Debates of Nov. 20th, 2023

Canada-Ukraine Free Trade Agreement Implementation Act, 2023

[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 Calgary Shepard, Carbon Pricing; the hon. member for Renfrew—Nipissing—Pembroke, Carbon Pricing.

[Sherry Romanado, Liberal, Parliamentary Secretary to the President of the King’s Privy Council for Canada and Minister of Emergency Preparedness]

Madam Speaker, I have a very simple question for the member opposite: Will the member be supporting Bill C-57, yes or no?

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Madam Speaker, that is a very good question, and that is why we are debating it today. They will find out at the appropriate time, and I think we are going to vote on this in the next couple of days. Maybe they will find out the answer then.

[Randall Garrison, NDP, Esquimalt—Saanich—Sooke, BC]

Madam Speaker, that is a bit of a peculiar answer to a very straightforward question. In fact, if we all do support Ukraine and free trade for Ukraine, then it is a bit hard to understand why the Conservatives are putting up speaker after speaker who will not say clearly that they are going to support the free trade agreement. In fact, a recent speaker said there were limits to the Conservatives' support for Ukraine.

Either we do support Ukraine, support this agreement and get on with it, or we do not.

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Madam Speaker, that was more of a statement than a question. We are supposed to be debating the legislation in front of us here today. That is what I am looking forward to: some serious questions about the legislation.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, this agreement, this legislation is fundamental to the security, stability and economic development of Ukraine. It would allow Canadian businesses to be part of Ukraine's rebuilding, which will be the biggest rebuilding in Europe since World War II.

I would like to hear the hon. member's comments and reaction to the Ukraine ambassador's statement at the international trade committee, which I am going to quote. She said, “We believe that the modernized CUFTA will pave the way for Ukrainian companies and Canadian companies to work together.”

Does the member agree with this statement by the Ukrainian ambassador?

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Madam Speaker, it is really important to remember that we have had an existing agreement in place since 2017, I believe. It was a Conservative government that actually negotiated and put that in place. We really have to remember that going forward.

Today, we have a war going on, and nothing has been discussed about trying to create the energy infrastructure for Ukraine so they could get off Putin's gas.

[Shannon Stubbs, Conservative, Lakeland, AB]

Madam Speaker, energy is fundamental to all people in all countries around the world, especially in expansive and northern countries such as ours and in the region that we are talking about.

As my colleague mentioned during his speech, after eight years of the Liberals, there were 18 proposals for LNG terminals from Canada. However, because of the Liberals' red tape, gatekeeping, anti-energy agenda and policies, not a single one has been built.

Conservatives are supportive about actual outcomes rather than words. We know it is so important for Ukrainians and citizens of allied countries to have energy security and affordable fuel.

Could the member comment on the ways in which the NDP-Liberals are holding Canada back from being able to truly support the resilient, tenacious people of Ukraine, who are fighting for their territorial integrity and sovereignty, as well as for sources of responsible oil and gas—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

We have to give the member time to answer. This is not the time for another speech.

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Madam Speaker, Bill C-69 is basically what the member was referring to. That is the “no more pipelines” bill that was imposed here in Canada on Canadian citizens.

As we look forward and work with Ukraine in developing their energy infrastructure, we need to take a very long look at what the Liberals have done for legislation on developing energy in our own country. We should be helping them instead of hindering Ukraine in moving forward with energy development.

[Kevin Vuong, Independent, Spadina—Fort York, ON]

Madam Speaker, I am pleased to rise today and speak to Bill C-57, the free trade agreement between Canada and Ukraine. The bill would modernize CUFTA and build on the original 2017 agreement with the inclusion of 11 new chapters and provisions.

I believe that Canada should continue looking for ways to use our economic strength to support the Ukrainian people, including the exportation of Canadian liquefied natural gas to break European dependence on natural gas supplied to those countries by Russia. I also believe that members of this House should always work to ensure that trade agreements entered into by Canada remain in the best interest of Canada and of all Canadians. This is why Bill C-57 should be closely examined and why engagement should occur with Canadians and stakeholders to get that very important feedback. We must also be aware that, through this Canada-Ukraine FTA, Canada is continuing its support for our Ukrainian allies, including through trade.

I commend the Conservatives for having successfully negotiated the current Canada-Ukraine Free Trade Agreement and for unanimously voting for it. I am also a strong supporter of free trade and of Ukraine. On the latter point, this is why I personally believe that Canada should indeed have a free trade agreement with Ukraine.

