Debates of Feb. 6th, 2020

Canada-United States-Mexico Agreement Implementation Act

[Darrell Samson, Liberal, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence]

Madam Speaker, I thank my colleague for his very interesting speech. It is my understanding that the Conservative Party will be supporting CUSMA.

We thank the Conservatives for that support, because it is important.

I do want to bring up one point. I always measure what is happening. Trump stated clearly, before and during negotiations, that he would not sign any deals unless the dispute resolution was in place, where the panel would be American. Then he wanted a five-year sunset clause or it would be dead. Then there was the issue of supply management.

Those were the three major things the Americans needed in the deal, and they got none of it. I want to remind the member, who was not here in the last Parliament, that in the last Parliament, it was clear that the Conservatives wanted us to sign the agreement because there was $2 billion on the table.

We have done the job. We did it right. We added all kinds of extras to labour, which was important, and to the environment.

Could my colleague comment on that?

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Speaker, I agree with my hon. colleague on the other side that this was a deal that needed to be signed. We needed to be at the table to negotiate the deal.

As I said in my speech, a negotiation requires people putting real positions on the table, and some of those positions are negotiated away, which is exactly what the U.S. administration did. There was some give-and-take on its side. At one point in time, Canada was not even part of the negotiation. Only the the U.S. and Mexico were negotiating, because Canada was not taking its side seriously. That was a failure.

If we look at what we gave up in this agreement, vis-à-vis the previous agreement, it was significant. Coming to an agreement here with our largest trading partner is important. Giving up all that we gave up along the way showed that we had a very poor strategy. As well, the labour and environment issues were not negotiated at the last minute. They were brought to the table by the U.S. after the first agreement.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Madam Speaker, for the last couple of days, the Liberals have been blaming the Conservatives and the Conservatives have been blaming the Liberals for negotiating the worst agreement.

The investor-state provisions in the original NAFTA were negotiated by the Conservative government. Do the Conservatives not agree that it is a good thing the investor-state provisions that allowed investors to sue our government were scrapped in the new NAFTA, or CUSMA?

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Speaker, the investor-state dispute resolution process was a good one at that point in time. It meant that people could invest in foreign countries and not expect the investment to be undone by a national government. It did provide some certainty to foreign investors coming into each country, knowing there was a way to balance their investment, vis-à-vis the caprice of any national government that might change, and have some recourse at the end of the day.

I did reference TMX in my documents. TMX had a good position there because of the regulatory delays and the hurdles that were put in its way, in terms of expanding an existing pipeline across the country. Eventually the company threw up its hands and said enough was enough, that it needed to move on and the Canadian government could take it over. It was done. We do not see the federal government enforcing federal regulations to get the project done. If the government would follow its own rules, at the end of the day, projects would be done well.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, I am pleased to join the debate today on Bill C-4, on which we will be voting. Typically, when I stand in Parliament to vote, I am always very comfortable with my vote. Whether it is yes or no, I am proud to stand in my place and vote.

Today we will be voting on this agreement, and it will be with a heavy heart and reluctance that I will stand to support it, knowing not only that there are a lot of problems with it, but if I do not support it, things will take a dramatic and drastic turn. We need to have a free trade agreement with our most important trading partner. It will not be an easy vote when I know it could have and should have been so much better.

I will talk about process, priorities and gaps.

On the process, Canada was left on the sidelines for some of the most important parts of the negotiations. Mexico and the U.S. put a lot of the final details to the agreement and told Canada that it could like it or lump it. What kind of negotiators do we have when they leave us on the sidelines for some of the most critical components of a deal?

The other piece I have trouble with is the lack of engagement. If we look at what happened in the U.S., the Republicans and Democrats worked very closely, made changes and came up with an agreement with which everyone was comfortable. That collaborative process, working together on important priorities, helped make a better agreement in the long run.

In our case, was there engagement with the other parties in the House? Yes, there was a committee, but that committee did not talk to the elected representatives, the elected representatives being the official opposition, the Bloc and the NDP. The negotiators did not benefit from the wisdom of the other parties in the House, which has left us with a lump-it-or-like-it agreement.

