Debates of Jan. 28th, 2021

Canada—United Kingdom Trade Continuity Agreement Implementation Act

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, I tried not to make a big partisan speech or revisit who was the greatest trading partner or all that.

I just tried to lay out where we could have benefits. I will say there could be some criticism on the part of the government for the lack of consultation, obviously. I think it would admit that as well.

The reality is the government basically took the consultation from CETA and lumped it into the Canada-U.K. deal. It has to do a better job of consulting going forward. The public service and negotiators are going to have to do that as well.

Just as I mentioned with the Hensall Co-op, companies like that, white bean growers and the different commodity groups have to be consulted, because there are some areas where CETA has not worked for producers. We have to make sure we have it fixed for Canada-U.K.

[Ed Fast, Conservative, Abbotsford, BC]

Madam Speaker, the member for Huron—Bruce rightly spent some time talking about agriculture. He mentioned former agriculture minister Gerry Ritz, who did so much to open up global markets for Canadian agriculture.

One of the forward-looking agreements that the member mentioned was South Korea, which was a trade agreement that very shrewdly opened up the South Korean market to Canadian beef.

Perhaps the member could expand on the opportunities that properly negotiated trade agreements can open up all around the world as we look for markets for our agricultural products.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, probably in time TPP will be the best deal, but I think for South Korea, country-to-country is likely the best deal all the time. When we look at the benefits it has brought to my area and western Canadian farmers, it is likely the best now.

There is a big responsibility that agriculture and the ag minister have this year with the certification, and the screw-up they had a couple of years ago, so they need to fix that permanently so that we do not have any issues shipping beef to the U.S. and then having it processed and shipped to Korea.

However, yes, South Korea has to be the best deal ever country-to-country.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I will be splitting my time today with the member for Ottawa West—Nepean.

It is an honour to rise today to speak to this continuation agreement that has been set up with the U.K. as it relates to trade.

I am going to talk about why I think it is so important to have continuation right now in our trade agreements, particularly with this trade agreement, especially in the context of COVID-19 with everything that is gong on in the world and the uncertainty. I will mention a couple of businesses in my riding of Kingston and the Islands that depend on trade, and I know they would want to know that there was stability in the marketplace right now related to trade.

Over the last year, there has been a great degree of change. With that change comes uncertainty, and that makes entrepreneurs and people who run businesses nervous. I would argue that probably the most nervous are the small and medium-sized businesses we all have in our communities. They are genuinely worried. They do not know what the world is going to look like in a week, four weeks, two months or even a year from now.

When we have trade agreements and trade relationships with other parts of the world that we have to negotiate, it is extremely beneficial to make sure, if we can put off those negotiations in order to maintain stability right now, that it is in the best interests of people, because they will know what to expect. It is one less thing business owners will have to worry about when they think about what is around the corner and what is going to happen two weeks or a year from now. As long as they know that certain markets are going to continue to move and operate in the same way that they have been, that provides stability to them.

I have been listening to members speak today on this topic, and I have been thinking about businesses in my riding that depend so much on trade.

The first I would mention is INVISTA, formerly DuPont, and it is one of the larger manufacturers in my riding. INVISTA makes nylon that is literally moved around the world. A lot of people probably do not realize that in order to make an air bag, for example, the nylon used in it needs to be moved to various parts of the world. The raw materials come from one area, I think in the United States, to Kingston where they get transformed into nylon. The nylon then goes to another part of the world where it is manufactured into material and probably goes somewhere else to be made into air bags. People usually find it surprising when I tell them that roughly 80% of the air bags in vehicles sold in North America come from nylon that is created and manufactured in my riding. When we think of large businesses that employ a lot of people in my community, we can think of why a business that operates on that scale would want stability in the marketplace right now as it relates to trade agreements.

However, I do not want to just focus on big business, because that is not what this is all about. There are many other businesses.

I think of Tom, who started MetalCraft Marine in my riding. When he was 25 years old, he built a boat, pretty much self-taught, and eventually turned his business into a boat-building company. He now builds specialized, custom boats that are shipped all around the world. He primarily builds fire boats, but other rescue boats as well, and then sends them to Panama, Europe and other parts of the world. The boats are built at a dock in downtown Kingston where he employs 60 to 70 people, such as electricians and welders, and are sent to fire departments and emergency services throughout the world. Someone like Tom wants to know that there is continuity in our trade relationships right now. I would imagine that Tom does not want any surprises or changes right now when it comes to a trade relationship, and he most likely does not want the anxiety of having to worry about what a different impact might mean to him.

