that I believe are important to my constituents, because they have written to me on numerous occasions about these issues.
The first is on dispute resolution, which, to my mind, is why we negotiated the original free trade agreement with the United States in the first place. I do not think it was to reduce tariffs so much, as there was already a free flow of goods, but we wanted to make sure, as a middle power with huge trade with the world's largest economy, that we could have a mechanism to objectively and rationally resolve disputes when protectionist pressures might rise south of the border. It was important. The whole idea of the free trade agreement, as far as I am concerned, was to have a dispute resolution mechanism so that we could be trading on a level playing field with a country that is 10 times bigger than we are.
We know that the United States, at the moment, is not fond of dispute settlement. In fact, for two years, the Trump administration has blocked the appointment of new members to the WTO's seven-member dispute resolution panel, claiming that dispute resolution compromises and undermines American sovereignty and latitude in trade. Therefore, the WTO dispute settlement mechanism was effectively paralyzed at a time when Canada was looking forward to having it deal with the United States and resolve the softwood lumber dispute with the United States.
We have heard a lot about softwood lumber in this debate. We have a case in front of the WTO, but because the dispute settlement mechanism has been paralyzed, obviously the WTO is not able to make a decision in that case.
Under NAFTA, there was similarly the potential for what is called “panel blocking”, where a country can block the creation of a dispute resolution panel by refusing to appoint members. That power existed under NAFTA for the United States, for example. Today, we have succeeded against all odds, given the prevailing mindset in the U.S., in having dispute resolution maintained in the new trade deal. Worth noting is that the new agreement is asymmetrical. That means that there is the possibility of dispute resolution between Canada and the U.S., but not between the U.S. and Mexico. Therefore, we clearly have a privileged position in this regard. We have also achieved an end to panel blocking, which is so important in the case of dispute settlement panels. We stood up and we won on that point.
A second issue is investor-state dispute resolution. For many years, there was concern that investor-state dispute resolution compromised Canadian economic and environmental sovereignty by subjugating our domestic policies to the economic interests of multinational corporations. NAFTA's infamous chapter 11 has been removed from the USMCA, or CUSMA, as some people call it, and investor disputes between Canada and the U.S. will no longer be subject to the investor-state dispute resolution process that existed under chapter 11.
It is important to mention that there are still obligations under the new agreement, with respect to expropriation, whether direct or indirect, where charges of indirect expropriation often flow when domestic environmental laws and regulations are seen to negatively impact foreign private interests in Canada. However, the Library of Parliament has stated:
Annex 14-B [of the USMCA] indicates that such actions' adverse effects on the economic value of an investment would not be sufficient to establish that an indirect expropriation has occurred. As well, Annex 14-B notes that whether any such actions constitute indirect expropriation would depend on factors that include the actions' economic impact, object, context, intent, and interference with 'distinct, reasonable investment-backed expectations” that such actions would not occur.
In many environmental cases, we would be able to argue that any rational investor who is well informed would understand that we would want to have policies to protect our environment in a particular area. For example, there was often speculation that chapter 11 would make it easier, hypothetically, for foreign private interests to one day pressure Canada to export its fresh water in bulk to a thirsty southern neighbour, namely, that in the face of domestic policies intended to block such exports, massive financial compensation might need to be paid to foreign private interests seeking to access bulk water as a tradable good. The USMCA makes that an even more remote possibility.
Many constituents wrote to me about dairy. I would like to reiterate that the supply management system has been maintained. There will, indeed, be new higher quotas for dairy imports from the U.S. with Canadian tariffs still being applied on dairy products that exceed these new quotas, tariffs ranging from 200% to 300%. According to reports, the new quotas are expected to give American dairy farmers access to up to 3.5% of Canada's market, from 1%. Therefore, we can see that the defence of the system is still very much in place. Yes, there has been a slight increase, but supply management has been maintained.
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Madam Speaker, the member across the aisle gave a well-thought-out and well-researched speech.
Over the past five years under the Liberal government, we have seen foreign direct investment, particularly from the United States into Canada. People are acutely aware of this in Alberta with the loss of investment in the critical oil sands sector. Does the member see any connection between the loss of investor-state dispute settlement systems and the possibility that Canada's foreign direct investment will continue declining in future years?