Last week, the minister suggested that the opposition parties not hold up the agreement. The Conservatives had suggested the House resume early. The election was in October and the Liberals did not recall the House until early December. We said that we needed to come back to talk about and engage on this agreement. Then we suggested the House resume in early January to debate the agreement, that it was one of the most important trade agreements we would sign and that we needed to give it due diligence and talk about it. Did the government bring us back early? No. Then the Liberals said that they did not want the opposition parties to delay it, yet we had not even seen the legislation. It is a failed and flawed process. They should be very ashamed with how they went about it.

The Liberals took a number of priorities into the negotiations, but what did they omit? They omitted probably the biggest trade irritant between Canada and the U.S. in the last number of decades, softwood lumber. Was softwood lumber made one of their priorities for negotiation? No. The government headed into negotiations on an updated agreement, and the most important trade irritant we had for decades was not a priority.

In 2017, the government said it would get a new softwood agreement. The Prime Minister and President Obama said that they would get it done. Here we are in 2020, and the agreement is not done.

What has been happening with the softwood lumber industry? In my province alone, over 24 mills have closed and 10,000-plus employees have been impacted. The government's lack of doing its job in getting a softwood lumber agreement is hurting Canadians across the country.

I would like to suggest that British Columbia might be the canary in the coal mine on this particular issue, because mills in New Brunswick are suggesting that they are having problems. Quebec has been concerned about it. When 20% is put on as an arbitrary number at the border and we do not have an agreement, our industry is hurting.

Was it a priority for negotiations? No, forestry was neglected. Was it in the Speech from the Throne? It was neglected. Was it in the minister's mandate letter? It was neglected.

I would suggest that the government has failed to do its job. The Prime Minister said one of the most important things he needed to do was protect jobs in this country, but he has been absolutely indifferent to the crisis in forestry across this country. It took the last Conservative government to get the deal done, and it obviously looks as though we need to get back in, because it will take a Conservative government to get it done in the future.

Let me speak to failures. The one failure that stands out in my mind is aluminum. Aluminum has not been afforded the same provisions as steel. Why not?

Let us look at what is happening in the industry. In Canada, aluminum production in 2019 was 2.9 metric tons, and that has diminished from the year prior. It has been going down a bit. What is happening in China with aluminum? In China, aluminum production was 33.8 metric tons and is going up. What has been happening as well is that around the world, the need for aluminum has been going up, but the Liberal government did not feel it was important. Aluminum did not really matter.

One other priority was the environment. What the government failed to recognize is that Canada has the lowest carbon footprint for aluminum production in the world, since we use hydroelectricity, but there is more than that. The Prime Minister was at an announcement in Quebec with Rio Tinto and Elysis. They are looking at a no-carbon-emission process for the production of aluminum. Let us imagine that: We are going to have no-carbon-emission aluminum. I understand that oxygen might even be produced as part of the process.

The government is providing some protection for steel for the car industry, but it is not saying that our aluminum industry matters. Producing environmentally sound aluminum, predominantly in Quebec but also in British Columbia, does matter. The government neglected that, left it out of the agreement, and did not offer the same protections. That is certainly a failure.

There is another area of concern. I have never seen a government give up sovereignty in agreements that it signs with other countries, but now we are going to need permission from the U.S. to enter into an agreement with China. There are also restrictions with respect to our exports to other countries. We are giving away our sovereignty.

These are significant concerns. For the reasons I have identified, we are very reluctant to support this particular agreement as it moves forward.

That said, the United States and Mexico are our largest trading partners. We need to have an agreement. It will take another Conservative government to fix the softwood lumber agreement, to work with the aluminum industry and to make sure that both industries get the same recognition as our steel industry. We are going to have a job to do in trying to fix the agreement, but we cannot go without it in the meantime.

[Kevin Lamoureux, Liberal, Parliamentary 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, the member talked bout consultation and information being made available to the House. The leader of the Green Party brought up a very valid question, and I would like to pose that question to the member opposite.

An agreement was signed by Stephen Harper in regard to a trade arrangement between Canada and China. It was never debated in the House of Commons. It was signed off without any consultation with the different stakeholders here in Canada.