I can think of an even smaller company, Tri-Art paint, in Kingston. This company started in the eighties in the back of a paint supply store making custom paint for artists: artisan paints. This has blown up into a worldwide company now, located on a small street in an old industrial area in Kingston where it is manufacturing artisan paints that are being sent all around the world.

I remember talking to the folks at Tri-Art when there was a lot of discussion about what Donald Trump was going to do with the old NAFTA, and the concerns they had. At that time, I talked to them about the new free trade agreements that were opening up in Europe. They were thrilled, because they were already selling so much of their product to Europe, and knowing that they could expand on that business and sell to markets in Europe was really rewarding for them. This is a small, family-run business. It is another great success story that developed into basically a worldwide distributor of art paint. I think of the folks at Tri-Art and what they are going through right now. People are worried about what their relationships are going to be like with the United Kingdom moving forward. They do not want the anxiety of having to worry about changes that may affect them. They want stability right now.

When I think of these businesses, I think of the stability that this agreement offers. It offers a time period almost like an extension of the trading relationship with the U.K. we had before Brexit. It gives them an opportunity to get through this time of uncertainty with the pandemic. Once we are out of it, our economy starts to come back and we start to see growth and pick up on new opportunities again, we can go back and more thoroughly get into the details to make sure that we finely critique and go back and forth in the negotiations with the U.K. That is how I see this agreement and why I see it as being so important right now, given the time that we are in.

I want to take the last couple of minutes I have to address some of what I have heard today in the House. In particular, as I said earlier, I heard Conservatives dancing around the issue. One Conservative in the House was talking about how there was not enough time to negotiate and look at the details of this. Another Conservative gave a virtual speech asking why this was not happening fast enough, saying that it needed to happen back in December and now we are still waiting. I found it interesting that they just seemed to be all over the place. We know at the end of the day that Conservatives are going to support a free trade deal. They are going to support this.

I think it is in the best interests of everybody to make sure that we give confidence to our businesses and to that trading relationship, so that it does not affect our market and the interconnected economy we have, but I also took note of a comment that a Conservative made earlier about how, until 2006, Canada had very few trading partners and if it had not been for the incredible Conservative government that came along, we would not have had any of the great trade relationships that we do now. The reality of the situation is that the global market started opening around that time. Lots of developing countries were removing and slashing tariffs, looking for agreements and looking for opportunities to work with other countries.

I think that globalization has really shown itself within the last 20 years in terms of making that interconnection happen. Of course, we are going to have struggles with that when we compare the ways the different economies work and the ways that they value things. That is why I think waiting until later, once we can get through this continuation agreement, to finalize and ratify something more comprehensive is the right way to go.

I am thrilled to support this today. I want to see this go to committee. I want to see this passed, so that we can get moving and make sure that confidence is with our businesses throughout Canada.

[Luc Desilets, Bloc, Rivière-des-Mille-Îles, QC]

Madam Speaker, let me begin by reiterating to our colleague that the Bloc Québécois is in favour of this agreement between the United Kingdom and Canada.

However, I also want to reiterate what we said some time ago about how the way the agreement was analyzed and studied by the Standing Committee on International Trade is completely unacceptable in a democracy like ours. The fact that committee members did not have access to either a paper or electronic version of the document so that they could analyze and study it is unacceptable. That needs to be said.

I would like to hear what my colleague has to say about one of the concerns of the Bloc Québécois. In the past, the government promised not to make any concessions in the dairy sector, which is already operating at a disadvantage because of previous agreements. I would like to know what my colleague thinks about the agreements when it comes to the dairy sector.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I have been sitting here all day and am definitely aware that the Bloc members are supporting this. I am glad to see that. It shows that they value the need to have these relationships continue when it comes to our trade with the U.K.

When it comes to dairy, I have heard members of the Bloc talk a lot today about supply management specifically and how they will defend it to the end. All I would say to that is it was the Liberal Party that brought in supply management. The Liberal Party has been there from day one with respect to supply management.

Will we maintain the integrity of that system? Yes, absolutely.

[Jenny Kwan, NDP, Vancouver East, BC]

Madam Speaker, one of the key provisions in this trade deal is noted as problematic in CETA as well. The Minister of Finance, when she was the foreign affairs minister, actually opposed it. It is about the investor-state dispute settlement mechanism. It is a hugely problematic provision, but there are no changes with respect to it in this trade deal.