Francis Scarpaleggia Liberal Lac-Saint-Louis, QC
Madam Speaker, I do not see a connection whatsoever. I was reading up on foreign direct investment flows into Canada. The situation in Alberta with the lower oil price has had an impact on foreign direct investment into Canada and we want to make sure that the Alberta economy can rebound. There is no doubt about that. People are suffering.
Two reasons were given for the drop in foreign direct investment: the slump in the oil industry and the trade uncertainty around the new deal. By coming to a new deal, we have taken some of that uncertainty away and according to a Bloomberg report, foreign direct investment is coming back. What is even more hopeful about the situation is that it is not only coming back in the oil sector, it is coming back in other sectors as well.
Alain Therrien Bloc La Prairie, QC
Madam Speaker, I want to acknowledge my colleague and thank him for his speech. He praised his government's negotiating skills and claimed that government officials stood up to the Americans.
In my earlier remarks, I said that aluminum dumping is happening in Mexico, which is processing the metal and redirecting it to other places in North America. In a way, that jeopardizes Quebec's aluminum production. This new agreement institutionalizes the idea of Mexico taking the aluminum being dumped in its market and using it to manufacture parts for the production of North American vehicles.
My question is simple. If federal officials stood up to the Americans, why did they capitulate to Mexico?
Francis Scarpaleggia Liberal Lac-Saint-Louis, QC
Madam Speaker, as the Deputy Prime Minister explained to the House repeatedly during several oral question periods, the aluminum sector is in a better position now and is better served by the new agreement than it was by the old one.
Under the new agreement, vehicles will have to contain a certain percentage of North American steel and aluminum, which was not the case before. I believe the requirement is now 70%, whereas it used to be zero. I think 70% is better than zero.
Moreover, we must not forget that transportation costs are a factor in this market. If aluminum is produced near its markets, customers will naturally choose a product that costs less because it does not have to be transported as far.
Canada-United States-Mexico Agreement Implementation ActGovernment Orders
Hull—Aylmer Québec
Liberal
Greg Fergus LiberalParliamentary Secretary to the President of the Treasury Board and to the Minister of Digital Government
Madam Speaker, I would like to congratulate my colleague, a veteran MP, on his analysis of this agreement.
My question is very simple. We have been hearing a lot of outrage and concern about aluminum even though we know international trade rules have anti-dumping provisions that apply in Canada.
Would the member tell us a bit more about that aspect of the new NAFTA?
Francis Scarpaleggia Liberal Lac-Saint-Louis, QC
Madam Speaker, we are talking about dumping as though it were acceptable practice and commonplace. However, in international trade, the rules of the game prohibit dumping and that does not change in the least under the new agreement. There is no need to spend too much time dwelling on this practice.
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Madam Speaker, I rise today to address the matter at hand, the Canada-U.S.-Mexico agreement. I hope the Speaker will indulge me for a few moments as this is my first speech in this new Parliament and I want to thank a few people who are crucial for me being here today.
First and foremost, I would not be here without my wife Raechel. She has always been my rock. She has always supported me in all my political endeavours, so I thank her.
I thank my family. I will admit some of them did not vote Conservative in the last election. However, they stood beside me and supported me the entire way. In particular, I would like to thank my mother Rebecca and my grandparents Cindy Lou and Graham.
I would also like to thank my hard-working campaign team, Imelda Maclaren, Tom Cox, Barb Costache, Jesse Furber, Julia Roy, Luke lnberg and Kris Alex, under the leadership of Cherise Geisbrecht, along with all those who poured countless hours into door knocking, constructing signs and fundraising. I am also indebted to my board president Susan Evans and my financial agent Dennis Francis.
I would like to thank some others, Murray Kulak, Ben and Josh Sawatzky, Jody Dahrouge, Ed Basaraba, Tim and Julie Milligan, Fran and Ander Wolthuis, and Mark and Melissa Haarsma. Without their support, I would not be here today.
Finally, I want to thank my constituents in Sturgeon River—Parkland, who gave me a resounding 77.5% of the vote. Over 53,000 people have sent me here to Ottawa. That is 10,000 more than the previous record set in my riding.