Does the member not see that there seems to be a double standard coming from the Conservative Party? On the one hand, it says we should have more debate and more information, whereas on the other hand, when her party was in government, it did not allow for any sort of information flow on a critical agreement that was signed off by Stephen Harper.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, I think that our record for ensuring that the appropriate documents were tabled and that the opposition was informed and had briefings is miles and miles ahead of what happened in this case.

This is a trade agreement with our most important neighbours, and I will contrast what happened in the U.S. We have a minority Parliament now. In the U.S., the Democrats and Republicans worked together to have a deal that would work for the United States, but the Liberals, in their arrogance, decided that they knew best. We could have helped them with some of the issues that I have identified and we could have made a better agreement for our country.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I listened with interest to my colleague's speech. I hear my colleagues in the House criticizing the agreement. One of our concerns has to do with aluminum and the sacrifices being asked of workers in that sector. The same goes for agriculture and softwood lumber. We have also heard about economic sovereignty. I am sure everyone knows that, on the issue of sovereignty, we on this side of the House are always ready to listen closely.

These issues are the reason the Bloc Québécois will be voting against the agreement. If we have the same concerns regarding those issues, why is my colleague suggesting that we vote in favour of the agreement? What is it about the agreement that makes her want to vote for it?

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, first of all, I want to talk a bit about the aluminum industry. In Canada, we need to be extremely proud of the amazing work that our aluminum industry is doing in heading towards a low-carbon product. For aluminum not to have the same protection as steel in the agreement is quite shameful and shows a lack of appropriate negotiating by the Liberal government.

That said, the member asked why we would support the agreement. As I said at the start of my remarks, usually I can stand up very proudly with my vote, but today I will stand up reluctantly, because I think the harm to Canada if this very imperfect deal does not go ahead would be more than the harm that is currently there.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, my colleague for Kamloops—Thompson—Cariboo shares a lot of the concerns of my constituents around trade, especially in the case of softwood lumber. It is a huge issue in British Columbia, and I thank her for bringing it up.

I wonder if the member would agree with the NDP that what we need here, coming out of this example, is a whole new way of negotiating trade agreements that would force the negotiating process to be transparent from the start, as is the case in the U.S. Congress and the European Union. In this way we would get a chance to debate the priorities of that negotiation, such as softwood lumber.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, certainly we share the concerns around softwood lumber, but the NDP historically has been very reluctant to support any trade agreement, and so I am not sure we have common ground there in terms of the best way to move forward. However, had the government reached out in terms of some priorities, I think it absolutely could have had a better deal.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, first and foremost, I want to thank the Conservatives for making it possible for me to participate in today's debate. I was not supposed to speak, but they allowed me to, so I thank them for that. There is co-operation in the House, which I think bodes well for the rest of the 43rd Parliament, because it will make it easier to move forward on issues.

Incidentally, I will warn my colleagues that I am going to talk about aluminum. I do not know if they are aware of this issue, but there has been some discussion about it lately.

Before I address the House this afternoon, I thought I would do some math for the benefit of all my colleagues. The Bloc Québécois has risen in the House nearly 90 times since the beginning of this Parliament to ask the government to explain to us and to the public why the aluminum sector has received less protection in the CUSMA than the steel sector.

I tried to count the number of satisfactory responses we received. I tallied it up, with the help of hard-working researchers. Unfortunately, the answer is zero. We did not get any satisfactory answers. Instead, we have had a lot of talking points, each one more laughable than the last.

We have been told that 70% is better than zero, even though they know full well that this percentage applies to auto parts and not the metal used to manufacture them. I would like the government to know that 70% of zero is still zero. It is simple math.

Another talking point we have been treated to states that the Aluminium Association of Canada, the AAC, supports the agreement. We are well aware that the AAC represents multinationals and not workers. Jean Simard of the AAC appeared before the finance committee as recently as Tuesday and explained that he would have really preferred to see aluminum get the same protection as steel. This talking point is also laughable.

Still another talking point is that we should listen to Premier Legault. We know full well that not since Pierre Elliot Trudeau's government has there been a Canadian federal government so at odds with Quebec.

The most amusing talking point, however, tells us that U.S. President Trump did not originally want an agreement and that CUSMA is therefore a win. We are well aware that Mexico was responsible for dropping the protection for aluminum because it benefits from the dumping of Asian aluminum.