The current CUFTA was negotiated in 2017, and it will also remain in effect if, for some reason, the new agreement is not ratified. Regardless, Canada's commitment to a strong and independent Ukraine is a constant. Ukrainian people have suffered greatly through Russia's unwarranted aggression, and the people of Ukraine need all the assistance Canada can offer.

Canada's history with Ukraine displays a close relationship. On December 2, 1991, Canada became the first western country to recognize Ukraine's independence from the Soviet Union. Recently, Canada also undertook Operation Unifier, the Canadian Armed Forces mission to bolster the capabilities of the armed forces of Ukraine through the provision of critical military training.

As I said at the outset, the new CUFTA reflects the 2017 agreement, with 11 new chapters and provisions that focus on trade in services, including financial investment, cross-border trade in services, temporary entry for business persons, financial services, telecommunications, SMEs, digital trade and labour. Bill C-57 also includes elements of the government's new progressive trade and the first-ever sections on indigenous peoples. There is also a substantial new chapter on the environment.

The original 2017 agreement eliminated tariffs on 86% of Canada's merchandise exports to Ukraine. CUFTA has a built-in review clause, article 19.2, that commits to review the agreement within two years of its entry into force. The intention is to expand the agreement to new areas, such as investment in trade in services.

In July 2019, the Government of Canada and the Government of Ukraine agreed to modernize the CUFTA. Subsequently, in January of last year, Canada and Ukraine announced the launch of modernization negotiations, which were suspended as a result of the Russian invasion of Ukraine in February 2022. Those negotiations resumed in June 2022. On October 17, the modernized CUFTA was introduced for ratification by the government.

Let us take a step back and really look at the magnitude. In 2022, Canada's total merchandise trade with Ukraine was $420 million, with $150 million in exports and $270 million in imports. When the original CUFTA was ratified, non-coal exports to Ukraine actually grew by 28.5%, when looking at the period between 2016 and 2019. The top three exports to Ukraine were motor vehicles and parts, fish and seafood, and pharmaceutical products. Canada's top imports from Ukraine were animal and vegetable fats and oils, iron and steel, electrical machinery and equipment. For reference, Canada's 10th merchandise export market was Belgium, at $4.9 billion, and Canada's 10th merchandise importer was Brazil, at $7.5 billion. Therefore, this trade deal is very small relative to Canada's total trade, but that does not diminish its importance, particularly given the ongoing conflict.

There are two parts to adopting a trade agreement: a text of the agreement and the enabling legislation. Bill C-57 would implement the Canada-Ukraine free trade agreement as agreed to between the two parties on September 22.

Among other things, the bill sets out rules of interpretation and further “specifies that no recourse is to be taken on the basis of sections 9 to 15 or any order made under those sections, or on the basis of the provisions of that Agreement, without the consent of the Attorney General of Canada”. Bill C-57 would approve the agreement and provide for the payment by Canada of its share of the expenditures associated with the operation of the agreement's institutional and administrative aspects. The bill would also provide the Governor in Council with the power to make orders in accordance with that agreement. It would amend certain acts to give effect to Canada's obligations under that agreement and would repeal the 2017 agreement.

The new CUFTA would update the following chapters: rules of origin, government procurement, competition policy, monopolies and state enterprises, digital trade, labour, environment, transparency and anti-corruption. These are all things that are very important to Canadians. However, for the first time in a Canadian FTA, the environment chapter would include provisions recognizing the importance of mutually supportive trade and climate change policies. Also, for the first time ever, a Canadian FTA would include a chapter on trade and indigenous peoples. It would also replace the 1994 FIPA in the investment chapter.

What are the financial implications for Canada of this renegotiated CUFTA? We know that Canada currently has a $150-million trade deficit with Ukraine. However, when the Harper Conservative government originally negotiated this FTA, it was designed to be an asymmetrical agreement whereby Ukraine would initially gain the most benefit. The inclusion of more services trade in the updated CUFTA and other changes should balance our bilateral trade, which would be a good thing for Canadians. The enabling legislation would include some costs in implementing the agreement and the cost of dispute panels; however, those costs are standard and do not amount to large sums.

In conclusion, I am pleased to provide my support for Bill C-57. I believe that the new agreement would preserve Canada's interests in such agreements, and I believe that the renegotiated CUFTA would continue the objective of helping Ukraine, its people, its struggle to repel Russian aggression and its efforts to defend democracy.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I note that the hon. member mentioned his support for the free trade agreement. He rightly pointed out that the fundamental focus of any free trade agreement with Canada are the interests of Canada, Canadians and Canadian businesses.