Could the member advise me on why we would want to include this clause in the trade deal when it is an issue that even the government and the Deputy Prime Minister had acknowledged was a major concern?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, as I said, this agreement is a continuation. It will provide stability over the short term. A comprehensive agreement will come later on, and the member can validly start to discuss those points then. We can have that discussion.

I am going to go back to something the parliamentary secretary to the House leader said earlier. He said, with all due respect, that the NDP wants to have it all ways. By the very nature of the definition, coming to an agreement in a deal with another country means there are going to be concessions from both sides to find a middle ground somewhere. When the time comes, I think NDP members will have to realize that on some things they will have to move a little in order to get something else they want. That is the whole point of negotiating.

[Ed Fast, Conservative, Abbotsford, BC]

Madam Speaker, I always enjoy sparring with the member for Kingston and the Islands. He has acknowledged we are debating a continuity agreement, so there is really no new market access and investment relaxation taking place here.

Both the U.K. and Canada have signalled that they want to move toward further negotiations on a more ambitious agreement. What areas of market access might the government be planning? What areas of investment liberalization has the government signalled it wants to explore as it now moves toward negotiating a more ambitious agreement with the U.K.?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I also enjoy speaking with the member for Abbotsford.

I think he knows that I am not able to answer that question directly, but by the very nature of the suggestion that we want to be more ambitious, we can go after things that perhaps were not considered before or fix things, as the NDP said before. That is what we mean when we talk about being more ambitious.

[Anita Vandenbeld, Liberal, Parliamentary Secretary to the Minister of National Defence]

Madam Speaker, it is an honour to be here in this chamber today, as a local member of Parliament from Ottawa, to give my colleagues the flexibility to follow public health measures and participate virtually.

I am speaking today about the importance of the agreement on trade continuity between Canada and the United Kingdom of Great Britain and Northern Ireland. The Government of Canada's trade negotiators have successfully concluded negotiations on this agreement, which is also referred to as the Canada-U.K. Trade Continuity Agreement, or what I will call the TCA.

For centuries, Canada and the U.K. have long benefited from strong transatlantic ties. As maritime nations, we understand the value and importance of the ocean, not only for our livelihoods but as a vital route for trade and commerce.

For the Canadian fish and seafood sector, the United Kingdom was the number one destination for exports to Europe, and many of the benefits of the Canada-European Union Comprehensive Economic and Trade Agreement were associated with preferential trade with the United Kingdom.

As we know, the winds have shifted across the Atlantic, and we have also had to shift sails and chart new courses. The Canada-U.K. TCA is critical in this regard, as it not only seeks to maintain this important trading relationship with the U.K. on the beneficial course we set under in CETA 2017, but also enables us to look to new trading horizons with the U.K.

Last year, in 2019, the United Kingdom was Canada's largest fish and seafood export market by value to the European Union, with an annual average of over $100 million in exports. The U.K. was our sixth-largest export destination globally. Our transatlantic trading ties matter and will continue to matter. The Canada-U.K. TCA reflects this.

For fish and seafood, Canada's top exports to the U.K. from 2017 to 2019, the average annual export value included prepared shrimp at $81.3 million, live lobster at $22.7 million and prepared salmon at $22.3 million. Ensuring the stability of this trade and preferential market access to the U.K. is important for Canada's fish and seafood exporters. The TCA seeks to maintain these benefits until Canada and the U.K. can negotiate a permanent agreement, in keeping with the special bilateral trading relationship we have with the U.K.

I would also like to highlight some of the additional key benefits of the TCA.

From a trade and environment perspective, both Canada and the U.K. have agreed to pursue high levels of environmental protection. In doing so, we also recognize that products traded from sustainably managed fisheries and aquaculture operations—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Order. The member for Abitibi—Témiscamingue on a point of order.

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

Madam Speaker, it is important to point out that there are problems with the interpretation. The interpreter just said that it is hard to hear the speech because the member is wearing her mask in the House. I completely understand the health measures, but this debate is so important that I think members need to speak clearly. There are also Internet connection problems, so I think that the least we can do is to speak clearly to make the work of our interpreters easier.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Regarding the interpreters, there did not seem to be a problem previously, but I will look into it. We must first ensure that the microphones are working.

Obviously we have to take certain precautions, and that includes wearing a mask. Some hon. members prefer not to wear a mask while others prefer to keep their mask on. We will try to turn on more microphones and check with the interpreters to see if there are other problems. If that is the case, we will address those as well.