Since we did not get a proper answer to our question, we suggested that the answer might lie in the fact that most of the steel industry is in Ontario. Otherwise, the agreement would have been different. That is irrefutable evidence. However, all we got was radio silence. Have we perhaps found the smoking gun? I am not sure, but I think so.

While Ottawa ties itself in knots trying to justify its mistakes, unions, residents and politicians in the Saguenay—Lac-Saint-Jean region have rallied around a consensus, namely that Quebec's aluminum is the greenest in the world, that it helps communities that have been hurt by Canada's many trade disputes thrive, and that our people make it worth fighting for.

Since the member for Chicoutimi—Le Fjord has chosen not to stand with us, we are the only party in the House that has been pushing for a broadly supported, transpartisan proposal on aluminum since day one of this amendment. That is why we do not need to ask Jean Simard whether he thinks the agreement will directly deprive our economy of $6 billion. We believe it will because it is a fact that is quantified in a non-partisan study conducted by experts using a flawless methodology, which we have provided to all parties. I hope everyone has done their homework.

It seems clear to me that CUSMA will ultimately protect China's aluminum industry instead of North America's. China smelts 60% of all of the aluminum in the world. Quebec essentially produces all of the aluminum in Canada, and this aluminum accounts for 6% or 7%.

What would it cost the federal government to protect such a critical industry in Quebec that is struggling around the world? Since the Deputy Prime Minister launched into a flood of figures the other day, I want to give her some important data to factor into her responses in the future.

Six key investment projects are at stake: phase 3 of the Alouette aluminum smelter in Sept-Îles; phases 1-B, 1-C, 2 and 3 of the AP-60 aluminum smelter in Jonquière; and phase 2 of the billet casting centre in my riding, in Alma.

Some $6.242 billion will be lost in the construction industry, simply because this government did not protect North America's primary aluminum market. We will lose 30,539 direct jobs in the construction industry, indirect jobs with suppliers and induced jobs in the consumer sector. We are talking about 829,000 new tonnes of the greenest aluminum on earth. The worst is that, according to the terms of the agreement, we will have to wait 10 years to renegotiate including the aluminum sector in CUSMA. There is one more figure.

The Quebec economy, and therefore Canada's economy, will lose $1 billion in spending. If you multiply that by 10, you get $10 billion. I will do the math for the government and tell them that it will ultimately cost $16.242 billion in communities that need this money.

The worst part of this agreement is that the 70% “protection” for aluminum parts will sanction aluminum dumping from Asia. If we agree to the terms of the agreement without saying or doing anything, manufacturers will be able to proudly stamp “Hecho en Norte America” and “Fabriqué en Amérique du Nord” on Chinese aluminum.

When we started, it was said that the Bloc was alone on the issue of aluminum. Now, when I look on this side of the House, and on the other side, I see that a number of my distinguished colleagues are now on the same page as us. The NDP and the Conservatives are now more or less sharing our concern for the aluminum sector and the tens of thousands of families that depend on it. I am happy, because the only ones now alone on the issue of aluminum are the Liberals.

Something else has affected me since this debate in the House began. Things have been said that are not acceptable in this House and that hurts me deeply. Last week, the hon. member for Sackville—Preston—Chezzetcook said, "I know there is the issue of parts, but with all due respect, the group of people who came to Ottawa yesterday certainly did not stop in Quebec City." He said it in a tone that was supposed to be humorous.

In Saguenay—Lac-Saint-Jean, people have come together to form a regional movement. Civil society, aluminum workers and elected municipal representatives have genuine concerns. The study that was tabled now justifies those concerns. This is no joking matter.

These people are rallying together and coming to Ottawa to tell us that they have concerns and that they are worried for their region, their jobs, their families and their children, and the government is responding with jokes. The government is making fun of them by saying that they should have gone to Quebec City rather than coming Ottawa. Even if the member said, “with all due respect”, I think he did exactly the opposite. He showed a lack of respect for them. Regardless of the topic of debate, we will not agree on everything. However, demonstrating a lack of respect for citizens is unacceptable.