Rebuilding Ukraine will be the single biggest investment project in Europe since World War II. It will require around $411 billion, and that is where Canadian companies can come in with their expertise and knowledge to help Ukraine. This bill would provide both an opportunity while doing a good deed. Does the member agree with the approach that the government has taken in bringing the legislation forward so Canadian businesses would continue to benefit with their association in the rebuilding process of Ukraine when Ukraine needs it the most?

[Kevin Vuong, Independent, Spadina—Fort York, ON]

Madam Speaker, I agree that Canada has a lot to offer the world and to offer Ukraine, and not only what we saw in terms of the training capacity and capabilities from the Canadian Armed Forces as part of Operation Unifier.

I want to use this opportunity to give a shout-out to a dear friend of mine, retired Canadian army sergeant Kevin Leach, who now leads the largest foreign training organization in Ukraine, Sabre Training and Advisory Group. It is actually training, with other NATO veterans, the equivalent of half of all NATO countries in terms of output, to ensure that Ukraine has the skills and the capabilities it needs to win the war against autocracy and Russian aggression.

[Shannon Stubbs, Conservative, Lakeland, AB]

Madam Speaker, I wonder whether our colleague, also in recognition of his service in the Canadian Armed Forces and the comments he just made, has any reflections on how it can be, after eight years, that Canada is now being excluded from major security deals with our international allies, major security agreements among free democracies—

[An hon. member]

Oh, oh!

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

The question's direct relevance to the speech the hon. member made is not apparent, so I would ask the hon. member to provide the relevance to Ukraine.

[Shannon Stubbs, Conservative, Lakeland, AB]

Madam Speaker, the relevance of course is that Ukraine also needs munitions in support of its fight against the illegal and imperialist attacks and invasions by Putin's Russia. Could the member make more extended comments on its requirements when combatting what must seem to be an unconquerable enemy that is attacking it, the training and skills required to do that, and why Canada is being excluded from multiple security deals these days.

[Kevin Vuong, Independent, Spadina—Fort York, ON]

Madam Speaker, I am proud to have served almost nine years now in His Majesty's Royal Canadian Navy. My personal opinion, as it relates to my colleague's question, is this: She brings up a very important point.

At a time when Ukraine is being illegally invaded by Russia, its neighbour, and when Canada shares a northern Arctic border with Russia, it behooves anyone with common sense to ask why the federal government believes that now is the time to cut $1 billion from the Canadian Armed Forces. These are the same Canadian Armed Forces that train Ukrainian forces to ensure they are able to not just repel but also win this war.

A concerning trend we have seen is the ostracization of our government and our Prime Minister from important security pacts at a time of increasing instability. I agree with my Conservative colleague wholeheartedly.

[Randall Garrison, NDP, Esquimalt—Saanich—Sooke, BC]

Madam Speaker, I must admit that it is refreshing to hear a speaker this afternoon who has actually stated his position on the bill that is before the House.

Does the member have any observations on why the Conservatives seem to want to talk about anything this afternoon other than the bill that is before the House and declaring our support for Ukraine by supporting the improved free trade agreement?

[Kevin Vuong, Independent, Spadina—Fort York, ON]

Madam Speaker, I have had the opportunity to discuss the bill with a number of my Conservative colleagues in a number of different arenas. One thing we agree on, beyond just the need to invest in Canada's capabilities to defend ourselves and our allies, is the fact that Canada's continued negligence with respect to our ability to export liquefied natural gas is indirectly hurting Ukraine. I think the official opposition agrees with me that it is negligent not to reduce European dependency on Russian LNG. I hope the government hoists this in and really seriously considers how it can comprehensively help our Ukrainian allies, including by removing the revenues that Russia uses to fund—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

We have to resume debate. The hon. member for Niagara West.

[Dean Allison, Conservative, Niagara West, ON]

Madam Speaker, I always want to make sure when I get up that I thank the residents of Niagara West for sending me here.

There are some service awards tonight on the Hill for a number of my staff: Gord, who did not come up, has been in my office over 15 years; Phil, who is here in Ottawa; and Irene, who is here in Ottawa with her better half, or other half, Dan, joining us today. It would not be possible to serve the people without the great support that we all have in our offices, so I wanted to recognize them before I start.