The hon. parliamentary secretary.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Madam Speaker, I prefer to wear a mask for the sake of my health. However, I will speak more slowly and hope that will improve things.

I would like to highlight some of the additional key benefits of the TCA.

From a trade and environment perspective, both Canada and the U.K. have agreed to pursue high levels of environmental protection. In doing so, we also recognize that products traded from sustainably managed fisheries and aquaculture operations underpin the vitality and economies of many of our coastal and maritime communities. Implementing the TCA reflects our commitment to linking economic and environmental collaboration with our trading partners. Further, the implementation of the TCA will provide predictability and stability for Canada's fish and seafood sector to grow and develop in the U.K. market post-Brexit.

In addition to replicating the preferential tariff provisions under CETA, the TCA includes meaningful transitional tariff rate quotas for Canadian exports of processed shrimp and frozen cod to the U.K. Like CETA, under the TCA these two products will be duty-free and quota-free by January 1, 2024.

In the meantime, and with the implementation of the TCA, these Canadian products will benefit from meaningful duty-free TRQ volumes to the U.K. in addition to the annual duty-free TRQ volumes we currently enjoy under CETA. This means that up to 12,400 metric tons of Canadian processed shrimp will be able to enter the U.K. annually duty-free, while Canadian exporters will still maintain access to the 23,000 metric-ton annual duty-free TRQ volume to the EU under CETA. Further, Canadian exporters will enjoy an annual duty-free volume of frozen cod to the U.K. of 791 metric tons, while continuing to have access to the 1,000 metric-ton annual duty-free volume of the same to the EU under CETA.

This trade continuity agreement is important. Not only does it provide room to grow the volume of duty-free exports before 2024, but it also preserves Canada's capacity to export a constant volume of its products to the United Kingdom and the European Union without disruption.

We are all familiar with disruption. We have all been living through unprecedented disruption amid COVID-19, including having to adapt here in the House. The timely implementation of the TCA, however, represents a chance to avoid disruption. Accordingly, I would like to emphasize that implementing the tariff-related provisions of the TCA is of utmost importance to Canada's fish and seafood sector.

In May 2020, the U.K. announced its United Kingdom global tariff duty rates, or UKGT. The UKGT outlines the most favoured nation tariff duty rates on imports into the U.K. for those that do not have a preferential trade agreement with the United Kingdom. What this means is that if the TCA cannot enter into force, bilateral trade would return to a pre-CETA MFN basis and Canadian exports would face the UKGT duty rates.

For fish and seafood, this would be particularly disruptive and result in a substantial increase in tariffs applied to U.K. imports from Canada. This bill, to implement the TCA, includes measures that would enable us to steer clear of such disruptions.

From 2017 to 2019, U.K. fish and seafood imports from Canada covered 51 tariff lines. Under the UKGT scheme, all but six of these would immediately become subject to incremental tariff increases of up to 20%. Under the UKGT and based on historical import patterns, Canadian fish and seafood exports could be faced with over $23 million in levied tariffs in 2021.

Without the tariff relief of the TCA, Canadian exports to the U.K., including shrimp, lobster and salmon, will face incremental tariffs estimated to be roughly $1.5 million per month. By comparison, under a fully implemented TCA, tariffs in 2021 would be expected to fall below $0.2 million for the year.

The implementation of tariff relief measures under the trade continuity agreement will help minimize trade disruptions for the Canadian fish and seafood sector.

In doing so, this agreement will help maintain jobs and opportunities in Canada's coastal and rural communities and pave the way for future trade growth in our important fish and seafood export sector.

As the winds continue to shift, we also need to be mindful that key competitors, such as the U.S. and China, do not yet have preferential access to the U.K. market. As the U.K. is a mature seafood market that demands high-quality fish and seafood products, Canada has benefited from its trading relationship with the U.K. under CETA. It is, however, important that we move quickly to maintain our competitive position within the U.K. market when CETA ceases to apply to our trading relationship.

There is strong interest among fish and seafood stakeholders to maintain preferential access to the U.K. and they have expressed satisfaction with the outcomes negotiated in the TCA. It is thus important that we move quickly on the TCA to ensure continued support for Canadian prosperity and for Canadian business to access and succeed in international markets.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Speaker, I am glad to see that our work is drawing so much attention. I feel as though I am in the George Orwell novel 1984. We know the government is here somewhere, but it is not here in Parliament.