I have a note on my bedside table. The first thing I see when I get up in the morning is, “Who do you work for?” I work for my constituents.

I hope to have elevated the debate.

[Darrell Samson, Liberal, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence]

Madam Speaker, I thank the member for Lac-Saint-Jean for his speech. He gave an overview of this week's discussions. He clearly paid close attention to the debate and I commend him for that.

My comments last week were meant to be lighthearted. They were certainly not meant as a personal attack.

I will say one thing. I am the only Liberal Acadian from Nova Scotia. In Lévis, Quebec, there is a monument to the Samson family, in honour of the contribution of the two Samson brothers. It was erected in 1967 to celebrate the 100th anniversary of Canada. I feel very comfortable. You are my friends, just as I know I am yours.

I no longer have time to ask my question, which was a really good one, so I will simply ask my colleague to provide his own comments.

[The Assistant Deputy Speaker, Carol Hughes]

Even though the member for Sackville—Preston—Chezzetcook has been a member of the House for over four years, I would remind him to address his questions to the Chair and not to a specific member.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, I thank my colleague for his thoughtful words.

Now that we are friends, perhaps he will agree that it might not have been the right time for jokes about that. I am sure he will not make the same mistake again. I am so pleased to have shared that learning experience with the member.

[Mario Simard, Bloc, Jonquière, QC]

Madam Speaker, I did not really know the member for Lac-Saint-Jean before today.

I really enjoyed his insightful speech, his summary of the past week and his expertise on aluminum. I want everyone here to know that I just want to be his friend.

In closing, I would like him to explain the difference between our party's position on aluminum and the Conservative Party's.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, I very much appreciate my colleague's question, and I want him to know he can count on my friendship.

The difference is that the Bloc is proactive. We want our ideas to have a real impact.

In spite of everything, I believe the Conservatives want to collaborate and make a difference on this issue.

Unfortunately, their proposals are not viable for now, but I am sure that, in time, we will achieve real gains and better protection for Quebec's aluminum sector and its workers.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, I too hope to befriend the member for Lac-Saint-Jean.

I would like him to give us a more detailed analysis of the Liberal position on aluminum. Specifically, I would like him to explain the difference between parts and aluminum produced in North America.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, it is not complicated. Steel obtained protections in this agreement that aluminum did not. In fact, 70% of steel must be smelted and poured in North America. Aluminum did not get that clause.

Aluminum can therefore come from China via Mexico. Mexico will turn aluminum into parts and eventually flood the U.S. market.

This does not just concern aluminum workers, but also some Liberals and Conservatives, who have parts factories in their ridings.

The aluminum will be processed in Mexico. It is also damaging for my friends and colleagues outside Quebec. I hope that we will have the Liberals' co-operation. I am convinced that we are on the right track, but we must not just talk; we must act.

[Michael Kram, Conservative, Regina—Wascana, SK]

Madam Speaker, as this is my first speech in this chamber in the new Parliament, I would like to take a minute to thank the voters of Regina—Wascana for electing me to this chamber. It certainly is an honour and a privilege to be able to represent the interests of Regina—Wascana in the House of Commons. I would also like to thank all of the volunteers on my campaign team who worked so hard putting up lawn signs, stuffing brochures into mailboxes and knocking on doors to make sure that the campaign was a success.

Of course, I have to thank my family, particularly my mom and dad. I am sure there have been many times when they wished that their son would just choose a more normal hobby other than pursuing a seat in Parliament, but I am glad it finally worked out for the better. I would also like to thank my brother Brad, his wife Kathy and my nephews Mason, Michael and Mark. They all had the opportunity to join me for my swearing-in ceremony, and it certainly was a special family occasion.

Now I would like to say a few words about Bill C-4.

On March 28, 2019, the Western Producer farm newspaper ran an editorial about agriculture policy. The Western Producer's editorial board said, “Two years ago, the federal government identified agriculture as a key sector for growth in exports”. Considering the high quality of our Canadian dairy products and the priority that the government gave to expanding agriculture exports, it came as a complete surprise to me that the new NAFTA, the new free trade agreement that the government recently negotiated with the United States and Mexico, had a serious flaw. This flaw, a concession made to the Americans at the expense of the dairy farmers in my province of Saskatchewan and thousands of other dairy producers across the country, is a real head-scratcher.