With that strong mandate, I come to speak before this House on an issue that is of great importance to the people of my riding: our relationship with our largest trading partners, the United States and Mexico.
Sturgeon River—Parkland is composed of the counties of Sturgeon, Parkland and Lac Ste. Anne, as well as the major centres of Spruce Grove, Stony Plain and Morinville, all of which lie to the north and west of Edmonton. This constituency has many charming small towns like Onaway, Legal, Gibbons, Bon Accord and Redwater. We are proud to be a part of Treaty 6 territory and we include the communities of Alexander and Enoch, which are members of the Cree Nation. The people of all these communities have been watching the trade negotiations with interest and great concern.
There is a growing value-added plastics industry in the Alberta industrial heartland in my riding. There is a groundbreaking new oil refinery in Redwater. There are thousands of farmers across our riding who are growing potatoes, canola and lentils. As well, there are cattle, dairy and chicken farmers. We are home to Canada's top value-added pet food producers, and a lumber industry that has suffered under high tariffs from the United States. We also have the largest privately held steel fabricator in not just Canada but North America.
All of these important industries provide thousands of jobs for Canadians in my riding and across Canada, but we have seen very little from the Liberal government to address their challenges. I am going to delve a little deeper into those challenges.
The government is repeatedly claiming that all is well and that there is nothing to see here when we look at this trade agreement. However, Canadians are watching as our trade position in this world, and particularly with the United States, grows more and more precarious. I will mention a few examples of the concerns of those in my community that I am hoping the government will address.
On January 24, just a couple of weeks ago, the United States announced further trade action against our fabricated steel industry. A year ago the Americans initiated trade action against our fabricated steel industry. On September 4 of last year, the Department of Commerce found there was little to no evidence to show that our fabricated steel industry was impacting that industry in the United States.
Despite that positive ruling, our fabricated steel industry continues to face an unrelenting attack from American competitors. Just a few short days ago, the Department of Commerce made its decision to impose a 6.7% tariff on Canadian fabricated steel imports. A final appeal is yet to be heard, but I have seen little from the government to show it is considering the challenges of our fabricated steel industry.
We are debating the ratification of a trade agreement. As we speak, our competitors are attempting to kneecap our industry. Does this sound like a successful free trade agreement? Thousands of jobs across Canada are at stake. Hundreds of jobs in my riding are at risk, yet the Liberals are doing nothing to stand up for our steel fabricators, an essential value-added industry.
The government is so desperate to ram this agreement through that it is ignoring the erosion of our domestic industry. To add insult to injury, we are further opening up the procurement market in Canada to foreign competitors in the U.S., the very same competitors that are seeking to put tariffs on their Canadian competitors.
I ask the government how the new trade agreement will prevent the United States from discriminating against our steel industry at will. How are we going to make sure we have a fair and level playing field for our steel fabricators, among others?
Aside from our steel industry, we have an industry that has suffered even more severe damage over the past few years. Our softwood lumber industry remains at the mercy of our American competitors. We need certainty, rules and a vision for the prosperous future our hard-working men and women in the lumber industry deserve.
In the United States over eight million homes were constructed last year. These are homes that needed Canadian wood products. At the same time, Canada saw the closure of nine mills and reduced production in dozens of others. As of October 2019, over two billion board feet in production had been curtailed in Canada. Meanwhile, the price of lumber in the United States has skyrocketed by 33%.
It does not take an economist to see that the laws of supply and demand are not being followed. The price of a product is going up significantly, but here in Canada we are cutting production and facing mill closures. The reason is that the Liberal government has failed to take this opportunity to act and achieve a deal for our softwood lumber producers that would ensure sustainability and prosperity for years to come.
Ultimately, we need to delve deeper into the details of this trade agreement. However, the government has refused to share its internal economic analysis with us. What does it have to hide? There are clearly areas in which Canada is continuing to get a raw deal, and this must be addressed immediately. Canadians want to see transparency and accountability from the government.
What will the impact on our supply-managed agri-food sector be? How will Canada continue to diversify its trade when the United States can withhold its signature on our agreements? How can we ensure that Canadian companies, and the Canadian shareholders who trust their retirement savings to these companies, will be treated fairly by foreign governments? All of these are important areas where Canada has relinquished control and is vulnerable.