I rise today to speak to Bill C-57, the free trade agreement between Canada and Ukraine. For the folks in Niagara West and across the country who are watching this debate today, it is important to note that the Conservative Party of Canada was the party in government when the first Canada-Ukraine Free Trade Agreement was successfully negotiated. This agreement represents a critical milestone in the Canada-Ukraine relationship. It generated commercial benefits for many Canadian businesses. It also supported the economic reform in the development efforts of the Government of Ukraine. Most of all, it made the Canada-Ukraine partnership for peace and prosperity even stronger.

The agreement was ratified unanimously in the House, eliminating tariffs on 86% of Canada's merchandise exports to Ukraine. It is important to highlight that this agreement has a built-in review clause, article 19.2, committing to the review of the agreement within two years of its entry into force. The intention of this clause is to expand the agreement to new areas, such as investment and trade in services. That is where we are today: trying to improve upon that initial agreement.

In my view, Canada should continue to look for ways to use our economic strength to support the Ukrainian people. One key opportunity is exporting Canadian LNG to break the European dependence on natural gas from Russia. As we know, the Russian government is using its natural gas exports as leverage over European markets. Canada can help Europe break that cycle with our world-class LNG.

I believe that all parties in this place would agree that the Conservative Party has had a long and proud tradition of supporting free trade by negotiating and signing agreements, as it has done many times in the past. It was also a Conservative government that negotiated the first Canada-United States Free Trade Agreement and that negotiated the bulk of CETA with the European Union.

A ton of credit should go to the Conservative member representing the riding of Abbotsford, who is in the House right now, for doing an incredible job as the minister of international trade when we were in government.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

The hon. member knows that we cannot refer to who is present or absent in the House. I would ask him to limit it by referring to the member's constituency.

[Dean Allison, Conservative, Niagara West, ON]

Madam Speaker, I hope he is paying attention then. The member for Abbotsford also deserves credit for negotiating the first Canada-Ukraine Free Trade Agreement, perhaps one of the best trade ministers this country has ever had.

In terms of Ukraine, as we know, the country is a very close partner of Canada. In fact, for folks who are not aware of our close ties, Canada was the first western nation to recognize Ukraine's independence from the Soviet Union on December 2, 1991. It was a historic and proud moment for Canada, and it continues to do so today.

In 1991, after decades of Soviet socialism, oppression, mistreatment and subjugation, Ukrainians shrugged off their chains and voted to take control of their destiny. In this context, we must also recognize Ukraine's historic struggle against an aggressor who, for centuries, has attempted to deny Ukrainian nationhood and let them deal with their own culture.

Thankfully, through all of it, the Ukrainian people have remained resolute in the defence of their country. I am proud to say that since the beginning of the Russian invasion of Ukraine, all parties in this House have stood steadfast in leading the international support for the people of Ukraine. We have all stood shoulder to shoulder as we continue to support Ukrainian sovereignty and territorial integrity in the face of Russia's unacceptable aggression.

I would also like to highlight the deep cultural ties we share with Ukraine. Canada is home to 1.3 million Canadians with Ukrainian roots. That is one of the largest Ukrainian diasporas in the world. Many of these folks have called Canada home for generations, but have never forgotten the beautiful country of their predecessors. That is why, now more than ever, our people-to-people and economic ties are crucial to cultivate and continue to strengthen. It is also encouraging to see that nearly 200,000 Ukrainian refugees have arrived in Canada, joining our Canadian family.

However, recently I saw concerning reports that some of these folks may want to leave Canada due to the incredibly high cost of living. We all know the cost of living crisis was created by the Liberal government's inflationary spending, lack of a housing plan and its signature failure of the carbon tax. All these factors are affecting all Canadians, but the effects seem particularly acute for newcomers.

We have seen the difficult financial circumstances of international students and the challenges they are facing, housing included. Now we are getting reports that Ukrainian folks are saying that life in Canada is too difficult. Oleksii Martynenko fled Ukraine for Canada by way of Sweden after his city was attacked by Russian forces. Now he says he is planning to return to Sweden, where life is more affordable. His exact quote is, “I’m tired all the time now. I want to go back to Europe because it’s such a difficult life in Canada.” High housing costs and underemployment are among the challenges many Ukrainian refugees face.