It is puzzling to me and to my fellow Conservative colleagues on the international trade committee why this government would kneecap our hard-working dairy producers by bargaining away their ability to increase dairy exports under the new NAFTA. I think it is important for Canadians to realize that the new Canada-U.S.-Mexico free trade agreement does not just limit the ability of dairy farmers to export to the United States and Mexico; it limits their ability to export to Japan, China, Europe or anywhere in the world.

Yesterday, the international trade committee heard detailed testimony from a panel of government experts on Bill C-4. These experts included Mr. Steve Verheul, Canada's chief negotiator for the new NAFTA, and Mr. Aaron Fowler, chief agriculture negotiator and director general of trade agreements and negotiations from the Department of Agriculture and Agri-Food.

At committee, I asked Mr. Fowler to clarify whether the new dairy export tariff that our dairy farmers would soon have to pay included only the United States and Mexico or applied to Canadian exports to the rest of the world as well. Mr. Fowler confirmed that the agreement applies to Canada's exports to the rest of the world.

When I asked Mr. Fowler whether there was a similar provision under the old NAFTA, the trans-Pacific partnership or our trade deal with the European Union, Mr. Fowler said, “I am aware of no similar provision in any of our other trade agreements.”

Then I asked the negotiating team to provide some insight into how the dairy export limit made it into the new NAFTA. Mr. Fowler said that the U.S. was concerned about new innovative Canadian dairy products, and that Canadian exports of these products were displacing American dairy products from markets that they, the Americans, traditionally exported to.

I appreciate the detailed answers that Canada's negotiating team provided to the committee on how truly innovative our Canadian dairy farmers have become in recent years in specialized products that Canadians can export around the globe. However, in the end it was up to this government to negotiate a better free trade agreement, or at least not a worse agreement, with the U.S. and Mexico, and not to impose a new worldwide limit on our dairy exports. This Liberal export limit would cut farm revenue, and farm families need this extra money.

Better margins and increased profitability on each and every dairy farm are more important now than ever because dairy farmers and, in fact, other producers across Canada have to come up with thousands of additional dollars to pay for the Liberals' carbon tax.

It is very troubling that the government can prioritize the expansion of farm exports on one day, only to limit them the next. During negotiations, why did our trade representatives, who were working on a North American trade deal with the U.S. and Mexico, buckle under pressure from the Americans and agree to limit exports to the rest of the world on dairy products?

These dairy products could have been sold to hungry and thirsty Japanese, Chinese and European customers who were not even parties to this trade agreement. Why did no one catch the significance of this concession, the imposition of a limit on our dairy exports, before it was too late?

It was my sad duty to report to the dairy farmers of SaskMilk, who came to Parliament Hill yesterday to brief me and my Conservative colleagues, that their analysis of the Liberals' new NAFTA was, unfortunately, correct. The Liberal government did, in fact, cave to the demands of the Americans at the negotiating table to limit Canada's dairy exports to hungry, thirsty, paying customers around the globe who live in nations that are not even parties to this new NAFTA agreement among Canada, the U.S. and Mexico.

[Kevin Lamoureux, Liberal, Parliamentary 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, I think the member is missing out on a fairly significant point. Supply management means a great deal to farmers in all regions of the country. The United States were hopeful that Canada would abandon supply management.

I am very happy to say that the Liberals started supply management. From a party perspective, the Liberals brought it in and the Liberals have fought to ensure that we continue to have it. If the member were to check with his dairy farmers, he would find that the overwhelming majority of them understand and appreciate the importance of supply management and having those quotas, because this is the way we can produce quality products and protect the industry as a whole.

Would the member not say that this is a major gain for Canadians, in terms of certainty going forward, with supply management in this agreement?

[Michael Kram, Conservative, Regina—Wascana, SK]

Madam Speaker, as I mentioned in my speech, it was the responsibility of the government to negotiate a better deal for Canada, or at least not a worse deal.