In the end, we need to ask ourselves if this deal will protect and grow a sustainable industrial base in Canada, the kind of base that we can depend upon to provide the middle-class jobs and prosperity previous generations have enjoyed as their birthright. We continue to see the hollowing out of our industry to low-cost jurisdictions. We see an American economic tiger cutting taxes, and we see regulations aimed at enticing Canadian job creators to America.
Canada only seems to be moving in the opposite direction. The only companies we can get to invest in Canada are ones the government has to write a big taxpayer cheque to.
Without a clear economic analysis provided by the government, the one thing I can conclude is that this trade deal does little to move our country forward. Rather, it maintains a status quo, a status quo that we see quickly eroding under our very feet.
Canada-United States-Mexico Agreement Implementation ActGovernment Orders
Winnipeg North Manitoba
Liberal
Kevin Lamoureux LiberalParliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons
Madam Speaker, we have heard a number of Conservatives say that they want a clear understanding and they want an economic impact study completed. In part, they need to realize that this was not just two people sitting in a room who came up with an agreement. It has taken a couple of years to hit the point where we are today.
Thousands of discussions have taken place. Provinces and different stakeholders, whether it is labour or business, have recognized that the agreement we are debating today will further advance the interests of Canada well into the future. That is something we need to recognize. It is not something that should be new to any caucus. Even the current Conservative caucus was provided the opportunity to have more details.
Would the member not agree that this has been a topic for discussion for well over two years?
Canada-United States-Mexico Agreement Implementation ActGovernment Orders
February 3rd, 2020 / 5:20 p.m.
Conservative
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Madam Speaker, if I could summarize the hon. parliamentary's question, it is, “Just trust us. It's a great deal, but you do not have to see any of the details, because we cannot trust you with those details.”
I do not need to be lectured by the parliamentary secretary, because I had the honour of working for the member for Abbotsford when he served as Canada's minister of international trade. Under his Conservative leadership, we achieved the Canada-South Korea Free Trade Agreement and the Canada-European trade agreement, and those are trade agreements that we can be very proud of for our country.
John Barlow Conservative Foothills, AB
Madam Speaker, I would like my colleague to elaborate on something which he touched on.
We have just heard that the United States has signed a free trade agreement with China, which will have a potentially devastating impact on Canadian agriculture. There may be as much as $40 billion in agricultural trade between those two countries, which will certainly have an impact on ours.
The United States beat us to the punch. When we sign the new NAFTA, we will not be able to enter into free trade agreements with countries like China and Vietnam without first having the approval of the United States.
I do not know of any other free trade agreement that Canada has ever signed that has signed off our sovereignty in trade in future deals with another country. I would like my colleague to talk about the impact this would have on his riding.
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Madam Speaker, before I answer my colleague's question, I would like to say that my heart and the hearts of all the people of Sturgeon River—Parkland are with the Chinese people as they currently go through the terrible pandemic in Wuhan and across the world. Our hearts and prayers are with them.
In my riding we are very strong. We are invested in beef and canola production. We are in the steel industry. With the United States signing a new trade agreement with China, we are significantly disadvantaged in Canada. We have not seen the resolution of the canola crisis with China yet. We have not seen any forward progress on it. Unless we see that kind of forward progress, our farmers are going to continue to be disadvantaged and lose market share.
Richard Cannings NDP South Okanagan—West Kootenay, BC
Madam Speaker, my colleague mentioned softwood lumber, which is a subject that is very close to the concerns of my riding and others in British Columbia. I wonder if he could expand on his comments.
I was heartened to see the chapter 19 provisions of the old NAFTA still in this new agreement so that we can go to NAFTA panels to battle these illegal tariffs that the United States has put on. I wonder if the member could expand on that and how it would play into the disputes that are still before a couple of those panels.
Dane Lloyd Conservative Sturgeon River—Parkland, AB
Madam Speaker, the member has the privilege of coming from one of the most beautiful ridings in Canada and southern B.C.
On softwood lumber, I cannot speak to the panels that are being disputed at this point. However, we have to look at some of the challenges that we can address in Canada to make our softwood lumber industry more competitive. One thing we have seen is that in the province of British Columbia the stumpage fees are much higher than they are in the province of Alberta, for example. We have seen a disproportionate number of closures in British Columbia over Alberta. That is something we can address as a country.