It is a huge wake-up call for the Liberal government that what it is doing in terms of our country's finances, the economy and housing is not working. This pattern is in line with the recent studies that show that newcomers to Canada are leaving at much higher numbers than previously thought. These folks are increasingly leaving Canada for opportunities elsewhere, according to a study published by the Institute for Canadian Citizenship and The Conference Board of Canada.

The Liberal government has mismanaged the economy so badly that immigrants are finding Canada a place to leave rather than a place to stay and create a life. It is as simple as that. The polls across this country are showing exactly that for the larger Canadian population as well. Folks are struggling. Inflation has taken a huge bite out of family budgets. In fact, Scotiabank has calculated that interest rates would be 2% lower if it were not for the inflationary overspending of the Liberal government.

It is important to repeat this because it is strong evidence of where we find ourselves under the Liberal government. Things are so out of control when it comes to the cost of living that Ukrainian refugees and other newcomers to Canada are seriously considering leaving, or are actually leaving, this country. That is a very concerning thing to hear. It is concerning, but it can be corrected if the right actions are taken. That is why our Conservative team has proposed three key areas to address tomorrow's economic update.

First, the government must cancel the carbon tax increase. This is absolutely essential for affordability. Second, it must balance the budget to combat inflation and high interest rates, which have devastated family budgets across the country. Ultimately, the out-of-control spending piled on by the Liberal government has caused inflation to rise and forced the Bank of Canada to keep interest rates high. I agree with the Conservative leader when he says that the $900 billion of mortgages set to renew at higher rates over the next three years have created an emergency on our hands to bring rates down before those mortgages renew. The third thing the government must do for affordability is to promote home building over bureaucratic expansion so that Canadians and newcomers, like our Ukrainian friends who have recently arrived, can afford a place to call home.

To get back to the trade agreement, I know that we as Conservatives believe in supporting our Ukrainian allies, including through trade. We have also supported Ukrainian defence capabilities. It was under the previous Conservative government that Canada undertook Operation Unifier. This operation was a Canadian Armed Forces mission to bolster the capabilities of the armed forces of Ukraine through the provision of critical military training.

Since the start of Operation Unifier under the previous Conservative government, the CAF has trained over 39,000 Ukrainian military and security personnel in battlefield tactics and advanced military skills. It is an effective initiative that has produced substantial results for our Ukrainian friends.

As I wind down my speech, I want to make sure folks at home watching this debate know that the Conservative Party of Canada supports Ukraine one hundred per cent. There should be no doubt about that. I also believe there is immense potential for further growth in our bilateral trade and investment between Canada and Ukraine.

In 2022, Canada's merchandise exports to Ukraine totalled $150 million and merchandise imports from Ukraine totalled $271 million. Canada's top three exports to Ukraine were motor vehicles and parts, fish and seafood, and pharmaceutical products. Our top imports from Ukraine were animal and vegetable fats and oils, iron and steel, and electrical machinery and equipment. In 2021, the stock of Canadian direct investment in Ukraine stood at $114 million.

There is a lot of room to grow those numbers in sectors, and I look forward to it materializing in the near future. I believe both sides are after the same thing, which is a closer relationship between close partners. That is always helpful and is encouraging to see. It is a shame the Liberal Party is trying to muddy the waters by saying that not all parties in the House are in support of closer ties with Ukraine. Let us be honest and transparent with Canadians. Conservatives stand with Ukraine, and we always will.

In closing, let me say that Conservatives will always work to ensure trade agreements are in the interests of Canada and of all Canadians and that we are strong supporters of Ukraine. Also, we must do our jobs as parliamentarians. We need to closely examine this bill and engage with Canadians and stakeholders to get their feedback as we move forward.

I am thankful for this opportunity to speak on behalf of my constituents of Niagara West on this very important topic.

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

Madam Speaker, over the last few weeks we heard a number of comments about five Conservative members who went on a trip to London. What we have not heard a lot about is some of those members, at least one, had their expenses paid for by the Danube Institute.

The Danube Institute is a right-wing Hungarian think tank that recently a published a paper that said, “the stakes of the Russia-Ukraine war are not Ukraine's sovereignty, but the victory of NATO, the expansion of the US 'deep state', 'wokeism', LGBT propaganda, climate protection goals and implementation of mass immigration.”

Coincidentally, right after that trip, Conservatives are now talking about this legislation as being woke. Can the member not just admit that at least some of the Conservative members in his party have gone down the MAGA rabbit hole we are seeing from U.S. Republican congressmen right now in the United States with respect to Ukraine?