I had the opportunity to meet with representatives from SaskMilk who came here to Parliament Hill, and they were really excited about opportunities to export their products around the world. Now those opportunities have been taken away by the failings of our Liberal government in the NAFTA negotiations. It certainly is unfortunate that the Liberals were unable to obtain a better deal, or at least not a worse deal.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I heard my colleague's speech, as well as his legitimate concerns about the farmers and dairy producers in his riding.

Earlier, I asked his colleague why the Conservatives decided to vote in favour of the agreement even though they find it flawed. She replied that it was better to have a bad agreement than no agreement at all. That said, if we do not ratify CUSMA, NAFTA would remain in effect.

Does my colleague think it is worth voting in favour of this agreement? Would it not be better to ask the negotiators to go back and do their job?

If we negotiated properly, it would no longer be necessary to make concessions on the backs of farmers and aluminum workers.

[Michael Kram, Conservative, Regina—Wascana, SK]

Madam Speaker, I thank the hon. member for the question.

In my opinion, an imperfect agreement is better than no agreement. If this agreement is not ratified, the Americans and the Mexicans could cancel it altogether. In my opinion, this agreement is imperfect, but if we had no agreement, the Canadian economy would deteriorate quickly. That is why I will be voting in favour of the agreement.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Madam Speaker, as the member of Parliament for Renfrew—Nipissing—Pembroke, I am pleased to represent thousands of Canadians, both in my riding in eastern Ontario and as the official opposition critic for the economic development initiative for northern Ontario, who make a living in the living forest.

Of the many issues I have championed for Canadians as the member of Parliament for Renfrew—Nipissing—Pembroke, defending Canada's forestry industry was one of my first responsibilities when I was elected seven elections ago. I am not pleased that, after 19 years, I am still talking about some of the same issues regarding softwood lumber. This time, it is within the context of the renegotiated NAFTA. It should never have come to this.

The Prime Minister promised 400,000 Canadian forestry workers a framework agreement on softwood lumber exports with the Obama administration by mid-June 2016. The government's failure to meet that deadline, and its subsequent failure to negotiate a final agreement before the expiry of the last trade agreement on October 12, 2016, allowed forestry workers' jobs to become a political football to be kicked around by the new U.S. administration.

Many high-quality, well-paying jobs in the forestry sector are still at risk due to the federal government's lack of action on this important sector of the Canadian economy.

The worst part about there being no softwood lumber deal was the statement by U.S. trade representative Michael Froman of the Obama administration. He was on the verge of signing a new softwood lumber deal with Canada. The pact fell through when the anti-forestry lobbyists got the ear of a close prime-ministerial buddy, the disgraced Gerald Butts.

Someone close to the Prime Minister claimed, obviously as a stalling tactic, that a better deal could be reached with the incoming Trump administration. Only someone who was opposed to a healthy Canadian forestry sector could make that kind of claim.

The incoming Trump administration did not even have Canada in its sights. It was looking for concessions from Mexico. That changed pretty quickly with a number of diplomatic stumbles that made it appear the Liberal government was going out of its way to disrespect the American president. This jeopardized the tens of thousands of jobs that rely upon North American trade.

It was our government that negotiated a softwood lumber agreement by the end of April 2006, within three months of coming into office, to solve the last softwood lumber dispute.

As a member of the government that signed the agreement that expired October 12, 2015, I recognize there were critics of that agreement, just as there were critics, like me, of the previous agreement that had been negotiated under the old Chrétien administration.

Our government recognized that signing a deal that would satisfy everyone would have resulted in no deal. It was unacceptable then, just as having no deal today is unacceptable. That is why Canadians have little choice but to accept the deal that has been put before them today. Too many Canadian jobs are at risk.

The softwood lumber industry in my riding is characterized by small operations, many family-owned, and by the people who depend on jobs in the working forest. When I was first elected, the old Chrétien government softwood lumber policy was causing significant unemployment in my riding. Worried softwood lumber producers called my office regularly in the hope of a resolution regarding the softwood lumber dispute.

Forestry contributes billions of dollars to Canada's GDP. The forestry sector generates approximately 370,000 direct and indirect jobs in Canada. Since the last agreement was signed by our Conservative government, things have changed.

The Liberal Party is making it a lot tougher to live in rural Canada and places like eastern Ontario where forestry jobs exist. Skyrocketing energy prices, a plan to ban burning firewood for heat as it is written in the Paris accord, and the carbon tax that now adds tax on the fuel that powers the only means of transportation for rural Canadians, spell hard times.