In terms of getting market access to the United States, without that, I was talking to American homebuilders who told me it is raising the cost of a house by $6,000. Surely we can make a strong argument for Canadian wood products to be entering the United States on a fair and level playing field.
Elizabeth May Green Saanich—Gulf Islands, BC
Madam Speaker, I want to start by acknowledging that we are here today, as every day, on the traditional unceded territory of the Algonquin Nation.
We are currently debating the new NAFTA. The Green Party considers this to be a real improvement over the first version of NAFTA, now that chapter 11 has been removed. That chapter was detrimental to Canadian laws and regulations and beneficial to U.S. corporations. That chapter also hurt our health and environmental protection regulations.
What is more, the section on energy in the former NAFTA will be rescinded when the new NAFTA comes into effect. This is good for us because Canada is the only NAFTA country that is still required to comply with the old export levels, which in fact undermines our own energy security.
The changes that have been made are something of a surprise given the history of trade agreements. I have long been an opponent of trade agreements that put corporate profits above sustainability, above community health, prosperity and well-being. The case of this agreement, CUSMA, is the first time, certainly in recent decades, that any trade agreement represents an improvement over what has preceded it in giving up more clout in protecting the environment and reduced the corporate powers that have been expanding ever since the neo-liberal era began.
In fact, it was in the first NAFTA that the notion of investor-state dispute resolutions gained traction, particularly in the developed world. My colleague, the member for Nanaimo—Ladysmith, has already spoken to this and provided some details about investor-state agreements.
I will add a little more personal detail. Before ever being involved in politics, I was always involved in the environmental movement, whether as a lawyer, or in government or with environmental groups. As executive director of the Sierra Club of Canada, we ran straight into the very first application of chapter 11. When NAFTA was being debated within Canada, the pernicious anti-democratic impacts of chapter 11 were unknown.
We debated many things about NAFTA in the country, but no one talked about investor-state provisions. It was something of a sleeper in the first version of NAFTA. We woke up to that sleeper when I was involved in a citizens campaign to try to get rid of a toxic gasoline additive in the country called MMT manganese-based toxins.
I worked with neurotoxicologists from Montreal, particularly Dr. Donna Mergler from UQAM. I worked with the car manufacturers because this MMT as a gasoline additive gummed up the onboard diagnostics in the car, potentially violating the warranties. It was the first time to have a coalition of environmental groups, carmakers and scientists all saying this toxic gasoline additive had to be removed.
Under the minister of the environment at the time, Sheila Copps, we managed to get rid of this toxic gasoline additive, only to have Ethyl Corporation of Richmond, Virginia, bring a suit against Canada. We were shocked by this first chapter 11 challenge. In a secret tribunal, it made the case that this was going to cost it money.
It is important for members of Parliament to understand how important it is that we get rid of these provisions in every other trade agreement. The agreements need not say that the actions Canada took, under former environment minister Sheila Copps, were in any way in objection to trade. They were not hidden, veiled protective measures; they were what they said they were. Getting something that was bad for human health, compromised the onboard diagnostics to ensure that pollution was controlled by the engine itself. All of these things were caused by MMT. There was no doubt about that. However, the government at the time under, former Prime Minister Chrétien, decided to settle with Ethyl Corp., fearing the worst out of the secret tribunal.
We had to pay, as a country, taken out of the A-base budget of Environment Canada, millions of dollars to Ethyl Corporation of Richmond, Virginia. We had to repeal the law we passed to keep this stuff out of our environment. On top of everything else, we wrote a formal letter of apology that Ethyl Corporation could use around the world to peddle this toxic stuff in other countries.
There are many more cases like that. There is S.D. Myers of Ohio which challenged the decision to stop the export of PCB contaminated waste.
Probably the worst of all is the most recent case of Bilcon. A U.S. corporation brought charges against Canada for the proper use of our environmental assessment law, properly applied, the version that occurred before the 2012 demolition of environmental assessment in this country, which is still not repaired, and was able to claim that the environmental assessment panel had not been fair to this company. It would have threatened the survival of one of the world's most endangered whales, the right whales of Atlantic Canada.