I would argue that anything having to do with international relations and borders is complicated. With all the international flights, the government simply cannot close the borders. We saw Brexit coming four or five years ago. It was not a surprise. It was made official in January 2020. The government finally reached a deal on November 21 and tabled it on December 9. Yet it prorogued the House in September.

My question is simple: Why does the government take so long to introduce its bills when it comes to international issues?

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Madam Speaker, as the minister mentioned this morning, this is something that we have been working on from the beginning. As the member can see, there has been no disruption or pause in our trade with the U.K. This is, of course, a continuity agreement. We will be able to provide assurance and predictability for businesses, aquaculture and agriculture while we negotiate a bilateral comprehensive agreement, which, as the minister mentioned this morning, is expected within three years. In fact, in the agreement it says that we must negotiate starting, at most, one year from now.

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

Madam Speaker, building on my colleague's comments about this Orwellian atmosphere we find ourselves in and listening to Liberal members tell us that two plus two equals five, I would like to know, given the fact that we are getting zero vaccines this week and that the U.K. is one of the potential providers, whether the delay in sending vaccines to Canada that has so concerned my colleague has anything to do with our depending on some of our vaccines from Canada? With the delay in the tabling of this legislation, was there something going on behind the scenes with respect to vaccines?

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Madam Speaker, I would debate the premise of that question. As my hon. colleague knows, there has been no disruption in our trade with the U.K. This is a continuity agreement. We will continue and negotiate a permanent bilateral comprehensive agreement and, in fact, our supply chains have not been impacted. The supply chains continue with the U.K., and that is exactly what this agreement is about today.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, I have heard members of the government say many times, both today and before when it was discussed at the trade committee, that this is what they used to call a “transitional agreement”. I am glad they are not really calling it that anymore. Now the emphasis is on trade continuity. All of this is emphasized as a reason for why it is okay for there to have been such a bad process in reaching the agreement that is before us today.

I have put this question to many people from the government over the time we have been discussing this, including the Minister of International Trade herself, but have not been able to get a good answer to it. What is the difference between a so-called transitional agreement that has all the same features as a permanent comprehensive trade agreement like CETA, which has no expiry date, and a permanent comprehensive trade agreement? The emphasis is on continuity and transition, but what we are really dealing with here is a permanent comprehensive trade agreement. If there is a difference between the two, perhaps the member could enlighten us all as to what that difference is.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Madam Speaker, I would like to remind my hon. colleague that because of this agreement Canada is ahead of China and the U.S. right now in having preferential market access to the U.K. When we modernize the agreement, we will be looking at including more for small businesses, for women, for the environment and on digital trade. That is the purpose of modernizing the agreement, and that takes time. This agreement would provide the stability that our sector needs.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Before we resume debate, I would like to come back to the point of order raised by the hon. member for Abitibi—Témiscamingue regarding the difficulties with the interpretation.

I would ask members who have a paper copy of their speech to submit it to the interpreters. This would make it easier for them to follow along and ensure that everyone understands what is being said in the House.

Resuming debate, the hon. member for Prince Albert.

[Randy Hoback, Conservative, Prince Albert, SK]

Madam Speaker, it is great to be here in 2021 in my office here in Prince Albert. It is nice to see everybody online. I am glad we are able to participate and speak to this important piece of legislation.

I will be sharing my time with the member for Aurora—Oak Ridges—Richmond Hill. She is a wonderful member of Parliament, and I look forward to listening to her speak after me. She will do a wonderful job.

The unfortunate part of this whole situation that we are dealing with here today in regard to Bill C-18 is the fact that it has only happened today. This should have been done last September. It should have been tabled in Parliament last September so that it could have gone to committee, been properly reviewed and been implemented before January 1.

Right now, it is correct that Canadian businesses are selling into the U.K., but not based on any trade agreement that is negotiated and finalized through Parliament, either here or in the U.K. It is based on goodwill, and goodwill is only as good as one comment by the Prime Minister to maintain goodwill, who has a history of not making good choices in his comments about some of our trading partners. Therefore, there is huge risk, and we have been trying to tell the government, going back two years, that this needed to get done.

As we look at the timelines and go back to this agreement, I want to highlight some of the things that have gone on here. We all understand the importance of trade. I live in Saskatchewan, where we build and grow more things that we could ever consume and thus have to trade those things around the world. We want preferential market access and fair trade deals. We want deals in which countries recognize each other as fair trading partners. We are all in favour of—

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Speaker, I rise on a point of order.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Sorry, I have a point of order.