If times are tough when workers have jobs, we can imagine how tough it is going to be when increasing carbon taxes take away their jobs. Carbon taxes, like any Liberal tax increases, are job killers. In rural areas, jobs are hard to come by. Ben Hokum & Son Limited in Killaloe, Murray Brothers in Madawaska, McRae Lumber in Whitney, Lavern Heideman & Sons in Eganville, Gulick Forest Products Limited, Randy Commanda Forestry in Pikwakanagan, Thomas J. Neuman Limited, Pastway Planing in Palmer Rapids and Bell Lumber in Renfrew are just a few of the businesses in my riding that are affected every time there is a softwood lumber dispute.

For Canada's forestry industry, for the people employed in that industry, and for the businesses that provide employment and need certainty in their business if they are going to continue to invest in their businesses and create jobs, an agreement is critical.

American producers have alleged for years that the Canadian forestry industry is subsidized by federal and provincial governments. In the U.S., prices are set by the market, a situation the U.S. contends is unfair compared with the way Canada manages its forests. It believes Canadian lumber should be subject to a tariff to offset so-called subsidies.

In the past, the U.S. has introduced anti-dumping and countervailing duty investigations against Canadian softwood lumber. Time and again, Canada has successfully defended itself against those actions. However, companies always fall off along the way.

In Canada, 94% of the forest is on public land, and by law all forest harvested on public land must be regenerated. All harvested trees are regrown. At 161 million hectares, or 43% of our managed forests, Canada has the highest volume of independently assessed, certified sustainably managed forests in the world.

Canada's forestry companies work with environmental groups, like Ducks Unlimited Canada, Pollution Probe, Nature Canada and the favourite of the Prime Minister's former principal secretary, the World Wildlife Fund.

The working forest benefits the aboriginal community in my riding. About 70% of aboriginal communities are located in forested areas. Forest companies are one of the largest employers of aboriginal people.

Far more forest is damaged by fire and insects, compared to the sustainable harvest that takes place in Canada.

Canadian mills are cleaner and greener than ever. What Canadians need is a lasting solution to ensure fair treatment of the Canadian forestry industry. My constituents truly hope the agreement before us today will bring certainty to the market.

For Ontario, trade with the United States is significant for the forestry industry. While up to 95% of Ontario's forestry product exports go to the United States, Ontario's share of the U.S. market equates to 3.34%. A producer in Ontario is selling domestically or to the United States.

Jobs have been disappearing at an alarming rate in rural Ontario. The need to keep jobs in the lumber industry to maintain our way of life is paramount.

Forestry is big business in Ontario, exporting 3.6 billion dollars' worth of goods annually, and employing over 43,000 people, many of whom work in my riding of Renfrew—Nipissing—Pembroke. Wages and salaries add up to almost $2 billion in the Ontario economy. In the Ottawa Valley, the forest industry supports thousands of jobs. Primary wood manufacturing in my riding of Renfrew—Nipissing—Pembroke is over 10 times the provincial average. I can identify over 100 forest product companies that make their homes in Renfrew county.

The Canadian forest products industry is a major manufacturing sector, responsible for 12% of Canada's manufacturing GDP.

What is also important in this debate over the trade agreement with our largest market is how it is affecting our overall trade relationship with the United States. For value-added products, the United States is Ontario's number one market. More than half of all the forest products in Ontario are exported.

Members need to understand why we, on this side of the House, use the term “crisis” when we refer to the state of the Canadian softwood lumber industry when there is a dispute of any kind. Those products' largest export market is the United States. Exports from Ontario have increased by more than 100% since 1991.

The United States construction industry is worth nearly $700 billion U.S. every year. It will continue to be the focus of Canadian wood product shipments. It is imperative that the government respect the special trading relationship we have had in the past, and prioritize the need to manage trade.

It is time to see if all the toadying up to the extremists in the anti-forestry lobby will stop, now that a new NAFTA agreement has been signed.

To the credit of our own forestry industry, Ontario lumber mills will continue to invest in their operations in the absence of support from the government.