I could go on, but I need to move to other sections of this agreement. It is very important that we understand the difference between two chapters. I have noticed some speakers through this debate have mistaken chapter 19, the dispute resolution portions that we are pleased to see remain, and chapter 11, a resolution of disputes between two parties who should never have the right to challenge each other, that a private corporation that is in the United States under chapter 11 of our current NAFTA has superior powers and rights to a Canadian domestic corporation. That is still the case in the countries we deal with in the TPP. We put investor state in there.
Horrifically, it is the case with the Canada-China investment treaty which the Harper cabinet passed in secret and never came to this place. It still binds this country to allow state-owned enterprises of the People's Republic of China to secretly sue the government if we do anything that gets in the way of their profits. That is a legacy from the Conservatives which they do not seem to know about.
We have seen such damage from investor-state provisions. We need to track them down and remove them wherever they are. CUSMA is a huge improvement and sets the pace for getting rid of them elsewhere.
I am pleased to see the end of the energy security chapter. It was really strange. Mexico had no corresponding provision in its requirements to the United States. Only Canada made a commitment that we would not restrict any of our energy exports beyond the proportion that we had been selling to the United States over a period of time.
If we were selling 60% of our natural gas to the United States, we would have to continue to do that under the current provisions, which will be gone with CUSMA. Even if we were running out of natural gas, we would still have to export 60% to the United States. They were very strange provisions and we are glad they are gone.
I want to turn to three areas that have not received much attention in this debate. One is the improvements in the environment chapter and although not as strong as what was promised by the Liberals, we certainly have stronger language, and for the first time, a component of NAFTA dealing with gender rights and indigenous issues.
In the environment chapter, I am really pleased we were able to withstand efforts by Donald Trump to eliminate something that many members in this place may not have known of at all, which is the Commission for Environmental Cooperation.
That commission is led by the environment ministers of the United States, Mexico and Canada. They work together to protect our environment in every country. A truly democratic provision would give each citizen of the United States, Canada, or Mexico the ability to file a complaint against a decision that would be harmful to the environment.
Any citizen or NGO of Canada, the U.S. or Mexico can bring a complaint to the Commission for Environmental Cooperation to say our government is reducing environmental protections because it wants to promote trade. It is now protected and is better funded.
I want to underscore that although it is not everything we wanted, I am pleased that indigenous handcrafted products can now be duty-free. I am pleased that various indigenous provisions of this agreement highlight the importance of indigenous people throughout Canada, the U.S. and Mexico. I am also pleased there is at least some language that the goals of all of our trade agreements and multilateral co-operation have to focus on the rights of women and girls.
Richard Cannings NDP South Okanagan—West Kootenay, BC
Madam Speaker, the member for Saanich—Gulf Islands made a well-informed speech. I am glad she mentioned the egregious case of MMT and Ethyl Corporation. It is a case that shall live in infamy in our country's trade history. I am glad to see chapter 11 gone. The NDP has been fighting those kinds of provisions for years and years in all the trade agreements we have signed.
What are the member's thoughts on this trade agreement and others, and future trade agreements, regarding the possible export of water from Canada? In this agreement it is only covered with a side agreement, a letter between Robert Lighthizer and the Deputy Prime Minister. I just want to get the member's thoughts on water and trade agreements that we might sign.
Elizabeth May Green Saanich—Gulf Islands, BC
Madam Speaker, in response to my hon. colleague, who is such an environmental champion himself, I think we are okay. The way the old NAFTA worked is continuing in the new NAFTA, which is to say that water in its natural state is not considered a good in trade and if it is not considered a good in trade, NAFTA does not apply.
We took the step in the 40th Parliament under a private member's bill to have a law on the books that says the export of water from transboundary basins is not legal. There is still the threat. We can go back to that grand canal scheme of putting a pipe into Hudson Bay and running it to the United States.
However, as long as no jurisdiction in Canada allows the export of water in its natural state, NAFTA would not apply.
Alain Therrien Bloc La Prairie, QC
Madam Speaker, I want to thank my colleague for her speech.
We were quick to speak out to protect jobs in the aluminum sector. I thank the member for asking me a question about this.
I find the government's interpretation of the agreement quite impressive. Everything the Liberals have to say makes me think that they have not read the agreement. That is not what we are talking about right now, but I find it impressive. I am very impressed to see that their interpretation is unfounded, based on the clauses in the document tabled in the House, but that is a whole other story.
I would like the opinion of the leader of the Green Party. Quebec has the cleanest aluminum in the world. We have not heard many people speak in favour of improving the environment around the world or within our country, in Quebec. We want to understand why the government never pointed out that the cleanest aluminum in the world will be tossed aside by the agreement. As has already been announced, this aluminum will soon be carbon neutral. What these companies are doing in Quebec is amazing. Under this agreement, Quebec aluminum will be replaced by another aluminum that is produced with coal and that creates eight times more pollution. It will create a billion times more pollution than carbon neutral aluminum. That divided by zero equals infinity, if I am not mistaken.
Why do we not hear the member talking about this?
Elizabeth May Green Saanich—Gulf Islands, BC
Madam Speaker, I thank my Bloc Québécois colleague.
He is right. We are hoping for an improvement so that the parties to this agreement acknowledge that Quebec's aluminum really is the greenest in the world. Why not use it in projects like the LNG Canada project in Kitimat? The current government has agreed to grant huge subsidies to this project, which uses Chinese aluminum exclusively, even though Quebec's aluminum is better for our environment and for our economy.
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Madam Speaker, since this is the first time I have had more than 30 seconds to address my colleagues in the House, I want to take this opportunity to thank my wife Kate, who supported me on the campaign trail and has been at my side ever since I started my career. I also want to say hello to my seven-month-old son, Léo-Xavier.
I mention him in the House because some members have done the same with their children. Family is important, and it makes all the difference when we are on the campaign trail or working in the House. I know that every member takes care of their family.
Naturally, I also have to mention my father Yves, my mother Nicole, and my brother Mathieu, who have helped me every step of the way. I also want to thank my parliamentary assistants, namely Martin, who has now gone on to bigger and better things, Louise, Line, Judith, Carole and Andrew. I want to thank them for their support.
The important thing to keep in mind about Bill C-4, an act to implement the Agreement between Canada, the United States of America and the United Mexican States, is that we now have access to a market. MPs who are against the agreement can raise any argument they like, but we need to think about what is more important: a market made up of 35 million people or a market made up of 330 million people, not including Mexico? That is the important thing about this agreement.
Of course I want to talk about the importance of steel producers, a major presence in my riding that, in one municipality, accounts for 25% of the tax revenue. I can hardly imagine what would happen if the Government of Canada did not sign the free trade agreement with the United States and Mexico. I can hardly imagine what would happen to that municipality if 25% of its tax revenue disappeared overnight. That is something else each member should consider when the time comes to vote. Do members of the House want to do something that is good for the steel sector or not?
The Prime Minister and the Deputy Prime Minister worked very hard on the new NAFTA, and it is a good agreement for all Canadians all over this country.
Obviously, we have to acknowledge its flaws. I cannot represent the riding of Glengarry—Prescott—Russell without addressing those. In my riding we have dairy farmers, chicken and turkey producers, and egg producers. Supply management continues to be a very important issue to them.
The only thing I can tell them is that the work of an MP is to be present in the riding. That is what is important. When the government makes decisions, it would be easy to simply tell the producers without ever meeting them that everything will be fine.
The Minister of Agriculture and Agri-Food, the Prime Minister and the Deputy Prime Minister and Minister of Intergovernmental Affairs took the time to meet producers across the country and listen to their concerns.
It is true that we lost some market share. During negotiations around the agreement between Europe and Canada, it was not the Liberal government that was prepared to allow loopholes in supply management. It was the members who are currently seated across the way who, in 2013, were prepared to give up 1.5% of Canada's market share.
It was not the Liberal government that said it was willing to give up 3.25% of the market under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. It was the Conservative government that announced it had signed an agreement on October 5, 2015, at 11:59:59 p.m. The Conservatives threw out a number that did not make any sense to the dairy industry, which nevertheless accepted it without even consulting its farmers.
I think it is important to mention that we have a duty to consult Canadians, even if our party is the one in power. It is important to talk to producers, as I did. I met with some 300 dairy farmers who were against CETA, against the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and against the Canada-United States-Mexico Agreement. It is important to listen to them and to make their voices heard in the House of Commons. That is exactly what I am doing this evening.
Yes, we signed an agreement with Europe. Yes, we signed a trans-Pacific partnership agreement. Yes, we signed a new agreement with the United States and Mexico. However, yes, we are always going to listen to our dairy farmers, our chicken farmers, our turkey farmers and all of our supply-managed farmers. I can only reiterate how important it is to meet with all of the representatives of our agricultural sector across the country.
The agreement between Canada and the United States is important because it helps ensure market stability. My riding is home to a large steel producer, Ivaco. This company helps support our families by employing more than 400 people.
I cannot speak enough about the great work that the United Steelworkers are doing in representing their workers back home, but also the HEICO Corporation and Ivaco, which are doing a fantastic job representing our workers back home and making sure that they have stable, long-term employment.
If there is one thing I can say about Ivaco, it is that it changed leadership at some point and the unions have changed leadership at some point, but they have always cared and they have always put their differences aside to ensure that the families back home, whether they are in L'Original, Hawkesbury or Vankleek Hill, have a steady income and a company that they can believe in. I can assure families that Ivaco and the union have worked hard to ensure that investment remains at Ivaco. It is a great deal for L'Original, Hawkesbury or Alfred.
I have under two minutes left to address my colleagues. I know they are a little surprised by my speech.
Market stability is definitely something we must keep top of mind. The Bloc Québécois should listen to this. If we do not guarantee economic stability for our voters, our employers and all our families, what other option do we have?
In closing, I want to emphasize that the economic issues in my riding, my province and Canada are extremely important to me.
Ziad Aboultaif Conservative Edmonton Manning, AB
Madam Speaker, CNBC just published an update by Jared Kushner, talking about the sunset provision of this new NAFTA.
He is saying that the sunset provision in NAFTA which allows for the agreement to expire after 16 years is important because “it is imperative that the United States retain leverage in any of our trading relationships”.
The Liberal government wants us to rush in approving this new NAFTA. It says it will alleviate uncertainty in our economy. However, the president's son-in-law is bragging that it will do nothing of the sort. A sunset clause was originally a non-starter for the government. Why, now, would it agree to such a clause? What did Canada get in return for such a huge concession?
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Madam Speaker, I appreciate my colleague's questions but I do not agree with him that we suddenly agreed with the United States on the sunset clause. It was 24 years ago. Does he agree with a clause from 24 years ago and does it still apply 24 years later?
The question that we must ask is whether a free trade agreement should evolve over so many years. I think as technology finds its way and evolves, it is just a smart thing to revise agreements every so many years, whether it is five years, 10, 15 or 20. It just makes sense. If the hon. member wants to get stuck in the past, we would still be promoting horse whip manufacturing around here.
Rhéal Fortin Bloc Rivière-du-Nord, QC
Madam Speaker, I was pleased to hear my colleague from Saanich—Gulf Islands say that Quebec's aluminum is the greenest aluminum produced. I wonder whether my colleague opposite also recognizes that Quebec's aluminum is the greenest on the planet.
Does he realize that Chinese aluminum is the dirtiest that can be bought, especially because it is produced in coal-fired plants?
Does he realize that Mexican imports of Chinese aluminum increased by 240% last spring while, at the same time, sales of Mexican steel to the United States increased by 260%?
Does my colleague acknowledge these facts and understand that this is a bad agreement because it does not prevent imports of Mexican aluminum, but actually encourages the importation of Mexican aluminum for parts manufacturing in Canada?
Francis Drouin Liberal Glengarry—Prescott—Russell, ON
Madam Speaker, I want to thank my colleague for his excellent question.
Canada and Quebec produce excellent aluminum. I am fortunate to represent a riding that runs along the Quebec border. I always say that the sun rises east of Ontario.
If we ban aluminum from China or elsewhere, is my colleague prepared to say that we should ban other exports to China?
What the Bloc Québécois members are forgetting to say in their patriotic speeches is that if we ban other exports and imports to and from China, we will have to tell other manufacturers that we decided to favour a given sector and they will have to pay the price.
We protected 70% of aluminum production in Quebec and Canada.